Half-yearly Report

Embargoed Release: 07:00hrs Monday 4 August 2008 INTERNATIONAL BRAND LICENSING PLC ("IBL", the "Group" or the "Company") INTERIM REPORT FOR THE SIX MONTHS TO 30 JUNE 2008 International Brand Licensing plc, the branded sports lifestyle company, announces its interim results for the period ended 30 June 2008. CHAIRMAN'S STATEMENT During the first six months of the year Group revenue decreased to £306,000 (2007: £1,534,000), and there was an operating loss before exceptional items of £171,000 (2007: profit of £204,000). The sale of trademarks in Turkey generated £317,000 of exceptional profit in the first six months of 2008 which, coupled with a share based payment expense of £30,000 and interest received of £32,000, resulted in profit before tax of £148,000 (2007: £1,228,000). The major reduction in revenues and profits reflects the impact of our decision to withdraw from the England cricket sponsorship agreement one year early on 31 March 2008. Considering the extremely depressed sports retail market of today and the decline in demand for replica merchandise, it was undoubtedly the right decision for the Company. Given the significant change in the business model a direct comparison of the two years is rather meaningless, and it is much more relevant to focus on the future and the opportunities the Company has. Having withdrawn from the capital intensive and high risk sports supply business, the Company has emerged as a streamlined intellectual property and licensing business. With the Admiral brand we have the combined opportunities of liquidating selected markets in return for cash, and the signing of new licensee partners in lucrative unexploited markets. We are presently engaged in negotiations on both fronts and expect to make further announcements in the coming months. Since the period end, the Company announced the sale of its Admiral sportswear trademarks in southern Africa for a cash consideration of £225,000. This has strengthened our balance sheet even further by liquidating largely unproductive assets in return for cash. With regards to Muscle Athletic, the fitness brand which we acquired in 2006, we are presently in negotiation with a number of proven Admiral licensees interested in distributing this exciting new brand in their markets, plus a number of other candidate partners. A key element of growing our licensing business is that costs do not rise proportionately to revenues and most of the incremental royalty of new agreements adds directly to Group profit. Your Board will continue to pursue opportunities to add value to the Company from both a corporate and licensing perspective and we remain very confident in the future prospects of the business. Adam Reynolds Chairman 4th August 2008 For further information please contact: International Brand Licensing Plc Paul Foulger +44 (0) 20 7245 1100 Blue Oar Securities Plc William Vandyk +44 (0) 20 7448 4400 CONSOLIDATED INCOME STATEMENT FOR THE PERIODENDED 30 JUNE 2008 Six months Six months Year to to 30 June to 30 June 31 December 2008 2007 2007 Notes Unaudited Unaudited Audited £000 £000 £000 Group revenue 4 306 1,534 1,857 Cost of sales (24) (669) (1,012) _________ _________ _________ GROSS PROFIT 282 865 845 Administrative expenses (453) (661) (1,364) _________ _________ _________ OPERATING (LOSS)/PROFIT (171) 204 (519) BEFORE EXCEPTIONAL ITEMS Exceptional profit on sale 317 1,046 1,152 of intangible assets Share based payments (30) (30) (61) _________ _________ _________ OPERATINGPROFITAFTER 116 1,220 572 EXCEPTIONAL ITEMS Finance income 32 16 50 Finance costs - (8) (7) _________ _________ _________ PROFIT BEFORE TAXATION 148 1,228 615 Taxation (36) (296) (150) _________ _________ _________ PROFIT FOR THE PERIOD 112 932 465 ATTRIBUTABLE TO EQUITY HOLDERS _________ _________ _________ Earnings per share Basic and diluted 5 0.34p 2.8p 1.4p _______ ________ ________ CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSES FOR THE PERIOD ENDED 30 JUNE 2008 At 30 At 30 At 31 June June December 2008 2007 2007 Unaudited Unaudited Audited £000 £000 £000 Profit for the period 112 932 465 Exchange differences on translation 132 (118) 224 of foreign operations Fair value adjustment in respect of - - (43) available-for-sale financial assets _______ _______ _______ Total recognised income and expenses 244 814 646 for the period attributableto equity shareholders ________ ________ ________ CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2008 Six months Six months Year to 31 to 30 June to 30 June December 2008 2007 2007 Notes Unaudited Unaudited Audited £000 £000 £000 Assets Non-current assets Property, plant and equipment 6 8 6 Intangibles 2 3,498 2,814 3,365 Deferred tax assets 50 - 50 Available-for-sale financial 70 - 70 assets ________ ________ ________ Total non-current assets 3,624 2,822 3,491 ________ ________ ________ Current Assets Inventories 90 614 110 Trade and other receivables 619 1,534 527 Cash and cash equivalents 1,341 1,255 1,437 ________ ________ ________ Total current assets 2,050 3,403 2,074 ________ ________ ________ Total assets 5,674 6,225 5,565 _______ _______ _______ Liabilities Current Liabilities Trade and other payables (356) (1,112) (491) Current tax liabilities (98) - (98) ________ ________ ________ Total current liabilities (454) (1,112) (589) ________ ________ ________ Net assets 5,220 5,113 4,976 ________ ________ ________ Equity Issued share capital 336 336 336 Share premium account 3,090 3,090 3,090 Other reserve 244 244 244 Foreign currency reserves 195 (118) 63 Retained Earnings 1,355 1,561 1,243 _______ _______ _______ Total Shareholders' Equity 5,220 5,113 4,976 ________ ________ ________ CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 30 JUNE 2008 Six months Six months Year to 31 ended 30 ended 30 December June 2008 June 2007 2007 Unaudited Unaudited Audited £000 £000 £000 Operating activities Operating profit after exceptional items 116 1,220 572 Depreciation - 1 3 Exceptional profit on sale of intangible (317) (1,496) (1,152) asset (Increase)/decrease in receivables (92) (157) 812 Increase/(decrease) in payables (136) 129 (77) (Increase)/decrease in inventories 20 (22) 483 Gain/(loss) on exchange - (118) - Share-based payment 30 30 61 Taxes paid (66) (11) (118) ________ ________ ________ Net cash(used in) / generated by operating (445) (424) 584 activities ________ ________ ________ Investing Activities Interest received 32 16 50 Diminution in value of intangible asset - 300 - Net proceeds on sale of intangible asset 317 1,600 1,152 Purchase of listed investments - - (113) ________ ________ ________ Net cash generated by investing activities 349 1,916 1,089 ________ ________ ________ Financing Activities Interest paid - (8) (7) ________ ________ ________ Net cash used in financing activities - (8) (7) ________ ________ ________ Net (decrease)/increasein cash and cash (96) 1,484 1,666 equivalents Cash and cash equivalents at beginning of 1,437 (229) (229) period ________ ________ ________ Cash and cash equivalents at end of period 1,341 1,255 1,437 ________ ________ ________ STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2008 Share Share Other Foreign Retained Total Reserve Currency earnings equity Capital Premium Reserve £000 £000 £000 £'000 £000 £000 At 1 January 2007 336 3,090 244 (161) 790 4,299 Profit for the - - - - 465 465 year Fair value - - - - (43) (43) adjustment in respect of available-for-sale financial assets Equity-settled - - - - 31 31 share based payment Exchange - - - 224 - 224 Difference _______ ________ ________ ________ ________ ________ At 1 January 2008 336 3,090 244 63 1,243 4,976 Profit for the - - - - 112 112 period Exchange - - - 132 - 132 Difference _______ ________ ________ ________ ________ ________ At 30 June 2008 336 3,090 244 195 1,355 5,220 _______ _______ _______ ________ ________ ________ NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS 1.Basis of preparation of the financial statements The interim accounts have been prepared in accordance with International Financial Reporting Standards (IFRS and IFRIC Interpretations) issued by the International Accounting Standards Board (IASB) as adopted by the European Union and with those parts of the Companies Acts applicable to Companies preparing financial statements under IFRS. The interim results do not constitute statutory results within the meaning of section 240 of the Companies Act 1985. The interim results to 30 June 2008 are neither audited nor reviewed by the auditors. The financial information for the full preceding year is based on the statutory accounts for the year ended 31 December 2007, upon which the auditors issued an unqualified opinion and which have been filed with the Registrar of Companies. This interim report does not comply with IAS 34 "Interim Financial Reporting", as is currently permissible under the rules on the Alternative Investment Market ("AIM"). 2. Intangible assets Intangible assets represent acquired trademarks and are recorded at historic cost. No amortisation is charged as they are regarded as having infinite lives. The annual results reflect the expenditure incurred in the support and development of these brands. In addition, the trademarks are supported by the existence of international licensee agreements, which establish obligations as to guaranteed minimum licence income and marketing arrangements with the view to maximising long-term growth. The directors believe that the licence agreements will be renewed at the end of their legal expiry dates and that the value of the trademarks will be maintained. The carrying values are reviewed annually and written down to the estimated recoverable amount as necessary. 3. Share-based payment The group operates share incentive and option schemes for directors and employees. For all share awards the fair value as at the date of grant is calculated using an option pricing model and the charge to profit and loss account is recognised as a staff cost over the vesting period. 4. Revenue Six months to Six months to Year to 31 30 June 2008 30 June 2007 December 2007 Unaudited Unaudited Audited £000 £000 £000 Licensing 306 280 341 Replica Kit (24) 1,254 1,516 ________ ________ _______ Total 282 1,534 1,857 ________ ________ ________ 5. Earnings per share The basic earnings per share is calculated by dividing the profit for the financial year attributable to shareholders by the weighted average number of shares in issue. Six months Six months Year to 31 to 30 June to 30 June December 2008 2007 2007 Weighted average number of shares 33,593,353 33,593,353 33,593,353 Dilutive effect of share options - 40,500 - ________ ________ ________ Diluted weighted average ordinary shares 33,593,353 33,633,853 33,593,353 ________ ________ ________ Profit for the period £000 £000 £000 112 932 465 ________ ________ ________ Basic and diluted earnings per 1p Pence Pence Pence ordinary share 0.34 2.8 1.4 ________ ________ ________ 6. Dividends There were no dividends provided or paid during the six months.

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