JLH.L Regulatory News (JLH)

2 May 2006 09:58

John Lewis Of Hungerford PLC02 May 2006 JOHN LEWIS OF HUNGERFORD PLC HIGHLIGHTS . Revenues decrease 22% to £1,431,000 (2005 - £1,849,000). . Losses before and after taxation £289,000 (2005 - £229,000 loss). . Net cash inflows from operating activities £138,000 (2005 - £211,000 inflows). . New Managing Director appointed January 2006. CHAIRMAN'S STATEMENT Review of Operations We indicated in our annual report for the year to 31 August 2005 that tradingwas exceptionally difficult in the first quarter of the current financial year.Order input improved significantly in the second quarter but was too late to bereflected in sales revenues for the six months to 28 February 2006. As a result of the above sales declined and losses increased compared to thesame period in the prior year. During the period your Board has made a number of significant management changesto improve the performance of the Company. As previously announced, MalcolmHepworth joined the Board as Managing Director in January 2006 and in November2005 Roy Hawthorne joined the Company as Production Manager. Your Board is now looking at ways to enhance sales growth within the Company'spresent cost base. Summary of Financial Results Turnover for the period was £1,431,000 against £1,849,000 for the comparableperiod last year. Gross profit margins improved considerably to 63.0% against 52.6% same periodprior year. This improvement reflects reduced sales discounts, efficiencyimprovements in manufacturing and selling price increases. However against thisAdministration Costs (a significant part of which represents selling expenses)increased to 70.8% of sales against 51.6% for the prior period. Total sellingexpenses increased in absolute terms by 5.7% to 31.8% of sales (2005 - 23.3%)mainly as a result of payroll and occupancy cost increases. Distribution expenses fell to 11.7% of sales (2005 - 13.0 %) due in the main toreductions in advertising and store rental commissions. Losses before and after taxation were £289,000 (2005 - £229,000 loss). As in theprior year due to uncertainties as to the outcome of the current year, no taxcredit has been booked in these interim statements against current periodlosses. Capital expenditures in the period were £31,000 (2005 - £125,000) representingexpenditures to upgrade production facilities. Cash inflows from operating activities were £138,000 (2005 - £211,000) As at 28 February 2006 the Company had cash balances of £472,000 (2005 -£443,000) and unused overdraft facilities amounting to £250,000. Outlook for the Future Although order input at the end of the second quarter was very strong, businessremains highly challenging. We remain cautious as to the outcome for the fullyear. John LewisChairman 2 May 2006 PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 28 FEBRUARY 2006 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 28 February 28 February 31 August 2006 2005 2005 £000 £000 £000 Turnover 1,431 1,849 4,351 Cost of sales (529) (876) (1,854) -------- -------- --------Gross profit 902 973 2,497 Distribution costs (167) (240) (727) Administration costs (1,014) (954) (1,773) -------- -------- --------Operating (loss) (279) (221) (3) Interest receivable 0 2 2 Interest payable (10) (10) (24) -------- -------- --------(Loss) on ordinary activities beforetaxation (289) (229) (25) Taxation - - 7 -------- -------- --------(Loss) on ordinary activities aftertaxation (289) (229) (18) Dividends - - - -------- -------- --------Retained (loss) (289) (229) (18) ===== ===== ===== (Loss) per share (0.19)p (0.15)p (0.01)p ===== ===== ===== BALANCE SHEETAS AT 28 FEBRUARY 2006 Unaudited Unaudited Audited 28 Feb 2006 29 Feb 2005 31 Aug 2005 £000 £000 £000 £000 £000 £000Fixed assetsIntangible assets 27 32 30Tangible assets 1,833 1,964 1,908 ----- ----- ----- 1,860 1,996 1,938Current assetsStocks 512 451 356Debtors 100 135 74Cash at bank and in hand 472 443 390 ----- ----- ----- 1,084 1,029 820Creditors: amounts fallingdue within one year (1,237) (1,209) (751) ----- ----- -----Net current(liabilities)/assets (153) (180) 69 ----- ----- -----Total assets less currentLiabilities 1,707 1,816 2,007 Creditors: amounts fallingdue after more than oneyear (316) (334) (327) Provisions for liabilitiesand charges (58) (71) (58) ----- ----- -----Total net assets 1,333 1,411 1,622 ===== ===== ===== Capital and ReservesCalled up share capital 149 149 149Other reserves 1 1 1Share premium account 825 825 825Profit and Loss account 358 436 647 ----- ----- -----Shareholders funds - all equity 1,333 1,411 1,622interests ===== ===== ===== CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 28 FEBRUARY 2006 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 28 February 29 February 31 August 2006 2005 2005 £000 £000 £000 Operating (loss) (279) (221) (3) Depreciation 108 104 232 (Increase)/decrease in Stock (156) 40 135 (Increase) in Debtors (25) (49) (1) Increase/(decrease) in Creditors 490 337 (127) -------- -------- ---------Net cash inflow fromoperating activities 138 211 236 Returns on investment and servicingof finance (10) (8) (22) Corporation tax paid (5) - 14 Capital expenditure (31) (125) (195) Equity dividends paid - - - Financing (10) (9) (17) -------- --------- ---------Increase in cash 82 69 16 ===== ===== ===== NOTES: 1. The interim accounts, which are unaudited, have been prepared under thehistorical cost convention using the accounting policies set out in the accountsfor the year ended 31 August 2005. 2. The loss per share is calculated on the loss after taxation of £289,000 andon the basis of 148,745,519 shares in issue. The loss per share for the 6 monthsended 28 February 2005 is calculated on the loss after taxation of £229,000 andon the basis of 148,745,519 shares in issue. The loss per share for the yearended 31 August 2005 is calculated on the loss after taxation of £18,000 and onthe basis of 148,745,519 shares in issue. 3. Copies of the 2006 interim accounts will be available to shareholders on theCompany's website www.john-lewis.co.uk, 4. Copies of the announcement will be available from the Nominated Adviser,Smith & Williamson Corporate Finance Limited, 25 Moorgate, London, EC2R 6AY forone month from the date of this announcement. 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