Interim Results

RNS Number : 9378Y

International Brand Licensing PLC

14 September 2009

 



For Immediate Release

14 September 2009

International Brand Licensing plc

('IBL' or 'the Company' or 'the Group')

Interim Results 

CHAIRMAN'S STATEMENT

I am pleased to report the Group's interim results for the 6 month period ended 30 June 2009. The Group's performance should be considered against the backdrop of a very depressed sporting goods industry, both in the UK and internationally. Several of the key global sports brands have reported record decreases in both top line sales and profitability, whilst the majority of sports retailers have seen their sales and margins eroded by the well documented economic crisis.

Highlights: -

• During the period the Group reported a loss before taxation of £170,000 (2008: profit of £248,000). There were two main reasons for the reduction in earnings compared with last year:

  • The prior year interim results included an exceptional profit of £317,000, being the profit generated in June 2008 on the sale of the Admiral trademarks in Turkey;

  • Reduced royalty income due to the successful Admiral trademark sale in certain territories during the past two years, including both Japan and South Africa during the latter half of 2008.

• Since the period end, the Group disposed of its Australian and New Zealand Admiral trademarks for a cash sum of £117,000. These are territories from which the Group had received no royalty payments in recent years.

• The Group continues to negotiate with a number of its licensees in relation to the disposal of further trademarks. If successful, this will further strengthen the Group's cash resources and balance sheet in the coming months.

• The Group continues to explore new territories where Admiral is not yet represented.

• Reduced operating expenses following further cost reductions within the Group.

Although it is disappointing to report a loss for the period, the Board continues to exploit every opportunity in an effort to strengthen the Group's balance sheet. 

Adam Reynolds
Chairman

For further information, please contact:

International Brand Licensing plc            Tel: [phone]

Paul Foulger, Finance Director

www.iblplc.com

Zeus Capital                                          Tel: [phone]

Ross Andrews

INTERNATIONAL BRAND LICENSING PLC

CONSOLIDATED INCOME STATEMENT

FOR THE 6 MONTHS ENDED 30 JUNE 2009

			Unaudited 6 months ended 30 June 2009		Unaudited 6 months ended 30 June 2008		Audited Year ended 31 December 2008
	Notes		£'000		£'000		£'000
Group revenue			143		306		465
Operating expenses			(335)		(90)		(1,474)
Operating (loss) / profit			(192)		216		(1,009)
Operating (loss ) / profit analysed as:
Group revenue			143		306		465
Operating expenses			(305)		(377)		(947)
Operating loss before exceptional items			(162)		(71)		(482)
Exceptional profit on sale of intangible assets			-		317		834
Exceptional impairment of intangible assets			-		-		(1,300)
Share based payments			(30)		(30)		(61)
Operating (loss)/profit after exceptional items			(192)		216		(1,009)
Finance income			23		32		86
Finance costs			(1)		-		-
(Loss)/profit before taxation			(170)		248		(923)
Taxation			-		(36)		(146)
(Loss)/profit from continuing operations			(170)		212		(1,069)
(Loss)/profit from discontinued operations			-		(100)		(238)
(Loss)/profit for the period			(170)		112		(1,307)
(Loss)/earnings per share (basic)	5		(0.51)p		0.34p		(3.9)p
(Loss)/earnings per share (diluted)	5		(0.47)p		0.31p		(3.6)p

INTERNATIONAL BRAND LICENSING PLC

CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2009

		Unaudited as at 30 June 2009		Unaudited as at 30 June 2008		Audited as at 31 December 2008
	Notes	£'000		£'000		£'000
Assets
Non-current assets
Property, plant and equipment		2		6		3
Intangibles	2	2,335		3,498		2,621
Deferred tax assets		62		50		62
Available-for-sale financial assets		271		70		21
Total non-current assets		2,670		3,624		2,707
Current Assets
Inventories		-		90		-
Trade and other receivables		285		619		530
Cash and cash equivalents		2,183		1,341		2,501
Total current assets		2,468		2,050		3,031
Total assets		5,138		5,674		5,738
Liabilities
Current Liabilities
Trade and other payables		(328)		(356)		(457)
Current tax liabilities		(202)		(98)		(211)
Total current liabilities		(530)		(454)		(668)
Net assets		4,608		5,220		5,070
Equity
Issued share capital		336		336		336
Share premium account		3,090		3,090		3,090
Other reserve		244		244		244
Foreign currency reserves		1,176		195		1,483
Retained Earnings		(238)		1,355		(83)
Total Shareholders' Equity		4,608		5,220		5,070

The financial statements were approved by the Board of Directors on 14 September 2009.

Paul Foulger
Director

INTERNATIONAL BRAND LICENSING PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE 6 MONTHS ENDED 30 JUNE 2009

	Unaudited  6 months ended 30 June 2009		Unaudited  6 months ended 30 June 2008		Audited  Year to 31  December 2008
	£'000		£'000		£'000
Operating activities
Operating (loss)/profit after exceptional items	(192)		216		(1,009)
Loss from discontinued operations	-		(100)		(238)
Depreciation	1		-		3
Exceptional impairment of intangible assets	-		-		1,300
Exceptional profit on sale of intangible asset	-		(317)		(834)
(Increase)/decrease in receivables	242		(92)		(3)
Increase/(decrease) in payables	(146)		(136)		(65)
(Increase)/decrease in inventories	-		20		110
Foreign currency translation	(25)		-		73
Share-based payment	30		30		61
Taxes paid	-		(66)		(45)
Net cash (used in) / generated by operating activities	(90)		(445)		(647)
Investing Activities
Interest received	23		32		86
Net proceeds on sale of intangible asset	-		317		1,625
Purchase of listed investments	(250)		-		-
Net cash generated by investing activities	(227)		349		1,711
Financing Activities
Interest paid	(1)		-		-
Net cash used in financing activities	(1)		-		-
Net (decrease)/increase in cash and cash equivalents	(318)		(96)		1,064
Cash and cash equivalents at beginning of period	2,501		1,437		1,437
Cash and cash equivalents at end of period	2,183		1,341		2,501

INTERNATIONAL BRAND LICENSING PLC

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2009

	Share Capital		Share Premium		Other Reserve		Foreign Currency Reserve		Retained earnings		Total equity
	£'000		£'000		£'000		£'000		£'000		£'000
At 1 January 2008	336		3,090		244		63		1,243		4,976
Profit for the period	-		-		-		-		112		112
Exchange difference	-		-		-		132		-		132
At 30 June 2008	336		3,090		244		195		1,355		5,220
Loss for the period	-		-		-		-		(1,419)		(1,419)
Fair value adjustment in respect of available-for-sale financial assets	-		-		-		-		(49)		(49)
Share based payment	-		-		-		-		30		30
Exchange Difference	-		-		-		1,288		-		1,288
At 1 January 2009	336		3,090		244		1,483		(83)		5,070
Loss for the period	-		-		-		-		(170)		(170)
Share based payment	-		-		-		-		15		15
Exchange Difference	-		-		-		(307)		-		(307)
At 30 June 2009	336		3,090		244		1,176		(238)		4,608

INTERNATIONAL BRAND LICENSING PLC

NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS

1.    General Information

International Brand Licensing plc is a public limited company incorporated in the United Kingdom (Registration Number 04347937). The address of the registered office is 14 Kinnerton Place South, London SW1X 8EH. The principal activity of the Company is that of developing and exploiting a portfolio of sports and lifestyle brands, trademarks and logos.

The comparative figures included in this report for the six months ended 30 June 2008 are unaudited. The twelve months to 31 December 2008 are audited.

The financial information in this statement does not constitute statutory accounts under Section 434 of Companies Act 2006 and was not subject to a formal review by the auditors. The financial information in respect of the year ended 31 December 2008 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain any statement under Section 498 (2) or 3 of the Companies Act 2006.

The interim financial information has been prepared on a basis consistent with the accounting policies set out in the Group's statutory accounts for the year ended 31 December 2008. Fixed annual charges are apportioned to the interim period on the basis of time elapsed. Other expenses are accrued in accordance with the same principles used in the preparation of the annual accounts.

   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 the income statement is recognised as a staff cost over the vesting period.

   4.    Segmental reporting

The board considers that the Group has a single business segment which generates income by licensing its two brands. The revenue, expenditure and result reported in the income statement and the assets and liabilities reported in the balance sheet all relate to this single segment. An analysis of turnover by geographical destination is given below:

		Unaudited 6 months ended 30 June 2009		Unaudited 6 months ended 30 June 2008		Audited Year ended 31 December 2008
		£000		£000		£000
United Kingdom		51		142		190
Europe and Scandinavia		25		26		30
North America		45		33		134
Asia		17		89		95
Rest of the World		5		16		16
		143		306		465

INTERNATIONAL BRAND LICENSING PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)

5.    Earnings per share

Earnings per share has been calculated using the weighted average number of shares in issue during the relevant financial period. The weighted number of equity shares in issue and the earnings, being the (loss)/profit after tax, are as follows:

		Unaudited 6 months ended 30 June 2009		Unaudited 6 months ended 30 June 2008		Audited year ended 31 December 2008
		Number		Number		Number
Weighted average number of shares (ordinary)		33,593,353		33,593,353		33,593,353
Weighted average number of shares (dilutive)		36,218,353		36,218,353		36,218,353
(Loss)/Profit for the period/year		£'000 (170)		£'000 112		£'000 (1,307)
(Loss)/earnings per 1p ordinary share (basic)		(0.51)p		0.34p		(3.9)p
(Loss)/earnings per 1p ordinary share (basic)		(0.47)p		0.31p		(3.6)p

6.                  Dividends

There were no dividends provided or paid during the six months. 

7.                  International Brand Licensing AG

The results of International Brand Licensing AG are consolidated in the Interim financial statements and are shown below:

International Brand Licensing AG - Income Statement

		Unaudited 6 months ended 30 June 2009		Unaudited 6 months ended 30 June 2008		Audited Year ended  31 December 2008
		£'000		£'000		£'000
Revenue		143		306		465
Operating expenses		(157)		(233)		(268)
Operating (loss)/profit before exceptional items		(14)		73		197
Exceptional profit on sale of intangible asset		-		317		266
Income tax expenses		-		(1)		(121)
(Loss)/profit for the period		(14)		389		342

INTERNATIONAL BRAND LICENSING PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)

International Brand Licensing AG - Balance Sheet

		Unaudited  as at 30  June 2009		Unaudited  as at 30  June 2008		Audited  as at 31 December 2008
		£'000		£'000		£'000
Assets
Non-current assets
Property, plant and equipment		2		5		3
Intangibles		2,335		3,294		2,621
Total non-current assets		2,337		3,299		2,624
Current Assets
Trade and other receivables		248		475		467
Cash and cash equivalents		32		214		108
Total current assets		280		689		575
Total assets		2,617		3,988		3,199
Liabilities
Current Liabilities
Trade and other payables		(601)		(2,341)		(920)
Current tax liabilities		(171)		-		(192)
Total current liabilities		(772)		(2,341)		(1,112)
Net assets		1,845		1,647		2,087
Equity
Issued share capital		65		65		65
Retained Earnings		1,780		1,582		2,022
Total Shareholders' Equity		1,845		1,647		2,087

   8.     Company website

A copy of this announcement is available from the Company's website, being www.iblplc.com.

 

END

 

 

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