Games Workshop Regulatory News (GAW)

22 Jan 2008 07:00

Games Workshop Group PLC22 January 2008 GAMES WORKSHOP GROUP PLC HALF-YEARLY REPORT Games Workshop Group PLC ("Games Workshop" or the "Group") announces itshalf-yearly results for the six months to 2 December 2007. Highlights: * Revenue at £54.6m (2006: £54.6m) * Pre-exceptional gross margin at 69.9% (2006: 70.9%) * Exceptional items - cost reduction programme £(0.6)m (2006: £nil) * Pre-exceptional operating profit up £0.6m to £1.1m (2006: £0.5m) * Operating profit at £0.5m (2006: £0.5m) * (Loss)/earnings per share of (0.4)p (2006: 0.2p) Tom Kirby, Chairman, and Mark Wells, Chief Executive of Games Workshop, said: "These half-year results are encouraging; we have re-established constantcurrency sales growth in the UK, the Americas and Asia Pacific, our grossmargins remain strong, and our cost reduction programme is delivering theoverhead reductions we expected. We remain a growth business and are now getting benefits from the efforts ourstaff have been making. There is still much to do, and we are united in ourdetermination to do it." For further information, please contact: Games Workshop Group PLC Today only: 01756 770 376Tom Kirby, Chairman Thereafter: 0115 900 4001Mark Wells, Chief Executive 0115 900 4001Michael Sherwin, Finance Director 0115 900 4001 Investor relations website investor.games-workshop.com General website www.games-workshop.com Rawlings Financial PR Limited Tel: 01756 770 376Catriona Valentine FIRST HALF HIGHLIGHTS Six months to Six months to 2 December 26 November 2007 2006 Revenue £54.6m £54.6mPre-exceptional operating profit £1.1m £0.5mExceptional items - cost reduction programme £(0.6)m -Operating profit £0.5m £0.5m(Loss)/profit before tax £(0.2)m £0.1mBasic (loss)/earnings per share (0.4)p 0.2p INTERIM MANAGEMENT REPORT Preamble Our half-yearly report does not usually have a Chairman's preamble. The reasonit does this time is because for the first time this is the Chairman's preamblealone and not that of the Chairman and Chief Executive. In late November 2007the board invited long-time Head of Sales, Mark Wells, to take on the role ofCEO. This move recognises Mark's increasing influence and allows him to takecontrol of the day to day affairs of the business giving me more time to spendwith senior staff in general, helping them, and him, achieve the long-termambitions we all share. Getting the business back on track after several difficult years has been, andcontinues to be, hard work. Progress towards top line growth has not been asfast as any of us would like, but progress there has been. We remain a growthbusiness and are now getting benefits from the efforts our staff have beenmaking. There is still much to do, and we are united in our determination to doit. T H F KirbyChairman Results These half-year results are encouraging; we have re-established constantcurrency sales growth in the UK, the Americas and Asia Pacific, our grossmargins remain strong and our cost reduction programme is delivering theoverhead reductions we expected. We still have work to do in Continental Europeto re-establish sales growth. However, we believe that the right managerial andoperational steps are being taken. In the UK and the Americas our constant currency sales growth has been driven byhigher sales to independent retailers and stronger internet sales, while salesthrough our Hobby stores have remained flat as we have restructured the storechains. In Continental Europe most of the sales decline has been from sales toindependent retailers and we are beginning to see some improved performance fromour Hobby stores. We have opened five Hobby stores and closed 18 during the period, leaving uswith 335 at the end of November 2007. The pre-exceptional gross margin, at 69.9%, remains strong. We believe this tobe sustainable. Compared to November 2006, sterling has strengthened by 8.5% against the USdollar and weakened by 1.2% against the euro. We have shown below our salesprogression in constant currency terms so that readers can better understand thefigures. Cost reduction programme Our cost reduction programme, announced in May 2007, has three key areas: * Closing loss-making stores* Rationalisation of the manufacturing and supply chain* Simplification of the support infrastructure In the first half of this year we have shut over half of the stores identifiedfor closure, nine in the Americas, four in the UK, four in Continental Europeand one in Asia Pacific. We have closed our tool making facility at Wisbech, UK and this activity hasbeen relocated to our Nottingham site. Our programme to rationalise inventorymanagement is being rolled out across our UK Hobby stores and it is also beingintroduced in the Americas. We have completed the removal of the former divisional management structures andservice centres have been established in Nottingham to remove unnecessaryduplication of back office functions. The service centres support the IT,accounting, HR, production planning and supplier development functions acrossthe majority of the Group's activities. We still expect the cost reduction programme to result in annualised costreductions of £7m. The costs associated with this programme are shown as exceptional costs. Prospects The principal risks and uncertainties for the balance of the year lie in theability of each of our individual sales businesses to establish and maintainsales growth. Our gross margins are strong, our costs and working capital areunder control, so sales delivery remains an area of key focus. Nevertheless these half-year results are encouraging, and the directors firmlybelieve that the prospects for the business remain very good. Dividend We are using the cash which would have otherwise been applied in payingdividends this year to finance the cost reduction programme described above. Theboard remains confident in the future growth and profitability of the Group andwill resume paying dividends when appropriate. Statement of directors' responsibilities The directors confirm that this condensed set of financial statements has beenprepared in accordance with IAS 34 as adopted by the European Union, and thatthe interim management report herein includes a fair review of the informationrequired by DTR 4.2.7 and DTR 4.2.8. The directors of Games Workshop Group PLC are listed in the annual report forthe 53 weeks to 3 June 2007, with the exception of M N Wells who was appointedto the board on 3 December 2007. A list of the current directors is maintainedon the investor relations website at investor.games-workshop.com. By order of the board M N WellsChief Executive M SherwinFinance Director REVENUE BY GEOGRAPHICAL AREA OF SALES OPERATION IN LOCAL CURRENCY Six months to Six months to 2 December 2007 26 November 2006Continental Europe €28.6m €32.0mUnited Kingdom £18.8m £17.0mThe Americas US$24.2m US$22.9mAsia Pacific Aus$9.2m Aus$8.9m CONSOLIDATED INCOME STATEMENT Restated Restated Six months to Six months to 53 weeks to 2 December 26 November 3 June 2007 2006 2007 Notes £000 £000 £000 Revenue 2 54,630 54,620 111,041 Cost of sales (16,695) (15,888) (32,694) ---------- ---------- ---------- Gross profit 37,935 38,732 78,347 Operating expenses (38,062) (38,742) (81,845) Other operating income -royalties receivable 670 466 1,423 ---------- ---------- ---------- Operating profit/(loss) 2 543 456 (2,075) -------------------------------------------------------------------------------Operating profit -pre-exceptional 1,104 456 1,953 Exceptional items - costreduction programme (561) - (4,028)------------------------------------------------------------------------------- Finance income 163 107 326 Finance costs (898) (436) (1,110) ---------- ---------- --------- (Loss)/profit before taxation (192) 127 (2,859) Tax 4 77 (51) (622) ---------- ---------- --------- (Loss)/profit attributable toequity shareholders (115) 76 (3,481) ========== ========== ========= Basic (loss)/earnings perordinary share 5 (0.4)p 0.2p (11.2)pDiluted (loss)/earnings perordinary share 5 (0.4)p 0.2p (11.2)p The restatement of the prior period results is to reflect the reclassificationof certain costs from cost of sales to operating expenses following theestablishment of the service centres (Nov 2006: £406,000; May 2007: £787,000).There are also reclassifications from cost of sales (Nov 2006: £110,000; May2007: £216,000) and operating expenses (Nov 2006: £106,000; May 2007: £226,000)to revenue following the standardisation of trading terms to independentretailers within Europe. Although these reclassifications are not material, theyare being reclassified to aid comparison to the current period. CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE Six months to Six months to 53 weeks to 2 December 26 November 3 June 2007 2006 2007 £000 £000 £000 (Loss)/profit attributable to equityshareholders (115) 76 (3,481) Exchange differences on translation of foreign operations 107 (473) (614) Cash flow hedges:- fair value (losses)/gains (219) 122 (88)- transferred to the income statement 29 (26) (86) Tax on items recognised directlyin equity 52 (29) 52 ---------- ---------- ---------- Total recognised expense for theperiod (146) (330) (4,217) ========== ========== ========== CONSOLIDATED BALANCE SHEET As at As at As at 2 December 26 November 3 June 2007 2006 2007 Notes £000 £000 £000 Non-current assets Goodwill 2,355 2,412 2,390Other intangible assets 9 5,545 4,375 4,963Property, plant and equipment 10 27,053 28,859 27,986Trade and other receivables 1,122 1,015 1,204Deferred tax assets 2,420 2,075 2,314 ---------- ---------- ---------- 38,495 38,736 38,857 ---------- ---------- ----------Current assets Inventories 11,623 12,824 11,260Trade and other receivables 12,691 11,766 8,351Current tax assets 1,515 1,496 1,056Financial assets - derivativefinancial instruments - 304 24Cash and cash equivalents 6,722 5,669 6,103 ---------- ---------- ---------- 32,551 32,059 26,794 ---------- ---------- ----------Total assets 71,046 70,795 65,651 ---------- ---------- ----------Current liabilities Financial liabilities - 8 (6,889) (8,417) (6,461)borrowingsFinancial liabilities -derivative (463) (19) (120)financial instrumentsTrade and other payables (15,208) (14,841) (13,889)Current tax liabilities (218) (122) (38)Provisions 11 (1,459) (397) (3,225) ---------- ---------- ---------- (24,237) (23,796) (23,733) ---------- ---------- ----------Net current assets 8,314 8,263 3,061 ---------- ---------- ----------Non-current liabilities Financial liabilities - 8 (15,004) (9,989) (9,820)borrowingsOther non-current liabilities (842) (757) (958)Provisions 11 (1,173) (951) (1,283) ---------- ---------- ---------- (17,019) (11,697) (12,061) ---------- ---------- ---------- Net assets 29,790 35,302 29,857 ========== ========== ========== Capital and reserves Called up share capital 15 1,556 1,556 1,556Share premium account 15 7,822 7,822 7,822Other reserves 15 (1,103) (1,069) (1,210)Retained earnings 15 21,515 26,993 21,689 ---------- ---------- ---------- Total shareholders' equity 29,790 35,302 29,857 ========== ========== ========== CONSOLIDATED CASH FLOW STATEMENT Six months to Six months to 53 weeks to 2 December 26 November 3 June 2007 2006 2007 Notes £000 £000 £000 Cash flows from operatingactivities Cash generated from operations 6 623 782 10,341UK corporation tax paid (3) (458) (503)Overseas tax paid (142) (1,057) (1,345) ---------- ---------- ----------Net cash from operatingactivities 478 (733) 8,493 ---------- ---------- ----------Cash flows from investingactivities Purchases of property, plantand equipment (2,887) (3,306) (5,813)Proceeds on disposal ofproperty, plant and equipment 9 26 13Purchases of other intangibleassets (802) (260) (951)Expenditure on productdevelopment (1,138) (1,391) (2,937)Interest received 162 114 336 ---------- ---------- ----------Net cash from investingactivities (4,656) (4,817) (9,352) ---------- ---------- ---------- Cash flows from financingactivities Proceeds from borrowings 5,190 3,070 2,908 Repayment of principal underfinance leases (6) (34) (41)Equity dividends paid - (4,364) (5,904)Interest paid (792) (504) (1,113) ---------- ---------- ---------- Net cash from financingactivities 4,392 (1,832) (4,150) ---------- ---------- ---------- Effects of foreign exchangerates (24) (125) (107) ---------- ---------- ---------- Net increase/(decrease) incash and cash equivalents 190 (7,507) (5,116) ========== ========== ========== Opening cash and cashequivalents (344) 4,772 4,772 ---------- ---------- ----------Closing cash and cashequivalents 7 (154) (2,735) (344) ========== ========== ========== NOTES TO THE FINANCIAL INFORMATION 1. Basis of preparation The half-year results for the six months to 2 December 2007 and for thecomparative six months to 26 November 2006 are unaudited and do not constitutestatutory accounts within the meaning of section 240 of the Companies Act 1985.Statutory accounts for the 53 weeks to 3 June 2007 have been delivered to theRegistrar of Companies. The auditors' report on those accounts was unqualified,did not contain an emphasis of matter paragraph and did not contain anystatement under section 237 of the Companies Act 1985. The financial information has been prepared in accordance with the accountingpolicies under International Financial Reporting Standards ('IFRS') detailed inthe financial statements for the 53 weeks to 3 June 2007 which are expected tobe followed in the full financial statements for the year ending 1 June 2008.This half-yearly report has been prepared in accordance with the Disclosure andTransparency Rules of the Financial Services Authority and with IAS 34 'InterimFinancial Reporting' as adopted by the European Union. Changes to accounting standards and interpretations and their likely impact onthe Group's future accounting policies are set out below: IFRS 7 'Financial instruments: disclosures' is effective for accounting periodsbeginning on or after 1 January 2007, and will therefore be applicable for theyear ending 1 June 2008, and IFRS 8 'Operating segments', effective foraccounting periods beginning on or after 1 January 2009, will be applicable inthe year ending May 2010. These amendments to disclosure requirements will haveno effect on the Group's reported results. The Group does not consider that anyother standards or interpretations issued by the IASB, but not yet applicable,will have a significant impact on the Group's results. The half-yearly report is available to shareholders and members of the public onthe Company's website at investor.games-workshop.com. 2. Segmental analysis Six months to 2 December 2007 Rest of Design Continental United The Asia the Central/ Service and Royalty Europe Kingdom Americas Pacific world unallocated centres development income Group £000 £000 £000 £000 £000 £000 £000 £000 £000 £000Total grosssegment salesby operation 19,705 18,822 12,192 3,911 - - - - - 54,630 ------- ------- ------- ------ ------ ------- ------ ------- ------ ------ Total grosssegment salesby location ofcustomers 20,092 16,681 13,497 4,208 152 - - - - 54,630 ------- ------- ------- ------ ------ ------- ------ ------- ------ ------ Pre-exceptionaloperatingprofit/segment resultby location ofcustomers 3,520 2,817 346 192 75 (2,854) (2,158) (1,504) 670 1,104Exceptionalitems (20) (322) (89) - - (130) - - - (561) ------- ------- ------- ------ ------ ------- ------ ------- ------ ------ Operatingprofit/segment resultby location ofcustomers 3,500 2,495 257 192 75 (2,984) (2,158) (1,504) 670 543 ------- ------- ------- ------ ------ ------- ------ ------- ------ ------ Restated Six months to 26 November 2006 Rest of Design Continental United The Asia the Central/ Service and Royalty Europe Kingdom Americas Pacific world unallocated centres development income Group £000 £000 £000 £000 £000 £000 £000 £000 £000 £000Totalgrosssegmentsales byoperation 21,734 16,947 12,348 3,591 - - - - - 54,620 ------- ------- ------- ------- ------ ------- ------ ------- ------ ------ Totalgrosssegmentsales bylocation ofcustomers 23,165 14,414 13,178 3,752 111 - - - - 54,620 ------- ------- ------- ------- ------ ------- ------ ------- ------ ------Operatingprofit/segmentresult bylocation ofcustomers 4,271 2,047 440 74 56 (2,801) (2,261) (1,836) 466 456 ------- ------- ------- ------- ------ ------- ------ ------- ------ ------ Restated 53 weeks to 3 June 2007 Rest of Design Continental United The Asia the Central/ Service and Royalty Europe Kingdom Americas Pacific world unallocated centres development income Group £000 £000 £000 £000 £000 £000 £000 £000 £000 £000Total grosssegment salesby operation 44,832 34,051 24,540 7,618 - - - - - 111,041 ------- ------- ------- ------- ------ ------- ------ ------- ------ ------- Total grosssegment salesby location ofcustomers 45,600 30,481 26,640 8,121 199 - - - - 111,041 ------- ------- ------- ------- ------ ------- ------ ------- ------ ------- Pre-exceptionaloperatingprofit/segmentresult bylocation ofcustomers 8,930 5,347 (515) 376 97 (5,179) (4,895) (3,631) 1,423 1,953Exceptionalitems (800) (2,084) (1,120) (24) - - - - - (4,028) ------- ------- ------- ------- ------ ------- ------ ------- ------ ------Operating(loss)/segmentresult bylocation ofcustomers 8,130 3,263 (1,635) 352 97 (5,179) (4,895) (3,631) 1,423 (2,075) ------- ------- ------- ------- ------ ------- ------ ------- ------ ------ The restatement of prior periods is to disclose costs for IT, accounting,payroll, HR, production planning and supplier development services as costsrelating to the service centres and to reflect these changes in the allocationof operating profits to the geographic segments. This is following theestablishment of service centres covering these areas in the six months to 2December 2007. 3. Dividends No dividend was paid in the six months to 2 December 2007. In addition, nointerim dividend is proposed for the year ending 1 June 2008 (2006: 4.95p). 4. Tax The taxation credit for the six months to 2 December 2007 is based on anestimate of the full year effective rate of 40% (2006: 40%) for the year ending1 June 2008. 5. (Loss)/earnings per share Basic (loss)/earnings per share is calculated by dividing the (loss)/profitattributable to equity shareholders by the weighted average number of ordinaryshares in issue throughout the relevant period, excluding ordinary sharespurchased by the Company and held as treasury shares. Six months to Six months to 53 weeks to 2 December 26 November 3 June 2007 2006 2007 (Loss)/profit attributable toequity shareholders (£000) (115) 76 (3,481) ---------- ---------- ---------Weighted average number ofordinary shares in issue (thousands) 31,117 31,116 31,116 ---------- ---------- ---------Basic (loss)/earnings pershare (pence per share) (0.4) 0.2 (11.2) ========== ========== ========= Diluted (loss)/earnings per share The calculation of diluted (loss)/earnings per share has been based on the(loss)/profit attributable to equity shareholders and the weighted averagenumber of shares in issue during the relevant period, excluding treasury shares,adjusted for the dilution effect of share options outstanding at the end of theperiod. Six months to Six months to 53 weeks to 2 December 26 November 3 June 2007 2006 2007 (Loss)/profit attributableto equity shareholders(£000) (115) 76 (3,481) ---------- ---------- ---------Weighted average number ofordinary shares in issue(thousands) 31,117 31,116 31,116Adjustment for share options(thousands) - 293 - ---------- ---------- ---------Weighted average number ofordinary shares in issue fordiluted (loss)/earnings pershare (thousands) 31,117 31,409 31,116 ---------- ---------- ---------Diluted (loss)/earnings pershare (pence per share) (0.4) 0.2 (11.2) ========== ========== ========= There is no impact on the diluted EPS for the six months to 2 December 2007 andthe 53 weeks to 3 June 2007 for the share options in existence as, due tolosses, these options are anti-dilutive. 6. Reconciliation of (loss)/profit attributable to equity shareholders tonet cash from operations Six months to Six months to 53 weeks to 2 December 26 November 3 June 2007 2006 2007 £000 £000 £000 (Loss)/profit attributable toequity shareholders (115) 76 (3,481)Tax (77) 51 622Depreciation of property, plantand equipment 3,377 3,294 6,925Impairment loss on property,plant and equipment - - 306Loss on disposal of property,plant and equipment 116 29 95Amortisation of capitaliseddevelopment costs 1,009 1,237 2,525Amortisation of other intangibles 372 348 720Finance income (163) (107) (326)Finance costs 898 436 1,168Net fair value losses/(gains) on derivative financial instruments 61 (24) 88Share-based payments 79 60 42Exchange losses/(gains) on borrowings - 63 (58)Changes in working capital:- (Increase)/decrease in inventories (437) (611) 901- (Increase)/decrease in trade and other receivables (3,988) (3,134) 128- Increase/(decrease) in trade and other payables 1,393 (767) (2,326)- (Decrease)/increase in provisions (1,902) (169) 3,012 ---------- ---------- ----------Net cash from operating activities 623 782 10,341 ========== ========== ========== The cash outflow relating to exceptional items in the six months to 2 December2007 was £2,088,000. 7. Cash and cash equivalents Cash and cash equivalents and bank overdrafts include the following for thepurposes of the cash flow statement: 2 December 26 November 3 June 2007 2006 2007 £000 £000 £000 Cash and cash equivalents 6,722 5,669 6,103Bank overdraft (6,876) (8,404) (6,447) ---------- ---------- ---------- (154) (2,735) (344) ========== ========== ========== 8. Financial liabilities - borrowings 2 December 26 November 3 June 2007 2006 2007 £000 £000 £000 CurrentBank overdraft 6,876 8,404 6,447Obligations under finance leases 13 13 14 ---------- ---------- ---------- 6,889 8,417 6,461 ---------- ---------- ----------Non-currentBank loans 15,000 9,971 9,811Obligations under finance leases 4 18 9 ---------- ---------- ---------- 15,004 9,989 9,820 ---------- ---------- ----------Total borrowings 21,893 18,406 16,281 ========== ========== ========== 9. Other intangible assets 2 December 26 November 3 June 2007 2006 2007 £000 £000 £000 Net book value at beginning of period 4,963 4,320 4,320Additions 1,957 1,651 3,888Exchange differences 6 (11) -Amortisation charge (1,381) (1,585) (3,245) --------- ---------- ----------Net book value at end of period 5,545 4,375 4,963 ========= ========== ========== 10. Property, plant and equipment 2 December 26 November 3 June 2007 2006 2007 £000 £000 £000 Net book value at beginning of period 27,986 29,475 29,475Additions 2,569 2,882 6,031Exchange differences - (149) (181)Disposals (125) (55) (108)Charge for the period (3,377) (3,294) (6,925)Impairment loss - - (306) ---------- ---------- ----------Net book value at end of period 27,053 28,859 27,986 ========== ========== ========== 11. Provisions Employee benefits Property Total £000 £000 £000 As at 29 May 2006 615 896 1,511Charged/(credited) to the incomestatement 29 (75) (46)Exchange differences (6) (8) (14)Utilised (1) (102) (103) ---------- ---------- ----------As at 26 November 2006 637 711 1,348 ========== ========== ========== Employee Redundancy benefits Property Total £000 £000 £000 £000 As at 29 May 2006 - 615 896 1,511Charged to the income statement 1,573 293 1,374 3,240Exchange differences - (4) (14) (18)Increase in provision -discount unwinding - - 27 27Utilised (17) (16) (219) (252) ---------- ---------- ---------- ----------As at 3 June 2007 and 4 June 2007 1,556 888 2,064 4,508 Charged to the incomestatement 415 44 35 494Exchange differences 29 28 (4) 53Utilised (1,657) (42) (724) (2,423) ---------- ---------- ---------- ----------As at 2 December 2007 343 918 1,371 2,632 ========== ========== ========== ========== 12. Seasonality The Group's monthly sales profile demonstrates an element of seasonality aroundthe Christmas period. This impacts sales in the months of September andDecember. 13. Related-party transactions There were no material related-party transactions during the period. 14. Exceptional items The exceptional item relates to the cost reduction programme announced in May2007. As part of this programme, in the six months to 2 December 2007, £42,000has been incurred in closing loss making stores, £356,000 in rationalising themanufacturing and supply chain and £163,000 in simplifying the supportinfrastructure. There were no exceptional items in the six months to 26 November2006. Continuing Continuing Six months to Six months to pre-exceptional exceptional 2 December 26 November items 2007 2006 £000 £000 £000 £000 Revenue 54,630 - 54,630 54,620Cost of sales (16,434) (261) (16,695) (15,888) ---------- --------- ---------- ---------Gross profit 38,196 (261) 37,935 38,732Operating expenses (37,762) (300) (38,062) (38,742)Other operatingincome-royaltiesreceivable 670 - 670 466 ---------- --------- ---------- ---------Operatingprofit/(loss) 1,104 (561) 543 456 ========== ========= ========== ========= Continuing Continuing 53 weeks to pre-exceptional exceptional 3 June items 2007 £000 £000 £000 Revenue 111,041 - 111,041Cost of sales (32,472) (222) (32,694) ---------- --------- ----------Gross profit 78,569 (222) 78,347Operating expenses (78,039) (3,806) (81,845)Other operating income-royaltiesreceivable 1,423 - 1,423 ---------- --------- ----------Operating profit/(loss) 1,953 (4,028) (2,075) ========== ========= ========== 15. Consolidated statement of changes in shareholders' equity Other reserves Retained earnings ---------------------------------- --------------------------- Called up Share Capital Profit share premium redemption Translation Other Hedging Treasury and Total capital account reserve reserve reserve reserve shares loss equity £000 £000 £000 £000 £000 £000 £000 £000 £000 As at 29 May 2006 1,556 7,822 101 353 (1,050) 60 (49) 31,143 39,936Exchange adjustments - - - (473) - - - - (473)Profit for theperiod - - - - - - - 76 76Dividends paid - - - - - - - (4,364) (4,364)Share-based payments - - - - - - - 60 60Current tax - - - - - (29) - - (29)Cash flow hedges:- fair value gains in the period - - - - - 122 - - 122- transferred to net profit - - - - - (26) - - (26) -------- ------- ---------- ---------- -------- ------ -------- ------ ------As at 26November 2006 1,556 7,822 101 (120) (1,050) 127 (49) 26,915 35,302 ======== ======= ========== ========== ======== ====== ======== ====== ====== Other reserves Retained earnings ---------------------------------- --------------------------- Called up Share Capital Profit share premium redemption Translation Other Hedging Treasury and Total capital account reserve reserve reserve reserve shares loss equity £000 £000 £000 £000 £000 £000 £000 £000 £000 As at 29 May 2006 1,556 7,822 101 353 (1,050) 60 (49) 31,143 39,936Exchangeadjustments - - - (614) - - - - (614)Loss for the year - - - - - - - (3,481) (3,481)Dividends paid - - - - - - - (5,904) (5,904)Share-based payments - - - - - - - 42 42Current tax - - - - - 26 - - 26Deferred tax - - - - - 26 - - 26Cash flow hedges:- fair value losses in the period - - - - - (88) - - (88)- transferred to net profit - - - - - (86) - - (86) -------- ------- ---------- ---------- -------- ------ -------- ------ ------As at 3 June 2007and 4 June 2007 1,556 7,822 101 (261) (1,050) (62) (49) 21,800 29,857Exchangeadjustments - - - 107 - - - - 107Loss for the period - - - - - - - (115) (115)Shares vested - - - - - - 49 (49) -Share-based payments - - - - - - - 79 79Deferred tax - - - - - 52 - - 52Cash flow hedges:- fair value losses in the period - - - - - (219) - - (219)- transferred to net profit - - - - - 29 - - 29 -------- ------- ---------- ---------- -------- ------ -------- ------ ------As at 2 December 2007 1,556 7,822 101 (154) (1,050) (200) - 21,715 29,790 ======== ======= ========== ========== ======== ====== ======== ====== ====== This information is provided by RNS The company news service from the London Stock Exchange