TSI.L Regulatory News (TSI)

10 Dec 2008 13:04



COBURG GROUP PLC (the "Company")

INTERIM STATEMENT FOR THE PERIOD ENDED 31 OCTOBER 2008

Sales recorded a solid performance, rising from £1,688,000 to £1,719,000 during the first six months. We have continued to experience margin pressures especially from the US dollar denominated price of raw coffee. Although we have been able to pass some of this increase on to customers there has been some delay in restoring the gross margin back to its previous level.

We have also taken the opportunity to reorganise the business by reducing staff costs in distribution and administration ahead of what we anticipate will be difficult conditions next year. The one off redundancy costs associated with these changes are recorded within administration costs.

Despite these pressures, our sales have risen 2% and our loss before tax has improved marginally from a £51k loss to a £49k loss, this being after some material one-off costs to effect the changes in our operations. Naturally there is concern about the economy in general but as our sales demonstrate, our customers and markets continue to be relatively resilient to some of the more extreme pressures facing other sectors of the economy.

The directors remain committed to bringing the business to a profitable basis as soon as possible.

Konrad Legg

Chairman

10th December 2008

1. Summary of significant accounting policies

Basis of preparation

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The group's statutory financial statements for the year ended 30 April 2008, prepared under International Financial Reporting Standards (IFRS) have been filed with the Registrar of Companies. The auditor's report on those statements was unqualified.

The interim financial information has been prepared in accordance International Financial Reporting Standards and on the same basis and using same accounting policies as used in the financial statements for the year ended 30 April 2008. The interim financial statements have not been audited. 

2. Earnings per share

The profit per share for the period to 31 October 2008 is calculated on the consolidated loss on ordinary activities after tax of £49,000 (2007: £47,000) divided by 23,790,914 (2007: 23,790,914) being the weighted average number of ordinary shares in issue during the period.

3. Restatement of comparatives

The information with regards to the 6 months to 31 October 2007 has been restated from those published in previous interim statements issued to reflect a change in the groups accounting policy applied to the amortisation of goodwill. The impact of this application is a decrease in the loss attributable to shareholders and an increase in group's reserves of £15,000. Full details of the change and its impact on previous financial statements can be found in the full audited statutory financial statements for the year ended 30 April 2008.

4. Reconciliation of operating loss to net cash flow from operating activities

5. Copies available

Copies of the interim report are available to the public, free of charge, from the Companies registered office at 3 Harrington Way, Warspite Road, Woolwich, London SE18 5NU and are also available on the Company's website www.coburg-group.com