Bradda Head Lithium Regulatory News (BHL)

23 Nov 2005 15:34

4Less Group plc (The)23 November 2005 The 4Less Group plc. 160 Brompton Road, Knightsbridge, London SW3 1HW Tel. 020 7594 0584 Fax. 020 7534 0560 www.the4lessgroup.com The 4Less Group Plc Interim results for the six months ended 30 September 2005 Key Points . The Group returned to profitability with a profit before tax of £2,000compared to a loss of £476,000 before tax in the comparable period in 2004. . Administration costs have been reduced by almost £850,000 to £1.4million from £2.3 million in the comparable period in 2004. . Net cash of £0.4m (2004: £1.2m). . There is a clear focus on the Group's core businesses. Contacts The 4Less Group Plc 020 7594 0515Eric Peacock, ChairmanRichard Collier, Chief Executive Corporate Synergy Plc 020 7448 4400Justin LewisOliver Cairns Chairman's Statement The 6 month period to 30 September 2005 has been characterised by managementchanges and by significant on-going investment in the core businesses. Thebreak-even position at September is considered satisfactory in the context ofthe pre-tax loss of £476,000 for the comparable period last year and the pre-taxloss of £968,000 for the year ended March 2005. Interims For the 6 months ended 30 September 2005 the Group made a profit before tax of£1,617 (2004: Loss £475,887) on a turnover of £168m (2004: £181m). As at 30September 2005 the Group had gross cash balances of £5.1m of which £0.4mrepresented cash resources available to the Group. Review At the end of March 2005 the trade finance division was closed and the CarFinance Company sold to Charles McLeod, a non-executive director. In the periodunder review, the Group has concentrated on its core businesses which are theprovision of specialist foreign exchange services for retail and corporatecustomers, the provision of overseas mortgages, insurance products primarily forthe owners of overseas properties, and the provision of services to facilitateregular payments to cover mortgages, pensions and other payments. A number of board changes have taken place following the restructuring of thebusiness. Charles McLeod became a non-executive director with effect from 1April 2005. On 15 August 2005 David Haddon was appointed executive marketingdirector and James Corsellis resigned from his position as non-executivedirector. On 26 September 2005 Richard Collier was appointed Chief ExecutiveOfficer in place of Nigel Paul, who resigned from the Board. I would like tooffer my thanks to James for his contribution over the years, and to Nigel whoseservices were invaluable to us during the difficulties that we experienced overthe last year. Outlook The business environment is becoming increasingly competitive and, althoughreliable statistics are difficult to obtain, various commentators have pointedto a 30 per cent decline in the number of overseas property acquisitions.Nonetheless, the Currency Division is performing admirably in a highlycompetitive market and it continues to provide significant savings to the mediumsize corporations, individuals and introducers who use our services. I am delighted that, following its restructuring, the Property Finance Divisionis performing above target. We have entered into a number of agreements withoverseas banks, highly reputable financial institutions, Independent FinancialAdvisor groups and Real Estate Property Services Groups. Coupled with theGroup's ability to facilitate regular overseas payment plans and overseasinsurance, the Group provides a completely integrated financial servicessolution for clients who are looking to purchase, or who already own propertiesoverseas. The Company will require further investment in its core businesses includingcustomer relationship management, innovative online registration and relatedcompliance systems, and technology across all the divisions. This investment isbeing expensed and by year end we will have incurred in excess of some £200,000in infrastructure and marketing investment. We are confident that our concentration on our core activities coupled with thefresh marketing and management initiatives will enable the Group to increase itsmarket share and maintain its highly professional service in the market place.However the Group believes that the benefit from the investment and theanticipated returns will only be fully felt in the next financial year. Given this £200,000 investment in the future of the Company and that the periodfrom December to March are seasonally poor trading periods, we anticipate thatthe results for the full year to 31 March 2006 will be a loss but very much lessthan that incurred in the comparative period last year and that we will have asatisfactory cash position. As can be seen from the results, we have much to do but the turn-around from theposition last year is encouraging, and the benefits of our new investment shouldbe seen in the financial year commencing in April 2006. Eric PeacockChairman 23 November 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT Six months ended Six months ended Twelve months ended 30th September 2005 30th September 2004 31st March 2005 (unaudited) (unaudited) (audited) TURNOVERContinuing Operations 168,017,316 181,047,698 355,048,877Discontinued 0 102,852 184,403 168,017,316 181,150,550 335,233,280 Cost of salesContinuing Operations (166,645,459) (179,390,777) (332,166,149)Discontinued Operations 0 (6,717) (38,525) (166,645,459) (179,397,494) (332,204,674) GROSS PROFITContinuing Operations 1,371,857 1,656,921 2,882,728Discontinued Operations 0 96,135 145,878 1,371,857 1,753,056 3,028,606 Administrative expensesContinuing Operations (1,483,755) (2,188,806) (3,628,056)Discontinued Operations 0 (142,095) (412,699) (1,483,755) (2,330,901) (4,040,755) OPERATING (LOSS)Continuing Operations (111,898) (531,885) (745,328)Discontinued Operations 0 (45,960) (266,821) (111,898) (577,845) (1,012,149) Interest receivable andsimilar incomeContinuing Operations 113,845 101,779 208,737Discontinued Operations 0 1,765 4,499 113,845 103,544 213,236 Interest payable andsimilar chargesContinuing Operations (330) (1,573) (5,511)Discontinued Operations 0 (13) (13) (330) (1,586) (5,524) 1,617 (475,887) (804,437) EXCEPTIONAL ITEMS Profit on sale of 0 0 35,269subsidiary Reorganisation 0 0 (199,221) PROFIT / (LOSS) BEFOREINTEREST & TAX 1,617 (475,887) (968,389) TAXATION 0 (68,000) (85,221) PROFIT / (LOSS) FOR THE 1,617 (407,887) (883,168)PERIOD (Loss) / Earnings per share 0.02p (5.26)p (11.23)p- basic - diluted 0.02p (4.83)p (11.23)p CONSOLIDATED BALANCE SHEET At 30th September 2005 At 30th September 2004 At 31st March 2005 (unaudited) (unaudited) (audited) FIXED ASSETSTangible Investments 178,583 285,688 247,084 178,583 285,688 247,084 CURRENT ASSETSDebtors 627,938 983,853 597,393Cash at Bank 5,139,656 7,148,455 5,594,089 5,767,594 8,132,308 6,191,482 CREDITORS: Amounts fallingdue within one year (5,104,123) (7,102,280) (5,598,128) NET CURRENT ASSETS 663,471 1,030,028 593,354 TOTAL ASSETS LESS CURRENTLIABILITIES 842,054 1,315,716 840,438 CREDITORS: amounts fallingdue after one year 0 0 0 NET ASSETS 842,054 1,315,716 840,438 CAPITAL AND RESERVESCalled up share capital 79,762 79,762 79,762Share premium account 1,414,187 1,414,187 1,414,187Profit and loss account (651,895) (178,233) (653,511) EQUITY SHAREHOLDERS FUNDS 842,054 1,315,716 840,438 CONSOLIDATED CASH FLOW STATEMENT Six months ended Six months ended Twelve months ended 30th September 2005 30th September 2004 31st March 2005 (unaudited) (unaudited) (audited) Reconciliation ofoperating loss to netcash (outflow) Operating loss (111,898) (577,845) (1,012,149)Reorganisation costs 0 0 (199,221)Disposal of assets to 0 0 10,896subsidiaryDepreciation of tangible 75,097 77,910 157,333fixed assetsIncrease in debtors (30,545) (375,634) 49,917Decrease in creditors (494,006) (1,207,930) (2,556,248) Net cash (outflow) fromoperating activities (561,352) (2,083,499) (3,549,472) CASH FLOW STATEMENTNet cash (outflow) fromoperating activities (561,352) (2,083,498) (3,549,472)Returns of investment &servicing of finance 113,515 101,958 207,712Taxation 0 68,000 0Capital expenditure (6,596) (64,082) (121,231)Disposal of subsidiary 0 0 (68,998)Cash (outflow) before (454,433) (1,977,623) (3,531,989)financingFinancing:Proceeds of AIM 0 1,700,000 1,700,000flotationLess associated costs of 0 (418,285) (418,285)flotation (Decrease) in cash for (454,433) (695,908) (2,250,274)the period Reconciliation of netcash flow to movement innet funds(Decrease) in cash in (454,433) (695,908) (2,250,274)the period Change in net funds (454,433) (695,908) (2,250,274)Net funds at 1 April 5,594,089 7,844,363 7,844,3632005 Net funds at 30 5,139,656 7,148,455 5,594,089September 2005 1. Nature of Information The interim accounts for the six months ended 30 September 2005 and thecomparative figures for the six months ended 30 September 2004 are unaudited.The comparative figures for the twelve months ended 31 March 2005 are not theCompany's statutory accounts within the meaning of section 240 of the CompaniesAct 1985 but are abridged from such accounts which have been reported on by theCompany's auditors and delivered to the Registrar of Companies. The report ofthe auditors on such accounts was unqualified and did not contain any statementunder Sections 237(2) or 237(3) of the Companies Act 1985. The interim accounts and the Comparative figures are prepared on the basis ofthe accounting policies set out in the accounts of the Group for the twelvemonths ended 31 March 2005. 2. Segmental Information NB: The discontinued businesses consist of the FLG Corporate Services divisionof The 4Less Group Plc which ceased operating, and www.Car-Finance4Less.com Ltd,which was sold, both with effect from 31 March 2005. An analysis of turnover and profit before tax by class of business is givenbelow: Six months ended Six months ended Twelve months ended 30th September 2005 30th September 2004 31st March 2005 (unaudited) (unaudited) (audited)Turnover Continuing Operations:Provision of foreign 167,950,580 180,886,129 334,900,534currencyArranging property 50,672 157,881 141,452financeArranging of insurance 16,064 3,688 6,891 168,017,316 181,047,698 335,048,877 Discontinued Operations:Arranging car finance 0 90,013 161,440Arranging trade finance 0 12,839 22,963 0 102,852 184,403 Total Turnover 168,017,316 181,150,550 335,233,280 All turnover arose within the United Kingdom Profit / (Loss) beforetax Continuing Operations:Provision of foreign 59,504 (369,592) (461,435)currencyArranging property (56,079) (6,895) (131,041)financeArranging of insurance (1,808) (55,205) (61,905) 1,617 (431,692) (654,381) Discontinued Operations:Arranging car finance 0 15,357 (110,038)Arranging trade finance 0 (59,552) (203,970) 0 (44,195) (314,008) Total Profit / (Loss) 1,617 (475,887) (968,389)before tax 3. Taxation Based on the results of the period, the Group believe that no provision fortaxation is required. 4. Earnings Per Share Both basic earnings per share and diluted earnings per share are based on aprofit after tax of £1,617 (March 2005: Loss after tax £883,168 - September2004: Loss after tax £407,887). The basic earnings per share has been calculatedon a weighted average of 7,976,183 (March 2005: 7,867,507 - September 2004:7,759,425) ordinary shares in issue. Diluted earnings and loss per share iscalculated on the same basis as basic earnings and loss per share because theaverage market price of the shares for the six month period was below the optionprice of the shares. For September 2004 the diluted loss per share wascalculated on a weighted average of 8,436,300 of ordinary shares in issue andthe dilutive potential ordinary shares from options and warrants. Copies of this interim announcement will be available from the Company's registered office, 160 Brompton Road, London, SW3 1HW. This information is provided by RNS The company news service from the London Stock Exchange