Interim Results
Leeds Group PLC
10 May 2007
Issued on behalf of Leeds Group plc Embargoed: 7.30am
Date: Thursday, 10 May 2007
Leeds Group plc
Interim Results for the six months ended 31st March 2007
STATEMENT BY THE GROUP CHAIRMAN, EWEN WIGLEY
Group Results
I am pleased to report that the Group's profit before tax for the six months
ended 31 March 2007 was £350,000. This compares with a profit before tax of
£493,000 made by the continuing business in the corresponding period of last
year, which reflected a strong six-month performance from the Hemmers business.
Trading in the Hemmers business, which made a profit before tax of £304,000
(2006: £511,000), continued at the same levels as in the second half of the last
financial year. The Group's net funds increased by £1,124,000, principally from
a reduction in working capital at Hemmers. This strong performance leaves the
Group with net funds of £3,907,000, equivalent to 11.4 pence per share
(excluding shares held in treasury).
In the six months ended 31 March 2007, the Group purchased a total of 515,000
ordinary shares at a total cost of £112,000 under its share buy-back programme.
As a result, the Group now holds 2,355,000 ordinary shares in treasury
representing 6.4% of the total ordinary shares in issue.
Discontinued Business
In the AGM statement in March 2007 the Chairman noted that Leeds City Council
had resolved to register some five acres of land in Yeadon, owned by Leeds
Group, as a town or village green in line with a recommendation to that effect
contained in a report by an independent inspector. Having studied the
independent inspector's report carefully, and consulted with its advisers, the
Board has decided to challenge that decision and is taking the appropriate steps
to do so.
When the Company sold Leeds Leasing in October 2005, £500,000 of the sale
proceeds were placed in an escrow account. I am pleased to report that the
deadline for claims under the warranties, other than the tax warranties, given
in the sale and purchase agreement has passed without a claim being made and
consequently the monies have been released to Leeds Group, together with accrued
interest. These funds are included in the cash balance of £4,701,000 stated in
the balance sheet.
Board Changes
Following the Annual General Meeting, Vin Murria stepped down from the Board and
I took over as Chairman. Peter Gyllenhammar, a major shareholder in the Company
has joined the Board, which therefore continues to comprise three Non-Executive
Directors.
Strategy & Outlook
We remain confident about the prospects of our continuing operation, where
Hemmers should be able to benefit from competitors leaving the market. The Board
will continue to seek out appropriate opportunities to reinvest the cash
resources, where it considers it is prudent to do so. The Directors have not
declared an interim dividend, but continue to consider the dividend policy in
the light of the Group's performance and the investment opportunities. In the
meantime, the Group will continue to purchase its own shares under the share
buy-back scheme, which the Board believe is for the benefit of all shareholders.
Enquiries:
Leeds Group plc Citigate Dewe Rogerson Seymour Pierce
Ewen Wigley, Chairman Fiona Tooley Sarah Wharry
Tel: 0113 391 9000 or 07815 134466 Tel: 0121 455 8370 or 07785 703523 Tel: 020 7107 8000
-2-
Leeds Group plc
Interim Results
Consolidated Profit and Loss Account
Unaudited - Unaudited - six months to Audited - year to
six months to 31 March 2006 30 September 2006
31 March
2007
Continuing Continuing Discontinued Total Continuing Discontinued Total
operations operations operations £000 operations operations £000
£000 £000 £000 £000 £000
Turnover 8,350 8,755 255 9,010 16,320 255 16,575
Cost of (6,304) (6,569) (24) (6,593) (12,546) (24) (12,570)
sales
--------------------------------------------------------------------------------------------
Gross profit 2,046 2,186 231 2,417 3,774 231 4,005
Distribution
costs (546) (468) - (468) (874) - (874)
Administrative
expenses (1,223) (1,253) (125) (1,378) (2,255) (125) (2,380)
--------------------------------------------------------------------------------------------
Operating
profit 277 465 106 571 645 106 751
Exceptional
loss on sale
of a business
operation - - (837) (837) - (838) (838)
--------------------------------------------------------------------------------------------
Profit/(loss)
before
interest 277 465 (731) (266) 645 (732) (87)
---------------------- ---------------------
Net interest
receivable/(payable) 73 (57) (8)
--------- ------- -------
Profit/(loss)
on ordinary
activities
before
taxation 350 (323) (95)
Taxation on
profit/(loss)
on ordinary
activities (147) (238) (352)
--------- ------- -------
Profit/(loss)
for the period 203 (561) (447)
--------- ------- -------
Consolidated statement of total recognised gains and losses
Profit/(loss)
for the period 203 (561) (447)
Foreign
currency
translation
differences 13 124 (33)
--------- ------- -------
Total
recognised
gains and
losses for the
period 216 (437) (480)
--------- ------- -------
Basic and diluted earnings/(loss) per share from continuing and discontinued activities
before
exceptional
items 0.6p 0.7p 1.1p
exceptional
items - (2.3)p (2.4)p
--------- ------- -------
after
exceptional
items 0.6p (1.6)p (1.3)p
--------- ------- -------
Basic and diluted earnings/(loss) per share from continuing activities
before
exceptional
items 0.6p 0.7p 1.0p
exceptional - - -
items
--------- ------- -------
after
exceptional
items 0.6p 0.7p 1.0p
--------- ------- -------
-3-
Leeds Group plc
Interim Results
Consolidated Balance Sheet
Unaudited Unaudited Audited
As at As at As at
31st March 31st March 30th September
2007 2006 2006
£000 £000 £000
Fixed assets
Intangible
assets 712 825 757
Tangible
assets 259 303 245
---------- ---------- -----------
971 1,128 1,002
Current assets
Stock 3,620 4,297 4,552
---------- ---------- -----------
Debtors 3,562 3,646 3,990
Deferred
taxation - 52 -
---------- ---------- -----------
Total debtors 3,562 3,698 3,990
Cash at bank
and in hand 4,701 4,878 4,706
---------- ---------- -----------
11,883 12,873 13,248
Creditors:
amounts
falling due
within one
year (1,875) (2,955) (3,375)
---------- ---------- -----------
Net current assets 10,008 9,918 9,873
Of which:
---------- ---------- -----------
due within one year 10,008 9,866 9,873
due after more
than one year - 52 -
---------- ---------- -----------
---------- ---------- -----------
Total assets less current
liabilities 10,979 11,046 10,875
Creditors: amounts falling due after - - -
more than one year ---------- ---------- -----------
Net assets 10,979 11,046 10,875
========== ========== ===========
Share capital and reserves
Called up
equity share
capital 4,392 4,392 4,392
Profit and
loss account 6,587 6,654 6,483
---------- ---------- -----------
Equity
shareholders'
funds 10,979 11,046 10,875
========== ========== ===========
Reconciliation of movements in equity shareholders' funds
Profit/(loss)
for the period 203 (561) (447)
Purchase of
own shares for
treasury (112) (161) (289)
Foreign
currency
translation
differences 13 124 (33)
---------- ---------- -----------
Net transfer
to/(from)
equity
shareholders'
funds 104 (598) (769)
Equity
shareholders'
funds at
beginning of
the period 10,875 11,644 11,644
---------- ---------- -----------
Equity
shareholders'
funds at end
of the period 10,979 11,046 10,875
========== ========== ===========
-4-
Leeds Group plc
Interim Results
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
31st March 2007 31st March 2006 30th September 2006
£000 £000 £000
Cash inflow
from operating
activities 1,564 818 324
Returns on
investments
and servicing
of finance 73 (57) (8)
Taxation (343) (361) (431)
Capital
expenditure
and financial
investment (54) (23) (18)
Acquisitions
and disposals - 4,847 5,001
---------- ---------- -----------
Net cash
inflow before
financing 1,240 5,224 4,868
Financing (1,128) (939) (435)
---------- ---------- -----------
Increase in
cash in the
period 112 4,285 4,433
========== ========== ===========
Reconciliation of net cash flow to movement in net debt
Increase in
cash in the
period 112 4,285 4,433
Net decrease
in loans 1,016 778 146
---------- ---------- -----------
Change in net
debt resulting
from cash
flows 1,128 5,063 4,579
Net debt
disposed of
with
subsidiary - 14,726 14,571
Foreign
currency
translation
differences (4) (56) 15
---------- ---------- -----------
Movement in
net debt in
the period 1,124 19,733 19,165
Net
funds/(debt)
at the
beginning of
the period 2,783 (16,382) (16,382)
---------- ---------- -----------
Net funds at
the end of the
period 3,907 3,351 2,783
========== ========== ==========
Reconciliation of operating profit to net cash
inflow/(outflow) from operating activities
Operating
profit 277 571 751
Depreciation
of fixed
assets 41 55 103
Amortisation
of goodwill 47 48 91
Profit on sale
of tangible
fixed assets - - (4)
(Increase)/dec
rease in
stocks 942 (30) (407)
Decrease in
debtors 436 600 136
(Decrease) in
creditors (179) (396) (316)
Increase in
finance lease
debtors - (30) (30)
---------- ---------- -----------
Net cash
inflow from
operating
activities 1,564 818 324
========== ========== ===========
-5-
Leeds Group plc
Interim Results
Notes to the accounts
1. The financial information in this Report does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The
interim accounts for the six months ended 31st March 2007 and 31st March 2006
are unaudited. The comparative figures for the financial year ended 30th
September 2006 are not the Group's statutory accounts, but have been extracted
from those accounts, which have been filed with the Registrar of Companies and
on which the Group's auditor gave an unqualified report that did not include
reference to any matters to which the auditors drew attention by way of emphasis
without qualifying their report and did not contain statements under Section 237
(2) or (3) of the Companies Act 1985. The interim accounts have been prepared on
the basis of the accounting policies set out in the 2006 Annual Report.
2. Earnings per share have been calculated on an average of 34,669,647 (2006:
36,061,790) ordinary shares of 12 pence each in issue during the period.
3. The table below sets out a segmental analysis of the Group's operations.
Turnover Profit before taxation
Six Six Twelve Six Six Twelve
months months months to months months months to
to to to to
31st 31st 30th 31st 31st 30th
March March September March March September
2007 2006 2006 2007 2006 2006
£000 £000 £000 £000 £000 £000
Hemmers-Itex 8,350 8,755 16,320 393 612 916
Central - - - (116) (147) (271)
costs
-------------------------------------------------------------------
Continuing 8,350 8,755 16,320 277 465 645
operations
Leeds - 255 255 - 106 106
Leasing
------------------------------------------------------------------
8,350 9,010 16,575 277 571 751
==================================
Exceptional
loss on sale
of Leeds
Leasing - (837) (838)
--------------------------------
Profit/(loss)
before
interest 277 (266) (87)
Interest
--------------------------------
Hemmers-Itex (89) (101) (204)
Holding
companies 162 129 281
Leeds Leasing - (85) (85)
--------------------------------
Net interest
payable 73 (57) (8)
--------------------------------
Profit/(loss)
before
taxation 350 (323) (95)
================================
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 11 hours ago Capricorn Energy
- 11 hours ago Manchester & London Investment Trust
- 11 hours ago Barclays
- 11 hours ago Phoenix Group Holdings
- 12 hours ago Shell