Interim Results

Airea PLC 18 March 2008 AIREA plc (the 'Company') 18 March 2008 Interim results The Company is pleased to announce its interim results for the six months ended 31st December 2007. For enquiries, please contact: AIREA PLC 01924 203 742 Kevin Henry - Group Finance Director Brewin Dolphin Investment Banking 0845 270 8610 Andrew Kitchingman Sean Wyndham-Quin OPERATING REVIEW INTRODUCTION In the six months to 31st December 2007 significant progress has been made on a number of major strategic projects. These include the sale of the specialist yarns division, the sale of surplus properties, re-engineering manufacturing of residential carpets and creating a single management team for both commercial and residential products. As a consequence of the disposal of the Sirdar specialist yarns business the company changed its name to AIREA plc in December 2007. The results The results are presented under International Financial Reporting Standards for the first time. There are a number of presentational changes, the most significant of which is the analysis of the results between continuing operations and discontinued operations on the face of the consolidated income statement. Further details of this and the other presentational changes are set out in the notes to the accompanying financial statements. The only significant change to the results reported previously is that goodwill is no longer amortised and the amounts previously amortised since 1st July 2006 have now been reinstated in the consolidated balance sheet. A provision for impairment of the goodwill associated with the subsidiary yarn dyeing business has then been included in the income statement for the current period. Continuing Operations Sales of floor covering products reduced by 1% to Â£25.8m (2006: Â£26.1m) in the period with modest growth in commercial products being offset by a slight decline in residential products. Operating profit was Â£9.0m (2006: Â£0.4m) but the period to 31st December 2007 includes an exceptional profit on sale of property of Â£9.6m (2006: Â£nil). After excluding this exceptional profit, a provision for impairment of goodwill of Â£0.8m (2006: Â£nil) and other exceptional costs of Â£0.3m (2006: Â£0.5m), operating profit before exceptional items was Â£0.5m (2006: Â£0.9m). Earnings per share from continuing operations were 20.80p (2006: loss per share 0.22p) and adjusted earnings per share, excluding the effect of the exceptional profit on sale of property, the related release of deferred tax, the provision for impairment of goodwill and the other exceptional costs, was 0.75p (2006: 0.49p). Discontinued Operations The specialist yarns business was sold on 2nd November 2007. Sales to the date of disposal were Â£5.7m (2006: Â£8.1m). The operating loss was Â£2.3m (2006: profit Â£1.1m) but this includes a loss on disposal of Â£2.7m (2006: Â£nil). After excluding this item, operating profit was Â£0.4m (2006: Â£1.1m). Discontinued operations generated a loss per share of 4.98p (2006: earnings per share 1.22p). Adjusted earnings per share, excluding the effect of the loss on disposal, were 0.79p (2006: 1.22p). Group results Profit for the period was Â£7.3m (2006: Â£0.5m). This includes the exceptional profit on sale of property, the loss on sale of the specialist yarns business and other exceptional items as detailed above. Earnings per share were 15.82p (2006: 1.00p) and adjusted earnings per share, after excluding the effect of the exceptional profit on sale of property, the related release of deferred tax, the provision for impairment of goodwill, the loss on sale of the specialist yarns business and other exceptional costs, were 1.54p (2006: 1.71p). There was a cash outflow from operating activities of Â£4.3m (2006: Â£2.2m inflow), due to a combination of an increase in working capital and increased contributions to the defined benefit pension scheme. As a result of the property disposals and the sale of the specialist yarns division, there was an increase in cash and cash equivalents of Â£7.8m (2006: decrease Â£1.0m). Total cash and cash equivalents at the end of the period amounted to Â£6.3m compared to total net debt at the start of the period of Â£5.2m. The board has declared an interim dividend of 0.80p per share (2006: 0.80p). This dividend is payable on 6th May 2008 to those shareholders on the register of members at the close of business on 4th April 2008. Management and personnel Following completion of a number of specific projects, Steve Harrison, the former Chief Operating Officer, left the group on 29th February 2008. A process of recruitment for a managing director is underway and we have appointed an experienced manager to lead the floor coverings business in the interim. The board would like to thank all personnel for their dedication and commitment to the business during this period of change. Current trading and future prospects Like-for-like sales in the early part of 2008 are in line with last year with growth in commercial products compensating for a decline in residential products. The commercial market appears to be growing but the residential market is more challenging due to economic uncertainty and subdued consumer spending. Increased resources are being devoted to new product development and innovation and, combined with a lower cost base, we believe this will lead to improved performance in the future. 18th March 2008 Consolidated Income Statement 6 months ended 31st December 2007 Unaudited Unaudited Unaudited 6 months 6 months year ended ended ended 31st December 31st December 30th June 2007 2006 2007 Note Â£000 Â£000 Â£000 Continuing operations Revenue 25,781 26,138 50,304 Operating costs (26,376) (25,756) (49,672) Exceptional profit on sale of property 9,616 - - Operating profit after exceptional items 9,021 382 632 Analysed between: Operating profit before exceptional items 500 850 1,379 Exceptional operating costs 2 (250) (468) (747) Impairment of goodwill (845) - - Exceptional profit on sale of property 9,616 - - Net interest payable and similar charges (135) (198) (477) Other finance costs - (150) (186) Profit/(loss) before taxation 8,886 34 (31) Taxation 733 (135) (100) Profit/(loss) from continuing operations 9,619 (101) (131) Discontinued operations Revenue 5,694 8,122 15,026 Operating costs (5,322) (7,046) (14,032) Operating profit before exceptional item 372 1,076 994 Loss on disposal of discontinued operation 10 (2,668) - - Operating/(loss) profit (2,296) 1,076 994 Net interest receivable/(payable) and similar charges 166 (39) (50) Other finance costs - (100) (124) (Loss)/profit before taxation (2,130) 937 820 Taxation (174) (373) (219) (Loss)/profit from discontinued operations (2,304) 564 601 Profit for the period 7,315 463 470 Earnings per share Basic and diluted 4 15.82p 1.00p 1.02p Earnings/(loss) per share from continuing activities Basic and diluted 4 20.80p (0.22)p (0.28)p (Loss)/earnings per share from discontinued activities Basic and diluted 4 (4.98)p 1.22p 1.30p There is no difference between the profit before taxation and the profit for the period stated above and their historical cost equivalents. Consolidated Balance Sheet as at 31st December 2007 Unaudited Unaudited Unaudited 31st December 31st December 30th June 2007 2006 2007 Note Â£000 Â£000 Â£000 Non-current assets Property, plant and equipment 9,828 15,226 10,086 Goodwill 12,012 12,857 12,857 Deferred tax asset 5 1,163 1,749 416 23,003 29,832 23,359 Current assets Inventories 10,084 14,613 13,312 Trade and other receivables 7,821 9,236 9,597 Prepayments and accrued income 1,396 1,086 1,085 Cash and cash equivalents 6,272 770 176 25,573 25,705 24,170 Non-current assets classified as held for resale 140 - 5,643 Total assets 48,716 55,537 53,172 Current liabilities Trade and other payables (6,078) (7,696) (8,788) Tax liabilities - (243) - Accruals and deferred income (2,604) (3,535) (3,061) Bank overdrafts and loans - (5,705) (5,394) (8,682) (17,179) (17,243) Non-current liabilities Pension deficit (5,930) (13,000) (8,400) Total liabilities (14,612) (30,179) (25,643) 34,104 25,358 27,529 Equity Called up share capital 11,561 11,561 11,561 Share premium account 504 504 504 Capital redemption reserve 2,395 2,395 2,395 Profit and loss account 6 19,644 10,898 13,069 34,104 25,358 27,529 Consolidated Cash Flow Statement 6 months ended 31st December 2007 Unaudited Unaudited Unaudited 6 months ended 6 months ended year ended 31st December 31st December 30th June 2007 2006 2007 Note Â£000 Â£000 Â£000 Operating activities Cash (used in)/from operations 8 (4,342) 3,006 4,482 Interest received/(paid) 37 (224) (602) Income tax paid (9) (553) (635) (4,314) 2,229 3,245 Investing activities Purchase of property, plant and equipment (1,603) (1,282) (2,574) Proceeds on disposal of property, plant and equipment 15,738 295 658 Disposal of subsidiary undertaking 10 2,409 - - 16,544 (987) (1,916) Financing activities Equity dividends paid 3 (740) (740) (1,110) Redemption of loan notes (88) - (80) (Decrease)/increase in bank loans (3,652) (1,519) 86 (4,480) (2,259) (1,104) Net increase/(decrease) in cash and cash equivalents 7,750 (1,017) 225 Cash and cash equivalents at start of period (1,478) (1,703) (1,703) Cash and cash equivalents at end of period 6,272 (2,720) (1,478) Statement of Recognised Income and Expense 6 months ended 31st December 2007 Unaudited Unaudited Unaudited 6 months ended 6 months ended year ended 31st December 31st December 30th June 2007 2006 2007 Â£000 Â£000 Â£000 Profit attributable to shareholders of the group 7,315 463 470 Actuarial gains recognised in the pension scheme - - 2,534 Total recognised income and expense relating to the 7,315 463 3,004 period NOTES 1. Accounting Policies Accounting policies adopted under IFRS These interim financial statements have been prepared using the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union ('IFRS'). The basis of preparation and accounting policies used in preparing the interim financial statements for the six months ended 31st December 2007 are set out below. The basis of preparation describes how IFRS have been applied under IFRS 1, the assumptions made by the group about the Standards and Interpretations expected to be effective, and the policies expected to be adopted, when the group issues its first complete set of IFRS financial statements for the year ending 30th June 2008. Basis of preparation The financial information for the six months ended 31st December 2007, six months ended 31st December 2006 and the year ended 30th June 2007 is unreviewed and unaudited and, within the meaning of section 240 of the Companies Act 1985, such accounts do not constitute full statutory accounts of the group. The accounting policies which follow set out those policies which are expected to apply in preparing the financial statements for the year ending 30th June 2008. These policies have been followed in producing these interim financial statements. The comparative figures for the financial year ended 30th June 2007 are not the statutory financial statements of AIREA plc for that financial year. Those financial statements, which were prepared under UK Generally Accepted Accounting Principles ('UK GAAP'), have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. Significant accounting judgements and estimates The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimates is contained in the accounting policies and accompanying notes to the financial statements. Revenue recognition Revenue, for all classes of business, comprises the invoice value, after discounts and customer credits and excluding value added tax, of goods supplied to customers and is recognised when the risks and rewards of ownership pass to the customer. Transactions between members of the group are excluded. Exceptional items The group seeks to highlight certain items as exceptional operating income or costs. These are considered to be exceptional in size and/or nature rather than indicative of the underlying trading of the group. These may include items such as restructuring costs, material profits or losses on disposal of property, plant and equipment and profits or losses on the disposal of subsidiaries. All of these items are charged or credited before calculating operating profit or loss. Material profits or losses on disposal of property, plant and equipment and profits or losses on the disposal of subsidiaries are shown as separate items in arriving at operating profit or loss whereas other exceptional items are charged or credited within operating costs and highlighted by analysis. The Directors apply judgement in assessing the particular items, which by virtue of their size and nature are disclosed separately in the income statement and the notes to the financial statements as exceptional items. The Directors believe that the separate disclosure of these items is relevant to understanding the group's financial performance. Basis of Consolidation The consolidated financial statements comprise the financial statements of AIREA plc and its subsidiaries. Acquisitions of subsidiaries are dealt with by the acquisition method of accounting. The results of subsidiaries are included from the effective date of their acquisition to the effective date of their sale. Any difference between the fair value of assets acquired and the consideration paid is treated as goodwill in the consolidated balance sheet. Goodwill and business combinations Goodwill results from the acquisition of subsidiary and associated undertakings and equates to the amount by which the consideration for the subsidiary or associated undertaking differs from the fair value of net assets acquired. Goodwill written off to reserves prior to the date of transition to IFRS has not been reinstated on the balance sheet. This goodwill is not written back to profit or loss on disposal. Impairment testing of goodwill and property, plant and equipment For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of the related business combination and represent the lowest level within the group at which management monitors the related cash flows. Goodwill is not amortised but is tested for impairment at least annually. All other individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's or cash-generating unit's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an internal discounted cash flow evaluation. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. Foreign currency Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Assets and liabilities denominated in foreign currencies are translated at rates of exchange ruling at the balance sheet date. Exchange differences of a trading nature are dealt with in the income statement. Financial instruments The group uses derivative financial instruments to manage its exposures to fluctuations in foreign currency exchange rates. Derivative instruments utilised are forward currency contracts. The fair value of forward currency contracts is assessed at the balance sheet date and any profit or loss is recognised in the income statement. Financial assets Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less any required allowances for uncollectible amounts. Financial liabilities Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Taxation Current tax payable is provided on taxable profits at prevailing rates for the period. Deferred income tax is calculated using the liability method on temporary differences arising between the carrying value of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill. Deferred tax liabilities are provided in full with no discounting. A deferred income tax asset is recognised only to the extent that it is probable that there will be future taxable profits on which this asset can be charged. Deferred income tax assets are reduced to the extent that it is no longer likely that a sufficient taxable benefit will arise. Deferred taxation is shown on the balance sheet separately from current tax assets and liabilities and is categorised among non-current items. Changes in deferred tax balances are recognised as a component of the tax expense in the income statement. Pensions The current service cost of providing retirement pensions and related benefits under the group defined benefit scheme is charged against operating profit as part of operating costs and the expected return on pension scheme assets and the interest on pension scheme liabilities is included in other finance costs. Actuarial gains and losses, net of the related deferred taxation, are recognised in the statement of total income and expense. Other amounts paid to defined contribution schemes are charged against operating profit as part of operating costs as incurred. Scheme assets are measured at fair values. Scheme liabilities are measured on an actuarial basis using the projected unit method and are discounted at appropriate high quality corporate bond rates that have terms to maturity approximating to the terms of the related liability. The surplus or deficit as calculated by the scheme's actuary is presented separately on the balance sheet. The related deferred tax is shown with other deferred tax balances. A surplus is recognised only to the extent that it is recoverable by the group. Discontinued operations A discontinued operation is a cash-generating unit, or a group of cash-generating units, that either has been disposed of, or is classified as held for sale, and represents a separate major line of business or geographical area of operations or is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations. The disclosures for discontinued operations in prior periods relate to all operations that have been discontinued by the balance sheet date for the latest period presented. Leased assets In accordance with IAS 17, the economic ownership of a leased asset is transferred to the lessee if the lessee bears substantially all the risks and rewards related to the ownership of the leased asset. The related asset is recognised at the time of inception of the lease at the fair value of the leased asset or, if lower, the present value of the minimum lease payments plus incidental payments, if any, to be borne by the lessee. A corresponding amount is recognised as a finance leasing liability. Leases of land and buildings are split into land and buildings elements according to the relative fair values of the leasehold interests at the date the asset is initially recognised. The interest element of leasing payments represents a constant proportion of the capital balance outstanding and is charged to the income statement over the period of the lease. All other leases are regarded as operating leases and the payments made under them are charged to the income statement on a straight line basis over the lease term. Lease incentives are spread over the term of the lease. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and on short term deposit, together with other short-term, highly liquid, investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. 2. EXCEPTIONAL OPERATING COSTS 6 months ended 6 months ended Year ended 31st December 31st December 30th June 2007 2006 2007 Â£000 Â£000 Â£000 Severance payments and incentives 215 315 746 Relocation costs 12 68 191 Loss/(profit) on disposal of plant and equipment - 85 (190) Legal and professional expenses 23 - - 250 468 747 The severance payments and incentives, relocation costs and the loss/(profit) on disposal of plant and equipment relate to the reorganisation of the residential floor coverings operation. The legal and professional expenses in the period relate to the change of name of the company. 3. DIVIDENDS 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2007 2006 2007 Â£000 Â£000 Â£000 Paid during the period: Final dividend for the year ended 30th June 2007 - 1.60p per share 740 - - Interim dividend for the year ended 30th June 2007 - 0.80p per share - - 370 Final dividend for the year ended 30th June 2006 - 1.60p per share - 740 740 740 740 1,110 Proposed after the period end (not recognised as a liability): Interim dividend for the year ending 30th June 2008 - 0.80p per share 370 - - Final dividend for the year ended 30th June 2007 - 1.60p per share - - 740 Interim dividend for the year ended 30th June 2007 - 0.80p per share - 370 - 370 370 740 The interim dividend will be paid on 6th May 2008 to members registered at the close of business on 4th April 2008. 4. EARNINGS PER SHARE The calculation of basic earnings per share is based on earnings of Â£7,315,000 (31st December 2006: Â£463,000, 30th June 2007: Â£470,000) and on 46,242,455 (31st December 2006: 46,242,455, 30th June 2007: 46,242,455) ordinary shares, being the number in issue during the period. Adjusted earnings per share is calculated after excluding exceptional profit on sale of property, the related release of deferred tax, exceptional operating costs, impairment of goodwill and the loss on disposal of discontinued operations as set out below. 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2007 2006 2007 Â£000 pence Â£000 pence Â£000 pence Earnings and basic earnings per share 7,315 15.82 463 1.00 470 1.02 Exceptional profit on sale of property (net of tax) (8,982) (19.42) - - - - Release of deferred tax provision on sale of property (1,310) (2.83) - - - - Exceptional operating costs (net of tax) 175 0.38 328 0.71 523 1.13 Impairment of goodwill 845 1.82 - - - - Loss on disposal of discontinued operations 2,668 5.77 - - - - Adjusted earnings and basic earnings per share 711 1.54 791 1.71 993 2.15 Continuing operations The calculation of basic earnings per share from continuing operations is based on earnings of Â£9,619,000 (31st December 2006: loss Â£101,000, 30th June 2007: loss Â£131,000) and on 46,242,455 (31st December 2006: 46,242,455, 30th June 2007: 46,242,455) ordinary shares, being the number in issue during the period. Adjusted earnings per share from continuing operations is calculated after excluding the exceptional profit on sale of property, the related release of deferred tax, exceptional operating costs and impairment of goodwill as set out below. 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2007 2006 2007 Â£000 pence Â£000 pence Â£000 pence Earnings/(loss) and basic earnings/(loss) per share 9,619 20.80 (101) (0.22) (131) (0.28) Exceptional profit on sale of property (net of tax) (8,982) (19.42) - - - - Release of deferred tax provision on sale of property (1,310) (2.83) - - - - Exceptional operating costs (net of tax) 175 0.38 328 0.71 523 1.13 Impairment of goodwill 845 1.82 - - - - Adjusted earnings and basic earnings per share 347 0.75 227 0.49 392 0.85 Discontinued operations The calculation of basic earnings per share from discontinued operations is based on a loss of Â£2,304,000 (31st December 2006: earnings Â£564,000, 30th June 2007: earnings Â£601,000) and on 46,242,455 (31st December 2006: 46,242,455, 30th June 2007: 46,242,455) ordinary shares, being the number in issue during the period. Adjusted earnings per share from discontinued operations is calculated after excluding the loss on disposal of discontinued operations as set out below. 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2007 2006 2007 Â£000 pence Â£000 pence Â£000 pence (Loss)/earnings and basic (loss)/earnings per share (2,304) (4.98) 564 1.22 601 1.30 Loss on disposal of discontinued operations 2,668 5.77 - - - - Adjusted earnings and basic earnings per share 364 0.79 564 1.22 601 1.30 5. DEFERRED TAX 31st December 31st December 30th June 2007 2006 2007 Â£000 Â£000 Â£000 Deferred tax asset brought forward 416 2,039 2,039 Profit and loss account 1,387 (80) (33) Movement on deferred tax on pension (740) (210) (1,590) deficit Disposal of subsidiary undertaking 100 - - Deferred tax asset carried forward 1,163 1,749 416 6. PROFIT AND LOSS ACCOUNT 31st December 31st December 30th June 2007 2006 2007 Â£000 Â£000 Â£000 Brought forward 13,069 11,175 11,175 Profit for the period 7,315 463 470 Other recognised gains - - 2,534 Equity dividends paid (740) (740) (1,110) Carried forward 19,644 10,898 13,069 7. STATEMENT OF CHANGE IN EQUITY 31st December 31st December 30th June 2007 2006 2007 Â£000 Â£000 Â£000 Equity brought forward 27,529 25,635 25,635 Profit for the period 7,315 463 470 Other recognised gains - - 2,534 Equity dividends paid (740) (740) (1,110) Equity carried forward 34,104 25,358 27,529 8. RECONCILIATION OF OPERATING PROFIT TO NET CASH (USED IN)/FROM OPERATIONS 6 months 6 months Year ended ended ended 31st December 31st December 30th June 2007 2006 2007 Â£000 Â£000 Â£000 Operating profit 6,725 1,458 1,626 Depreciation 749 877 1,720 Impairment of goodwill 845 - - (Profit)/loss on disposal of property, plant and (9,632) 71 (245) equipment Loss on disposal of discontinued operation 2,668 - - Current service pension cost 130 130 180 Decrease in inventories 153 1,904 3,205 (Increase)/decrease in receivables (2,289) (23) 26 (Decrease)/increase in payables (1,091) (331) 140 Contributions to defined benefit pension scheme (2,600) (1,080) (2,170) Net cash (used in)/from operations (4,342) 3,006 4,482 9. TRANSITION TO IFRS Restatement of Income Statement for the 6 months ended 31st December 2006 UK GAAP Reversal of IFRS goodwill amortisation 6 months ended 6 months ended 6 months ended 31st December 31st December 31st December 2006 2006 2006 Â£000 Â£000 Â£000 Revenue 34,260 - 34,260 Operating costs (32,774) 440 (32,334) Exceptional costs (468) - (468) Total operating costs (33,242) 440 (32,802) Operating profit 1,018 440 1,458 Net interest payable and similar charges (237) - (237) Other finance costs (250) - (250) Profit before taxation 531 440 971 Taxation (508) - (508) Profit for the period 23 440 463 Earnings per share (basic and diluted) 0.05p 0.95p 1.00p In addition to the above adjustment, the results have been analysed between continuing operations and discontinued operations on the face of the consolidated income statement. Restatement of Statement of Recognised Income and Expense for the 6 months ended 31st December 2006 UK GAAP Reversal of IFRS goodwill amortisation 6 months ended 6 months ended 6 months ended 31st December 31st December 31st December 2006 2006 2006 Â£000 Â£000 Â£000 Profit attributable to shareholders of the 23 440 463 group Actuarial gains recognised in the pension - - - scheme Total recognised gains relating to the 23 440 463 period Restatement of Income Statement for the year ended 30th June 2007 UK GAAP Reversal of Reclassification IFRS goodwill of profit on sale amortisation of property year ended year ended year ended year ended 30th June 2007 30th June 2007 30th June 2007 30th June 2007 Â£000 Â£000 Â£000 Â£000 Revenue 65,330 - - 65,330 Operating costs (63,838) 881 - (62,957) Exceptional costs (937) - 190 (747) Total operating costs (64,775) 881 190 (63,704) Operating profit 555 881 190 1,626 Exceptional profit on sale of property 190 - (190) - Net interest payable and similar charges (527) - - (527) Other finance costs (310) - - (310) (Loss)/profit before taxation (92) 881 - 789 Taxation (319) - - (319) (Loss)/profit for the period (411) 881 - 470 (Loss)/earnings per share (basic and diluted) (0.89)p 1.91p 0.00p 1.02p In addition to the above adjustments, the results have been analysed between continuing operations and discontinued operations on the face of the consolidated income statement. Restatement of Statement of Recognised Income and Expense for the year ended 30th June 2007 UK GAAP Reversal of Reclassification IFRS goodwill of profit on sale amortisation of property year ended year ended year ended year ended 30th June 2007 30th June 2007 30th June 2007 30th June 2007 Â£000 Â£000 Â£000 Â£000 (Loss)/profit attributable to shareholders of (411) 881 - 470 the group Actuarial gains recognised in the pension 2,534 - - 2,534 scheme Total recognised gains relating to the period 2,123 881 - 3,004 Restatement of Balance Sheet as at 31st December 2006 UK GAAP Reversal of Reclassification IFRS goodwill of deferred tax amortisation 31st December 31st December 31st December 2006 31st December 2006 2006 2006 Â£000 Â£000 Â£000 Â£000 Non-current assets Property, plant and equipment 15,226 - - 15,226 Goodwill 12,417 440 - 12,857 Deferred tax asset - - 1,749 1,749 27,643 440 1,749 29,832 Current assets Inventories 14,613 - - 14,613 Trade and other receivables 9,236 - - 9,236 Prepayments and accrued income 1,086 - - 1,086 Cash and cash equivalents 770 - - 770 25,705 - - 25,705 Total assets 53,348 440 1,749 55,537 Current liabilities Trade and other payables (7,696) - - (7,696) Tax liabilities (243) - - (243) Accruals and deferred income (3,535) - - (3,535) Bank overdrafts and loans (5,705) - - (5,705) (17,179) - - (17,179) Non-current liabilities Deferred taxation (2,151) - 2,151 - Pension deficit (9,100) - (3,900) (13,000) (11,251) - (1,749) (13,000) Total liabilities (28,430) - (1,749) (30,179) 24,918 440 - 25,358 Equity Called up share capital 11,561 - - 11,561 Share premium account 504 - - 504 Capital redemption reserve 2,395 - - 2,395 Profit and loss account 10,458 440 - 10,898 24,918 440 - 25,358 Restatement of Balance Sheet as at 30th June 2007 UK GAAP Reversal of Reclassification Reclassification IFRS goodwill of deferred tax of assets held amortisation for resale 30th June 30th June 30th June 2007 30th June 2007 30th June 2007 2007 2007 Â£000 Â£000 Â£000 Â£000 Â£000 Non-current assets Property, plant and equipment 15,729 - - (5,643) 10,086 Goodwill 11,976 881 - - 12,857 Deferred tax asset - - 416 - 416 27,705 881 416 (5,643) 23,359 Current assets Inventories 13,312 - - - 13,312 Trade and other receivables 9,597 - - - 9,597 Prepayments and accrued income 1,085 - - - 1,085 Cash and cash equivalents 176 - - - 176 24,170 - - - 24,170 Non-current assets classified as held - - - 5,643 5,643 for resale Total assets 51,875 881 416 - 53,172 Current liabilities Trade and other payables (8,788) - - - (8,788) Tax liabilities - - - - - Accruals and deferred income (3,061) - - - (3,061) Bank overdrafts and loans (5,394) - - - (5,394) (17,243) - - - (17,243) Non-current liabilities Deferred taxation (2,104) - 2,104 - - Pension deficit (5,880) - (2,520) - (8,400) (7,984) - (416) - (8,400) Total liabilities (25,227) - (416) - (25,643) 26,648 881 - - 27,529 Equity Called up share capital 11,561 - - - 11,561 Share premium account 504 - - - 504 Capital redemption reserve 2,395 - - - 2,395 Profit and loss account 12,188 881 - - 13,069 26,648 881 - - 27,529 Restatement of Balance Sheet as at 30th June 2006 UK GAAP Reclassification IFRS of deferred tax 30th June 2006 30th June 2006 30th June 2006 Â£000 Â£000 Â£000 Non-current assets Property, plant and equipment 15,107 - 15,107 Goodwill 12,857 - 12,857 Deferred tax asset - 2,039 2,039 27,964 2,039 30,003 Current assets Inventories 16,517 - 16,517 Trade and other receivables 9,150 - 9,150 Prepayments and accrued income 1,266 - 1,266 Cash and cash equivalents 537 - 537 27,470 - 27,470 Total assets 55,434 2,039 57,473 Current liabilities Trade and other payables (7,945) - (7,945) Tax liabilities (570) - (570) Accruals and deferred income (3,649) - (3,649) Bank overdrafts and loans (5,235) - (5,235) (17,399) - (17,399) Non-current liabilities Bank loans and loan notes (739) - (739) Deferred taxation (2,071) 2,071 - Pension deficit (9,590) (4,110) (13,700) (12,400) (2,039) (14,439) Total liabilities (29,799) (2,039) (31,838) 25,635 - 25,635 Equity Called up share capital 11,561 - 11,561 Share premium account 504 - 504 Capital redemption reserve 2,395 - 2,395 Profit and loss account 11,175 - 11,175 25,635 - 25,635 10. DISPOSAL OF SUBSIDIARY UNDERTAKING On 2nd November 2007 the group disposed of its interest in the entire issued share capital of Sirdar Spinning Limited which comprised the whole of the group's specialist yarns division. Net assets disposed of comprised: Â£000 Plant and equipment 721 Inventories 3,075 Receivables 3,871 Cash and cash equivalents 150 Payables (2,152) Corporation tax (188) Deferred tax (100) 5,377 Loss on disposal (2,668) Proceeds of disposal (net of expenses of Â£91,000) 2,709 The disposal proceeds consisted of Â£2,500,000 paid in cash at completion plus Â£300,000 of loan notes. In the consolidated balance sheet these loan notes are included in trade and other receivables. The results of the subsidiary disposed of are presented as discontinued activities in the income statement. Operations of discontinued activities used cash of Â£3,145,000 in the period (31st December 2006: generated Â£527,000, 30th June 2007: generated Â£1,086,000) and investing activities of discontinued activities used cash of Â£3,000 in the period (31st December 2006: Â£435,000, 30th June 2007: Â£624,000). OTHER INFORMATION The interim results are unaudited. Further copies of this report are available from the Company Secretary at the registered office at Victoria Mills, The Green, Ossett, Wakefield, West Yorkshire WF5 0AN. ENDS This information is provided by RNS The company news service from the London Stock Exchange END IR IFFFLVLIDLIT

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Tuesday, 14th May 2024

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Currys impressed this morning as sales performance improved after Christmas, whilst the reshaped Vodafone also found support from full yar earnings. On The Beach was however looking stranded as the cost of living crisis continues to bite.

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