Longboat Energy Regulatory News (LBE)

28 Mar 2006 07:02

Liberty PLC28 March 2006 FOR IMMEDIATE RELEASE 28th March 2006 LIBERTY PLC INTERIM RESULTS FOR SIX MONTHS TO 31st DECEMBER 2005 HIGHLIGHTS •First half store sales stable at £19.7m despite early difficult trading environment •Pre-Christmas trading recorded a record 5.4% sales increase with the last full week before Christmas seeing a 20.4% sales uplift •Pre-tax profits of £0.2m compared to losses of £2.3m for the comparable period •Losses per share have improved dramatically to 0.9p against 11.6p •Autumn 2005 launch of Liberty of London luxury brand - enthusiastic reception from both fashion media and customers •Potential to become major global luxury brand •Retailing activities refocused into Tudor House as Regent Street premises now vacated. "The first half of the year has, considering last Summer's difficultcircumstances, been pleasing and reflects the solid foundations which have beenlaid for Liberty's future profitability. The success of our Liberty of Londonluxury brand to date gives us confidence that, over the medium term, we cancreate an important London retailing landmark capable of generating profits andshareholder value, together with a globally distributed luxury brand," RichardBalfour-Lynn, Chairman Contact: Liberty Plc Tel: 020 7734 1234 Iain Renwick, Chief Executive Crispin Mardon, Chief Financial Officer Baron Phillips Associates Tel: 020 7920 3161 Baron Phillips CHAIRMAN'S STATEMENT AND BUSINESS REVIEW for the six months ended 31st December 2005 The results for Liberty for the six months ended 31st December 2005 reflect aperiod of two distinct and contrasting quarters. The first quarter wasdramatically affected by last July's tragic events in Central London resultingin the inevitable downturn in trading but, despite the general retailingmalaise, we delivered a sales surge in the Autumn followed by an even strongerperformance in the run-up to Christmas. In the six weeks of trading before Christmas Liberty recorded a 5.4% salesincrease at our West End emporium over the same period in the previous year,while in the last week before Christmas the store enjoyed one of its best everperformances with a 20.4% sales uplift. Despite the difficulties experienced over the summer months referred to above,total store sales for the six months ended 31st December 2005 were level at£19.7m. Excluding concession sales, store turnover was broadly steady at £16.3mcompared to £16.6m for the same period last year. Across the whole of Libertythere was a 6% decrease in sales to £22.4m from £23.7m, mainly reflecting lowersales in the Liberty fabric wholesale business. We are addressing this trend inwholesale and have already made improvements in this area of our business. Liberty produced a pre-tax profit for the period of £0.2m against a loss of£2.3m for the comparable six months to December 2004. This profit reflects thefull impact of last April's £66.5m property sales which enabled us to eradicateLiberty's debt and, consequently, interest charges. Profitability was alsohelped by the one-off sale of a minor trademark that was not part of our coreoffering, contributing £1.7m. Excluding the sale of the trademark, underlyinglosses were reduced by £0.7m to £1.6m for the half year in comparison to the sixmonths ended 31st December 2004. One of the major events of the period was the Autumn launch of our first rangeof Liberty of London luxury goods. I am pleased to report that this initialrange was met with enthusiasm by both fashion media and customers alike,confirming our belief that Liberty has the potential to become a major globalluxury brand. We regard the Autumn launch as a stepping stone to the creation of a long termsustainable range of Liberty luxury products occupying the store's centralatrium. Over the course of this year we will be extending the initial range fromleather bags and small leather products into swimwear, lingerie, nightwear andsoft home furnishings. Our objective is to increase the level of Liberty ofLondon products sold through the store so that within three years the luxurybranded goods will account for between 15% - 20% of the total store merchandise. Another important feature of the Liberty of London luxury brand is its impact oncustomers' perception of the store. Liberty is attracting a different customerbase than has traditionally been the case. Increasingly our customers are designand fashion conscious Londoners and we are now less dependent on overseastourists than ever before. As I have commented in the past the Congestion Charge continues to be ahindrance to trade and last year's increase to £8 a day is a further irritation. I can also report that trading in the second half of the financial year hascontinued strongly, with improved margins being achieved. As we stated inSeptember, we have been refocusing our retailing activities into Tudor House onGreat Marlborough Street as we have now vacated our Regent Street premises. Thishas now been completed and while there may be an initial short-term decline insales, we believe overall profitability will be enhanced with the concentrationof our luxury goods brand offer in the iconic and historical building. Finally, I would like to welcome Crispin Mardon to the Board as FinanceDirector. Crispin takes over the role from Fraser Allan who leaves the Companyat the end of March. The first half of the year has, considering last Summer's difficultcircumstances, been pleasing and reflects the solid foundations which have beenlaid for Liberty's future profitability. The success of our Liberty of Londonluxury brand to date gives us confidence that, over the medium term, we cancreate an important London retailing landmark capable of generating profits andshareholder value, together with a globally distributed luxury brand. Richard Balfour-LynnChairman28th March 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNT for the six months ended 31st December 2005 6 months Year 6 months ended ended ended 31st December 30th June 31st December 2004 2005 Notes 2005 (Restated) (Restated) £'000 £'000 £'000----------------------------------------------------------------------------------------Turnover 2 22,395 23,695 43,760Cost of sales (12,196) (13,027) (24,754)----------------------------------------------------------------------------------------Gross profit 10,199 10,668 19,006----------------------------------------------------------------------------------------Selling and distribution costs (10,980) (11,494) (21,154)Administrative expenses (1,124) (1,362) (2,576)Exceptional operating income 3 1,720 - -Other operating income (prior periods inclusive of rents received) 336 1,719 2,710----------------------------------------------------------------------------------------Operating profit/(loss) on ordinary activities before interest and taxation 2 151 (469) (2,014)Profit on disposal of investment and operational properties - - 2,432----------------------------------------------------------------------------------------Profit / (loss) on ordinary activities before interest and taxation 2 151 (469) 418Net interest receivable / (payable) and similar charges 7 (1,810) (3,039)----------------------------------------------------------------------------------------Profit / (loss) on ordinary activities before taxation 158 (2,279) (2,621)Taxation on loss on ordinary activities (233) (217) (651)----------------------------------------------------------------------------------------Loss on ordinary activities after taxation (75) (2,496) (3,272)Equity minority interests (125) (131) (300)----------------------------------------------------------------------------------------Loss attributable to ordinary shareholders (200) (2,627) (3,572)Undeclared preference dividends 4 (12) (11) (23)========================================================================================Retained loss for the period 8 (212) (2,638) (3,595)Basic and diluted loss per share 5 (0.9p) (11.6p) (15.8p)======================================================================================== All operations are continuing. The results for comparative periods have been restated to take account of theAccounting Standards that came into effect during the six months ended 31stDecember 2005. These are referred to in more detail in note 1 to the accounts. CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESfor the six months ended 31st December 2005 6 months 6 months 6 months ended ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 Loss for the period (212) (2,638) (3,595)Unrealised surplus on revaluation of property 890 4,154 5,513Actuarial gain / (loss) on pension scheme (note 6) 259 (1,174) (1,205)Currency translation differences on foreign currency net investments (40) (29) (11) ======== -------- -------- Total recognised gains and losses for the period 897 313 702 Prior period adjustment - adoption of FRS17 (6,863) --------Total recognised gains and losses since last Annual Report (5,966) ======== All recognised gains and losses are attributable to equity shareholders'interests. NOTE OF CONSOLIDATED STATEMENT OF HISTORICAL COST PROFITS AND LOSSES for the six months ended 31st December 2005------------------------------------------------------------------------------- 6 months Year 6 months ended ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000Reported profit / (loss) on ordinary activities before taxation 158 (2,279) (2,621)Realisation of property revaluation surplus recorded in previous years - - 13,266Reduction in depreciation charge for the period based on historical cost of - 2 56 ------- ------- ------- properties held at valuationHistorical cost profit/(loss) on ordinary activities before taxation 158 (2,277) 10,701 ======= ======= ======= Historical cost profit/(loss) retained after taxation, minority interests and dividends (212) (2,636) 9,727 ======= ======= ======= RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDSfor the six months ended 31st December 2005 ------------------------------------------------------------------------------------------------------------- 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000-------------------------------------------------------------------------------------------------------------Opening shareholders' funds as originally stated 46,760 44,879 44,879Prior period adjustment - adoption of FRS17 (6,863) (5,707) (5,707) ---------- ---------- ----------Opening shareholders' funds as restated 39,897 39,172 39,172Loss for the financial period (200) (2,627) (3,572)Undeclared preference dividends (12) (11) (23)Net revaluation surplus on fixed assets 890 4,154 5,513Actuarial gain (loss) on pension liability 259 (1,174) (1,205)Currency translation differences on foreign currency net investments (40) (29) (11)Unpaid preference dividends 12 11 23 ---------- ---------- ----------Closing shareholders' funds 40,806 39,496 39,897 ========== ========== ========== CONSOLIDATED BALANCE SHEETat 31st December 2005 ------------------------------------------------------------------------------------------------------------- 31st December 30th June 31st December 2004 2005 Notes 2005 (Restated) (Restated) £'000 £'000 £'000-------------------------------------------------------------------------------------------------------------Fixed assets Intangible asset 18,200 18,200 18,200Tangible assets 7 28,609 84,794 27,909------------------------------------------------------------------------------------------------------------- 46,809 102,994 46,109-------------------------------------------------------------------------------------------------------------Current assets Stocks 6,830 7,839 6,653Debtors: Amounts falling due within one year 4,931 6,107 6,091 Amounts falling due after more than one year 2,053 745 2,050Cash 3,892 5,887 3,630------------------------------------------------------------------------------------------------------------- 17,706 20,578 18,424 Creditors: amounts falling due within one year (13,656) (15,636) (13,580)-------------------------------------------------------------------------------------------------------------Net current assets 4,050 4,942 4,844-------------------------------------------------------------------------------------------------------------Total assets less current liabilities 50,859 107,936 50,953Creditors: amounts falling due after more than one year (1,746) (59,291) (1,745)-------------------------------------------------------------------------------------------------------------Net assets before pension deficit 49,113 48,645 49,208Pension deficit 6 (6,590) (6,859) (6,863)-------------------------------------------------------------------------------------------------------------Net assets after pension deficit 42,523 41,786 42,345============================================================================================================= Capital and reservesCalled up share capital 6,036 6,036 6,036Merger reserve 8 61,503 61,503 61,503Revaluation reserve 8 5,418 16,489 4,528Profit and loss account 8 (32,151) (44,532) (32,170)-------------------------------------------------------------------------------------------------------------Total equity shareholders' funds 40,806 39,496 39,897Equity minority interests 1,717 2,290 2,448------------------------------------------------------------------------------------------------------------- 42,523 41,786 42,345============================================================================================================= CONSOLIDATED CASH FLOW STATEMENTfor the six months ended 31st December 2005 ------------------------------------------------------------------------------------------------------------- 6 months Year 6 months ended Ended Notes ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000-------------------------------------------------------------------------------------------------------------Net cash inflow from operating activities 9 1,858 391 (9,643) Returns on investments and servicing of finance 10 (777) (1,763) (3,792)Tax paid (211) (265) (635)Capital expenditure (553) (921) 65,227-------------------------------------------------------------------------------------------------------------Net cash (outflow)/inflow before financing and use of liquid resources 317 (2,558) 51,157 Management of liquid resources (2,940) (1,500) 500Financing 11 - 4,000 (52,000)-------------------------------------------------------------------------------------------------------------Decrease in cash during the period 12 (2,623) (58) (343)============================================================================================================= RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBTfor the six months ended 31st December 2005 ------------------------------------------------------------------------------------------------------------- 6 months Year 6 months ended Ended Notes ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000-------------------------------------------------------------------------------------------------------------Decrease in cash during the period 12 (2,623) (58) (343)Increase / (decrease) in liquid resources 12 2,940 1,500 (500)Decrease / (increase) in loans during the period - (4,000) 52,000-------------------------------------------------------------------------------------------------------------Decrease/(increase) in net cash during the period 317 (2,558) 51,157Foreign currency translation 12 (55) (45) (17)-------------------------------------------------------------------------------------------------------------Movement in net debt during the period 262 (2,603) 51,140Opening net cash / (debt) 12 3,630 (47,510) (47,510)-------------------------------------------------------------------------------------------------------------Closing net cash / (debt ) 12 3,892 (50,113) 3,630============================================================================================================= NOTES TO THE ACCOUNTS --------------------------------------------------------------------------------1. ACCOUNTING POLICIES-------------------------------------------------------------------------------- The interim accounts of the Group for the six months ended 31st December 2005incorporate the results of Liberty Plc and its subsidiary undertakings for thesix months then ended. The results have been prepared on the basis of theaccounting policies adopted in the accounts of the Group for the year ended 30thJune 2005, consistently applied in all material respects, after taking accountof the new Accounting Standards that became effective during the period ended31st December 2005. Prior year restatement For the year ended 30th June 2006, the Group has adopted for the first time FRS17 "Retirement Benefits", which replaces SSAP 24 "Accounting for Pension Costs".In accordance with FRS 17, the Group includes the assets and liabilities of itsdefined benefit pension schemes in the accounts. Current service costs,curtailment and settlement gains and losses, and financial returns, are includedin the profit and loss account in the period to which they relate. Actuarialgains and losses are recorded through the statement of total recognised gainsand losses. A prior period adjustment of £6.8m is the cumulative prior period effect of thischange of pension accounting policy, which has been charged against reserves.The comparatives for the 6 months ended 31st December 2004 and for the yearended 30th June 2005 have accordingly been restated. Adoption of new Accounting Standards In addition to the adoption of FRS 17 the Group has also adopted the followingnew standards in these interim accounts for the first time: * FRS 21 "Events after the balance sheet date", which had no material effect as there were no significant events after the balance sheet date that would require disclosure to the interim accounts. No dividends were declared after the balance sheet date that would require disclosure but not recognition in the accounts. * FRS 22 "Earnings per share", which had no material effect. * FRS 25 "Financial instruments: presentation and disclosure", which had no material effect. * FRS 28 "Corresponding amounts", which had no material effect as it imposes the same requirements for comparatives as were required hitherto by the Companies Act 1985. The corresponding amounts in these accounts have been restated in accordancewith the new policies. --------------------------------------------------------------------------------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 Year 6 months ended Ended ended 31st December 30th JuneTurnover 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000By class of business: Retail 16,679 17,285 31,016 Wholesale 5,716 6,410 12,744 ---------- ---------- ---------- 22,395 23,695 43,760 ========== ========== ==========By geographical origin: United Kingdom 20,346 21,517 38,875 Japan 2,049 2,178 4,885 ---------- ---------- ---------- 22,395 23,695 43,760 ========== ========== ==========By geographical destination: United Kingdom 17,326 17,948 32,273 Japan 2,085 2,193 4,885 Other 2,984 3,554 6,602 ---------- ---------- ---------- 22,395 23,695 43,760 ========== ========== ==========By category: Gross turnover 25,714 26,674 49,118 Less concession departments turnover net of commission (3,319) (2,979) (5,358) ---------- ---------- ----------Net turnover 22,395 23,695 43,760 ========== ========== ========== --------------------------------------------------------------------------------2. DIVISIONAL ANALYSIS (continued)-------------------------------------------------------------------------------- 6 months Year 6 months ended EndedOperating profit/ (loss) on ordinary ended 31st December 30th Juneactivities before interest and taxation 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000By class of business: Retail (1,104) (1,844) (2,357) Wholesale 1,255 1,375 2,775 ---------- ---------- ---------- 151 (469) 418 ========== ========== ==========By geographical origin: United Kingdom (187) (862) (502) Japan 338 393 920 ---------- ---------- ---------- 151 (469) 418 ========== ========== ========== 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 inclusive of exceptional operating income. --------------------------------------------------------------------------------3. EXCEPTIONAL OPERATING INCOME-------------------------------------------------------------------------------- During the six months ended 31 December 2005 the Group received a payment of£1,720,000, which related to the early buy-out of a licensing agreement. Thishas been reflected in the profit and loss account as an exceptional item becauseof its size. The proceeds received were used to reduce Group debt. --------------------------------------------------------------------------------4. DIVIDENDS-------------------------------------------------------------------------------- 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 Undeclared preference dividends 12 11 23 ========== ========== ========== Due to a deficiency of distributable reserves of the Company, the preferenceshares are currently in arrears of dividend of 51/2 years. Payment of £128,000will be made when this deficiency has been made good from future profits. --------------------------------------------------------------------------------5. LOSS PER SHARE-------------------------------------------------------------------------------- The loss per share figures are calculated by dividing the loss after taxationand minority interests for the period, by the weighted average number of sharesin issue during the period, as follows: 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 Loss on ordinary activities after taxation and minority interests (200) (2,627) (3,572) ========== ========== ========== Number Number Number '000 '000 '000Weighted average number of ordinary shares in issue during the period 22,603 22,603 22,603 ---------- ---------- ----------Basic and diluted loss per share (0.9p) (11.6p) (15.8p) ========== ========== ========== The exercise price of the share options was less than the average share pricefor the year and therefore no adjustment to the earnings is necessary in respectof shares under option. The shares under option may in the future dilute thebasic earnings per share, but these are not included in the calculation of thediluted loss per share as they were anti-dilutive for the periods above. --------------------------------------------------------------------------------6. PENSIONS-------------------------------------------------------------------------------- The Group operates defined benefit schemes in the UK and Japan, and a definedcontribution pension scheme in the UK. Defined benefit schemes In the UK, for employees of the Group prior to February 2001, the Group operatesa pension scheme providing benefits based on final pensionable salary. In Japan,the Group operates defined benefit schemes. A full actuarial valuation of the UK scheme was carried out at 2nd June 2003 andof the Japan schemes at 31st March 2003. Both valuations were updated to 31stDecember 2005 by qualified independent actuaries. The major assumptions used bythe actuaries were: 31st December 31st December 30th June 2005 2004 2005United KingdomRate of increase in salaries 3.75% 4.00% 3.75%Rate of increase to pensions in payment accrued before 6 April 1997 3.00% 3.00% 3.00%Rate of increase to pensions in payment accrued after 5 April 1997 2.75% 3.00% 2.75%Rate of increase of deferred pensions 2.75% 3.00% 2.75%Discount rate 4.80% 5.30% 5.00%Inflation assumption 2.75% 3.00% 2.75% JapanRate of increase per annum in salaries 1.50% 1.50% 1.50%Discount rate of scheme liabilities 2.00% 2.00% 2.00% The Group contributions to the UK scheme during the six months ended 31stDecember 2005 amounted to £183,000 (2004: £203,000). The agreed Companycontribution rate for the coming year is 23% of pensionable payroll plus£183,000 of additional contributions to reduce the pension fund deficit. The UK defined benefit scheme is closed to new entrants, so the average age ofthe membership is expected to increase over time. Because the projected unitmethod is used to calculate the current service cost, it is expected that thecurrent service cost will increase as the members of the scheme approachretirement. --------------------------------------------------------------------------------6. PENSIONS (continued)-------------------------------------------------------------------------------- The assets in the scheme and the expected rates of return were: Long-term rate Long-term rate Long-term Value of return Value at of return Value at rate of return at expected at 31st December expected at 31st December expected at 30th June 31st December 2005 31st December 2004 30th June 2005 2005 £'000 2004 £'000 2005 £'000United KingdonEquities 8.00% 10,239 8.50% 8,359 8.00% 8,945Bonds 4.80% 4,951 5.80% 4,385 5.00% 4,695Property 2.75% 15 3.00% 61 2.75% 31 ---------- ---------- ----------Total market value of assets 15,205 12,805 13,671Present value of schemeliabilities (21,757) (19,610) (20,493)Deficit in the schemeand net pension liability (6,552) (6,805) (6,822) ========== ========== ========== JapanInvestments 1.50% 85 1.50% 86 1.50% 92 ---------- ---------- ----------Total market value of assets 85 86 92Present value of schemeliabilities (123) (140) (133) ---------- ---------- ----------Deficit in the schemeand net pension liability (38) (54) (41) ========== ========== ==========Total pension liability (6,590) (6,859) (6,863) ========== ========== ========== Analysis of the amount charged to operating profit 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 United Kingdom Current service cost 136 146 269 ========== ========== ==========Japan Current service cost 9 14 25 ========== ========== ========== --------------------------------------------------------------------------------6. PENSIONS (continued)-------------------------------------------------------------------------------- Analysis of the amount credited to other finance income 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 United Kingdom Expected return on pension scheme assets 470 437 889Interest on pension scheme liabilities (505) (495) (1,001) ---------- ---------- ----------Net return (35) (58) (112) ========== ========== ==========JapanExpected return on pension scheme assets 1 1 1Interest on pension scheme liabilities (2) (2) (3) ---------- ---------- ----------Net return (1) (1) (2) ========== ========== ========== Analysis of amount recognised in Statement of Total Recognised Gains and Losses ("STRGL") 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 United KingdomActual return less expected return on pension scheme 1,112 648 1,094Experience gains / (losses) arising on the scheme liabilities 1 3 (3)Changes in assumptions underlying the present valueof the scheme liabilities (855) (1,826) (2,286) ---------- ---------- ----------Actuarial gain / (loss) recognised in STRGL 258 (1,175) (1,195) ========== ========== ==========JapanActual return less expected return on pension scheme - - (9)Experience gains / (losses) arising on the scheme liabilities - - (1)Changes in assumptions underlying the present valueof the scheme liabilities 1 1 - ---------- ---------- ----------Actuarial gain / (loss) recognised in STRGL 1 1 (10) ========== ========== ========== --------------------------------------------------------------------------------6. PENSIONS (continued)-------------------------------------------------------------------------------- Movement in surplus during the year 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 United KingdomDeficit in scheme at beginning of the period (6,822) (5,630) (5,630)Movement in year:Current service cost (136) (146) (269)Contributions 183 204 384Other net finance costs (35) (58) (112)Actuarial gain / (loss) 258 (1,175) (1,195) ---------- ---------- ----------Deficit in scheme at end of the period (6,552) (6,805) (6,822) ========== ========== ==========JapanDeficit in scheme at beginning of the period (41) (77) (77)Movement in year:Current service cost (9) (14) (25)Contributions 12 37 73Other net finance costs (1) (1) (2)Actuarial gain / (loss) 1 1 (10) ---------- ---------- ----------Deficit in scheme at end of the period (38) (54) (41) ========== ========== ========== --------------------------------------------------------------------------------7. TANGIBLE FIXED ASSETS-------------------------------------------------------------------------------- Short Fixtures & Freehold leasehold equipment Total £'000 £'000 £'000 £'000Cost or valuationAt 1st July 2005 24,608 - 8,516 33,124Additions 39 - 514 553Revaluation 709 - - 709 ---------- ---------- ---------- ----------At 31st December 2005 25,356 - 9,030 34,386 ---------- ---------- ---------- ----------DepreciationAt 1st July 2005 - - (5,215) (5,215)Charge for the period (181) - (562) (743)Revaluation 181 - - 181 ---------- ---------- ---------- ----------At 31st December 2005 - - (5,777) (5,777) ---------- ---------- ---------- ----------Net book valueat 31st December 2005 25,356 - 3,253 28,609 ========== ========== ========== ==========Net book valueat 31st December 2004 36,506 44,922 3,366 84,794 ========== ========== ========== ==========Net book valueat 30th June 2005 24,608 - 3,301 27,909 ========== ========== ========== ========== The Group's freehold property was valued at 31st December 2005 by qualifiedprofessional valuers working for the company of DTZ Debenham Tie Leung,Chartered Surveyors, ("DTZ") acting in the capacity of External Valuers. Allsuch valuers are Chartered Surveyors, being members of the Royal Institution ofChartered Surveyors. All properties were valued on the basis of Market Value andin accordance with the RICS Appraisal and Valuation Standards 5th Edition ("theManual"). The valuation of the property at 31st December 2005 was £27.0m and the valuationsurplus reflected in the interim accounts was £2.5m. --------------------------------------------------------------------------------8. MOVEMENT ON RESERVES-------------------------------------------------------------------------------- Profit Merger Revaluation and loss reserve reserve Account £'000 £'000 £'000GroupAt 1st July 2005, as previously reported 61,503 4,528 (25,307)Prior period adjustment - adoption of FRS17 - - (6,863)At 1st July 2005 as restated 61,503 4,528 (32,170)Loss retained for the period - - (212)Surplus arising on revaluation of properties - 890 -Actuarial gain on pension liability - - 259Currency translation differences on foreign currency net investments - - (40)Unpaid preference dividends - - 12 ---------- ---------- ----------At 31st December 2005 61,503 5,418 (32,151) ========== ========== ========== All reserves of the Group are attributable to equity shareholders' interests. --------------------------------------------------------------------------------9. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES-------------------------------------------------------------------------------- 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 Operating profit/(loss) 151 (469) (2,014)Depreciation 743 1,363 2,073Loss on disposal of fixed assets - - 127(Increase) in stock (177) (1,503) (312)Decrease / (increase) in debtors 1,157 (95) (1,437)Increase / (decrease) in creditors (16) 1,095 (8,080) ---------- ---------- ----------Net cash inflow from operating activities 1,858 391 (9,643) ========== ========== ========== --------------------------------------------------------------------------------10. RETURNS ON INVESTMENTS AND SERVICING OF FINANCE-------------------------------------------------------------------------------- 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 Equity dividend paid to minorities (791) (247) (246)Non-equity dividend paid to minorities (29) (27) (53)Interest paid (3) (1,525) (3,550)Interest received 46 36 57 ---------- ---------- ----------Returns on investments and servicing of finance (777) (1,763) (3,792) ========== ========== ========== --------------------------------------------------------------------------------11. FINANCING-------------------------------------------------------------------------------- 6 months Year 6 months ended Ended ended 31st December 30th June 31st December 2004 2005 2005 (Restated) (Restated) £'000 £'000 £'000 Loans drawn down - 4,000 5,100Loans repaid - - (57,100) ---------- ---------- ----------Financing - 4,000 (52,000) ========== ========== ========== --------------------------------------------------------------------------------12. ANALYSIS OF NET CASH-------------------------------------------------------------------------------- Movement Foreign 30th June 31st December during currency 2005 2005 period translation (Restated) £'000 £'000 £'000 £'000 Available cash 952 (2,623) (55) 3,630Short term investments 2,940 2,940 - - ---------- ---------- ---------- ----------Net cash 3,892 317 (55) 3,630 ========== ========== ========== ========== --------------------------------------------------------------------------------13. FINANCIAL INFORMATION-------------------------------------------------------------------------------- The financial information set out in these interim accounts of the Group for thesix months ended 31st December 2005 includes information for the year ended 30thJune 2005. This information does not constitute the Company's statutory accountsfor the year ended 30th June 2005 but is derived from those accounts. Statutoryaccounts for the year ended 30th June 2005 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. --------------------------------------------------------------------------------14. ACCOUNTS AND INTERIM ANNOUNCEMENT-------------------------------------------------------------------------------- The interim accounts of the Company are expected to be sent to shareholdersduring April 2006. The audited accounts of Liberty Plc for the year ended 30thJune 2005 and further copies of these interim accounts are available from theCompany Secretary, Filex Services Limited, 179 Great Portland Street, London W1W5LS. This information is provided by RNS The company news service from the London Stock Exchange