Interim Results
Leeds Group PLC
27 May 2005
Issued on behalf of Leeds Group plc
Date: Friday, 27th May 2005
Embargoed: 7.30am
Leeds Group plc
Interim Results for the six months ended 31st March 2005
STATEMENT BY THE GROUP CHAIRMAN, VIN MURRIA
Group Results
In the six months ended 31 March 2005, operating profit amounted to £772,000
(2004: £769,000). The Group's interest expense, at £460,000, exceeded that of
the corresponding period in 2004 by £100,000 as a consequence of higher interest
rates, increased debt to support a growing lease book and the absence of
interest income from the Langholm loan note, which was sold to the Langholm
Directors in December 2004. Profit before tax in the period amounted to £312,000
(2004: loss £1,177,000 after an exceptional charge of £1,586,000).
Leeds Leasing
Pre-tax profit amounted to £249,000 (2004: £135,000). New business levels were
11% higher than in the comparable period, largely due to growth in the
commercial asset finance sector where, although yields are below the average
achieved in our core markets of catering, hospitality and leisure, we do enjoy
far greater asset security. At the same time, we are looking to improve the
volume and quality of core business by launching manufacturers' schemes under
which our leasing services will be endorsed through their national distributor
networks by some of the sector's largest suppliers.
It is pleasing to report that we have succeeded in improving our collections
performance, achieving a welcome reduction in the default charge. With a level
of new business approved and awaiting drawdown comfortably more than double that
of twelve months ago, we believe that a busy second half-year is in prospect.
Hemmers-Itex
Pre-tax profit in our fabric trading division fell to £167,000 (2004: £472,000)
primarily as a result of the continued low level of consumer confidence and
demand in Germany that was highlighted in our AGM statement. We have responded
to lower sales of summer season items by entering the sector supplying fabric to
garment manufacturers, whilst also taking steps to increase exports by
appointing new agents in certain other European markets at a cost in the first
half of this year of approximately £100,000.
We have begun the process of relocating our Nordhorn based operation from its
present three buildings to a single facility where we expect to achieve improved
control of activities at reduced cost. Our new range of licensed Disney printed
fabrics has been successfully launched. The order book for our winter collection
is greater than it was this time last year and, although we expect the market
for basic products to remain demanding for the rest of the year, the overall
outlook for the second half of the year is more encouraging than the experience
of the first half.
Head Office Costs have been reduced significantly compared to last year, and we
are giving active consideration to a programme of share buy-backs in accordance
with the powers granted to the Board by shareholders at the AGM in March 2005.
Enquiries:
Malcolm Wilson, Group Managing Director Fiona Tooley
Leeds Group plc Citigate Dewe Rogerson Ltd
Tel: 0113 391 9000 Tel: 0121 455 8370
-2-
Leeds Group plc
Interim Results
Consolidated Profit and Loss Account
Unaudited Unaudited Audited
Six months Six months Twelve months
to to to
31st March 31st March 30th September
2005 2004 2004
£000 £000 £000
Turnover from
continuing
operations 8,054 8,130 16,514
Cost of sales (5,021) (4,887) (10,512)
---------- ---------- -----------
Gross profit 3,033 3,243 6,002
Distribution
costs (402) (327) (648)
Administrative
expenses (1,859) (2,147) (4,750)
---------- ---------- -----------
Operating profit
Before
exceptional
items 772 769 1,204
Exceptional
items - - (600)
---------- ---------- -----------
Operating
profit 772 769 604
Loss on sale
or termination
of a business
operation - (1,586) (1,431)
---------- ---------- -----------
Profit/(loss)
on ordinary
activities
before
interest 772 (817) (827)
Net interest
payable (460) (360) (805)
---------- ---------- -----------
Profit/(loss)
on ordinary
activities
before
taxation 312 (1,177) (1,632)
Taxation (72) (215) (630)
---------- ---------- -----------
Transfer to
reserves/(Unrecovered loss
for period) 240 (1,392) (2,262)
========== ========== ===========
Earnings/(loss) per share
before
exceptional
items 0.7p 0.5p (0.6)p
exceptional
items - (4.3)p (5.6)p
---------- ---------- -----------
after
exceptional
items 0.7p (3.8)p (6.2)p
========== ========== ===========
Consolidated statement of total recognised gains and losses
Transfer to
reserves/(unre
covered loss
for the
period) 240 (1,392) (2,262)
Foreign
currency
translation
differences 26 (222) (110)
---------- ---------- -----------
Total
recognised
gains and
losses for the
period 266 (1,614) (2,372)
========== ========== ===========
-3-
Leeds Group plc
Interim Results
Consolidated Balance Sheet
Unaudited Unaudited Audited
As at As at As at
31st March 31st March 30th September
2005 2004 2004
£000 £000 £000
Fixed assets
Intangible
assets 909 969 951
Tangible
assets 451 617 561
---------- ---------- -----------
1,360 1,586 1,512
Current assets
Stocks 3,616 3,605 3,868
---------- ---------- -----------
Debtors 3,963 4,310 4,865
Deferred
taxation 875 1,105 875
Finance lease
debtors 19,110 18,409 18,328
---------- ---------- -----------
Total debtors 23,948 23,824 24,068
Cash at bank
and in hand 812 1,336 1,186
---------- ---------- -----------
28,376 28,765 29,122
Creditors:
amounts
falling due
within one
year (11,851) (12,732) (13,353)
---------- ---------- -----------
Net current
assets 16,525 16,033 15,769
Of which:
---------- ---------- -----------
due within one
year 4,510 4,999 3,970
due after more
than one year 12,015 11,034 11,799
---------- ---------- -----------
---------- ---------- -----------
Total assets
less current
liabilities 17,885 17,619 17,281
Creditors:
amounts
falling due
after more
than one year (6,588) (5,830) (6,250)
---------- ---------- -----------
Net assets 11,297 11,789 11,031
========== ========== ===========
Share capital and
reserves
Called up
equity share
capital 4,392 4,392 4,392
Profit and
loss account 6,905 7,397 6,639
---------- ---------- -----------
Equity
shareholders'
funds 11,297 11,789 11,031
========== ========== ===========
Reconciliation of movements in shareholders' funds
Transfer to
reserves/(unre
covered loss
for the
period) 240 (1,392) (2,262)
Foreign
currency
translation
differences 26 (222) (110)
---------- ---------- -----------
Net transfer
to/from
shareholders'
funds 266 (1,614) (2,372)
Shareholders'
funds at
beginning of
the period 11,031 13,403 13,403
---------- ---------- -----------
Shareholders'
funds at end
of the period 11,297 11,789 11,031
========== ========== ===========
-4-
Leeds Group plc
Interim Results
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
31st March 2005 31st March 2004 30th September 2004
£000 £000 £000
Cash inflow
from operating
activities 1,005 1,043 503
Returns on
investments
and servicing
of finance (460) (329) (805)
Taxation (263) 58 18
Capital
expenditure
and financial
investment (11) (154) (177)
---------- ---------- -----------
Net cash
inflow before
financing 271 618 (461)
Financing (437) 253 1,383
---------- ---------- -----------
(Decrease)/increase in cash
in the period (166) 871 922
========== ========== ===========
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash
in the period (166) 871 922
Cash
inflow/(outflow) from debt
and lease
financing 437 (253) (1,383)
---------- ---------- -----------
Change in net
debt resulting
from cash flows 271 618 (461)
Foreign
currency
translation
differences (12) 63 28
---------- ---------- -----------
Movement in
net debt in
the period 259 681 (433)
Net debt at
the beginning
of the period (14,494) (14,061) (14,061)
---------- ---------- -----------
Net debt at
the end of the
period (14,235) (13,380) (14,494)
========== ========== ===========
Reconciliation of operating profit to net cash inflow
from operating activities
Operating
profit 772 769 604
Depreciation
of fixed
assets 122 105 193
Amortisation
of goodwill 47 46 93
Loss on sale
of tangible
fixed assets 1 - -
Decrease/(increase) in
stocks 272 28 (131)
Decrease/(increase) in
debtors 921 279 (13)
(Decrease)/increase in
creditors (348) 211 71
Increase in
finance lease
debtors (782) (395) (314)
---------- ---------- -----------
Net cash
inflow from
operating
activities 1,005 1,043 503
========== ========== ===========
-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 31 March 2005 and 31 March 2004 are
unaudited. The comparative figures for the financial year ended 30 September
2004 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 auditors gave an unqualified report that 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 2004
Annual report.
2. Earnings per share have been calculated on an average of 36,598,603 (2004:
36,598,603) ordinary shares of 12p in issue during the period.
3. The table below sets out a segmental analysis of the Group's operations.
Turnover Profit before taxation
and exceptional items
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
2005 2004 2004 2005 2004 2004
£000 £000 £000 £000 £000 £000
Leeds 1,506 1,622 2,849 700 535 764
Leasing
Hemmers-Itex 6,548 6,508 13,665 247 539 1,041
Central - - - (175) (305) (601)
costs
--------------------------------------------------------------
8,054 8,130 16,514 772 769 1,204
=============================
Interest
------------------------------
Leasing (451) (400) (825)
Hemmers-Itex (80) (67) (159)
Other 71 107 179
------------------------------
(460) (360) (805)
------------------------------
312 409 399
==============================
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