Longboat Energy Regulatory News (LBE)

11 Mar 2008 07:01

Liberty PLC11 March 2008 FOR IMMEDIATE RELEASE11 March 2008 LIBERTY PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007 HIGHLIGHTS • New Chief Executive joined 1 July 2007 and additional appointments to executive management team. • Advance in total Group revenue to £45.8m - up from £44.0m in year to December 2006. • Flagship store sales including concessions advanced in year to 31 December 2007 by 2% to £38.3m. o Menswear increased in year to 31 December 2007 by 18% to £4.6m. o Liberty of London luxury brand up 8% in year to 31 December 2007 to £3.2m • Liberty Balance Sheet underpinned by Great Marlborough Street Flagship Store valued at £33m. • Independent Liberty of London shop leased in Sloane Street - anticipated Summer 2008 opening. "We continue to make great strides in establishing our Liberty of London luxuryproducts label, and its progression to becoming a global brand. The Board isconfident that Liberty has the structures, products and people to produce animproving platform for growth in the current year". Richard Balfour-Lynn,Chairman Contact: Richard Balfour-Lynn, Chairman, Liberty plc 020 7706 2121Geoffroy de La Bourdonnaye, Chief Executive, Liberty plc 020 7734 1234Crispin Mardon, Finance Director, Liberty plc 020 7734 1234Baron Phillips, Baron Phillips Associates 020 7920 3161Nicola Marrin, Seymour Pierce 020 7107 8000 LIBERTY PLC CHAIRMAN'S STATEMENT Retailing this year has been a story of two halves. The first six months of theyear under review continued the sales growth we had begun to witness towards theend of 2006. Then in the second half we felt the impact of last Autumn's turmoilin the financial markets. Liberty has weathered this uncertain period well andits performance has been commendable, particularly as it has undertaken a majormanagement re-structuring programme over the same period. Revenue over the 12 months to 31 December 2007 not only held up well but alsomade further advances over the excellent sales platform established in theprevious year. Across the Liberty group total sales amounted to £45.8m, anincrease of 4% over 2006, with a particularly excellent performance from thefabrics division, recording an 11% rise to £13.3m. At the same time, we continue to make great strides in establishing our Libertyof London luxury products label, and its progression to becoming a global brand.Sales within the flagship store of the Liberty of London product range continuedto rise but, importantly, the brand is gaining recognition both within Europeand North America. Liberty of London retail revenue throughout the storeincreased significantly during the year to £3.2m while its wholesale business isbeginning to gain ground through showcasing the range in both Milan and Paris. However, the Liberty of London business plan continues to require substantialinvestment and over the year we invested almost £3.5m in the brand. Thisinvestment included the establishment of a stand-alone studio and showroom inpremises close to the flagship store; additional staff, brand distribution,European product launches, and increased marketing spend. Although this investment helps grow and enhance our increasingly valuable brand,these costs are expensed as they occur and inevitably adversely impact theprofit and loss account over the short term. We are confident that this brandinvestment will show commercial returns in the years ahead, though we do notexpect this to be translated into positive profit returns by the brand duringthe next few years while we continue to increase our brand investment andexpenditure. During the course of the current year the Liberty of London brand will continueto establish its own identity both within the UK and internationally through thelaunch of its own dedicated store in London's Sloane Street. This stand-alonestore is planned to open this Summer and is an opportunity for Liberty of Londonto showcase its entire range of designs and products in an entirely dedicatedenvironment. Within the flagship store, the great success story of the year has been thegrowth of menswear sales which have advanced by approximately 18% over the sameperiod last year. This rise reflects a number of initiatives that have deliveredincreased footfall through the basement. Not only has the menswear range beenmore exciting and attractive but also the addition of a champagne bar and amen's grooming centre to the basement offer has been very well received bycustomers. Other star performers over the year included Gifts (up 14% over the year toDecember 2006) and, Beauty (up 4%) and although both Ladieswear and Homegenerated overall lower sales during 2007 compared to the year before. There islittle doubt that our Home range was affected by the general downturn in thesecond half of the year. Our ladieswear offer during 2007 enjoyed less successthan in the past and we have already implemented major changes to correct thisfor the current year. We have now consolidated our position in Japan and have bought out our jointventure partners so that we now own the entire business. Not only does this giveus, naturally, far greater control of the business in Japan but it also gives usa tremendous platform from which we can expand our product sales, includingLiberty of London, throughout the Far East. With the necessary infrastructure inplace we are very excited about the potential for our business in this part ofthe world. While the Autumn was slower in some departments, such as Ladieswear and Home,for the reasons I outlined above, the flagship store experienced a good run upto Christmas with sales across the business running at 5% higher than the samefour week period in 2006. This was particularly heartening for the store as ittended to buck the general retail trend and showed a healthy rise over theprevious year's record levels. We are also building on the increasing success of our fabrics division with astrengthened sales team enabling us to provide a bespoke service to globalcustomers both in terms of design and fabric. We have appointed two experiencedsales executives to spearhead our planned growth in Fabrics and we have alsoappointed new sales agents. We are also delighted to be working with Central StMartins' students on fabric design projects. As shareholders will have noted, expenditure on the Liberty of London brand rosefrom just under £2m in the year to December 2006 to almost £3.5m for 2007. Theimpact of this investment in our future and one-off reorganisation costs thisyear of £2.7m, is that EBITDA for the year was a loss of £3.6m compared to lastyear's loss of approximately £0.5m. These one-off reorganisation costs werepartially offset by receipt of retention monies and release of provisionsrelating to the sale of Liberty House in 2005, amounting to £1.1m. Afterinterest and depreciation totalling £2.9m, this resulted in a loss of £6.4mcompared to the pre-tax loss of £2.3m for the previous year. We are hopeful thatthe costs incurred this year will show a healthy improvement in bottom linereturns during the current year to December 2008. The business is underpinned by a strong balance sheet. This comprises net assetsof £41.5m, of which £33m relates to the valuable Liberty flagship store. Netdebt at December 2007 was £8.7m, up from last year's £1.2m but still representsproperty gearing of only 26%. The major reorganisation of the business led to the departure of Iain Renwickand the appointment of Geoffroy de La Bourdonnaye as our new Chief Executive inJuly, joining from Christian Lacroix. He is now supported by two further seniormanagement appointments: Sara Edwards as Human Resources and Change Director,and Guy Hipwell as Director of Internet, Supply Chain and Retail Merchandising.In January 2008 we also appointed Jonathan Samols as IT Director and Fran Pagejoined us from Harvey Nichols as Head of Marketing for Liberty. These seniorexecutives complement our existing team and give the business a stronger basefor future growth. We now have a dedicated and well regarded team at Liberty and we expect to seeits impact during the course of 2008. During the first half of 2008 we arere-launching our lingerie offer with a number of international and exclusivebrands such as Elle McPherson and Kiki de Montparnasse. Elsewhere we have launched our comprehensive Bridal department with exclusivedesigns from Christian Lacroix and Karl Lagerfeld as well as an on-line weddingand gift list due to commence later in the year. Importantly, in June 2008 we are launching the Liberty transactional websiteenabling our world-wide customer base to enjoy the Liberty experience on-line.This will include Liberty of London branded goods, as well as a range ofexclusive brands and gifts. This is an important new enhancement to our businessmodel and we believe it will play a key role in providing scale to Libertyretail, leveraging the global awareness of the Liberty brand. At the same time we are exploring a number of initiatives aimed at raising bothLiberty's profile and widening its customer base. We have already concluded anagreement with the Victoria and Albert Museum whereby Liberty has become itsexclusive retail partner. The first example of this partnership is the importantChina Design Now exhibition being launched at the V&A in March 2008 which willrun through to mid-July. We have curated a selection of many high profilefashion and design artists, including Michael Wolf, who will be exhibitingexclusively during the exhibition. In addition to all the commercial initiatives aimed at enhancing our productoffering, service standards and the look, feel and marketing of the store, giventhe current challenging economic conditions we are streamlining our operationenabling us to become more customer and category focused. Liberty is now well placed to take advantage of its long established reputationof offering cutting edge design based on some of the world's most recognisablefabric prints. With the forthcoming launch of our Liberty of London stand-aloneshop, we believe the business is poised to move up to its next level ofdevelopment. While we appreciate that performance will be impacted to varyingdegrees by the general economic climate, the Board is confident that Liberty hasthe structures, products and people to produce an improving platform for growthin the current year. Richard Balfour-LynnChairman11 March 2008 LIBERTY PLC KEY FINANCIAL HIGHLIGHTS Liberty Plc is in the process of transforming itself into a dynamic retaildestination, underpinned by a strong and expanding retail brand. The historicaltrading and balance sheet performance of Liberty Plc is summarised below:- Year ended Year ended Eighteen months ended 31 December 31 December 31 December 2007 2006 2006Financial performance £'000 £'000 £'000----------------------------------------------------------------------------------Total revenue 45,845 44,012 66,407EBITDA before brand expenditure (136) 1,415 1,461Operating loss before brand expenditure (2,893) (180) 13Brand expenditure (3,484) (1,971) (2,843)Pre-tax loss (6,376) (2,310) (2,187)Total recognised income and expense (8,223) 8,955 3,095---------------------------------------------------------------------------------- 31 December 31 December 2007 2006Balance sheet composition £'000 £'000--------------------------------------------------------------------Intangible assets 18,382 18,200Property, plant and equipment 34,400 36,587Net debt (8,704) (1,191)Net assets 41,536 51,141Equity attributable to shareholders in pence per share 181p 219p CONSOLIDATED INCOME STATEMENTfor the year ended 31 December 2007 Eighteen Year Unaudited months ended year ended ended 31 December 31 December 31 December 2007 2006 2006 Notes £'000 £'000 £'000---------------------------------------------------------------------------------Revenue 1 45,845 44,012 66,407Cost of sales (25,663) (24,000) (36,197)---------------------------------------------------------------------------------Gross profit 20,182 20,012 30,210Selling and distribution costs (22,789) (19,952) (30,932)Administrative expenses (4,426) (2,784) (3,942)Other operating income 941 573 2,629---------------------------------------------------------------------------------Results from operating activities (6,092) (2,151) (2,035)Finance income 1,002 33 77Finance expenses (1,286) (192) (229)---------------------------------------------------------------------------------Loss before taxation (6,376) (2,310) (2,187)Taxation (371) (437) (669)---------------------------------------------------------------------------------Loss for the period (6,747) (2,747) (2,856)---------------------------------------------------------------------------------Attributable to:Equity shareholders of the Company (7,107) (3,115) (3,349)Minority interests 360 368 493---------------------------------------------------------------------------------Loss for the period (6,747) (2,747) (2,856)---------------------------------------------------------------------------------Loss per share (basic and diluted) 2 (31.4p) (13.8p) (14.8p)---------------------------------------------------------------------------------All operations are continuing. CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEfor the year ended 31 December 2007 Eighteen Year Unaudited months ended year ended ended 31 December 31 December 31 December 2007 2006 2006 £'000 £'000 £'000----------------------------------------------------------------------------------Revaluation of property, plant and equipment net of tax (2,312) 7,183 8,072Defined benefit pension scheme actuarial gains, net of tax 754 4,714 4,977Foreign exchange translation differences for foreign operations 82 (195) (235)----------------------------------------------------------------------------------Income and expense recognised directly to equity (1,476) 11,702 12,814Loss for the period (6,747) (2,747) (2,856)----------------------------------------------------------------------------------Total recognised income and expense for the year / eighteen months (8,223) 8,955 9,958 ----------------------------------------------------------------------------------Attributable to:Equity shareholders of the Company (8,583) 8,587 9,465Minority interests 360 368 493----------------------------------------------------------------------------------Total recognised income and expense for the year / eighteen months (8,223) 8,955 9,958----------------------------------------------------------------------------------Total recognised income and expense attributable to shareholders ofLiberty Plc in pence per share (note2) (36.4p) 39.6p 44.1p---------------------------------------------------------------------------------- All recognised gains and losses are attributable to equity shareholders'interests. CONSOLIDATED BALANCE SHEETat 31 December 2007 31 December 31 December 2007 2006 Notes £'000 £'000--------------------------------------------------------------------------------Non-current assetsIntangible assets 3 18,382 18,200Property, plant and equipment 5 34,400 36,587Employee benefits - 45-------------------------------------------------------------------------------- 52,782 54,832--------------------------------------------------------------------------------Current assetsInventories 7,595 7,489Trade and other receivables 6,812 5,997Cash and cash equivalents 4,296 1,020-------------------------------------------------------------------------------- 18,703 14,506--------------------------------------------------------------------------------Total assets 71,485 69,338--------------------------------------------------------------------------------Current liabilitiesOverdraft - (2,211)Trade and other payables (15,688) (12,562)Tax payable (249) (135)-------------------------------------------------------------------------------- (15,937) (14,908)--------------------------------------------------------------------------------Non-current liabilitiesLoans and borrowings (13,000) -Long term payables (46) (396)Provisions (550) (1,300)Employee benefits (416) (1,593)-------------------------------------------------------------------------------- (14,012) (3,289)--------------------------------------------------------------------------------Total liabilities (29,949) (18,197)--------------------------------------------------------------------------------Net assets 41,536 51,141--------------------------------------------------------------------------------EquityShare capital 6,036 6,036Reserves 71,791 74,103Retained earnings (36,869) (30,639)--------------------------------------------------------------------------------Total equity attributable to shareholders of the Company 40,958 49,500Minority interests 578 1,641--------------------------------------------------------------------------------Total equity 6 41,536 51,141-------------------------------------------------------------------------------- Approved by the Board of Directors on 11 March 2008 and signed on its behalf by: Richard Balfour-Lynn G de La BourdonnayeChairman Chief Executive CONSOLIDATED CASH FLOW STATEMENTfor the year ended 31 December 2007 Eighteen Year Unaudited months ended year ended ended 31 December 31 December 31 December 2007 2006 2006 £'000 £'000-----------------------------------------------------------------------------------Loss for the year (6,747) (2,747) (2,856)Adjustments for non-cash itemsTaxation 371 437 669Finance cost 1,286 192 229Finance income (1,002) (33) (77)Depreciation 2,475 1,491 2,234Currency translation differences 8 (172) (352)-----------------------------------------------------------------------------------Cash flows from operations before changes in working capital (3,609) (832) (153)Change in inventories 106 (653) (832)Change in trade and other receivables 815 999 2,157Change in trade and other payables (240) (1,680) (1,536)Change in provisions and employee benefits 124 104 138-----------------------------------------------------------------------------------Cash generated from operations (2,804) (2,062) (226)Interest paid (338) (195) (232)Tax paid (486) (370) (582)-----------------------------------------------------------------------------------Net cash from operating activities (3,628) (2,627) (1,040)-----------------------------------------------------------------------------------Cash flows from investing activitiesInterest received 46 33 81Purchase of property, plant and equipment (2,600) (2,287) (2,840)Acquisition of subsidiary net of cash acquired (1,235) - ------------------------------------------------------------------------------------Net cash from investing activities (3,789) (2,254) (2,759)-----------------------------------------------------------------------------------Cash flows from financing activitiesBorrowings drawn 13,000 - -Payments to minority interests (96) (202) (1,022)-----------------------------------------------------------------------------------Net cash used in financing activities 12,904 (202) (1,022)-----------------------------------------------------------------------------------Net increase in cash and cash equivalents 5,487 (5,083) (4,821)Opening cash and cash equivalents (1,191) 3,892 3,630-----------------------------------------------------------------------------------Closing cash and cash equivalents 4,296 (1,191) (1,191)----------------------------------------------------------------------------------- 1. SEGMENTAL REPORTING Eighteen Year Unaudited months ended year ended ended 31 December 31 December 31 December 2007 2006 2006 £'000 £'000 £'000-----------------------------------------------------------------------------------Revenue by business divisionRetail including brand 32,570 32,043 48,753Fabric 13,275 11,969 17,654----------------------------------------------------------------------------------- 45,845 44,012 66,407-----------------------------------------------------------------------------------Revenue by geographical originUnited Kingdom 40,840 39,036 59,382Japan 5,005 4,976 7,025----------------------------------------------------------------------------------- 45,845 44,012 66,407-----------------------------------------------------------------------------------Revenue by geographical destinationUnited Kingdom 33,402 33,367 50,641Japan 5,283 4,976 7,025Other 7,160 5,669 8,741----------------------------------------------------------------------------------- 45,845 44,012 66,407-----------------------------------------------------------------------------------(Loss) / profit for the period bybusiness divisionRetail (5,675) (2,884) (3,150)Fabric 2,993 2,704 3,958Liberty of London branded product (3,410) (1,971) (2,843)-----------------------------------------------------------------------------------Operating loss (6,092) (2,151) (2,035)Net finance costs (284) (159) (152)Taxation (371) (437) (669)-----------------------------------------------------------------------------------Loss for the period (6,747) (2,747) (2,856)-----------------------------------------------------------------------------------(Loss) / profit for the period bygeographical originUnited Kingdom (7,069) (3,228) (3,450)Japan 977 1,077 1,415-----------------------------------------------------------------------------------Operating loss (6,092) (2,151) (2,035)Net finance costs (284) (159) (152)Taxation (371) (437) (669)-----------------------------------------------------------------------------------Loss for the period (6,747) (2,747) (2,856)----------------------------------------------------------------------------------- 31 December 31 December 2007 2006Net assets £'000 £'000-----------------------------------------------------------------------------------By business divisionRetail 31,490 42,494Fabric 10,046 8,647Liberty of London branded product - ------------------------------------------------------------------------------------ 41,536 51,141-----------------------------------------------------------------------------------By geographical origin:United Kingdom 39,960 48,973Japan 1,576 2,168----------------------------------------------------------------------------------- 41,536 51,141----------------------------------------------------------------------------------- Concession revenue Sales from concession departments are included on a commission only basis. Grossrevenue of concession departments was as follows: Eighteen Year Unaudited months ended year ended ended 31 December 31 December 31 December 2007 2006 2006 £'000 £'000 £'000-----------------------------------------------------------------------------------Gross revenue of concession departments 7,660 7,589 11,758----------------------------------------------------------------------------------- 2. LOSS PER SHARE AND RECOGNISED INCOME AND EXPENSE PER SHARE Loss per share The loss per share figures are calculated by dividing the loss attributable toequity shareholders of the Company for the period, by the weighted averagenumber of ordinary shares in issue during the period, as follows:- Eighteen Year Unaudited months ended year ended ended 31 December 31 December 31 December 2007 2006 2006 £'000 £'000 £'000-----------------------------------------------------------------------------------Loss for the period attributable to equity shareholders of the Company (7,107) (3,115) (3,349)----------------------------------------------------------------------------------- Number Number Number '000 '000 '000-----------------------------------------------------------------------------------Weighted average number of ordinary shares in issue during the period 22,603 22,603 22,603-----------------------------------------------------------------------------------Loss per share (basic and diluted) (31.4p) (13.8p) (14.8p)----------------------------------------------------------------------------------- Recognised income and expense per share The figures for recognised income and expense attributable to shareholders ofthe Company in pence per share are calculated by dividing the recognised incomeand expense attributable to equity shareholders of the Company for the period,by the weighted average number of shares in issue during the period, as follows:- Eighteen Year Unaudited months ended year ended ended 31 December 31 December 31 December 2007 2006 2006 £'000 £'000 £'000-----------------------------------------------------------------------------------Recognised income and expense for the period attributable to equityshareholders of the Company (8,223) 8,955 9,958----------------------------------------------------------------------------------- Number Number Number '000 '000 '000-----------------------------------------------------------------------------------Weighted average number of ordinary shares in issue during the period 22,603 22,603 22,603-----------------------------------------------------------------------------------Recognised income and expense attributable to equity Shareholders ofthe Company, in pence per share (36.4p) 39.6p 44.1p----------------------------------------------------------------------------------- 3. INTANGIBLE ASSETS Brand Total Goodwill £'000 £'000----------------------------------------------------------------------------------------Balance at 1 January 2006 / 31 December 2006 - 18,200 18,200Acquisition of minority interest 182 - 182----------------------------------------------------------------------------------------Balance at 31 December 2007 182 18,200 18,382---------------------------------------------------------------------------------------- Assessment of the useful life and impairment testing on the carrying value ofthe Brand The Directors consider that the Group's brand has an indefinite life due to thedurability of the underlying business. This has been demonstrated over manyyears. Accordingly the brand has not been amortised but has instead been subjectto an annual impairment review. An annual assessment of the useful life and an annual review of the impairmenton the carrying value of the brand were undertaken by the Directors at 31December 2007. For the purposes of this valuation Liberty of London has beenexcluded because the pay-back expectation from the investment plans is beyondthe time horizon of the valuation. This review was based on the projectedunderlying business performance of the Liberty brand over the period fromJanuary 2008 to December 2012, assuming a compound sales growth rate of 9.9%, adiscount rate of 10.2% and a subsequent sales growth rate to perpetuity of 2%.This supported a value of the Liberty brand in excess of the book value of£18.2m at which it has been included in the financial statements throughout theyear. It has therefore been retained at that level in these financialstatements. Impairment testing for cash-generating units containing goodwill The goodwill balance arose from the acquisition of the minority interest inLiberty Japan Co. Ltd on 25 December 2007. An impairment review was undertaken by the Directors on 31 December 2007comparing the carrying value of goodwill with the recoverable amount of thecash-generating unit to which goodwill was allocated. As a result of thisreview, the Directors have determined that there has been no impairment togoodwill during the year ended 31 December 2007. 4. ACQUISITIONS On 25 December 2007, the Group acquired 49% of the issued share capital ofLiberty Japan Co. Limited for a total consideration of £1,432k. This acquisitionmade Liberty Japan Co Limited a fully owned subsidiary of the Group, aspreviously the Group held 51% of the issued share capital. Liberty Japan Co.Limited distributes Liberty fabric through wholesale and licensing channels.This transaction was accounted for using the purchase method of accounting andis summarised below: Fair value Book value adjustments Fair value £'000 £'000 £'000 Net assets acquired Property, plant and equipment 419 - 419Trade and other receivables 1,684 - 1,684Cash and cash equivalents 197 - 197Trade and other payables (1,050) - (1,050) --------------------------------------- 1,250 - 1,250 -------------------------------Goodwill 182 -------Total consideration 1,432 ======= Satisfied by: £'000Cash 1,432Loan -Directly attributable costs - ----- 1,432 ===== Net cash outflow arising on acquisition £'000Cash consideration 1,432Cash and cash equivalents acquired (197) ----- 1,235 =====The goodwill arising on the acquisition of Liberty Japan Co. Limited isattributable to the future income stream that the Group will benefit from. 5. PROPERTY, PLANT AND EQUIPMENT Freehold Fixtures & property equipment TotalGroup £'000 £'000 £'000-------------------------------------------------------------------------------------Cost or valuationAt 1 January 2007 32,148 11,345 43,493Additions - 2,600 2,600Revaluation (2,674) - (2,674)-------------------------------------------------------------------------------------At 31 December 2007 29,474 13,945 43,419-------------------------------------------------------------------------------------DepreciationAt 1 January 2007 - (6,906) (6,906)Charge for the year (362) (2,113) (2,475)Revaluation 362 - 362-------------------------------------------------------------------------------------At 31 December 2007 - (9,019) (9,019)-------------------------------------------------------------------------------------Net book value at 31 December 2007 29,474 4,926 34,400------------------------------------------------------------------------------------- Freehold Fixtures & property equipment TotalGroup £'000 £'000 £'000-------------------------------------------------------------------------------------Cost or valuationAt 1 July 2005 24,608 8,516 33,124Additions 11 2,829 2,840Revaluation 7,529 - 7,529-------------------------------------------------------------------------------------At 31 December 2006 32,148 11,345 43,493-------------------------------------------------------------------------------------DepreciationAt 1 July 2005 - (5,215) (5,215)Charge for the period (543) (1,691) (2,234)Revaluation 543 - 543-------------------------------------------------------------------------------------At 31 December 2006 - (6,906) (6,906)-------------------------------------------------------------------------------------Net book value at 31 December 2006 32,148 4,439 36,587-------------------------------------------------------------------------------------Net book value at 1 July 2005 24,608 3,301 27,909------------------------------------------------------------------------------------- Valuation The Group's property, plant and equipment is all located in the United Kingdom.The Group's property was valued at 31 December 2007 by qualified professionalvaluers working for the company of DTZ Debenham Tie Leung, Chartered Surveyors,("DTZ"), acting in the capacity of External Valuers. All such valuers areChartered Surveyors, being members of the Royal Institution of CharteredSurveyors ("RICS"). DTZ act as valuers to the Liberty Group and undertake half year and year endvaluations for accounting purposes. DTZ has been carrying out this valuationinstruction for the Liberty Group for a continuous period since 1999 and PaulWolfenden has been the signatory of Valuation Reports provided to the LibertyGroup for the same period since June 1999. In addition, DTZ provide ad-hocvaluation advice to the Liberty Group. DTZ is a wholly owned subsidiary of DTZ Holdings plc. In the financial year to30th April 2007, the proportion of total fees payable by the Liberty Group tothe total fee income of DTZ Holdings plc was less than 5%. It is not anticipatedthat this situation will vary in terms of our financial year to 30th April 2008.DTZ have not received any introductory fees or acquisition fees in respect ofthe property owned by the Liberty Group within the 12 months prior to the dateof valuation. However, DTZ have been appointed as valuers in respect of certainof the property and in the last 12 months they have provided valuation advicefor bank lending purposes in relation to the property. The valuation was carried out in accordance with the RICS Appraisal andValuation Standards 5th Edition ("the Manual") and the property was valued onthe basis of Market Value of the property. Market Value is defined in the Manualas the estimated amount for which a property should exchange on the date ofvaluation between a willing buyer and a willing seller in an arm's lengthtransaction after proper marketing, where the parties had each actedknowledgeably, prudently and without compulsion. The DTZ valuation is notqualified by any reference to existing or alternative use and implies the valueto which a property will derive, having regard to its most valuable use. The valuation includes the land and buildings; the trade fixtures, fittings,furniture, furnishings and equipment; and the market's perception of the tradingpotential excluding personal goodwill; together with an assumed ability to renewexisting licences, consents, certificates and permits. The value excludesconsumables and stock in trade. The valuation excludes any goodwill associatedwith the management by the Company or its subsidiaries. As set out in Guidance Note 1 of the Manual the Properties are of a naturenormally sold as fully equipped and operational entities and as such have beenvalued by reference to their trading potential to include: (a) the land and the buildings; (b) trade fixtures, fittings, furniture, furnishings and equipment; (c) the trading potential of the Properties excluding personal goodwill, together with an assumed ability to renew existing licences, consents, certificates and permits; and (d) the benefit of any transferable licences, consents, certificates and permits and any other intangibles. The valuation of the Tudor property and fixtures totalled £33m. In addition tothis, fixtures and equipment with a net book value of £3.5m at 31 December 2007are carried at the lower of cost and realisable value in the table above. Thehistoric cost of the Group's property at 31 December 2007 includes capitalisedinterest of £0.2m (2006: £0.2m). 6. CAPITAL AND RESERVES Attributable to shareholders Share Merger Revaluation Translation Retained Total Minority Total capital reserve reserve reserve earnings interest equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 July 2005 6,036 61,503 4,528 196 (32,366) 39,897 2,448 42,345 Total recognised income and expenses before property revaluation - - - (235) 1,628 1,393 (807) 586 Revaluation of freehold property - - 8,072 - - 8,072 - 8,072 Share based payments - - - - 138 138 - 138 ---------------------------------------------------------------------------------------Balance at 31 December 2006 / 1 January 2007 6,036 61,503 12,600 (39) (30,600) 49,500 1,641 51,141 Total recognised income and expenses before property revaluation - - - 82 (6,353) (6,271) 360 (5,911) Revaluation of freehold property - - (2,312) - - (2,312) - (2,312) Share based payments - - - - 124 124 - 124 Acquisition of minority interest - - - - (83) (83) (1,423) (1,506) ---------------------------------------------------------------------------------------Balance at 31 December 2007 6,036 61,503 10,288 43 (36,912) 40,958 578 41,536 --------------------------------------------------------------------------------------- 7. EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF LIBERTY PLC IN PENCE PER SHARE The Equity attributable to shareholders of Liberty plc in pence per share iscalculated by dividing the Equity attributable to shareholders of Liberty plc ateach period end by the number of ordinary shares in issue at such period end.They are calculated as follows:- 31 December 31 December 2007 2006--------------------------------------------------------------------------------Equity attributable to shareholders of Liberty plc per consolidated balance sheet £'000 40,958 49,500--------------------------------------------------------------------------------Number of ordinary shares in issue at periodend '000 22,603 22,603--------------------------------------------------------------------------------Equity attributable to shareholders of Liberty plc in pence per share Pence 181p 219p-------------------------------------------------------------------------------- 8. FINANCIAL INFORMATION The financial information set out above does not constitute the Company'sfinancial statements for the year ended 31 December 2007 or 31 December 2006 butis derived from ose financial statements. Statutory accounts for the eighteenmonth period ended 31 December 2006 have been delivered to the Registrar ofCompanies, and those for the year ended 31 December 2007 will be deliveredfollowing the Company's Annual General Meeting. The auditors have reported onthose accounts; their reports were unqualified and did not contain statementsunder Section 237(2) or (3) or the Companies Act 1985. 9. DESPATCH OF ACCOUNTS The audited accounts of the Company are expected to be sent to shareholdersduring April 2008. Thereafter copies will be available from the CompanySecretary, Filex Services Limited, 180 Great Portland Street, London W1W 5QZ. This information is provided by RNS The company news service from the London Stock Exchange