JLH.L Regulatory News (JLH)

10 May 2005 15:23

John Lewis Of Hungerford PLC10 May 2005 JOHN LEWIS OF HUNGERFORD PLC HIGHLIGHTS . Revenues increase 13% £1,849,000 (2004 - £1,638,000). . Pre-tax loss £229,000 (2004 - £5,000 profit) . . Net cash inflows from operating activities £211,000 (2004 - £70,000 outflows). CHAIRMAN'S STATEMENT Review of Operations Retail trading across many sectors of the UK has slowed considerably duringrecent months and these difficult trading conditions have resulted indisappointing sales. The need to generate sales resulted in our decision to start the January 2005Sale period in December 2004. This has resulted in lower margins. There islittle doubt that the prevalent 'discount culture' encourages customers to waitfor sale periods before committing to purchases. Under present difficult market conditions, we continue to look for new ways togrow the business. In this respect we have a number of new products in thedevelopment stage. On the cost side, we have made a number of major changes in our manufacturingprocesses. These are already improving production efficiency and productquality. Shortly after the period end, we opened a new company showroom in Winchester.This replaces our successful concession unit in the town. We recently commencedrefitting our concession at Hoopers Department Store (Wilmslow) to create alarger more contemporary showroom. Summary of Financial Results Turnover for the period was £1,849,000 against £1,638,000 for the comparableperiod last year. Gross profit margins were 52.6% against 63.4% same period prior year. This fallin margin reflects increased promotional discounting and the effects ofexceptionally high work in progress at the beginning of the current financialyear. Distribution expenses were 13.0% of sales (prior year 12.2%). Sales andAdministration expenses remained flat at 51.6% of sales (prior year 51.4%) Losses before and after taxation were £229,000 (2004 - £5,000 profit). Capital expenditures in the period were £125,000 (2004 - £163,000) representingalmost entirely costs to date of the new showroom in Winchester. As at 28 February 2005 the Company had cash balances of £443,000 and unusedoverdraft facilities amounting to £250,000. Outlook for the Future Business remains highly challenging and we remain cautious as to the outcome forthe full year. John LewisChairman May 10 2005 PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 28 FEBRUARY 2005 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 28 February 29 February 31 August 2005 2004 2004 £000 £000 £000Turnover 1,849 1,638 3,609 Cost of sales (876) (600) (1,342) -------- -------- --------Gross profit 973 1,038 2,267 Distribution costs (240) (200) (601) Administration costs (954) (842) (1,637) -------- -------- --------Operating (loss)/profit (221) (4) 29 Interest receivable 2 9 14 Interest payable (10) - (21) -------- -------- --------(Loss)/profit on ordinary activities (229) 5 22before taxation Taxation - - (11) -------- -------- --------(Loss)/profit on ordinary activities (229) 5 11after taxation Dividends - - - -------- -------- --------Retained (loss)/profit (229) 5 11 ===== ===== ===== (Loss)/earnings per share (0.15)p 0.00p 0.01p ===== ===== ===== BALANCE SHEET AS AT 28 FEBRUARY 2005 Unaudited Unaudited Audited 28 February 2005 29 February 2004 31 August 2004 £000 £000 £000 £000 £000 £000FixedassetsIntangible 32 28 34assetsTangible 1,964 1,950 1,942assets -------- -------- -------- 1,996 1,978 1,976CurrentassetsStocks 451 368 491Debtors 135 72 86Cash at bank 443 686 374and in hand -------- -------- -------- 1,029 1,126 951Creditors:amountsfallingdue within (1,209) (1,071) (872)one year -------- -------- --------Net current (180) 55 79(liabilities)/assets -------- -------- --------Total assetslesscurrentLiabilities 1,816 2,033 2,055 Creditors:amountsfallingdue after (334) (353) (344)more than oneyear Provisionsforliabilitiesand charges (71) (46) (71) -------- -------- --------Total net 1,411 1,634 1,640assets ===== ===== ===== Capital andReservesCalled up 149 149 149sharecapitalOther 1 1 1reservesShare premium 825 825 825accountProfit and 436 659 665Lossaccount -------- -------- --------Shareholdersfunds- all equity 1,411 1,634 1,640interests ===== ===== ===== CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 28 FEBRUARY 2005 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 28 February 29 February 31 August 2005 2004 2004 £000 £000 £000 Operating (loss)/profit (221) (4) 29 Depreciation 104 90 211 Decrease/(increase) in Stock 40 (188) (167) (Increase)/decrease in Debtors (49) 19 18 Increase/(decrease) in Creditors 337 13 (76) -------- -------- ---------Net cash inflow/(outflow) fromoperating activities 211 (70) 15 Returns on investment and servicingof finance (8) 9 (7) Corporation tax - - (70) Capital expenditure (125) (163) (424) Equity dividends paid - (19) (60) Financing (9) (9) (18) -------- --------- ---------Increase/(decrease) in cash 69 (252) (564) ===== ===== ===== NOTES: 1. The interim accounts, which are unaudited, have been prepared under the historical cost convention using the accounting policies set out in the accounts for the year ended 31 August 2004. 2. The loss per share is calculated on the loss after taxation of £229,000 and on the basis of 148,745,519 shares in issue. The earnings per share for the 6 months ended 29 February 2004 is calculated on the profit after taxation of £5,000 and on the basis of 148,745,519 shares in issue. The earnings per share for the year ended 31 August 2004 is calculated on the profit after taxation of £11,000 and on the basis of 148,745,519 shares in issue. 3. Copies of the 2005 interim accounts will be available to shareholders on the Company's website www.john-lewis.co.uk, 4. Copies of the announcement will be available from the Nominated Adviser, Smith & Williamson Corporate Finance Limited, No 1 Riding House Street, London, W1A 3AS for one month from the date of this announcement. -ends- This information is provided by RNS The company news service from the London Stock Exchange