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Date: Wednesday 15 October 2008

Embargoed: 7.00am

Thomas Walker plc

Preliminary Results

for the year ended 30 June 2008

Chairman's Statement

Challenging trading conditions have had an adverse influence on the Group's overall performance during the financial year ending 30 June 2008. Downturns in both garment sales and in the plumbing trades allied to house-building have had a detrimental effect on the results for UK and the Stamping operation.

I indicated at the time of the interim results statement that business in the early months of 2008 was encouraging, following the disappointing losses in the six months to December 2007. It is therefore pleasing to confirm a significant recovery in the second half, resulting in an operating profit of £203,000 (2007: £840,000) for the full year.

This recovery is underlined by the fact that the Group's operations proved to be a solid generator of cash, with an inflow of £677,000 (2007: £722,000) from operating activities during the year. This is particularly pleasing given the 'one-off costs' associated with raw materials during the latter part of 2007. These were reported within the Interim Results Announcement of 28 March 2008.

Stamping

A new Management team appointed in TW Stamping during December 2007 has yielded tangible benefits improving margins and reverting to steady profit. Building on this encouraging performance, management has been further strengthened with the appointment of a new Director of Sales and Marketing. This adds new expertise for the development of key market sectors which offer increased added value; for example business with a precision machining component as well as stamping, in which TW Stamping intends to invest in order to develop long term business.

Garment Accessories

The widespread problems experienced by garment retailers in the UK, Europe and the USA, have been well documented in the press. The resultant downturn in demand, of course, reduces the market potential for accessories. For this reason year on year sales are down and the prime range of 'Non-Crush' hooks and bars has experienced a significant fall in sales.

The migration of garment manufacture to China and within China is in a new state of uncertainty as there are persistent rumours of significant cost increases due to legislation determining working conditions, environmental norms and transport costs. Garment manufacturers are already considering alternative manufacturing locations, including India, Bangladesh and Vietnam. Such changes usually result in lost business in the short term.

Sales of Identity Products had a strong second half. Supported by high levels of service, new customers and new products brought in extra business. In July 2008, Thomas Walker (UK) also recruited a new Sales Manager to develop further markets and products in new areas.

Financial Results

These are the first full year results to be prepared using International Financial Reporting Standards as adopted by the EU (IFRS). The corresponding figures for the previous year have been restated accordingly.

Sales for the year ending 30 June 2008 were £9,215,000 (2007: £9,890,000). This generated an operating profit of £203,000 (2007: £840,000). Of this £251,000 was generated in the second half of the year.

Despite the challenging trading conditions and the difficulties experienced during the first half of the financial year, net debt was reduced to £2.0 million in June 2008 (2007: £2.2 million).

Dividend

The Board is pleased to recommend a final dividend of 1.0 penny per share (2007: 1.0 penny per share). This, together with the interim payment of 0.5 pence per share maintains the overall dividend at 1.5 pence at the same level as in 2007.

The final dividend, which is subject to shareholder approval at the Annual General Meeting to be held on Tuesday 11 November, will be due for payment on 21 November 2008 to shareholders on the Register as at 24 October 2008.

Employees

Mr Edward Cook stood down as Managing Director on 1 July 2008 but he remained on the Board until his retirement on 4 October 2008.

Edward Cook has led the Group through many changes to its present status as an AIM listed PLC. He also successfully led the relocation of the Group to its present premises in Kings Norton and the acquisition of the businesses, which now, together, constitute TW Stamping.

On behalf of my fellow directors, shareholders and everyone at Thomas Walker PLC, I thank him for his unstinting service to the Group and wish him a long and prosperous retirement.

As previously announced, Mr William Good joined the Board on 1 June 2008 prior to assuming the role of Managing Director from 1 July 2008. I welcome Mr Good (or 'Bill' as he prefers to be called in less formal circumstances) as a colleague and I look forward to working with him during the next phase of the Group's development.

On behalf of the shareholders, I express my sincere thanks to my colleagues for their dedication, hard work and commitment to the Group throughout the past twelve months.

Outlook

All the markets in which the Group operates are likely to continue to be influenced by ongoing financial uncertainty. The general trading environment in the early months of the new financial year has been difficult and this is impacting the results of the stamping operation. On the positive side the operations of TW UK have performed to expectations. Within TW Stamping significant opportunities are being developed for adding value through the addition of precision machining for both existing and new customers.

The Board remains confident that the fundamentals of our operations remain sound and that the Group is well positioned to take advantage of any possible developments in market conditions.

Bryan C Knight

15 October 2008

Non-Executive Chairman  

Group Income Statement

for year ended 30 June 2008

	2008 £'000	2007* £'000
Revenue	9,215	9,890
Operating expenses excluding one off costs	(8,851)	(9,050)
Operating expenses - one-off costs	(161)	-
Operating profit	203	840
Financial expense	(180)	(167)
Net finance expense in respect of pensions	(20)	(22)
Profit before taxation	3	651
Taxation	(15)	(146)
Profit for the period attributable to the equity holders of the company	(12)	505
Basic and diluted earnings per share	(0.2p)	8.20p

* Restated for IFRS

Group Statement of Recognised Income and Expense

for year ended 30 June 2008

	2008 £'000	2007* £'000
Actuarial (losses)/gains on defined benefit pension scheme	(109)	511
Deferred tax on actuarial gain/(loss)	31	(153)
Exchange differences on translation of foreign operations	2	4
Net (loss)/income recognised directly in equity	(76)	362
Profit for the year attributable to the equity holders of the parent Company	(12)	505
	(88)	867

*Restated for IFRS

  Group Balance Sheet

at 30 June 2008

	2008 £'000	2007* £'000
Non-current assets
Intangible assets	555	565
Property, plant and equipment	3,861	3,958
Retirement benefit surplus	247	337
	4,663	4,860
Current assets
Stocks	1,874	1,794
Trade and other receivables	2,096	2,540
Cash and cash equivalents	28	249
	3,998	4,583
Total assets	8,661	9,443
Current liabilities
Trade and other payables	(1,691)	(1,671)
Tax payable	-	(150)
Obligations under finance leases	(41)	(46)
Bank loans	(679)	(1,026)
	(2,411)	(2,893)
Non-current liabilities
Bank loans	(1,286)	(1,348)
Obligations under finance leases	-	(44)
Deferred tax liabilities	(225)	(241)
	(1,511)	(1,633)
Total liabilities	(3,922)	(4,526)
Net assets	4,739	4,917
Capital and reserves
Share capital	308	308
Share premium	15	15
Reserves	6	4
Retained earnings	4,410	4,590
Total equity	4,739	4,917

* Restated for IFRS

  Group Cash Flow Statement

for year ended 30 June 2008

	2008 £'000	2007* £'000
Cash flows from operating activities
(Loss)/profit for the year	(12)	505
Adjustments for:
Depreciation	472	522
Amortisation	10	7
Financial expense	200	189
Gain on sale of property, plant and equipment	(28)	-
Taxation	15	146
	657	1,369
Decrease in trade and other receivables	447	38
(Increase) in stock	(80)	(311)
(Decrease) in trade and other payables	(33)	(218)
Increase/(decrease) in deferred tax liabilities	16	(5)
	1,007	873
Net interest paid	(180)	(167)
Tax paid	(150)	16
Net cash from operating activities	677	722
Cash flows from investing activities
Proceeds from sale of property, plant and equipment	27	-
Acquisition of property, plant and equipment	(375)	(811)
Net cash from investing activities	(348)	(811)
Cash flows from financing activities
(Repayment of)/proceeds from new bank facilities	(347)	263
Bank loan repayment	(62)	(59)
Payment of finance lease liabilities	(49)	(46)
Dividends paid	(92)	(83)
Net cash from financing activities	(550)	75
Net decrease in cash and cash equivalents	(221)	(14)
Cash and cash equivalents at beginning of period	249	263
Cash and cash equivalents at end of the period	28	249

* Restated for IFRS

The abridged financial information set out above does not constitute the Group's statutory accounts as defined under Section 240 of the Companies Act 1985. The auditors have made a report under Section 235 of the Companies Act 1985 on the financial statements for the year ended 30 June 2008 from which the financial information is extracted, but full accounts for the year ended 30 June 2008 have not yet been filed at Companies House. The report of the auditors on the accounts for each of the years ended 30 June 2007 and 30 June 2008 was unqualified and there was no statement under either section 237(2) or section 237(3). Full accounts for the year ended 30 June 2007, prepared under UK GAAP and restated under IFRS for the purpose of this announcement, have been filed at Companies House.

This announcement was approved by the Board of Directors on 15 October 2008.

The Annual General Meeting will be held on 11 November 2008 at 12 noon at The Birmingham Hippodrome Theatre, Hurst Street, Birmingham. 

Copies of the Annual Report and Accounts, which will be sent to shareholders shortly, can be obtained from the registered office of the Company at Catesby Park, Eckersall Road, Birmingham B38 8SE and will also be published on the Company's website.

Enquiries:
Bill Good, Group Managing Director
John Lomer, Group Finance Director	Colin Smith	Katie Dale
Thomas Walker plc	Arden Partners plc	Golley Slater
Mobile: 07790 742316 (BG)	Tel: 0121 423 8940	Tel: 0121 384 9743
Mobile: 07778 889 977 (JL)		Mobile: 07918 716 754

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