TOYE & CO PLC (AIM: TOYE) Interim Results to 30 June 2012

Toye & Co plc ("Toye" or "the Company"), the manufacturer of military and masonic regalia, medals, badges and related textiles, announces its Interim Results for the six months to 30
June 2012. Contacts:
Toye & Company plc www.toye.com
Fiona Toye, Chief Executive +44 (0) 20 7242 0471
WH Ireland Limited www.wh-ireland.co.uk
Marc Davies / Mike Coe +44 (0) 117 945 3470

Chief Executive's Statement Results

For the half year your Company has achieved a profit of £527,559, an increase on the
£9,120 reported at this time in 2011.
The turnover is £5,476,188, an increase on last year's £4,495,726. It is important to note that these results were boosted both in the first half of last year and this year by the income from two large contracts. The underlying sales in our traditional markets have actually fallen reflecting the difficult business environment which will have an impact on our results in the second half.
Gross profit margins have increased this year due to the margins achieved on a substantial one off contract, which was manufactured in-house, meaning that additional overhead recovery was achieved whilst fixed costs remained constant.

Trading

Our results have been sustained by the income from the large contract. The turnover and return from our traditional markets have been reduced due to two main factors - the erosion of margins through pressure from our customers, and the reduction in the volume and value of orders.
Your Company's management have followed a clearly defined strategy to reduce overheads and adjust our operational structure to respond to the current market requirements.
We have consolidated the sales offices, reducing the manpower whilst working to deliver a motivated sales force, with our representatives out in the field ably supported by an efficient administration and effective supply chain. Strengthening the management of our supply chain has been crucial for the continuous review of our cost base to achieve best margin, and for achieving best value in purchasing and so enhance our competitiveness and profitability.

Staff

As part of the overall strategy to reduce overheads it has been necessary to reduce staff costs. This has been achieved through a reduction in staff numbers and an adjustment to the hours worked each week. Some members of staff have been made redundant or applications for voluntary redundancy have been accepted at all levels of the business from the senior management to the sales administration and shop floor. Changes in procedure and process are resulting in improved efficiencies and productivity.
Whilst some of this work and associated costs were incurred in the period to June, the majority of the costs will accrue in the second half.
Following the completion of the one off contract during the first six months, the management and staff have agreed to the introduction of a thirty-four hour working week. This is a highly effective cost saving measure, however I would like to see us reverting to a thirty-seven and a half hour week as soon as possible. Staffing attendance is being co-ordinated at all sites to ensure optimum customer response.
The priorities are to retain jobs, skills and productivity.

Outlook

The overall economic environment is not inspiring. However this Company in its very long history has weathered previous economic storms, and the management and staff are working hard to bring our overheads in line with our underlying turnover, and capitalise on our heritage and our unique range of skills.
There are a number of exciting projects and rewarding sales initiatives in hand.
The redevelopment of the Great Queen Street site is nearly complete with a new tenant for the large ground floor and basement retail areas, and the refurbishment of the first and second floors that we are retaining for our own use. We will shortly be inviting customers to come and visit the new Toye Club Room, and our improved corporate sales offices.
Our sales team have been putting a great deal of energy into our sales campaigns overseas and have identified good opportunities in a number of market areas. We will continue to devote resources to improving this promising trend.
An under-lying seam of finished product sale with minimal administrative overhead is an important element for a stable financial foundation for the business, and we are improving our e-commerce provision and increasing our on-line sales. Our factory shop in Bedworth serving the local community is doing well.
These are tough times that have meant tough changes for the business. It is also a time of opportunity to deliver constructive changes that will re-equip and adapt the Company for the future. However I do not expect these improvements to have a material impact on the second half of the year.
Regalia House Mrs F A TOYE
19, 20 & 21 Great Queen Street, Chief Executive
London, WC2B 5BE
28 September 2012

Group Statement of Comprehensive Income

For the six months ended 30 June 2012
Notes

Six months to 30 June 2012 £

Six months to 30 June
2011
£
Year to 31
December
2011
£

Revenue 5,476,188 4,495,726 7,981,006

Operating expenses 4,917,008 4,459,496 8,369,796

Operating profit / (loss) 559,180 36,230 (388,790) Finance costs (31,621) (27,110) (50,601) Profit / (loss) before and after taxation 527,559 9,120 (439,391)

Earnings per share - basic and
diluted 2 23.47p 0.41p (19.55)p
All activities relate to continuing operations.

Statement of Financial Position

at 30 June 2012

Assets Non-current assets

Notes

At 30 June 2012 £

At 30
June
2011
£
At 31
December
2011
£

Plant, property and equipment 1,898,722 1,973,814 1,934,241

Current assets

Inventories 1,142,795 1,251,262 1,351,304
Trade and other receivables 1,573,411 1,353,675 968,469
Cash and cash equivalents 4,286 7,761 5,665

2,720,492 2,612,698 2,325,438 Liabilities Current liabilities

Trade and other payables 1,596,463 1,505,006 1,335,847
Current borrowings 4 338,996 363,822 715,977
Current portion of long term
borrowings 4 129,073 123,320 124,724

2,064,532 1,992,148 2,176,548 Net current assets 655,960 620,550 148,890 Non-current liabilities

Non-current borrowings 4 803,113 921,843 859,121

803,113 921,843 859,121 Net assets 1,751,569 1,672,521 1,224,010 Equity attributable to equity holders of the parent

Ordinary shares 562,000 562,000 562,000
Share premium 2,677 2,677 2,677
Retained earnings 1,186,892 1,107,844 659,333

Total equity 1,751,569 1,672,521 1,224,010 Statement of Changes in Equity

For the six months ended 30 June 2012
Ordinary shares
£
Share premium
£
Retained earnings
£
Total equity
£

Balance at 1 January 2011 562,000 2,677 1,098,724 1,663,401 Changes in equity for 2011


(Loss) for the year - - (439,391) (439,391)
Total comprehensive income for
the year - - (439,391) (439,391)

Balance at 31 December 2011 562,000 2,677 659,333 1,224,010 Changes in equity for the period


Profit for the period - - 527,559 527,559
Total comprehensive income for
the period - - 527,559 527,559

Balance at 30 June 2012 562,000 2,677 1,186,892 1,751,569 Statement of Cash Flows

For the six months ended 30 June 2012
Notes

Six months to 30 June 2012 £

Six months to 30 June
2011
£
Year to 31
December
2011
£

Cash flows from/(used by) operating activities

Cash generated from operating
activities 467,319 492,597 232,281
Interest paid (31,621) (27,110) (50,601)

Net cash generated from operating

activities 435,698 465,487 181,680

Cash flows from investing activities

Purchase of property, plant and
equipment (8,437) (20,150) (40,149) Proceeds from sale of property, plant

and equipment - - 10,873
Net cash flows (used in) investing

activities (8,437) (20,150) (29,276)

Cash flows from financing activities

Repayment of borrowings (51,659) (60,694) (122,012)

Net cash flows (used in) financing
activities (51,659) (60,694) (122,012)

Net increase in cash and cash equivalents 375,602 384,643 30,392

Cash and cash equivalents at the
beginning of the period (710,312) (740,704) (740,704)

Cash and cash equivalents at the end of the period 3 (334,710) (356,061) (710,312) Notes to the Interim Financial Statements 1. Basis of preparation

The accounting policies and methods of computation followed in the interim financial statement are consistent with those published in the Group's Annual Report and Financial Statements for the year ended 31 December 2011 and expected to apply in the Financial Statements for the year ended 31 December 2012.
The results for the six months ended 30 June 2012 and 30 June 2011 have not been audited and do not constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The abridged financial information for the year ended 31 December
2011 has been derived from the statutory accounts included in the Annual Report 2011, which were prepared under International Financial Reporting Standards (IFRS), and have been filed with the Registrar of Companies. The auditor's report on these accounts was unqualified and did not contain statements under Section 498 (2) or Section 498 (3) of the Companies Act 2006 which deal respectively with the maintaining of proper accounting books and records and the availability of information to the auditors.
The Interim Report and Financial Statements were approved by the Board of Directors on 28
September 2012. A copy of the interim statement will be posted to shareholders and made available to the public at the Company's Registered Office, 19, 20 & 21 Great Queen Street, London and on the Company's website www.toye.com.

2. Earnings per ordinary 25p share

The earnings per ordinary 25p share is based on the profit after taxation and the unchanged number of 2,248,000 ordinary shares in issue throughout the period.

3. Analysis of net debt

At 1 January
2012
Cashflow
£
Other non cash changes
£
At 30 June
2012
£
Cash at bank and in hand 5,665 (1,379) - 4,286
Overdraft and invoice

discounting facility (715,977) 376,981 - (338,996) Total cash and cash

equivalents (710,312) 375,602 - (334,710)
Debt due within one year (124,724) 51,659 (56,008) (129,073)

Debt due after one year (859,121) - 56,008 (803,113) (1,694,157) 427,261 - (1,266,896)

4. Borrowings

Current

At 30 June 2012 £

At 30 June
2011
£
At 31
December
2011
£
Bank overdraft and invoice discounting 338,996 363,822 715,977

Bank loans 129,073 123,320 124,724

468,069 487,142 840,701

Non current

Bank loans 803,113 921,843 859,121

Total bank borrowings 1,271,182 1,408,985 1,699,822

distributed by