Ekf Diagnostics Regulatory News (EKF)

28 Jun 2005 06:00

Embargoed: 0700hrs 28 June 2005 International Brand Licensing Plc ("IBL" or the "Company") Final Results for the year ended 31 December 2004 Chairman's StatementFor the year ended 31 December 2004 turnover increased by ‚£960,000 to ‚£2,235,000 (2003: ‚£1,275,000), and operating loss before interest decreased by ‚£3,000 to a loss of ‚£289,000 (2003: loss of ‚£292,000) due to additional nonrecurring expenses during the year. Interest charges of ‚£216,000 led to a lossbefore tax of ‚£505,000 (2003: loss of ‚£458,000)The 75% increase in turnover reflects the turnaround achieved in the UK marketwith the successful launch of Admiral in George at ASDA in May, combined withextremely strong sales of the Admiral England cricket replica kit throughoutthe 2004 season.Admiral sales at ASDA ended the year below forecast in certain categories butwell ahead in others. Footwear in particular continued to perform ahead offorecast throughout the year despite the well documented depressed UK retailsector, and this success has continued to date in 2005. Other new productcategories such as sports equipment, accessories, and luggage that were underdevelopment in 2004 enjoyed an excellent launch this spring, and overall we areconfident that sales at ASDA in 2005 will show a very healthy increase on 2004despite the continuing trading difficulties of the UK retail sector.With the outstanding schedule of international cricket taking place in the UKthis summer, and particularly the One Day competitions and Ashes Test Seriesagainst Australia, we are confident that the company's cricket replica saleswill again increase on the record levels achieved last year. The resultantexposure for Admiral through television and press coverage of this summer'scricket will only serve to add further value to the brand for the future.Internationally we continue to pursue new Admiral licensee partners bothgeographically and in additional product categories where we have investedresources in our trademark registration programme. We are presently progressingdiscussions with parties in several major markets, and as the Admiral brandoffer becomes increasingly attractive we are confident of appointing additionalhigh calibre licensee partners.Sales of the company's outdoor brand, Mountain Equipment, were below forecastin the second half of 2004, and overall somewhat disappointing given the growthof previous years. In conducting our annual review earlier this year, wediscussed the possibility of our European licensee, Swiss Cutlery, acquiringthe Mounting Equipment trademarks. Pursuant negotiations concluded on 27 Aprilwhen the Board announced that it had sold Mountain Equipment to Swiss Cutleryfor a cash consideration of ‚£3,000,000. In terms of the royalties receivedsince the brand was acquired in 1999 plus the sale proceeds, this representedan excellent transaction for the company.As stated in our Interim Report we regretfully announced the death of ourChairman, Lance Yates on 13 September 2004. The Board was deeply saddened bythis tragic event, and Lance is greatly missed by all who knew him. .On 11th October 2004 the Board announced the resignation of non executivedirector, Glyn Hirsch, and the appointment of his replacement, Adam Reynolds.Further Board changes were announced on 21st April 2005 with the resignation ofMichael Henry and the appointment of Gordon Hall. The Board would like to thankGlyn and Michael for their contribution to the company during their periods ofoffice and wish them well in their future endeavours. The Board is equallydelighted to welcome both Adam and Gordon who bring with them first classskills and experience in a variety of fields.In 2004 the company finally shed itself of problems associated with its formercost structure. The recent sale of Mountain Equipment will now allow thecompany to eliminate debt, strengthen the balance sheet, and focus on its majorasset, Admiral. The Board is very confident as to the company's significantprospects, and the 2005 performance should begin to reflect the potential to beexploited.TONY HUTCHINSONChairman and Chief Executive28 June 2005For Further Information please contact:Adam Reynolds020 7245 1100Group Profit and Loss AccountFor the year ended 31 December 2004 2004 2003 Notes ‚£000 ‚£000 Turnover 2 2,235 1,275 Cost of sales (561) (176) ------ ------ Gross Profit 1,674 1,099 Administrative expenses 4 (1,963) (1,322) Exceptional administrative 4 - (69)expenses ----------- ----------- Operating Loss (289) (292) Interest payable 7 (216) (166) ----------- ----------- Losson ordinary activities (505) (458)before tax before exceptional items (505) (389) exceptional items 4 - (69) 3 (505) (458) Tax on loss on ordinary 8 (84) (17)activities ----------- ----------- Loss on ordinary activities (589) (475)after taxation Ordinary dividend on equity 10 - ¯¼shares ----------- ----------- Retained Lossfor the year (589) (475) ----------- ----------- Loss per ordinary share - Basic 11 (1.9p) (1.7p) - Diluted 11 (1.9p) (1.7p)Group Statement of Total Recognised Gains and LossesFor the year ended 31 December 2004 2004 2003 ‚£000 ‚£000 Loss for the year (589) (475) Exchange differences 28 31 Total recognised gains and losses relating (561) (444)to the year Group Balance SheetAt 31 December 2004 2004 2003 Notes ‚£000 ‚£000 Fixed assets Intangible assets 12 5,952 5,811 Tangible assets 13 15 22 ----------- ----------- 5,967 5,833 Current assets Stock 15 217 70 Debtors 16 364 383 Cash at bank and in hand 109 40 ----------- ----------- 690 493 Creditors: amounts falling due within one 17 (3,542) (1,493)year ----------- ----------- Net current liabilities (2,852) (1,000) ----------- ----------- Total assets less current liabilities 3,115 4,833 Creditors: amounts falling due after more 18 - (2,375)than one year ----------- ----------- Net assets 3,115 2,458 ----------- ----------- Capital and reserves Share capital 19 333 276 Share premium 20 3,048 1,887 Merger reserve 20 244 244 Profit and loss account 20 (510) 51 ----------- ----------- Shareholders' funds 3,115 2,458 ----------- -----------The financial statements were approved by the Board on 28 June 2005A HutchinsonDirectorCompany Balance SheetAt 31 December 2004 2004 2003 Notes ‚£000 ‚£000 Fixed assets Investments 14 213 213 Current assets Debtors - amounts falling due: within one year 16 79 38 after more than one year 16 4,291 4,223 Cash at bank and in hand - 20 ----------- ----------- 4,370 4,281 Creditors: amounts falling due within one 17 (3,328) (958)year ----------- ----------- Net current assets 1,042 3,323 ----------- ----------- Total assets less current liabilities 1,255 3,536 Creditors: amounts falling due after more 18 - (2,375)than one year ----------- ----------- Net assets 1,255 1,161 ----------- ----------- Capital and reserves Share capital 19 333 276 Share premium 20 3,048 1,887 Profit and loss account 20 (2,126) (1,002) ----------- ----------- Shareholders' funds 1,255 1,161 ----------- -----------The financial statements were approved by the Board on 28 June 2005A HutchinsonDirectorGroup Statement of Cash FlowsFor the year ended 31 December 2004 2004 2003 Notes ‚£000 ‚£000 Net cash (outflow)/ inflow from operating 22 (430) 265activities Returns on investments and servicing of finance Interest paid (224) (174) Taxation Tax paid (198) (118) Capital expenditure and financial investment Purchase of intangible fixed assets (82) - Purchase of tangible fixed assets - (11) ----------- ----------- Net cash outflow before financing (934) (38) Financing Repayment of bank borrowing (250) (125) Issue of ordinary shares 1,329 - Less expenses of issue (111) - ----------- ----------- Net cash inflow from financing 968 (125) ----------- ----------- Increase/(decrease) in cash in the year 22 34 (163) ----------- -----------ENDINTERNATIONAL BRAND LICENSING PLC