Final Results
Embargoed: 0700hrs 28 June 2005
International Brand Licensing Plc
('IBL' or the 'Company')
Final Results for the year ended 31 December 2004
Chairman's Statement
For the year ended 31 December 2004 turnover increased by £960,000 to £
2,235,000 (2003: £1,275,000), and operating loss before interest decreased by £
3,000 to a loss of £289,000 (2003: loss of £292,000) due to additional non
recurring expenses during the year. Interest charges of £216,000 led to a loss
before tax of £505,000 (2003: loss of £458,000)
The 75% increase in turnover reflects the turnaround achieved in the UK market
with the successful launch of Admiral in George at ASDA in May, combined with
extremely strong sales of the Admiral England cricket replica kit throughout
the 2004 season.
Admiral sales at ASDA ended the year below forecast in certain categories but
well ahead in others. Footwear in particular continued to perform ahead of
forecast throughout the year despite the well documented depressed UK retail
sector, and this success has continued to date in 2005. Other new product
categories such as sports equipment, accessories, and luggage that were under
development in 2004 enjoyed an excellent launch this spring, and overall we are
confident that sales at ASDA in 2005 will show a very healthy increase on 2004
despite the continuing trading difficulties of the UK retail sector.
With the outstanding schedule of international cricket taking place in the UK
this summer, and particularly the One Day competitions and Ashes Test Series
against Australia, we are confident that the company's cricket replica sales
will again increase on the record levels achieved last year. The resultant
exposure for Admiral through television and press coverage of this summer's
cricket will only serve to add further value to the brand for the future.
Internationally we continue to pursue new Admiral licensee partners both
geographically and in additional product categories where we have invested
resources in our trademark registration programme. We are presently progressing
discussions with parties in several major markets, and as the Admiral brand
offer becomes increasingly attractive we are confident of appointing additional
high calibre licensee partners.
Sales of the company's outdoor brand, Mountain Equipment, were below forecast
in the second half of 2004, and overall somewhat disappointing given the growth
of previous years. In conducting our annual review earlier this year, we
discussed the possibility of our European licensee, Swiss Cutlery, acquiring
the Mounting Equipment trademarks. Pursuant negotiations concluded on 27 April
when the Board announced that it had sold Mountain Equipment to Swiss Cutlery
for a cash consideration of £3,000,000. In terms of the royalties received
since the brand was acquired in 1999 plus the sale proceeds, this represented
an excellent transaction for the company.
As stated in our Interim Report we regretfully announced the death of our
Chairman, Lance Yates on 13 September 2004. The Board was deeply saddened by
this tragic event, and Lance is greatly missed by all who knew him. .
On 11th October 2004 the Board announced the resignation of non executive
director, Glyn Hirsch, and the appointment of his replacement, Adam Reynolds.
Further Board changes were announced on 21st April 2005 with the resignation of
Michael Henry and the appointment of Gordon Hall. The Board would like to thank
Glyn and Michael for their contribution to the company during their periods of
office and wish them well in their future endeavours. The Board is equally
delighted to welcome both Adam and Gordon who bring with them first class
skills and experience in a variety of fields.
In 2004 the company finally shed itself of problems associated with its former
cost structure. The recent sale of Mountain Equipment will now allow the
company to eliminate debt, strengthen the balance sheet, and focus on its major
asset, Admiral. The Board is very confident as to the company's significant
prospects, and the 2005 performance should begin to reflect the potential to be
exploited.
TONY HUTCHINSON
Chairman and Chief Executive
28 June 2005
For Further Information please contact:
Adam Reynolds
020 7245 1100
Group Profit and Loss Account
For the year ended 31 December 2004
2004 2003
Notes £000 £000
Turnover 2 2,235 1,275
Cost of sales (561) (176)
------ ------
Gross Profit 1,674 1,099
Administrative expenses 4 (1,963) (1,322)
Exceptional administrative 4 - (69)
expenses
----------- -----------
Operating Loss (289) (292)
Interest payable 7 (216) (166)
----------- -----------
Losson ordinary activities (505) (458)
before tax
before exceptional items (505) (389)
exceptional items 4 - (69)
3 (505) (458)
Tax on loss on ordinary 8 (84) (17)
activities
----------- -----------
Loss on ordinary activities (589) (475)
after taxation
Ordinary dividend on equity 10 - ï¼
shares
----------- -----------
Retained Lossfor the year (589) (475)
----------- -----------
Loss per ordinary share
- Basic 11 (1.9p) (1.7p)
- Diluted 11 (1.9p) (1.7p)
Group Statement of Total Recognised Gains and Losses
For the year ended 31 December 2004
2004 2003
£000 £000
Loss for the year (589) (475)
Exchange differences 28 31
Total recognised gains and losses relating (561) (444)
to the year
Group Balance Sheet
At 31 December 2004
2004 2003
Notes £000 £000
Fixed assets
Intangible assets 12 5,952 5,811
Tangible assets 13 15 22
----------- -----------
5,967 5,833
Current assets
Stock 15 217 70
Debtors 16 364 383
Cash at bank and in hand 109 40
----------- -----------
690 493
Creditors: amounts falling due within one 17 (3,542) (1,493)
year
----------- -----------
Net current liabilities (2,852) (1,000)
----------- -----------
Total assets less current liabilities 3,115 4,833
Creditors: amounts falling due after more 18 - (2,375)
than one year
----------- -----------
Net assets 3,115 2,458
----------- -----------
Capital and reserves
Share capital 19 333 276
Share premium 20 3,048 1,887
Merger reserve 20 244 244
Profit and loss account 20 (510) 51
----------- -----------
Shareholders' funds 3,115 2,458
----------- -----------
The financial statements were approved by the Board on 28 June 2005
A Hutchinson
Director
Company Balance Sheet
At 31 December 2004
2004 2003
Notes £000 £000
Fixed assets
Investments 14 213 213
Current assets
Debtors - amounts falling due:
within one year 16 79 38
after more than one year 16 4,291 4,223
Cash at bank and in hand - 20
----------- -----------
4,370 4,281
Creditors: amounts falling due within one 17 (3,328) (958)
year
----------- -----------
Net current assets 1,042 3,323
----------- -----------
Total assets less current liabilities 1,255 3,536
Creditors: amounts falling due after more 18 - (2,375)
than one year
----------- -----------
Net assets 1,255 1,161
----------- -----------
Capital and reserves
Share capital 19 333 276
Share premium 20 3,048 1,887
Profit and loss account 20 (2,126) (1,002)
----------- -----------
Shareholders' funds 1,255 1,161
----------- -----------
The financial statements were approved by the Board on 28 June 2005
A Hutchinson
Director
Group Statement of Cash Flows
For the year ended 31 December 2004
2004 2003
Notes £000 £000
Net cash (outflow)/ inflow from operating 22 (430) 265
activities
Returns on investments and servicing of
finance
Interest paid (224) (174)
Taxation
Tax paid (198) (118)
Capital expenditure and financial
investment
Purchase of intangible fixed assets (82) -
Purchase of tangible fixed assets - (11)
----------- -----------
Net cash outflow before financing (934) (38)
Financing
Repayment of bank borrowing (250) (125)
Issue of ordinary shares 1,329 -
Less expenses of issue (111) -
----------- -----------
Net cash inflow from financing 968 (125)
----------- -----------
Increase/(decrease) in cash in the year 22 34 (163)
----------- -----------
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