Ekf Diagnostics Regulatory News (EKF)

11 Sep 2006 07:00

Embargoed: 07:00hrs 11th September 2006 International Brand Licensing plc ("IBL" or the "Company") Interim Results for the 6 month period ended 30 June 2006 Chairman's StatementI am delighted to announce IBL's interim results for the six months to 30thJune 2006. These results demonstrate a continuation of growth from thecorresponding period last year, with turnover up 19% (from ‚£1,456,000 to ‚£1,738,000) and pre-tax and pre-exceptional profit up 211% (from ‚£101,000 to ‚£314,000).Earnings per share for the period was 1.0p (2005: 1.3p) and if the performanceof the Group continues to show strong growth, it is the Board's intention topay a maiden dividend in the 2007 financial year.This represents a particularly strong performance in light of the fact thatlast year we had the Ashes series in England and our licensing revenue wasboosted in the first half with new contract advances. This demonstrates therobustness and controls that have been put in place during the past twelvemonths.Your Board is working tirelessly to grow and further establish the Admiralbrand around the world. The potential growth from our existing territories,potential new territories and the recent launch of our on-line e-commerce site www.admiralsportswear.com is substantial.We are currently in negotiations with regards to a number of corporatetransactions, which if they were to complete would have a significant effectupon the Group. These are all at an early stage and shareholders will be keptfully informed of developments.The goal for the first twelve months of my tenure as Chairman was to stabilisethe business. This is now complete and the second phase is well under way togrow the business and deliver greater shareholder value.Your Board views the future with confidence and believes we will see continuedgrowth going forward.Adam ReynoldsChairman8th September 2006Group Profit And Loss AccountFor The Period Ended 30 June 2006 6 month period 6 month period Year ended ended 30 June ended 30 June 2006 2005 31 December 2005 Notes ‚£000 ‚£000 ‚£000 (Unaudited) (Unaudited) (Audited) Turnover 1,738 1,456 3,261 Cost of Sales (813) (521) (1,286) Gross Profit 925 935 1,975 Exceptional cost of 2 (139) - -share awards Other administrative (609) (770) (1,402)expenses Operating Profit 177 165 573 Exceptional profit on 201 534 475sale of intangible fixed asset Interest receivable - - 6 Interest payable and (2) (64) (77)similar charges Profit on ordinary 376 635 977activities before tax Tax on profit on 3 (33) (189) (142)ordinary activities for the period Retained Profit for the 343 446 835period Earnings per ordinary share ¯¼ basic 4 1.0p 1.3p 2.5p ¯¼ diluted 4 1.0p 1.3p 2.5p Group statement of total recognised gains and losses 6 month period 6 month period Year ended ended 30 June ended 30 June 2006 2005 31 December 2005 ‚£000 ‚£000 ‚£000 (Unaudited) (Unaudited) (Audited) Profit for the period 343 446 835 Exchange differences 3 (276) (236) Total recognised gains 346 170 599relating to the period Group Balance Sheetat 30 June 2006 30 June 2006 30 June 2005 31 December 2005 ‚£000 ‚£000 ‚£000 (Unaudited) (Unaudited) (Audited) Fixed assets Intangible assets 2,964 3,391 3,471 Tangible assets 9 12 9 2,973 3,403 3,480 Current assets Stock 505 329 252 Debtors 1,925 1,612 828 Cash at bank and in 271 63 283hand 2,701 2,004 1,363 Creditors: amounts (1,530) (2,122) (1,129)falling due within one year Net current assets/ 1,171 (118) 234(liabilities) Total assets less 4,144 3,285 3,714current liabilities Capital and reserves Share capital 333 333 333 Share premium 3,048 3,048 3,048 Merger reserve 244 244 244 Profit and loss 519 (340) 89account Equity shareholders' 4,144 3,285 3,714funds The financial statements were approved by the Board on 8th September 2006and signed on its behalf by:Paul FoulgerFinance DirectorGroup statement of cash flowsfor the period ended 30 June 2006 6 month period 6 month period Year Ended 31 ended 30 June ended 30 June December 2006 2005 2005 Notes ‚£000 ‚£000 ‚£000 (Unaudited) (Unaudited) (Audited) Net cash (outflow)/ 5(a) (762) 21 111inflow from operating activities Returns on investments and servicing of finance Interest paid (2) (67) (80) Interest received - - 6 Taxation UK tax received/(paid) 33 - (59) Foreign taxes (paid)/ (55) - 48received Capital expenditure and financial investment Purchase of intangible (13) (41) (37)fixed assets Purchase of tangible (3) - -fixed assets Proceeds from sale of 721 2,639 2,772intangible fixed asset Net cash(outflow)/ (81) 2,552 2,761inflow before financing Financing Repayment of bank - (2,563) (2,563)borrowings Net cash outflow from - (2,563) (2,563)financing (Decrease)/increase in 5(b) (81) (11) 198cash in the period Notes to the Interim Reportat 30 June 20061.Basis of preparation and abridged accountsThe financial information for the 6 months ended 30 June 2006 is prepared underthe historical cost convention and in accordance with applicable United Kingdomlaw and accounting standards and has been prepared on the basis of theaccounting policies set out in the group's statutory accounts for the yearended 31 December 2005 and is unaudited.The financial information set out on pages 2 to 5 does not constitute fullfinancial statements as defined in section 240 of the Companies Act 1985. Thefinancial information for the full preceding year is based on the statutoryaccounts for the financial year ended 31 December 2005. These accounts, uponwhich the auditors issued an unqualified opinion, have been delivered to theRegistrar of Companies.Intangible assetsIntangible assets represent acquired trademarks and are recorded at historiccost. No amortisation is charged as they are regarded as having infinite lives.The results reflect the significant expenditure incurred in the support anddevelopment of these brands. In addition, the trademarks are supported by theexistence of international licensee agreements, which establish obligations asto guaranteed minimum license income and marketing arrangements with the viewto maximising long-term growth. The directors believe that the licenseagreements will be renewed at the end of their legal expiry dates and that thevalue of the trademarks will be maintained. The carrying values are reviewedannually in accordance with Financial Reporting Standard No. 11 "Impairment offixed assets and goodwill" with a view to write down if impairment arises.StockStocks are stated at the lower of cost and net realisable value.2. Exceptional CostsThe exceptional charge to the profit and loss account of ‚£139,000 representsthe costs of share options and other awards to directors and others and isnecessary to comply with Financial Reporting Standard No. 20 `Share-BasedPayment'. Tax relief is not available on the cost of share awards untilexercise or other realisation and a deferred tax asset has therefore beenrecognised for the potential relief.3. TaxThe tax charge for the six month period ended 30 June 2006 is calculated on thebasis of the estimated effective tax rate for the full year.4. Earnings per ordinary share 6 month period 6 month period Year ended 31 ended 30 June 2006 ended 30 June 2005 December 2005 No. No. No. Weighted average 33,343,353 33,343,353 33,343,353ordinary shares in issue during the period Dilutive effect of 9,438 329,005 4,056share options Diluted weighted 33,352,791 33,672,358 33,347,409average ordinary shares ‚£000 ‚£000 ‚£000 Net profit for the 343 446 835financial period Pence Pence Pence Basic earnings per 1.0 1.3 2.51p ordinary share Diluted earnings 1.0 1.3 2.5per 1p ordinary share 5. Notes to the statement of cash flows(a) Reconciliation of operating profit to net cash inflow/(outflow) fromoperating activities 6 month period 6 month period Year ended 31 ended 30 June 2006 ended 30 June 2005 December 2005 ‚£000 ‚£000 ‚£000 Operating profit 177 165 573 Depreciation 3 1 6 Increase in debtors (1,112) (1,248) (379) Increase in stock (253) (112) (35) Increase/(decrease) 336 985 (39)in creditors Gain/(loss) on 3 (304) (15)exchange Exceptional profit - 534 -on sale of intangible asset Increase in equity 84 - -- share option award (762) 21 111 b. Reconciliation of net cash flow to movement in net debt 6 month period 6 month period Year ended 31 ended 30 June ended 30 June December 2006 2005 2005 ‚£000 ‚£000 ‚£000 (Decrease)/increase (81) (11) 198in cash in the period Decrease in bank - 2,563 2,563borrowings Change in net debt (81) 2,552 2,761arising from cash flows Net debt at 272 (2,489) (2,489)beginning of period 191 63 272c) Analysis of net debt At 1 January 2006 Cash Flows At 30 June 2006 ‚£000 ‚£000 ‚£000 Cash at bank 283 (12) 271 Bank borrowings (11) (69) (80) 272 (81) 191For further information please contact:Adam Reynolds, ChairmanPaul Foulger, Finance DirectorInternational Brand Licensing Plc+44 (0)20 7245 1100ENDINTERNATIONAL BRAND LICENSING PLC