CSLT.L Regulatory News (CSLT)

28 Jun 2005 07:00

Cosalt PLC28 June 2005 Cosalt plc("Cosalt" or "the Group") Interim Results for the twenty-six weeks to 1 May 2005 Cosalt, a market leading manufacturer and supplier of Industrial Services andLeisure Products in the UK, announces interim results impacted by adverse marketconditions in its Holiday Homes business, but the maintained dividend reflectsconfidence in the longer term performance of the business. Financial Highlights • Turnover from continuing activities of £58.56m (2004: £71.03m) • Profit before tax from continuing activities* of £314,000 (2004: £2.16m) • Earnings per share from continuing activities* of 1.64p (2004: 11.01p) • Interim dividend maintained at 6.00p *excluding exceptional items and goodwill Operational Highlights Industrial Services Division • Margin and working capital improvements at Cosalt:Ballyclare • Further market penetration in specialist marine activities and good contribution from Aberdeen Inflatables • Improved performance from schoolwear/childrenswear Leisure Products Division • Caravan Holiday Homes impacted by industry-wide over-supply and challenging market conditions • Remedial action underway to ensure efficient and flexible manufacturing base with lower break even point • Good demand for market leading Leisure Custom Homes maintaining leading position in high-specification market • Enhanced product range for 2005/06 season David Bolton, Chairman, commented: "The difficulties in the caravan holiday homes market will impact significantlyon the results of the Group in the current year. However, the steps being takento improve factory flexibility and produce lower cost units at Holiday Homeswill be of significant benefit in the future. We are confident that this willproduce better results next year, notwithstanding that more difficult economicconditions may result in a slow market recovery. With these actions, and the initiatives being taken in Industrial Services tointegrate the Cosalt:Ballyclare workwear/corporatewear business with the Bannerschoolwear/ childrenswear activity, as well as our ongoing focus on cashcontrol, the Board anticipates being able to maintain the Company's dividend." 28 June 2005 ENQUIRIES: Cosalt plc Tel: 020 7457 2020 (today)Bill Wood, Managing Director Tel: 01472 504504 (thereafter)Neil Carrick, Finance Director College Hill Tel: 020 7457 2020Mark Garraway Email: mark.garraway@collegehill.comMatthew Gregorowski Email: matthew.gregorowski@collegehill.com COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 CHAIRMAN'S STATEMENT INTRODUCTION Trading in the Industrial Services Division is in line with expectations. Asoutlined in the Preliminary Announcement in early February and reinforced in theAnnual General Meeting Trading Statement on 4 April, trading in the caravanholiday homes market continues to be very challenging for our Leisure ProductsDivision. Group turnover on continuing activities for the 26 weeks to 1 May 2005 was lowerat £58.56 million compared with £71.03 million for the 27 weeks to 2 May 2004,and profit before taxation on continuing activities, excluding exceptional itemsand goodwill, was £314,000 compared with £2.16 million (excluding £517,000 oflosses on discontinued activities). The resulting earnings per share oncontinuing activities, excluding goodwill and exceptional items, were 1.64p(2004: 11.01p). Whilst the performance of Cosalt Holiday Homes will lead to Group profits in thecurrent financial year being very much lower than those of 2004, the actioncurrently being taken by management gives the Board confidence to maintain theinterim dividend at 6.00p. The dividend will be paid on 14 September 2005 toshareholders on the register on 19 August 2005. BORROWINGS The importance of cash management is recognised throughout all of the Group'sactivities. The seasonally high level of capital employed in the Holiday Homesbusiness at the interim stage has been exacerbated by the current marketdifficulties. However, borrowings overall at the half year were in line withexpectations and gearing of 76% (excluding FRS17 Pension Scheme deficit) wasslightly better than that achieved at the comparative date last year (2004:77%). We confidently anticipate lower borrowings at the October 2005 year end. BUSINESS REVIEW The Group is structured into two focused divisions - Industrial Services andLeisure Products. Following the sale of the Knox businesses in 2004, theIndustrial Services Division now consists of marine and industrial safety,workwear/corporatewear and schoolwear/childrenswear. Leisure Products comprisescaravan holiday homes and leisure custom homes. INDUSTRIAL SERVICES Turnover on continuing activities was £33.51 million (2004: £38.93 million),with operating profits on continuing activities slightly improved at £1.02million (2004: £986,000). Safety & Protection Turnover was £16.68 million (2004: £17.30 million), resulting in an operatingprofit of £808,000 (2004: £886,000). Despite making sound progress in improving market penetration in specialistmarine ropes, defence, fire safety and offshore projects, trading conditions ingeneral remain difficult in the mature UK marine market. However, with thepotential for some legislation driven sales in the second half and a strongcontribution from Aberdeen Inflatables, acquired in November 2004, we anticipatesimilar profits to those of last year. We continue to appraise a number of potential complementary acquisitions. COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 CHAIRMAN'S STATEMENT (CONT'D) Workwear/Corporatewear Turnover was reduced at £9.31 million (2004: £13.81million), resulting in anoperating profit of £206,000 (2004: £262,000). Whilst turnover was down, following our successful exit from historic low marginbusiness, which was a feature of the 2003 year and the first half of last year,working capital has been reduced, overheads brought into line and marginsimproved. We have a strong management team in this business and whilst we anticipate aperiod of consolidation in the current year, as we outlined in the PreliminaryStatement in February, several important new contracts won during the currentyear should impact favourably on the 2005/06 financial year. Schoolwear/Childrenswear Turnover on continuing activities was £7.52 million (2004: £7.81 million)resulting in an operating profit on continuing activities in this highlyseasonal business of £11,000 (2004: loss of £162,000). Schoolwear, the principal business, continues to strengthen its market leadingposition. The order book is satisfactory and we anticipate a good 'back toschool' trading period. Childrenswear, menswear and ladieswear, the supporting businesses, whilstoperating in a difficult retail environment, are trading well with improvedmargins. The quality of the business overall is stronger following the recent closure ofthe childrenswear concessions and the Distinctive childrenswear fashionbusiness. LEISURE PRODUCTS Turnover was lower at £25.05 million (2004: £32.10 million) with operatingprofits of £186,000 (2004: £2.11 million). Demand for our market leading leisure custom homes, including chalets andlodges, remains good and this sector of our business has seen improvedefficiency and contributed an increased level of profitability in the firsthalf. As we outlined at the Annual General Meeting on the 4 April 2005, we continue toexperience difficult trading in the caravan holiday homes market. The marketwas over supplied generally in 2004, resulting in higher levels of stock in thehands of dealers and park operators ahead of entering the spring/early summertrading season. Whilst most of that stock has now been cleared, consumerconfidence is declining and the market for new units has moved towards the lowerunit price economy sector. As a result, we have reduced production levels inorder to ensure that we conclude the 2005 selling season with stocks and capitalemployed under control. This, however, will result in a much lower level ofprofitability this year. Management has taken the opportunity to review thoroughly the manufacturingoperation and action is being taken to ensure that we develop a lower cost andmore flexible manufacturing base whilst realigning our product range inrecognition of current market trends. COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 CHAIRMAN'S STATEMENT (CONT'D) PENSIONS As outlined in the Preliminary Announcement in early February, the Board decidedto adopt FRS17 a year early from the commencement of the current financial yearin order to provide some stability in the profit and loss account charge for thefuture. This does, however, result in the deficit in the Scheme of £7.92million being included in the Group's balance sheet at 1 May 2005. OUTLOOK The difficulties in the caravan holiday homes market will impact significantlyon the results of the Group in the current year. However, the steps being takento improve factory flexibility and produce lower cost units at Holiday Homeswill be of significant benefit in the future. We are confident that this willproduce better results next year, notwithstanding that more difficult economicconditions may result in a slow market recovery. Furthermore, we are integrating the Cosalt:Ballyclare workwear/corporatewearbusiness with the Banner schoolwear/childrenswear activity. We expect thisintegration to be complete by January 2006. There is considerable scope forreducing the cost base of these activities and at the same time improving theoverall flexibility and skill base through a centralised administration, betterI.T. support and a more streamlined warehousing and logistics function. Therewill be some exceptional costs incurred, principally in the early months of the2006 year, but the payback will be swift. With these initiatives well under way and cash control continuing to be goodthroughout the Group, we anticipate being able to maintain the Company'sdividend. D.M. BOLTON CHAIRMAN 27 June 2005 COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Consolidated profit and loss account 26 weeks ended 1 May 2005 Continuing activities Before Goodwill Total Discontinued Group total goodwill amortisation activities amortisation and and exceptional exceptional items items (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) £000s £000s £000s £000s £000sTurnoverContinuing activities 57,861 - 57,861 - 57,861Acquisitions 700 - 700 - 700Discontinued activities - - - 1,181 1,181 58,561 - 58,561 1,181 59,742Operating profit/(loss)Operating profit before goodwill 1,211 - 1,211 33 1,244amortisation and exceptional itemsGoodwill amortisation - (92) (92) - (92)Redundancy, reorganisation and - (100) (100)impairment - (100)Group operating profit/(loss)Continuing activities 1,067 (192) 875 - 875Acquisitions 144 - 144 - 144Discontinued activities - - - 33 33 1,211 (192) 1,019 33 1,052Loss on disposal of businesses - - (72) (72)Loss on disposal of fixed assets - - (11) (11)Profit/(loss) on ordinary activities 1,211 (192) 1,019 (50) 969before interestInterest payable and similar charges (687) - (687) (22) (709)(net)Other finance charges - FRS17 (210) - (210) - (210)Profit/(loss) on ordinary activities 314 (192) 122 (72) 50before taxationTaxation on ordinary activities (94) 30 (64) 21 (43)Profit /(loss) after taxation 220 (162) 58 (51) 7Preference dividends (non-equity (2) - (2) - (2)shares)Profit/(loss) attributable to ordinary 218 (162) 56 (51) 5shareholdersOrdinary dividends (equity shares) (796) - (796) - (796)Retained loss (578) (162) (740) (51) (791)Basic earnings per ordinary share 1.64p 0.04pDiluted earnings per ordinary share 1.64p 0.04pDividend per share 6.00p 6.00p There is no material difference between the reported results and those preparedon a historical cost basis. COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Consolidated statement of total recognised gains and losses 26 weeks ended 1 May 2005 (Unaudited) £000s Profit for financial year 7Total gains and losses recognised relating to the financial period 7 Prior year adjustments (8,431) Actuarial loss recognised on pension schemes - Deferred taxation associated with pension scheme -Total gains and losses recognised since last annual report (8,424) COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Consolidated profit and loss account 27 weeks ended 2 May 2004 (Restated*) Continuing activities Before Goodwill Total Group goodwill amortisation Discontinued total amortisation and activities 53 weeks and exceptional ended 31 exceptional items October 2004 items (Restated*) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) £000s £000s £000s £000s £000s £000sTurnoverContinuing activities 71,025 - 71,025 - 71,025 145,371Acquisitions - - - - - -Discontinued activities - - - 4,550 4,550 9,314 71,025 - 71,025 4,550 75,575 154,685Operating profit/(loss)Operating profit before goodwill 3,097 - 3,097 (333) 2,764 8,709amortisation and exceptional itemsGoodwill amortisation - (83) (83) - (83) (163)Redundancy, reorganisation and - - - (59) (59) (2,397)impairmentGroup operating profit/(loss)Continuing activities 3,097 (83) 3,014 - 3,014 8,253Acquisitions - - - - - -Discontinued activities - - - (392) (392) (2,104) 3,097 (83) 3,014 (392) 2,622 6,149Loss on disposal of businesses - (17) (17) (17) (228)Profit on disposal of fixed assets - (13) (13) (13) 1,075Profit/(loss) on ordinary 3,097 (113) 2,984 (392) 2,592 6,996activities before interestInterest payable and similar (730) - (730) (125) (855) (1,604)charges (net)Other finance charges - FRS17 (210) - (210) - (210) (419)Profit/(loss) on ordinary 2,157 (113) 2,044 (517) 1,527 4,973activities before taxationTaxation on ordinary activities (694) - (694) 158 (536) (1,384)Profit/(loss) after taxation 1,463 (113) 1,350 (359) 991 3,589Preference dividends (non-equity (2) - (2) - (2) (4)shares)Profit/(loss) attributable to 1,461 (113) 1,348 (359) 989 3,585ordinary shareholdersOrdinary dividends (equity shares) (799) - (799) - (799) (2,491)Retained profit/(loss) 662 (113) 549 (359) 190 1,094 Basic earnings per ordinary share 11.01p 7.45p 27.01p Diluted earnings per ordinary share 10.90p 7.38p 26.89p Dividend per share 6.00p 6.00p 18.75p *Restated for change in accounting policy - see note 4. There is no material difference between the reported results and those preparedon a historical cost basis. COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Consolidated statement of total recognised gains and losses 27 weeks ended 53 weeks ended 2 May 2004 31 October 2004 (Restated*) (Restated*) (Unaudited) (Unaudited) £000s £000s Profit for financial year 991 3,589Total gains and losses recognised relating to the financial period 991 3,589 Prior year adjustments Actuarial loss recognised on pension schemes (619) (1,237) Deferred tax associated with pension schemes 186 371Total gains and losses recognised since last annual report 558 2,723 *Restated for change in accounting policy - see note 4. COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Consolidated balance sheet As at 1 May 2005 As at 2 May 2004 As at 31 October 2004 (Restated*) (Restated*) (Unaudited) (Unaudited) (Audited) £000s £000s £000s £000s £000s £000s Fixed assetsIntangible assets - goodwill 3,118 2,900 2,740Tangible fixed assets 16,041 17,439 18,201Investments 750 - - 19,909 20,339 20,941Current assetsStocks 28,238 30,044 25,673Debtors 36,673 38,500 31,656Bank and cash balances 164 489 1,743 65,075 69,033 59,072CreditorsAmounts falling due within one year 48,468 49,862 40,832 Net current assets 16,607 19,171 18,240 Total assets less current 36,516 39,510 39,181liabilities CreditorsAmounts falling due after more than 3,240 6,122 4,413one year 33,276 33,388 34,768 Provisions for liabilities and 1,428 1,250 1,881charges Deferred incomeGrants not yet credited to profit 75 1,503 165 1,415 150 2,031 Net assets excluding pension 31,773 31,973 32,737liability Net pension liability 7,916 7,796 8,089 Net assets including pension 23,857 24,177 24,648liability Capital and reservesCalled up share capital 3,369 3,369 3,369Share premium account 4,547 4,547 4,547Revaluation reserve 443 443 443Investment property revaluation 67 67 67reserveOther reserves 1,148 1,148 1,148Profit and loss account 14,283 14,603 15,074Shareholders' funds(Including non-equity interests) 23,857 24,177 24,648 *Restated for change in accounting policy - see note 4. COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Consolidated summarised cash flow statement 26 weeks ended 27 weeks ended 53 weeks ended 1 May 2005 2 May 2004 31 October 2004 (Restated*) (Restated*) (Unaudited) (Unaudited) (Audited) £000s £000s £000s Net cash (outflow)/inflow from operating activities (10,342) (2,598) 13,291 Returns on investments and servicing of finance (704) (824) (1,651)Taxation (5) (930) (1,610)Capital expenditure and financial investment (696) 62 (1,081)Acquisitions and disposals 1,566 (9) (15)Equity dividends paid (1,693) (1,739) (2,456) Net cash flow before use of liquid funds and (11,874) (6,038) 6,478financingFinancing (1,368) (1,616) (2,942) Decrease in cash (13,242) (7,654) 3,536 Summarised reconciliation of net cash flowto movement in net debtDecrease in cash (13,242) (7,654) 3,536Repayment of long term loans 1,185 1,332 2,342Repayment of capital elements of finance lease 183 330 647rentalsInception of finance lease 54 (153) (320)Arrangement fees amortised (10) (10) (19) Movement in net debt (11,830) (6,155) 6,186Opening net debt (12,282) (18,468) (18,468) Closing net debt (24,112) (24,623) (12,282) Summarised reconciliation of operating profitto net cash flow from operating activitiesOperating profit 1,052 2,622 6,149Depreciation 1,262 1,415 2,564Impairment - - 816Amortisation of goodwill 92 83 163Deferred government grants released (75) (8) (23)Changes in working capital (11,883) (6,064) 3,822Other non-cash items (790) (646) (200) Net cash flow from operating activities (10,342) (2,598) 13,291 Note: The outflow of funds in the first half of the year is a normal feature ofthe Group's business and the amount shown as decrease in cash for the 26 weeksto 1 May 2005 includes an outflow of £1,710,000 (2004 an inflow of £1,016,000)of medium term sales finance in respect of the Holiday Homes business. *Restated for change in accounting policy - see note 4. COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Notes to the interim statement 1. Basis of preparation This interim report has been approved by the Directors on 27 June 2005. It isprepared on the basis of the accounting policies set out on pages 29 and 30 ofthe Company's 2004 Annual Report and Accounts with the exception of the adoptionof FRS17 as set out in note 4. The comparative figures for the financial period53 weeks ended 31 October 2004 are not the Company's statutory accounts for thatfinancial period. Those accounts have been reported on by the Company'sAuditors and delivered to the Registrar of Companies. The report of theAuditors was unqualified and did not contain a statement under Section 23(2) or(3) of the Companies Act 1985. 2. Analysis of turnover and operating profit 26 weeks ended 27 weeks ended 53 weeks ended 1 May 2005 2 May 2004 31 October 2004 (Unaudited) (Restated*) (Restated*) (Unaudited) (Audited) £000s £000s £000sTurnoverIndustrial Services 34,693 43,477 92,845Leisure Products 25,049 32,098 61,840 59,742 75,575 154,685Operating profit Industrial Services Operating profit before exceptional 1058 667 4,180itemsExceptional items (100) (59) (2,397)Goodwill amortisation (92) (83) (163)Total Industrial Services 866 525 1,620 Leisure ProductsOperating profit before exceptional 186 2,097 4,529itemsExceptional items - - -Total Leisure Products 186 2,097 4,529 Total operating profit 1052 2,622 6,149 COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Notes to the interim statement (Cont'd) 3. Reconciliation of movements in consolidated shareholders' funds for thetwenty-six weeks to 1 May 2005 26 weeks ended 27 weeks ended 53 weeks ended 1 May 2005 2 May 2004 31 October 2004 (Unaudited) (Restated*) (Restated*) (Unaudited) (Audited) £000s £000s £000s Profit for the period 7 991 3,589Dividends (798) (801) (2,495) (791) 190 1,094Net recognised gains and losses in period - (433) (866)in respect to FRS17Shares issued - 47 47Net (decrease) / increase in shareholders' (791) (196) 275funds for the period Opening shareholders' funds (as previously 33,079 31,840 31,840stated)Prior year adjustment (8,431) (7,467) (7,467)Opening shareholders' funds (as adjusted) 24,648 24,373 24,373 Closing shareholders' funds 23,857 24,177 24,648 4. Restatement of comparatives During the period the Group has adopted Financial Reporting Standard 17(Retirement Benefits) (FRS17). The impact of this change is to fully recognisethe financial position of its defined benefit pensions scheme. The scheme issubject to triennial actuarial valuations, with the last formal valuation takingplace as at 31 December 2004. This valuation will be updated as at 31 Decembereach year thereafter. As at 30 April and 31 October each year the financialposition of the pension scheme is updated to reflect the anticipated FRS17 costof current and past service, the expected return on post employment schemeassets, the interest on post employment plan liabilities and cash contributionsmade to the scheme. The result of adopting FRS17 has been to reduce accumulated profits by£8,431,000 at 31 October 2004. Had FRS17 not been adopted the profit beforetaxation for the twenty-six weeks ended 1 May 2005 would have been £104,000less than that shown in these financial statements. 5. Earnings per share The basic earnings per share are calculated on the basis of the profitsattributable to ordinary shareholders and the average number of shares in issuefor the period, being 13,275,169 for 1 May 2005 (13,273,874 for 2 May 2004 and13,274,989 for 31 October 2004). The diluted earnings per share are calculated on the basis of the profitsattributable to ordinary shareholders and the average number of shares in issuefor the period plus the average maximum potential number of shares which couldbe issued under the various Executive Share Option Schemes. The total number ofshares used to calculate the diluted earnings are 13,337,894 (13,402,555 for 2May 2004 and 13,334,021 for 31 October 2004). COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Notes to the interim statement (Cont'd) 6. Interim dividend The interim dividend of 6.00p per share will be paid on 14 September 2005 toshareholders on the register on 19 August 2005 absorbing £796,000. 7. Acquisitions On 1 November 2004 the Group acquired the entire share capital of AberdeenInflatables Limited for a total cash consideration of £1,017,000. Theprovisional fair value of the net assets acquired, consideration paid andprovisional goodwill arising were: Fair value of assets £000sFixed assets 357 Stock 190 Debtors 242 Cash and Bank 67 856 Creditors 292 Provisions for liabilities and charges 7Net assets acquired 557 817 Consideration 200 Cash paid 4 Deferred consideration ExpensesTotal consideration and expenses 1,021Goodwill 464 8. Post balance sheet events Subsequent to the period end, the company has suffered a fire at one of itscaravan holding areas. The extent of the fire was restricted but not before theGroup had suffered uninsured losses of approximately £100,000. 9. International financial reporting standards All listed companies are required to adopt International Financial ReportingStandards (IFRS) for accounting periods beginning after 1 January 2005. Theadoption of IFRS will first be reflected in the Group's financial statements forthe 26 weeks ended 30 April 2006. The Group has identified the areas where IFRS differs with UK GAAP that have animpact on the Group's financial statements. Those changes to the Group'saccounting policies and internal systems and procedures that are required willbe implemented within the necessary timescale. 10. Taxation The taxation charge for the interim period is based upon the estimated rate forthe full year. Copies of this report are being sent to shareholders. Further copies may beobtained from the Company's registered office at Fish Dock Road, Grimsby, NorthEast Lincolnshire, DN31 3NW and on the Company's website www.cosalt.plc.uk COSALT PLC INTERIM RESULTS FOR THE TWENTY-SIX WEEKS TO 1 MAY 2005 Independent review report by KPMG Audit Plc to Cosalt Plc Introduction We have been engaged by the company to review the financial information set outon pages 6 to 14 and we have read the other information contained in the interimreport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report is made solely to the company in accordance with the terms of ourengagement to assist the company in meeting the requirements of the ListingRules of the Financial Services Authority. Our review has been undertaken sothat we might state to the company those matters we are required to state to itin this report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility to anyone other than the companyfor our review work, for this report, or for the conclusions we have reached. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report in accordance with the ListingRules which require that the accounting policies and presentation applied to theinterim figures should be consistent with those applied in preparing thepreceding annual accounts except where they are to be changed in the next annualaccounts in which case any changes, and the reasons for them, are to bedisclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of interim financial information issued by the Auditing PracticesBoard. A review consists principally of making enquiries of Group managementand applying analytical procedures to the financial information and underlyingfinancial date and, based thereon, assessing whether the accounting policies andpresentation have been consistently applied unless otherwise disclosed. Areview is substantially less in scope than an audit performed in accordance withAuditing Standards and therefore provides a lower level of assurance than anaudit. Accordingly we do not express an audit opinion on the financialinformation. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the 26 weeks ended1 May 2005. KPMG Audit Plc Chartered Accountants Leeds 27 June 2005 This information is provided by RNS The company news service from the London Stock Exchange