Interim Results - six months

RNS Number : 2542B
Leo Insurance Services PLC
23 October 2009
 



23 October 2009


Leo Insurance Services Plc

("Leo", the "Company" or the "Group")


Interim results for the six months ended 31 July 2009


CHAIRMAN'S STATEMENT


In the half year to 31 July 2009 the Group made a consolidated loss of £26,330 (2008loss of £15,078).


Leo's single investment is a 50 per cent. share in Grafton Insurance Services Limited a brokerage specialising in property insurance where the main asset continues to be its long term contract with Safeland Plc.


The Board continues to search for growth both organically and via acquisitions.


LG Lipman

Chairman

22 October 2009



CONSOLIDATED INCOME STATEMENT

for the six months ended 31 July 2009




Notes


6 months ended

31 July

2009

(unaudited)

                      £

6 months

ended

31 July

2008

(unaudited)

£

12 months

ended

31 January 

2009

(audited)

£







Revenue



-

-

-







Cost of sales



-

-

-




                  

                  

                  

GROSS PROFIT



-

-

-







Administrative expenses



(38,569)

(45,831)

(85,837)




                  

                  

                  

OPERATING LOSS



(38,569)

(45,831)

(85,837)







Share of results of joint venture - post tax



15,133

33,206

58,135




                  

                  

                  

LOSS BEFORE INTEREST 



(23,436)

(12,625)

(27,702)







Finance Income 



-

462

506







Finance Costs



(2,894)

(2,915)

(5,850)




                  

                  

                  

LOSS BEFORE TAX



(26,330)

(15,078)

(33,046)







Taxation



-

-

-




                  

                  

                  

LOSS FOR THE PERIOD



(26,330)

(15,078)

(33,046)




                  

                  

                  







LOSS PER ORDINARY SHARE






Basic 

2


(0.36p)

(0.21p)

(0.46p)

Diluted

2


(0.36p)

(0.21p)

(0.46p)




                  

                  

                  








All results in the current and preceding financial year derive from continuing operations.



CONSOLIDATED BALANCE SHEET

31 July 2009

    




31 July

2009

(unaudited)

£

31 July

2008

(unaudited)

£

31 January 

2009

(audited)

£



Notes




NON CURRENT ASSETS






Interest in joint ventures


4

34,309

49,247

19,176







CURRENT ASSETS






Trade and other receivables



17,828

20,239

3,391

Cash and cash equivalents



3,041

2,384

55,428




              

              

              

TOTAL CURRENT ASSETS



20,869

22,623

58,819







TOTAL ASSETS



55,178

71,870

77,995







CURRENT LIABILITIES






Redeemable preference shares



(65,000)

(65,000)

(65,000)

Trade and other payable



(61,636)

(34,030)

(58,123)




              

              

              

TOTAL CURRENT LIABILITIES



(126,636)

(99,030)

(123,123)










              

              

              

NET LIABILITIES



(71,458)

(27,160)

(45,128)




              

              

              







EQUITY






Share capital



72,160

72,160

72,160

Share premium account



5,761

5,761

5,761

Retained losses



(149,379)

(105,081)

(123,049)




              

              

              

TOTAL EQUITY



(71,458)

(27,160)

(45,128)




              

              

              








CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 31 July 2009



Notes

6 months ended

 31 July 

2009

(unaudited)

£

6 months

ended

31 July

2008

(unaudited)

£

12 months

ended

31 January 

2009

(audited)

£






OPERATING ACTIVITIES





Net cash out flow from operations

3

(52,387)

(67,621)

(69,621)

Interest paid


-

-

-



              

              

              

NET CASH OUTFLOW FROM OPERATING ACTIVITIES


(52,387)

(67,621)

(69,621)



              

              

              






INVESTING ACTIVITIES





Interest received


-

462

506

Dividends received from joint venture undertaking


-

-

55,000



              

              

              

NET CASH INFLOW FROM INVESTING ACTIVITIES


-

462

55,506



              

              

              











NET DECREASE IN CASH AND CASH EQUIVALENTS


(52,387)

(67,159)

(14,115)






Cash and equivalents at beginning of period


55,428

69,543

69,543








              

              

              

CASH AND CASH EQUIVALENTS AT END OF PERIOD



3,041


2,384


55,428



              

              

              








CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 31 July 2009



Share Capital 

£

Share Premium

£

Retained Losses

£

Total

£






As at 31 January 2008 

72,160

5,761

(90,003)

(12,082)

Loss for the period

-

-

(15,078)

(15,078)


              

              

              

              

As at 31 July 2008

72,160

5,761

(105,081)

(27,160)

Loss for the period

-

-

(17,968)

(17,968)


              

              

              

              

As at 31 January 2009

72,160

5,761

(123,049)

(45,128)

Loss for the period

-

-

(26,330)

(26,330)


              

              

              

              






As at 31 July 2009

72,160

5,761

(149,379)

(71,458)


              

              

              

              








NOTES TO THE INTERIM FINANCIAL INFORMATION

for the six months ended 31 July 2009


1.  BASIS OF PREPARATION 

The financial information contained in this interim report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The figures for the period ended 31 January 2009 have been extracted from the audited statutory accounts. The interim results, which have not been audited or reviewed by the company's auditors, have been prepared in accordance with applicable International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). These standards are also collectively referred to as "IFRS".

The accounting policies and methods of computations used are consistent with those used in the Group Annual Report for the year ended 31 January 2009 and are expected to be used in the Group Annual Report for the year ended 31 January 2010.

Statutory accounts for the year ended 31 January 2009 were prepared and filed with the Registrar of Companies and received an unqualified audit report. 

 

The interim report was approved by the Board of Directors on 22 October 2009.


As at 31 July 2009, the Group had net current liabilities of £105,767. Included within current liabilities are redeemable preference shares of £65,000 and accrued dividends on those shares of £16,944. These amounts are all due to Safeland plc, a related party, who has given an undertaking to the group that these amounts will only be payable when there are adequate cash resources within the group so that the group can continue to meet its liabilities as they fall due for the foreseeable future. On the basis of this commitment, and after considering the group's cash flow forecasts, the directors have prepared these interim results on the going concern basis.

 

Copies of this statement are available to the public for collection at the company's Registered Office at 94-96 Great North Road, London N2 0NL and on the Company's website, www.leoinsurance.co.uk



2.  LOSS per share


The loss per share for the period is calculated based upon the following information:




6 months ended

 31 July 

2009

(unaudited)

6 months ended

31 July

2008

(unaudited)

12 months

ended

31 January 

2009

(audited)


Weighted average number of shares for basic loss per share

7,215,956

7,215,956

7,215,956



                  

                  

                  


Weighted average number of shares for diluted loss per share


7,215,956


7,215,956


7,215,956



                  

                  

                  












Loss for the period

(26,330)

(15,078)

(33,046)



                  

                  

                  







3.  Reconciliation of operating LOSS to net cash flow from operating activities




  

6 months ended

 31 July 

2009

(unaudited)

£

6 months ended

31 July

2008

(unaudited)

£

12 months

ended

31 January 

2009

(audited)

£







Loss for the period 

(26,330)

(15,078)

(33,046)







Adjustments for:





Finance income

-

(462)

(506)


Finance costs

2,894

2,915

5,850


Share of results of joint venture - post tax

(15,133)

(33,206)

(58,135)



             

             

             


Operating cash flow before movements in working capital

(38,569)

(45,831)

(85,837)







(Increase)/decrease in debtors

(14,437)

(16,480)

368


Increase/(decrease) in creditors

619

(5,310)

15,848



             

             

             


Net cash flow from operating activities

(52,387)

(67,621)

(69,621)



             

             

             


4.  INTERESTS IN JOINT VENTURE













The Group holds a 50 per cent. investment in Grafton Insurance Services Limited, a joint venture via the ownership of 100% of the "B" ordinary shares. The principal activity of the joint venture is that of a property insurance broker.

The Group's share of the joint venture's results and net assets are set out below.










6 months ended

 31 July 

2009

 (unaudited)

                    £


6 months ended

31 July

2008

(unaudited)

£


12 months

ended

31 January 

2009

(audited)

                     £









Revenue

64,477


100,667


161,464



Operating profit


18,900



40,751



72,554


Finance Income

16


1,276


874



Profit before tax


18,916



42,027



73,428


Tax

(3,783)


(8,821)


  (15,293)



Profit after tax


15,133



33,206



58,135









Interest in joint venture at 1 February 2009

19,176


16,401


16,401


Share of profit for the year

15,133


33,206


58,135


Dividends

-


-


(55,000)



Interest in joint venture at 31 July 2009


34,309



49,247



19,176



This information is provided by RNS
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