Interim Results

RNS Number : 5650L

Leeds Group PLC

10 May 2010

 



Issued on behalf of Leeds Group plc                                                       Embargoed: 7.00am

Date: Monday, 10 May 2010

LEEDS GROUP PLC

Interim Results for the six months ended 31^st March 2010

STATEMENT BY THE GROUP CHAIRMAN, EWEN WIGLEY

I am pleased to report that Leeds Group plc ("Leeds Group" or the "Company") made a profit after tax of £534,000 in the six month period ended 31^st March 2010, compared with a profit of £134,000 in the corresponding period of last year.  It is particularly pleasing to report such positive news after a disappointing performance in the previous financial year.  Earnings per share increased to 1.8 pence (2009: 0.5 pence) as a result of both the increased profit and the reduced number of shares in issue.

Revenue at Hemmers-Itex Textil Import Export GmbH  ("Hemmers"), Leeds Group's German based operating subsidiary, increased to £14,829,000 (2009: £13,230,000).  As I noted in the trading statement issued on 29^th March 2010, improved margins were maintained throughout the six month period and the Chinese subsidiary has performed very well.  Profit before tax for Hemmers was £843,000 (2009: £147,000), which included a gain on valuation of financial derivatives of £193,000 (2009: loss £36,000) and non-recurring reorganisation costs of £89,000 (2009: nil).

Net asset value per share (excluding shares held in treasury) at 31^st March 2010 was 46.8 pence (2009: 47.9 pence) inclusive of goodwill, the reduction being caused in part by the lower valuation of the available-for-sale investments.  During the period debt in Hemmers was reduced by £1,161,000, whilst cash balances held by the holding company at the period end were £2,025,000 (2009: £2,047,000).

At 31^st March 2010, Leeds Group continues to hold an investment in Dawson International Plc ("Dawson").  The Board noted the 2009 results for Dawson issued in March of this year, which showed an operating profit from continuing operations and a debt free cash generative company, but where there is also a significant liability in a defined benefit pension scheme.  Whilst Dawson has been active in restructuring itself during the last couple of years, the Leeds Group Board believes that any growth in the value of Dawson's shares will be subject to a satisfactory resolution of the pension scheme issues.

In the 2009 Report & Accounts, I noted that the Company was seeking a judicial review of the decision by Leeds City Council to classify the land that Leeds Group owns at Haw Lane, Yeadon as town or village green.  The case was heard recently and the decision went against the Company.  Whilst the land value has always been treated as negligible, a provision of £61,000 has been included within head office costs to cover the costs of the action.  The Board is currently taking legal advice on whether it should appeal against the decision.

The Company has continued to use the authority granted to it to buy back shares into Treasury, although liquidity in Leeds Group shares has been limited.  During the six month period, the Company purchased 340,000 shares into Treasury, and cancelled a further 375,000 shares in order to comply with Companies Act 2006 requirements.  In line with previous decisions, the Board does not propose an interim dividend.

The Board is grateful for the hard work put in by all staff to produce these improved results, in what has remained a challenging economic environment.  Whilst exchange rate movements may not be as favourable in the second half of the financial year, sales have started well and the Board looks forward to the remainder of 2010.

Ewen Wigley

Chairman

10 May 2010

Enquiries:
Leeds Group plc	Citigate Dewe Rogerson	Seymour Pierce Limited
Ewen Wigley, Chairman	Fiona Tooley	David Foreman
Malcolm Wilson, Company Secretary	Tel: [phone] or 07785 703523	Tel: [phone]
Tel: [phone]

Unaudited Consolidated Statement of Comprehensive Income

for the 6 months ended 31 March 2010

	6 months to 31 March 2010 £000	6 months to 31 March 2009 £000	12 months to 30 September 2009 £000
Revenue	14,829	13,230	25,685
Cost of sales	(10,892)	(10,293)	(20,114)
Gross profit	3,937	2,937	5,571
Distribution costs	(1,124)	(1,003)	(2,000)
Administrative expenses	(1,969)	(1,676)	(3,365)
Profit from operations	844	258	206
Finance expense	(108)	(149)	(270)
Finance income	8	30	40
Profit/(loss) before tax	744	139	(24)
Tax expense	(210)	(5)	(120)
Profit/(loss) for the period, attributable to the equity holders of the parent	534	134	(144)
Other comprehensive income:
Translation differences on foreign operations	(189)	1,440	1,201
Unrealised gains taken to available-for-sale reserve	-	564	240
Other comprehensive income for the period	(189)	2,004	1,441
Total comprehensive income for the period	345	2,138	1,297

 

The results shown in the income statement derive wholly from continuing operations.

There is no tax effect relating to other comprehensive income

 

 

 

Earnings/(loss) per share for profit/(loss)

attributable to the equity holders of the company

	6 months to 31 March 2010	6 months to 31 March 2009	12 months to 30 September 2009
Basic and diluted (pence)	1.8p	0.5	(0.5)

 

Unaudited Consolidated Balance Sheet

at 31 March 2010

	As at 31 March 2010 £000	As at 31 March 2009 £000	As at 30 September 2009 £000
Assets
Non-current assets
Property, plant and equipment	2,322	2,521	2,350
Intangible assets	994	1,038	1,014
Available-for-sale investments	1,295	1,757	1,295
Total non-current assets	4,611	5,316	4,659
Current assets
Inventories	5,900	6,193	6,660
Trade and other receivables	6,946	7,294	6,973
Corporation tax recoverable	-	44	52
Derivative financial assets	4	-	-
Cash available on demand	2,533	2,222	2,574
Total current assets	15,383	15,753	16,259
Total assets	19,994	21,069	20,918
Liabilities
Non-current liabilities
Loans and borrowings	(2,224)	(2,327)	(2,273)
Total non-current liabilities	(2,224)	(2,327)	(2,273)
Current liabilities
Trade and other payables	(1,568)	(1,384)	(1,350)
Loans and borrowings	(2,655)	(3,257)	(3,823)
Corporation tax liability	(19)	-	(54)
Derivative financial liabilities	-	(7)	(186)
Total current liabilities	(4,242)	(4,648)	(5,413)
Total liabilities	(6,466)	(6,975)	(7,686)
TOTAL NET ASSETS	13,528	14,094	13,232

Capital and reserves attributable to equity holders of the company
Share capital	3,852	3,918	3,897
Capital redemption reserve	540	474	495
Treasury share reserve	(572)	(624)	(605)
Available-for-sale reserve	314	638	314
Foreign exchange reserve	2,077	2,505	2,266
Retained earnings	7,317	7,183	6,865
TOTAL EQUITY	13,528	14,094	13,232

Unaudited Consolidated Cash Flow Statement

for the 6 months ended 31 March 2010

	6 months to 31 March 2010 £000	6 months to 31 March 2009 £000	12 months to 30 September 2009 £000
Cash flows from operating activities
Profit/(loss) for the period	534	134	(144)
Adjustments for:
Depreciation	122	108	198
Impairment/(reversal of impairment) of available-for-sale investment	-	107	(231)
Loss on sale of available-for-sale investments	-	-	269
Foreign exchange differences	(193)	36	214
Translation gain on cash and cash equivalents	3	13	18
Finance expense	108	149	270
Finance income	(8)	(30)	(40)
Loss on sale of property, plant and equipment	-	4	7
Income tax expense	210	5	120
Cash flows from operating activities before changes in working capital and provisions	776	526	681
Decrease in inventories	621	1,437	859
(Increase)/decrease in trade and other receivables	(108)	505	649
Increase/(decrease) in trade and other payables	238	(642)	(624)
Cash generated from operating activities	1,527	1,826	1,565
Income taxes (paid)/recovered	(186)	92	20
Net cash flows from operating activities	1,341	1,918	1,585
Investing activities
Purchase of property, plant and equipment	(143)	(207)	(200)
Sale of property, plant and equipment	-	-	3
Purchase of available-for-sale investments	-	(200)	(200)
Sale of available-for-sale investments	-	-	207
Bank interest received	8	30	40
Net cash used in investing activities	(135)	(377)	(150)
Financing activities
Purchase of treasury shares	(49)	(57)	(78)
Repayment of bank borrowings	(1,086)	(1,524)	(884)
Bank interest paid	(108)	(149)	(270)
Net cash used in financing activities	(1,243)	(1,730)	(1,232)
Net (decrease)/increase in cash and cash equivalents	(37)	(189)	203
Cash and cash equivalents at beginning of the period	2,570	2,367	2,367
Cash and cash equivalents at end of the period	2,533	2,178	2,570

 

 

Interim results

for the 6 months ended 31 March 2010

Notes to the accounts

1.   The financial information in this report does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

The interim results for the six months ended 31 March 2010 and 31 March 2009 are unaudited.

The financial information for the year ended 30 September 2009 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 30 September 2009 have been filed with the Registrar of Companies.  The Independent Auditors' Report on the Annual Report and Financial Statement for the year ended 30 September 2009 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

2.  Ordinary shares of 12 pence each used in the calculation of earnings per share:

	6 months to 31 March 2010	6 months to 31 March 2009	12 months to 30 September 2009
	29,158,573	29,669,946	29,514,410

3.  Statement of changes to shareholders' equity

	6 months to 31 March 2010 £000	6 months to 31 March 2009 £000	12 months to 30 September 2009 £000
Opening shareholders' equity	13,232	12,013	12,013
Total comprehensive income for the period	345	2,138	1,297
Purchase of own shares for treasury	(49)	(57)	(78)
Closing shareholders' equity	13,528	14,094	13,232

4.  Reconciliation of movements in net debt

	6 months to 31 March 2010 £000	6 months to 31 March 2009 £000	12 months to 30 September 2009 £000
(Decrease)/increase in cash & cash equivalents	(37)	(189)	203
Repayment of bank borrowings	1,086	1,524	884
Foreign currency translation differences on loans	127	(962)	(874)
Movement in net debt	1,176	373	213
Net debt at beginning of period	(3,522)	(3,735)	(3,735)
Net debt at end of period	(2,346)	(3,362)	(3,522)

 

END

 

 

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