Leeds Group Regulatory News (LDSG)

27 May 2005 07:30

Leeds Group PLC27 May 2005 Issued on behalf of Leeds Group plcDate: Friday, 27th May 2005 Embargoed: 7.30am Leeds Group plc Interim Results for the six months ended 31st March 2005 STATEMENT BY THE GROUP CHAIRMAN, VIN MURRIA Group ResultsIn the six months ended 31 March 2005, operating profit amounted to £772,000(2004: £769,000). The Group's interest expense, at £460,000, exceeded that ofthe corresponding period in 2004 by £100,000 as a consequence of higher interestrates, increased debt to support a growing lease book and the absence ofinterest income from the Langholm loan note, which was sold to the LangholmDirectors in December 2004. Profit before tax in the period amounted to £312,000(2004: loss £1,177,000 after an exceptional charge of £1,586,000). Leeds LeasingPre-tax profit amounted to £249,000 (2004: £135,000). New business levels were11% higher than in the comparable period, largely due to growth in thecommercial asset finance sector where, although yields are below the averageachieved in our core markets of catering, hospitality and leisure, we do enjoyfar greater asset security. At the same time, we are looking to improve thevolume and quality of core business by launching manufacturers' schemes underwhich our leasing services will be endorsed through their national distributornetworks by some of the sector's largest suppliers. It is pleasing to report that we have succeeded in improving our collectionsperformance, achieving a welcome reduction in the default charge. With a levelof new business approved and awaiting drawdown comfortably more than double thatof twelve months ago, we believe that a busy second half-year is in prospect. Hemmers-ItexPre-tax profit in our fabric trading division fell to £167,000 (2004: £472,000)primarily as a result of the continued low level of consumer confidence anddemand in Germany that was highlighted in our AGM statement. We have respondedto lower sales of summer season items by entering the sector supplying fabric togarment manufacturers, whilst also taking steps to increase exports byappointing new agents in certain other European markets at a cost in the firsthalf of this year of approximately £100,000. We have begun the process of relocating our Nordhorn based operation from itspresent three buildings to a single facility where we expect to achieve improvedcontrol of activities at reduced cost. Our new range of licensed Disney printedfabrics has been successfully launched. The order book for our winter collectionis greater than it was this time last year and, although we expect the marketfor basic products to remain demanding for the rest of the year, the overalloutlook for the second half of the year is more encouraging than the experienceof the first half.Head Office Costs have been reduced significantly compared to last year, and weare giving active consideration to a programme of share buy-backs in accordancewith the powers granted to the Board by shareholders at the AGM in March 2005. Enquiries:Malcolm Wilson, Group Managing Director Fiona TooleyLeeds Group plc Citigate Dewe Rogerson LtdTel: 0113 391 9000 Tel: 0121 455 8370 -2- Leeds Group plc Interim Results Consolidated Profit and Loss Account Unaudited Unaudited Audited Six months Six months Twelve months to to to 31st March 31st March 30th September 2005 2004 2004 £000 £000 £000 Turnover fromcontinuingoperations 8,054 8,130 16,514 Cost of sales (5,021) (4,887) (10,512) ---------- ---------- ----------- Gross profit 3,033 3,243 6,002 Distributioncosts (402) (327) (648) Administrativeexpenses (1,859) (2,147) (4,750) ---------- ---------- -----------Operating profitBeforeexceptionalitems 772 769 1,204Exceptionalitems - - (600) ---------- ---------- ----------- Operatingprofit 772 769 604 Loss on saleor terminationof a businessoperation - (1,586) (1,431) ---------- ---------- ----------- Profit/(loss)on ordinaryactivitiesbeforeinterest 772 (817) (827) Net interestpayable (460) (360) (805) ---------- ---------- ----------- Profit/(loss)on ordinaryactivitiesbeforetaxation 312 (1,177) (1,632) Taxation (72) (215) (630) ---------- ---------- -----------Transfer toreserves/(Unrecovered lossfor period) 240 (1,392) (2,262) ========== ========== =========== Earnings/(loss) per share beforeexceptionalitems 0.7p 0.5p (0.6)p exceptionalitems - (4.3)p (5.6)p ---------- ---------- ----------- afterexceptionalitems 0.7p (3.8)p (6.2)p ========== ========== =========== Consolidated statement of total recognised gains and losses Transfer toreserves/(unrecovered lossfor theperiod) 240 (1,392) (2,262) Foreigncurrencytranslationdifferences 26 (222) (110) ---------- ---------- ----------- Totalrecognisedgains andlosses for theperiod 266 (1,614) (2,372) ========== ========== =========== -3- Leeds Group plc Interim Results Consolidated Balance Sheet Unaudited Unaudited Audited As at As at As at 31st March 31st March 30th September 2005 2004 2004 £000 £000 £000 Fixed assetsIntangibleassets 909 969 951 Tangibleassets 451 617 561 ---------- ---------- ----------- 1,360 1,586 1,512Current assetsStocks 3,616 3,605 3,868 ---------- ---------- -----------Debtors 3,963 4,310 4,865 Deferredtaxation 875 1,105 875 Finance leasedebtors 19,110 18,409 18,328 ---------- ---------- -----------Total debtors 23,948 23,824 24,068 Cash at bankand in hand 812 1,336 1,186 ---------- ---------- ----------- 28,376 28,765 29,122 Creditors:amountsfalling duewithin oneyear (11,851) (12,732) (13,353) ---------- ---------- ----------- Net currentassets 16,525 16,033 15,769 Of which: ---------- ---------- -----------due within oneyear 4,510 4,999 3,970 due after morethan one year 12,015 11,034 11,799 ---------- ---------- ----------- ---------- ---------- -----------Total assetsless currentliabilities 17,885 17,619 17,281 Creditors:amountsfalling dueafter morethan one year (6,588) (5,830) (6,250) ---------- ---------- -----------Net assets 11,297 11,789 11,031 ========== ========== =========== Share capital andreserves Called upequity sharecapital 4,392 4,392 4,392 Profit andloss account 6,905 7,397 6,639 ---------- ---------- ----------- Equityshareholders'funds 11,297 11,789 11,031 ========== ========== =========== Reconciliation of movements in shareholders' funds Transfer toreserves/(unrecovered lossfor theperiod) 240 (1,392) (2,262) Foreigncurrencytranslationdifferences 26 (222) (110) ---------- ---------- ----------- Net transferto/fromshareholders'funds 266 (1,614) (2,372) Shareholders'funds atbeginning ofthe period 11,031 13,403 13,403 ---------- ---------- ----------- Shareholders'funds at endof the period 11,297 11,789 11,031 ========== ========== =========== -4- Leeds Group plc Interim Results Consolidated Cash Flow Statement Unaudited Unaudited Audited Six months to Six months to Twelve months to 31st March 2005 31st March 2004 30th September 2004 £000 £000 £000Cash inflowfrom operatingactivities 1,005 1,043 503 Returns oninvestmentsand servicingof finance (460) (329) (805) Taxation (263) 58 18 Capitalexpenditureand financialinvestment (11) (154) (177) ---------- ---------- ----------- Net cashinflow beforefinancing 271 618 (461) Financing (437) 253 1,383 ---------- ---------- ----------- (Decrease)/increase in cashin the period (166) 871 922 ========== ========== =========== Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cashin the period (166) 871 922 Cashinflow/(outflow) from debtand leasefinancing 437 (253) (1,383) ---------- ---------- ----------- Change in netdebt resultingfrom cash flows 271 618 (461) Foreigncurrencytranslationdifferences (12) 63 28 ---------- ---------- ----------- Movement innet debt inthe period 259 681 (433) Net debt atthe beginningof the period (14,494) (14,061) (14,061) ---------- ---------- ----------- Net debt atthe end of theperiod (14,235) (13,380) (14,494) ========== ========== =========== Reconciliation of operating profit to net cash inflowfrom operating activities Operatingprofit 772 769 604 Depreciationof fixedassets 122 105 193 Amortisationof goodwill 47 46 93 Loss on saleof tangiblefixed assets 1 - - Decrease/(increase) instocks 272 28 (131) Decrease/(increase) indebtors 921 279 (13) (Decrease)/increase increditors (348) 211 71 Increase infinance leasedebtors (782) (395) (314) ---------- ---------- ----------- Net cashinflow fromoperatingactivities 1,005 1,043 503 ========== ========== =========== -5- Leeds Group plc Interim Results Notes to the accounts 1. The financial information in this report does not constitute statutoryaccounts within the meaning of Section 240 of the Companies Act 1985. Theinterim accounts for the six months ended 31 March 2005 and 31 March 2004 areunaudited. The comparative figures for the financial year ended 30 September2004 are not the Group's statutory accounts, but have been extracted from thoseaccounts, which have been filed with the Registrar of Companies and on which theGroup's auditors gave an unqualified report that did not contain statementsunder Section 237 (2) or (3) of the Companies Act 1985. The interim accountshave been prepared on the basis of the accounting policies set out in the 2004Annual report. 2. Earnings per share have been calculated on an average of 36,598,603 (2004:36,598,603) ordinary shares of 12p in issue during the period. 3. The table below sets out a segmental analysis of the Group's operations. Turnover Profit before taxation and exceptional items Six Six Twelve Six Six Twelve months months months to months months months to to to to to 31st 31st 30th 31st 31st 30th March March September March March September 2005 2004 2004 2005 2004 2004 £000 £000 £000 £000 £000 £000 Leeds 1,506 1,622 2,849 700 535 764Leasing Hemmers-Itex 6,548 6,508 13,665 247 539 1,041 Central - - - (175) (305) (601)costs -------------------------------------------------------------- 8,054 8,130 16,514 772 769 1,204 =============================Interest ------------------------------Leasing (451) (400) (825)Hemmers-Itex (80) (67) (159)Other 71 107 179 ------------------------------ (460) (360) (805) ------------------------------ 312 409 399 ============================== This information is provided by RNS The company news service from the London Stock Exchange