Longboat Energy Regulatory News (LBE)

29 Mar 2005 07:01

Retail Stores PLC29 March 2005 FOR IMMEDIATE RELEASE29th March 2005 RETAIL STORES PLC INTERIM RESULTS FOR SIX MONTHS TO 31st DECEMBER 2004 HIGHLIGHTS • Christmas trading improved by 14% - in contrast to industry trends • Sales advance to £23.7m over six months to 31st December, up 12% over comparable period last year • Sales momentum continued into the New Year with turnover in February and March 2005 showing a healthy increase over the previous year • Improved performance being led by: Ladies Accessories, Jewellery, Ladies and Menswear, while re-vamped Home departments proving popular and selling well • Creation of fully dedicated design studio to support planned expansion of Liberty branded goods • Aim to eliminate £50m of borrowings through property sales • Operating results, before interest and tax, improved to a loss of £550,000 against a loss of £754,000 in six months to December 2003 • Name to be changed to Liberty Plc • "Considerable progress is being made at Liberty, and the signs are encouraging. It is pleasing to see that Liberty continues to deliver sales growth as we re-establish the store as a luxury goods emporium. Early indications are that this growth will continue for the remainder of the second half, and I am confident of reporting a healthy uplift in sales at the year end," Richard Balfour-Lynn, Chairman. Contact: Retail Stores Plc Tel: 020 7734 1234 Iain Renwick, Chief Executive Fraser Allan, Finance Director Baron Phillips Associates Tel: 020 7920 3161 Baron Phillips CHAIRMAN'S STATEMENTfor the six months ended 31st December 2004 Our performance over the six months to 31st December 2004 has been encouraging.Sales advanced 12% over the comparable period last year to £23.7m, reflectingthe management team's efforts to transform Liberty, once more, into adestination shopping location. The level of activity in the store began to pick up during September andOctober, as our new concepts unveiled in fashion accessories and four new homedepartments were well received by our customers. Store sales during these twomonths were particularly strong, recording a 22% uplift over the previous year. Our investment programmes in people, marketing and new concepts continued duringthe period, although they did incur upfront costs. This meant that our strongersales did not fully translate into greater bottom line profitability. There wasimprovement at the operating level, before interest and taxation, where wereduced the loss from £754,000 for the same period a year ago, to a loss of£550,000 this time. However at the pre-tax level, losses increased from £2.0m to£2.3m as the impact of increased interest charges was felt. Losses per sharewere 11.8p against 11.1p last time. We propose to remove the burden of interest charges on the Company by repayingour external borrowings, which currently amount to approximately £50m. We aim toachieve this through the sale of our office building, Lasenby House, and by thesale and leaseback of Regent House. I can report there has been strong interestamong investors for these two prime properties in the heart of London's West End. It is pleasing to note that, unlike a great majority of retailers, Libertyenjoyed an excellent run up to Christmas. Turnover in the store picked updramatically in December, with sales in the 24 days up to Christmas advancing by14% over December 2003. This momentum continued through the post Christmas Sales and into the New Year.Since the end of the Winter Sale, Liberty has maintained its attractiveness toshoppers as turnover during February and March showed very healthy increasesover the previous year. Liberty's overall improved performance is being led by a number of key areaswithin the store: Ladies Accessories, Jewellery, Ladies and Menswear, while there-vamped Home departments are proving extremely popular and are selling well. As I outlined at the June year end our strategy to develop the Liberty business,under the leadership of Iain Renwick, Chief Executive, and Fraser Allan, FinanceDirector, is through the expansion of Liberty branded goods. Currently only 10%of sales are Liberty branded goods and our aim over the next 5 years is toincrease this to 25%. At the heart of our planned expansion of Liberty branded goods is theestablishment, for the first time, of a fully dedicated design studio headed byTamara Salman who joined Liberty in September 2004 as Director of Design. Weanticipate the first fruits of the studio's work will be seen in the store thiscoming Autumn with the launch of a range of ladies fashion accessories, travelbags and stationery. We are also taking the opportunity to change the name of the Company from RetailStores Plc to Liberty Plc, reflecting the trading name of the business. Ashareholders' meeting will be held in April to consider this change, but it hasno affect on shareholders' interests in the Company. Considerable progress is being made at Liberty, and the signs are encouraging.It is pleasing to see that Liberty continues to deliver sales growth, as were-establish the store as a luxury goods emporium. Early indications are thatthis growth will continue for the remainder of the second half and I amconfident of reporting a healthy uplift in sales at the year end. Richard Balfour-LynnExecutive Chairman 29th March 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the six months ended 31st December 2004 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 Notes £'000 £'000 £'000 Turnover 2 23,695 21,152 39,527Cost of sales (13,027) (11,626) (22,193)-----------------------------------------------------------------------------Gross profit 10,668 9,526 17,334----------------------------------------------------------------------------- Selling and distributioncosts(including exceptional (11,575) (10,663) (21,354)operating charges)Administrative expenses (1,362) (1,425) (2,919)Other operating income 1,719 1,808 3,353-----------------------------------------------------------------------------Operating loss on ordinaryactivities before interestand taxation (550) (754) (3,586)-----------------------------------------------------------------------------Operating loss beforeexceptional operating charges (550) (754) (3,219)Exceptional operating charges 3 - - (367)-----------------------------------------------------------------------------Operating loss on ordinaryactivities before interestand taxation 2 (550) (754) (3,586)-----------------------------------------------------------------------------Net interest payable andsimilar charges (1,751) (1,215) (2,606)-----------------------------------------------------------------------------Loss on ordinary activitiesbefore taxation (2,301) (1,969) (6,192)Taxation on loss on ordinaryactivities (217) (332) (682)-----------------------------------------------------------------------------Loss on ordinary activitiesafter taxation (2,518) (2,301) (6,874)Equity minority interests (104) (173) (360)Non-equity minority interests (27) (27) (55)-----------------------------------------------------------------------------Loss attributable to ordinaryshareholders (2,649) (2,501) (7,289)Undeclared non-equitypreference dividends 4 (11) (11) (23)-----------------------------------------------------------------------------Retained loss for the period 7 (2,660) (2,512) (7,312)-----------------------------------------------------------------------------Basic and diluted loss pershare 5 (11.8p) (11.1p) (32.3p)----------------------------------------------------------------------------- All operations are continuing. CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESfor the six months ended 31st December 2004 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 £'000 £'000 £'000 Loss for the period (2,649) (2,501) (7,289)Unrealised surplus on revaluationof property 4,154 - 3,464Currency translation differenceson foreign currency net investments (29) 71 5-----------------------------------------------------------------------------Total recognised gains and lossesfor the period 1,476 (2,430) (3,820)----------------------------------------------------------------------------- All recognised gains and losses are attributable to equity shareholders'interests. NOTE OF CONSOLIDATED STATEMENT OF HISTORICAL COST PROFITS AND LOSSESfor the six months ended 31st December 2004 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 £'000 £'000 £'000Reported loss on ordinaryactivities before taxation (2,301) (1,969) (6,192) Difference between historical costof depreciation charge anddepreciation charge based onrevalued amounts 2 7 14-----------------------------------------------------------------------------Historical cost loss on ordinaryactivities before taxation (2,299) (1,962) (6,178)-----------------------------------------------------------------------------Historical cost loss retainedafter taxation, minority interestsand dividends (2,658) (2,505) (7,298)----------------------------------------------------------------------------- RECONCILIATIONS OF MOVEMENTS IN SHAREHOLDERS' FUNDSfor the six months ended 31st December 2004 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 £'000 £'000 £'000 Opening shareholders' funds 44,879 48,699 48,699 Loss for the financial period (2,649) (2,501) (7,289) Undeclared non-equity preferencedividends (11) (11) (23) Net revaluation surplus on fixedassets 4,154 - 3,464 Currency translation differenceson foreign currency netinvestments (29) 71 5 Unpaid non-equity preferencedividends 11 11 23-----------------------------------------------------------------------------Closing shareholders' funds 46,355 46,269 44,879----------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETat 31st December 2004 31st December 1st December 30th June 2004 2003 2004 Notes £'000 £'000 £'000---------------------------------------------------------------------------------- Fixed assetsIntangible asset 18,200 18,200 18,200Tangible assets 6 84,794 78,304 81,103---------------------------------------------------------------------------------- 102,994 96,504 99,303----------------------------------------------------------------------------------Current assets Stocks 7,839 5,820 6,343 Debtors:amounts falling due after morethan one year 745 1,007 5,869amounts falling due within one year 6,107 6,473 878Cash 5,887 4,901 4,490---------------------------------------------------------------------------------- 20,578 18,201 17,580Creditors: amounts falling duewithin one year (15,636) (15,180) (14,534)----------------------------------------------------------------------------------Net current assets 4,942 3,021 3,046----------------------------------------------------------------------------------Total assets less currentliabilities 107,936 99,525 102,349 Creditors: amounts falling dueafter more than one year (59,291) (50,933) (55,009)----------------------------------------------------------------------------------Net assets 48,645 48,592 47,340----------------------------------------------------------------------------------Capital and reserves Called up share capital 6,036 6,036 6,036 Merger reserve 7 61,503 61,503 61,503 Revaluation reserve 7 16,489 8,880 12,337 Profit and loss account 7 (37,673) (30,150) (34,997)----------------------------------------------------------------------------------Total shareholders' funds 46,355 46,269 44,879 Analysed as:Equity shareholders' funds 45,867 45,804 44,402Non-equity shareholders' funds 488 465 477----------------------------------------------------------------------------------Equity minority interests 1,712 1,745 1,883Non-equity minority interests 578 578 578---------------------------------------------------------------------------------- 48,645 48,592 47,340---------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW STATEMENTfor the six months ended 31st December 2004 6 months 6 months Year ended ended ended 31st December 31st December 30th June Notes 2004 2003 2004----------------------------------------------------------------------------- £'000 £'000 £'000 Net cash inflow fromoperating activities 8 391 2,856 520 Returns on investments andservicing of finance 9 (1,763) (1,359) (2,640) Tax paid (265) (526) (766) Capital expenditure (921) (683) (1,148)----------------------------------------------------------------------------- Net cash (outflow)/inflowbefore financing and use ofliquid resources (2,558) 288 (4,034) Management of liquid resources (1,500) (2,200) (500) Financing 10 4,000 - 4,000----------------------------------------------------------------------------- Decrease in cash during theperiod 11 (58) (1,912) (534)----------------------------------------------------------------------------- RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBTfor the six months ended 31st December 2004 6 months 6 months Year ended ended ended 31st December 31st December 30th June Notes 2004 2003 2004------------------------------------------------------------------------------------- Decrease in cash during the period 11 (58) (1,912) (534) Increase in liquid resources 11 1,500 2,200 500 Increase in loans during the period (4,000) - (4,000)------------------------------------------------------------------------------------- (Decrease)/increase in net debt during the period (2,558) 288 (4,034) Foreign currency translation 11 (45) 100 11------------------------------------------------------------------------------------- Movement in net debt during the period (2,603) 388 (4,023) Opening net debt 11 (47,510) (43,487) (43,487)------------------------------------------------------------------------------------- Closing net debt 11 (50,113) (43,099) (47,510)------------------------------------------------------------------------------------- NOTES TO THE ACCOUNTS 1. ACCOUNTING POLICIES The interim accounts of the Group for the six months ended 31st December 2004incorporate the results of the Company, Retail Stores Plc, and its subsidiaryundertakings for the six months then ended. The results have been prepared onthe basis of the accounting policies adopted in the accounts of the Group forthe year ended 30th June 2004, consistently applied in all material respects. 2. DIVISIONAL ANALYSIS Turnover represents the amounts charged to third party customers for goods andservices, less returns, and excluding value added tax. Sales by concessiondepartments are included in turnover on a commission only basis. 6 months 6 months Year ended ended ended 31st December 31st December 30th JuneTurnover 2004 2003 2004 £'000 £'000 £'000 By class of business:Retail 17,285 15,270 27,139Wholesale 6,410 5,882 12,388------------------------------------------------------------------------------ 23,695 21,152 39,527------------------------------------------------------------------------------By geographical origin:United Kingdom 21,517 18,753 33,940Japan 2,178 2,399 5,587------------------------------------------------------------------------------ 23,695 21,152 39,527------------------------------------------------------------------------------By geographical destination:United Kingdom 17,948 16,082 28,571Japan 2,193 2,401 5,585Other 3,554 2,669 5,371------------------------------------------------------------------------------ 23,695 21,152 39,527------------------------------------------------------------------------------ By category:Gross turnover 26,674 24,409 45,213Less concession departmentsturnover net of commission (2,979) (3,257) (5,686)------------------------------------------------------------------------------Net turnover 23,695 21,152 39,527------------------------------------------------------------------------------ 6 months 6 months YearOperating loss on ended ended endedordinary activities 31st December 31st December 30th Junebefore interest and taxation 2004 2003 2004 £'000 £'000 £'000 By class of business:Retail (1,902) (1,713) (5,651)Wholesale 1,352 959 2,065------------------------------------------------------------------------------ (550) (754) (3,586)------------------------------------------------------------------------------By geographical origin:United Kingdom (920) (1,308) (4,774)Japan 370 554 1,188------------------------------------------------------------------------------ (550) (754) (3,586)------------------------------------------------------------------------------ The segmental analysis of operations reflects the structure of the Group. Retailincludes the UK retail operations at Regent Street and Heathrow. Wholesaleincludes the results of the UK and Japanese fabric businesses. The Retail loss on ordinary activities before interest and taxation includes netrental income from properties and is after deducting exceptional operatingcharges. 3. EXCEPTIONAL OPERATING CHARGES During the year ended 30th June 2004 the Group completed a major restructuringof its management and business operations. The statutory accounts for that yearincluded exceptional operating charges relating to redundancy, recruitment andclosure costs of £367,000. These costs are not expected to re-occur. 4. DIVIDENDS 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 £'000 £'000 £'000Undeclared non-equity preferencedividends 11 11 23------------------------------------------------------------------------------ Due to a deficiency of distributable reserves, the preference shares arecurrently in arrears of dividend of 41/2 years. Payment of £103,950 will be madewhen this deficiency has been made good from future profits. 5. LOSS PER SHARE The basic and diluted loss per share figures are calculated by dividing the lossafter taxation and minority interests by the weighted average number of ordinaryshares in issue during the period and in the comparative periods of 22,602,808. 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 £'000 £'000 £'000Retained loss for the period Loss for the financial period (2,660) (2,512) (7,312)Exceptional operating charges - - 367------------------------------------------------------------------------------Loss for the financial periodbefore exceptional operatingcharges (2,660) (2,512) (6,945)------------------------------------------------------------------------------ Basic and diluted loss per share pence pence penceLoss for the financial period (11.8p) (11.1p) (32.3p)Exceptional operating charges - - 1.6p------------------------------------------------------------------------------Loss for the financial periodbefore exceptional operatingcharges (11.8p) (11.1p) (30.7p)------------------------------------------------------------------------------ As the exercise price of share options is equal to the average share price forthe period there is no difference between the basic loss per share and thediluted loss per share. 6. TANGIBLE FIXED ASSETS Short Fixtures & Freehold leasehold equipment Total £'000 £'000 £'000 £'000 Cost or valuationAt 1st July 2004 35,550 42,623 7,597 85,770Additions 15 - 885 900Revaluation 941 2,513 - 3,454------------------------------------------------------------------------------At 31st December 2004 36,506 45,136 8,482 90,124------------------------------------------------------------------------------DepreciationAt 1st July 2004 - (125) (4,542) (4,667)Charge for the period (356) (433) (574) (1,363)Revaluation 356 344 - 700------------------------------------------------------------------------------At 31st December 2004 - (214) (5,116) (5,330)------------------------------------------------------------------------------Net book valueat 31st December 2004 36,506 44,922 3,366 84,794------------------------------------------------------------------------------Net book valueat 31st December 2003 36,409 38,884 3,011 78,304------------------------------------------------------------------------------Net book valueat 30th June 2004 35,550 42,498 3,055 81,103------------------------------------------------------------------------------ During the year ended 30th June 2004, long leasehold property interests of £40mand accumulated depreciation of £0.6m were reclassified to short leasehold toreflect the Group's accounting policy. The comparatives for 31st December 2003have been restated accordingly. 7. MOVEMENT ON RESERVES Profit Merger Revaluation and loss reserve reserve account £'000 £'000 £'000 GroupAt 1st July 2004 61,503 12,337 (34,997)Loss retained for the period - - (2,660)Surplus arising on revaluation of properties - 4,154 -Transfer of depreciation on revaluation offixed assets - (2) 2Currency translation differences on foreigncurrency net investments - - (29)Unpaid non-equity preference dividends - - 11------------------------------------------------------------------------------At 31st December 2004 61,503 16,489 (37,673)------------------------------------------------------------------------------ All reserves of the Group are attributable to equity shareholders' interests. 8. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 £'000 £'000 £'000 Operating loss (550) (754) (3,586)Depreciation 1,363 1,187 2,317Increase in stock (1,503) (259) (804)(Increase)/decrease in debtors (95) (391) 281Increase in creditors 1,176 3,073 2,312------------------------------------------------------------------------------Net cash inflow from operatingactivities 391 2,856 520------------------------------------------------------------------------------ 9. RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 £'000 £'000 £'000 Equity dividend paid tominorities (247) (236) (224)Non-equity dividend paid tominorities (27) - (82)Interest paid (1,525) (1,163) (2,408)Interest received 36 40 74------------------------------------------------------------------------------Returns on investments andservicing of finance (1,763) (1,359) (2,640)------------------------------------------------------------------------------ 10. FINANCING 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2004 2003 2004 £'000 £'000 £'000 Loans drawn down 4,000 - 4,000------------------------------------------------------------------------------Financing 4,000 - 4,000------------------------------------------------------------------------------ 11. ANALYSIS OF NET DEBT Movement Foreign during currency 30th June 31st December period translation 2004 2004 £'000 £'000 £'000 £'000 Available cash 3,887 (58) (45) 3,990Short term investments 2,000 1,500 - 500------------------------------------------------------------------------------Cash at bank and in hand 5,887 1,442 (45) 4,490 Ultimate holding companyloan due after morethan one year (6,000) (4,000) - (2,000) Bank loan due after morethan one year (50,000) - - (50,000)------------------------------------------------------------------------------Net debt (50,113) (2,558) (45) (47,510)------------------------------------------------------------------------------ 12. FINANCIAL INFORMATION The financial information set out in these interim accounts of the Group for thesix months ended 31st December 2004 includes information for the year ended 30thJune 2004. This information does not constitute the Company's statutory accountsfor the year ended 30th June 2004 but is derived from those accounts. Statutoryaccounts for the year ended 30th June 2004 have been delivered to the Registrarof Companies. The auditors have reported on those accounts; their report wasunqualified and did not contain statements under section 237(2) or (3) of theCompanies Act 1985. 13. ACCOUNTS AND INTERIM ANNOUNCEMENT A copy of the above document has been submitted to the UK Listing Authority, andwill be available for inspection at the UK Listing Authority's Document ViewingFacility, which is situated at The Financial Services Authority, 25 The NorthColonnade, Canary Wharf, London E14 5HS, telephone number 020 7676 1000. The interim accounts of the Company are expected to be sent to shareholders atthe end of March 2005. The audited accounts of Retail Stores Plc for the yearended 30th June 2004 and further copies of these interim accounts are availablefrom the Company Secretary, Filex Services Limited, 179 Great Portland Street,London W1W 5LS. This information is provided by RNS The company news service from the London Stock Exchange