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
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.
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.
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.
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
For the six months ended 30 June 2012
Notes
Six months to 30 June
2011
£
Year to 31
December
2011
£
Operating expenses 4,917,008 4,459,496 8,369,796
Earnings per share - basic and
diluted 2 23.47p 0.41p (19.55)p
All activities relate to continuing operations.
at 30 June 2012
Assets Non-current assetsNotes
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
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
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
Non-current borrowings 4 803,113 921,843 859,121
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
For the six months ended 30 June 2012
Ordinary shares
£
Share premium
£
Retained earnings
£
Total equity
£
(Loss) for the year - - (439,391) (439,391)
Total comprehensive income for
the year - - (439,391) (439,391)
Profit for the period - - 527,559 527,559
Total comprehensive income for
the period - - 527,559 527,559
For the six months ended 30 June 2012
Notes
Six months to 30 June
2011
£
Year to 31
December
2011
£
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)
Cash and cash equivalents at the
beginning of the period (710,312) (740,704) (740,704)
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.
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. BorrowingsCurrent
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
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