Information  X 
Enter a valid email address

Booker Group PLC (BOK)

  Print      Mail a friend       Annual reports

Thursday 14 June, 2007

Booker Group PLC

Final Results

Booker Group PLC
14 June 2007


          Booker Group plc (formerly known as Blueheath Holdings plc)



         Final results of Blueheath for the 52 weeks ended 3 March 2007
                                      and
     Final results of Booker Holdings for the 52 weeks ended 30 March 2007



On 9 May 2007, a reverse takeover of Blueheath by Booker Holdings (see Notes to
Editors) was announced to form Booker Group plc. This transaction was approved
by shareholders on 1 June 2007 and the enlarged share capital was admitted to
trading on AIM on 4 June 2007.

This announcement contains the final results of Blueheath for the 52 weeks ended
3 March 2007 and the final results of Booker Holdings for the 52 weeks ended 30
March 2007.


Highlights


Final results: Booker Holdings

   •Like-for-like sales increased 0.6% in second half versus a 5.9% decline
    in second half of last year (see Notes to Editors)
   •Full year adjusted operating profit (before exceptionals and goodwill)
    increased from £21.7m to £40.5m (+87%)
   •Profit before tax was £6.3m versus a loss of £142.1m last year
   •Debt reduced from £124.8m last year to £76.5m this year


Final results: Blueheath

   •Sales increased by 5.8% over the full year
   •Full year adjusted operating loss (before exceptionals and goodwill)
    improved from £4.9m to £4.6m
   •Loss before tax of £7.1m versus £5.3m last year
   •Debt reduced from £4.2m last year to £0.3m cash positive this year



These results are in line with those indicated in the AIM Admission Document of
9 May 2007.

Booker sales levels in the first period of the current financial year are ahead
of the same period in the prior year, whilst inventory levels and costs are in
line with management expectations. Overall, Booker and Blueheath are currently
trading in accordance with management expectations.

Richard Rose, Chairman, said: 'Blueheath's performance has improved during the
year. We are combining with Booker to create a new force within the industry.'

Charles Wilson, Chief Executive, said: 'With operating profits up and debt down,
Booker has made good progress in the past year and we are now driving and
broadening the business. We have now started the integration of the two
businesses, which is going to plan.'




For further information contact:

Tulchan Communications (PR Adviser to Booker Group plc)
020 7353 4200
Susanna Voyle
Celia Gordon Shute


Notes to Editors

For the purposes of this document, Booker Group plc (formerly known as Blueheath
Holdings plc) will be referred to as 'Blueheath'. Giant Topco Limted, which for
the 52 weeks ended 30 March 2007 was the ultimate holding company of Booker
Limited, will be referred to as 'Booker Holdings'. Booker Ltd will be referred
to as 'Booker'.

Booker is the UK's largest cash and carry operator, offering branded and private
label goods to more than 400,000 customers, including independent convenience
stores, grocers, pubs and restaurants.

Booker Holdings' improved trend in EBITDA, EBIT and net debt compared to the
same period in the prior financial period for the two periods ended 30 March
2007, as extracted from the AIM Admission Document of 9 May 2007 and updated for
the actual results at 30 March 2007, is set out below:



                      16 September      31 March  15 September      30 March
                              2005          2006          2006          2007             

Turnover £m                  1,467         1,570         1,430         1,579
Turnover % change           (5.9%)        (5.9%)        (2.5%)         +0.6%
EBITDA £m *                     22            18            30            29
EBITDA % change              (41%)         (33%)          +37%          +61%
EBIT £m **                      13             9            22            19
EBIT % change                (54%)         (44%)          +69%         +111%
Net Debt £m                    361           125            70            77


* before exceptional items
** before goodwill amortisation, goodwill impairment and exceptional items

Blueheath, established in 2000, is a wholesaler offering added value software
solutions to its customers. The company offers both branded and private label
goods to more than 1,200 customers. The Company which was admitted to trading on
AIM in July 2004, operates from two UK national distribution centres in Thurrock
and Wrexham.

Going forward Booker Group plc will comprise the full year's results of Booker
Holdings and will consolidate the results of Blueheath from 4 June 2007.

An interim results announcement is expected in November 2007 with quarterly
updates thereafter.


Part 1 Chairman's Statement

Following the reverse acquisition of Blueheath by Booker Holdings on 4 June
2007, we are pleased to announce final results for Booker Holdings for the 52
weeks ended 30 March 2007 and final results for Blueheath for the 52 weeks ended
3 March 2007.


Blueheath

Turnover for the 52 weeks ended 3 March 2007 increased by 5.8% to £139.9 million
(2006 - £132.3 million - 53 weeks) and adjusted operating loss before goodwill
amortisation and exceptional items was £4.6 million (2006: £4.9 million).

Gross margins increased to 6.0% (2006 - 5.7%). Exceptional costs of £1.9 million
(2006 - £0.4 million) were incurred in respect of a restructuring exercise. The
retained loss after exceptional items increased to £7.1 million (2005 - £5.3
million) reflecting the higher exceptional costs and interest charge.

Whilst the year's performance reflected a continuation of losses announced in
prior periods, the latter part of the year saw the beginnings of a real change
in fortunes with losses significantly reducing as the benefits of the
re-structuring began to bear fruit.

The Board announced on 9 May 2007 a proposed reverse takeover by Booker
Holdings. This was approved by shareholders on 1 June 2007 and the shares
re-admitted on 4 June 2007. The enlarged group will be one of the UK's leading
food wholesalers and will be unique in providing both national delivery and
local 'top up' services in the UK, serving both single site and multi-site
customers. The enlarged group will be able to enhance customer service through
an increased choice of both product and delivery format.


Booker Holdings

Turnover for Booker Holdings for the 52 weeks ended 30 March 2007 was £3.01
billion (2006: £3.04 billion) and adjusted operating profit before goodwill
amortisation, goodwill impairment and exceptional items was £40.5 million (2006:
£21.7 million). Debt as at 30 March 2007 was £76.5 million, a reduction of 39%
compared to the prior year balance of £124.8 million.

During the year, management implemented the second phase of the recovery plan
which involved 'driving' the business through increased responsiveness to
customers and the delivery of 'Choice Up, Prices Down, Better Service'.

Like for like sales to caterers continued to show a consistent improvement on a
half year by half year basis delivering an increase of 3.9 per cent. in the
second half. Like for like sales to retailers have also shown a consistent
improvement with a fall of 0.1 per cent. in the second half. Total sales in the
second half rose 0.6%, versus a 5.9% decline in the second half last year.

Booker currently trades from 172 branches in the UK. During the year, Booker
commenced a programme of refurbishment and has to date converted eight branches
into the 'Extra' format. These are brighter stores with improved lighting and
layout and a range of products that increases choice whilst avoiding unnecessary
duplication. Overall, the Extra stores have recorded an increase in sales and
profits as compared to the non-converted portfolio. The Board expects that a
further twenty-four branches will be converted to the Extra format in the
current year.

Outlook

Booker sales levels in the first period of the current financial year are ahead
of the same period in the prior year, whilst inventory levels and costs are in
line with management expectations. Overall, Booker and Blueheath are currently
trading in accordance with management expectations.

The Board believes that the merger of Blueheath and Booker will form the UK's
leading food wholesaler and combine Booker's scale, customer base, catering
expertise, coverage and brands with Blueheath's technology and delivery
expertise.

The Board believes that this combination will allow the enlarged group to
enhance customer service through a larger choice of products and delivery
methods, whilst improving efficiency.



Richard Rose
Chairman



Part 2 Booker Holdings (Giant Topco Limited) - audited final results for the
financial year ended 30 March 2007


Consolidated Profit and Loss Account -For the 52 weeks ended 30 March 2007

                                                     52 weeks ended 52 weeks ended
                                                      30 March 2007  31 March 2006
                                               Note              £m             £m

Turnover                                                    3,009.8        3,037.4

Cost of sales                                             (2,923.3)      (2,971.9)
                                                         ----------     ----------
Gross profit                                                   86.5           65.5

Administrative expenses
- normal                                             (46.0)         (43.8)

Operating profit before goodwill amortisation,
goodwill impairment and exceptional items                      40.5           21.7

- goodwill amortisation and impairment               (21.6)         (129.4)
- exceptional items                              2    (1.8)           (3.7)
                                                     -------        -------
Total administrative expenses                                (69.4)        (176.9)
                                                         ----------     ----------
Operating profit/(loss)                                        17.1        (111.4)

Loss on disposal of fixed assets                                  -          (1.4)
                                                          ---------      ---------
Profit/(loss) on ordinary activities before                    17.1        (112.8)
interest and tax

Interest receivable and similar income                          1.6            1.3
Interest payable and similar charges                         (13.0)         (27.0)
Other finance income/(charges)                                  0.6          (3.6)
                                                         ----------     ----------
Profit/(loss) on ordinary activities before                     6.3        (142.1)
taxation

Tax on profit/(loss) on ordinary activities                  (15.8)          (6.2)
                                                         ----------     ----------
Retained loss for the period                                  (9.5)        (148.3)
                                                         ==========     ==========



Consolidated Balance Sheet - At 30 March 2007

                                             30 March    31 March
                                                 2007        2006
                                                   £m          £m
Fixed assets
Intangible assets                               388.5       410.1
Tangible assets                                  65.1        75.7
Investments                                         -           -
                                           ----------  ----------
                                                453.6       485.8
Current assets
Assets held for resale                              -         4.3
Stocks                                          176.2       168.1
Debtors due within one year                      55.0        58.7
Short-term deposits                               5.3         2.0
Cash at bank and in hand                         24.6        30.4
                                           ----------  ----------
                                                261.1       263.5
Creditors due within one year                 (372.9)     (333.0)
                                           ----------  ----------
Net current (liabilities) / assets            (111.8)      (69.5)

Total assets less current liabilities           341.8       416.3

Creditors due after one year                   (95.5)     (140.5)
                                           ----------  ----------
                                                246.3       275.8
Provisions for liabilities and charges         (38.4)      (39.3)
                                           ----------  ----------
Net assets excluding net pension deficit        207.9       236.5


Net pension deficit                            (16.5)      (54.0)
                                           ----------  ----------
Net assets including pension deficit            191.4       182.5
                                           ==========  ==========
Capital and reserves
Called-up share capital                         275.9       275.9
Share premium account                            16.7        16.7
Profit and loss account                       (101.2)     (110.1)
                                           ----------  ----------
Shareholders' funds                             191.4       182.5
                                           ==========  ==========


Consolidated Cash Flow Statement - For the 52 weeks ended 30 March 2007

                                                          52 weeks     52 weeks
                                                             ended        ended
                                                          30 March     31 March
                                                Note          2007         2006
                                                                £m           £m

Cash inflow from operating activities            3            61.8         32.3
Servicing of finance                             4           (7.5)       (20.0)
Taxation                                                     (0.1)          4.9
Capital expenditure and financial investment     4           (6.0)        (9.4)
Acquisitions and disposals                       4             4.3        (5.6)
                                                        ----------   ----------
Cash inflow before use of liquid resources and                52.5          2.2
financing
Management of liquid resources:
Net outflow from short-term deposits                         (3.3)        (0.7)

Financing                                        4          (73.9)       (38.2)
                                                        ----------   ----------
Decrease in cash for the period                             (24.7)       (36.7)
                                                        ==========   ==========

Reconciliation of net cash flow to movement in
net debt
Decrease in cash for the period                             (24.7)       (36.7)
Cash inflow from debt and lease financing                     73.9        123.2
Cash inflow from liquid resources                              3.3          0.7
Non-cash movements                                           (4.2)        189.0
                                                        ----------   ----------
Movement in net debt in the period                            48.3        276.2

Net debt at start of period                                (124.8)      (401.0)
                                                        ----------   ----------
Net debt at end of period                        5          (76.5)      (124.8)
                                                        ==========   ==========



Group Statement of Total Recognised Gains and Losses - For the 52 weeks ended 
30 March 2007

                                                52 weeks ended   52 weeks ended
                                                 30 March 2007    31 March 2006
                                                            £m               £m

Loss for the financial period                            (9.5)          (148.3)
Actuarial gain recognised in pension scheme               43.5             38.6
Deferred tax arising from gain in the pension           (13.0)           (11.6)
scheme
Payments to deferred pension members                    (12.1)                -
Exchange movements                                           -            (0.6)
                                                      --------         --------
Total recognised gains/(losses) for the period             8.9          (121.9)
                                                      ========         ========



Group Reconciliation of Movement in Shareholders' Funds - For the 52 weeks ended
30 March 2007

                                                52 weeks ended   52 weeks ended
                                                 30 March 2007    31 March 2006
                                                            £m               £m

Loss for the financial period                            (9.5)          (148.3)
Other recognised gains and losses relating to             18.4             26.4
the period (net)
                                                      --------         --------
Total recognised gains/(losses) for the period             8.9          (121.9)
New share capital subscribed (net of issue                   -            281.7
costs)
                                                      --------         --------
Net increase in shareholders' funds                        8.9            159.8
Shareholders' funds at the start of the period           182.5             22.7
                                                      --------         --------
Shareholders' funds at the end of the period             191.4            182.5
                                                      ========         ========



1.   Basis of Preparation

The financial information for the 52 weeks ended 30 March 2007 or for the 52
weeks ended 31 March 2006 does not constitute full accounts within the meaning
of Section 240 of the Companies Act 1985 and comprise the accounts of Giant
Topco Limited and its subsidiary undertakings.

The financial information for 2006 is derived from the statutory accounts of
Giant Topco Ltd for the 52 weeks ended 31 March 2006 which have been delivered
to the registrar of companies. Additional information has been derived from the
AIM Admission Document, published on 9 May 2007.

The auditors of Giant Topco Ltd, KPMG Audit plc, have reported on the 2006
accounts; their report was unqualified and did not contain a statement under
section 237(2) or (3) of the Companies Act 1985.

The auditors of Giant Topco Ltd, KPMG Audit plc, have reported on the 2007
accounts; their report was unqualified and did not contain a statement under
section 237(2) or (3) of the Companies Act 1985. These accounts will be
delivered to the registrar of companies as soon as is practicable.



2.   Exceptional items                           52 weeks ended  52 weeks ended 
                                                  30 March 2007   31 March 2006
                                                             £m              £m

     Business restructuring costs                           0.6             2.7
     Professional fees in respect of pensions               1.2               -
     Fees in relation to refinancing costs                    -             1.0
                                                     ----------      ----------
                                                            1.8             3.7
                                                     ==========      ==========


Business restructuring costs for the current period relate to redundancy costs
whilst the prior period includes the redundancy costs and aborted IT project
costs incurred following the post acquisition review and rationalisation of the
Booker business.

During the current period the Group has undertaken two exercises in relation to
reducing the risk in relation to it's defined benefit pension scheme and
incurred £1.2m of professional fees.

In the 52 weeks to 31 March 2006, the Group refinanced its debt and equity
structure and as a result incurred legal and professional fees.


3.     Reconciliation of operating profit/(loss) 
       to operating cash flows
                                                 52 weeks ended  52 weeks ended
                                                  30 March 2007   31 March 2006
                                                             £m              £m

       Operating profit/(loss)                             17.1         (111.4)
       Depreciation                                        17.4            18.6
       Goodwill amortisation and impairment                21.6           129.4
       (Increase)/decrease in stocks                      (8.1)            47.9
       Decrease in debtors                                  3.7            22.9
       Increase/(decrease) in creditors                    21.9          (61.1)
       Decrease in provisions                             (3.5)           (2.5)
       Difference between payment to pension
       scheme and FRS17 pension charge                    (8.3)          (11.5)
                                                     ----------      ----------
       Net cash inflow from operating activities           61.8            32.3
                                                     ==========      ==========



4.     Analysis of cash flows  
                                                 52 weeks ended  52 weeks ended
                                                  30 March 2007   31 March 2006
                                                             £m              £m
       Servicing of finance
       Net interest paid                                  (7.4)          (20.0)
       Interest element of finance lease rental           (0.1)               -
       payments
                                                     ----------      ----------
       Net cash outflow for servicing of finance          (7.5)          (20.0)
                                                     ==========      ==========
       Capital expenditure and financial investment
       Purchase of tangible fixed assets                  (6.0)          (10.0)
       Sale of tangible fixed assets                          -             0.6
                                                     ----------      ----------
       Net cash outflow for capital expenditure           (6.0)           (9.4)
       and financial investment
                                                     ==========      ==========
       Acquisitions and disposals
       Purchase of subsidiary undertakings                    -          (14.1)
       Disposal of assets held for resale                   4.3             8.5
                                                     ----------      ----------
       Net cash inflow/(outflow) from                       4.3           (5.6)
       acquisitions and disposals
                                                     ==========      ==========
       Financing
       Issue of share capital                                 -            85.0
       Repayment of borrowings                           (73.5)         (122.8)
       Capital element of finance lease                   (0.4)           (0.4)
       repayments
                                                     ----------      ----------
       Net cash outflow from financing                   (73.9)          (38.2)
                                                     ==========      ==========



5.     Analysis of net debt     At start of   Cash flow    Non cash   At end of
                                     period                   items      period
                                         £m          £m          £m          £m

       Cash at bank and in             30.4       (5.8)           -        24.6
       hand
       Overdrafts                         -      (18.9)           -      (18.9)
                                 ----------  ----------  ----------  ----------
                                       30.4      (24.7)           -         5.7
                                 ----------  ----------  ----------  ----------

       Debt due within one           (29.6)        29.6           -           -
       year
       Debt due after one year      (125.7)        43.9       (4.2)      (86.0)
                                 ----------  ----------  ----------  ----------
                                    (155.3)        73.5       (4.2)      (86.0)
       Finance leases                 (1.9)         0.4           -       (1.5)
                                 ----------  ----------  ----------  ----------
                                    (157.2)        73.9       (4.2)      (87.5)
                                 ----------  ----------  ----------  ----------

       Liquid resources -
       short-term deposits              2.0         3.3           -         5.3
                                 ----------  ----------  ----------  ----------
                                    (124.8)        52.5       (4.2)      (76.5)
                                 ==========  ==========  ==========  ==========


Included within 'Short term deposits' is £4.2m held in an Escrow account which
can only be used to pay deferred members leaving the pension scheme.


Part 3 Blueheath (Booker Group plc) - audited final results for the 52 weeks
ended 3 March 2007



CONSOLIDATED PROFIT AND LOSS ACCOUNT - 52 WEEKS ENDED 3 MARCH 2007


                      52 weeks ended 3 March 2007         53 weeks ended 4 March 2006

                           Before   Operating                  Before   Operating
                        operating exceptional               operating exceptional
                      exceptional       items             exceptional       items
                            items   (see note                   items   (see note
                                           4)                                  4)
                 Note                             Total                               Total
                            £'000       £'000     £'000         £'000       £'000     £'000

TURNOVER                  139,932           -   139,932       132,255           -   132,255
Cost of sales           (131,570)           - (131,570)     (124,688)           - (124,688)
                        -------------------------------------------------------------------
Gross profit                8,362           -     8,362         7,567           -     7,567
                        -------------------------------------------------------------------
Distribution              (7,986)               (7,986)       (7,450)           -   (7,450)
costs                   -------------------------------------------------------------------
Administrative
expenses
Goodwill                    (240)           -     (240)         (140)           -     (140)
amortisation
Share option
credit/(charges)               32           -        32          (79)           -      (79)
Other               2     (5,007)     (1,871)   (6,879)       (4,962)       (382)   (5,344)
                        -------------------------------------------------------------------
                          (5,215)     (1,871)   (7,086)       (5,181)       (382)   (5,563)
                        -------------------------------------------------------------------
OPERATING LOSS            (4,839)     (1,871)   (6,710)       (5,064)       (382)   (5,446)
Interest
receivable and
similar income                141           -       141           398           -       398
Interest payable
and similar
charges                     (557)           -     (557)         (233)           -     (233)
                        -------------------------------------------------------------------
LOSS ON ORDINARY
ACTIVITIES
BEFORE TAXATION           (5,255)     (1,871)   (7,126)       (4,899)       (382)   (5,281)

Tax on loss on
ordinary
activities                      -           -         -             -           -         -
                        -------------------------------------------------------------------
LOSS FOR THE
FINANCIAL PERIOD          (5,255)     (1,871)   (7,126)       (4,899)       (382)   (5,281)
                        ===================================================================
LOSS PER
ORDINARY SHARE
Basic and                                        (10.8)                              (11.7)
diluted (pence)                                 =======                              ======


All activities derive from continuing activities.

There are no recognised gains or losses for the current financial period and
preceding financial period other than as stated in the profit and loss account.


CONSOLIDATED BALANCE SHEET - 3 MARCH 2007
                                              3 March    4 March
                                                 2007       2006
                                                £'000      £'000

FIXED ASSETS
Intangible assets                               4,743      5,094
Tangible assets                                   774        873
                                              -------    -------
                                                5,517      5,967
                                              -------    -------
CURRENT ASSETS
Stocks                                          3,857      5,349
Debtors                                        13,226     14,849
Current asset investments                       3,000      3,005
Cash at bank and in hand                        1,652        900
                                              -------    -------
                                               21,735     24,103
                                              -------    -------
CREDITORS: amounts falling due
within one year                              (13,031)   (17,191)
                                              -------    -------
NET CURRENT ASSETS                              8,704      6,912
                                              -------    -------
TOTAL ASSETS LESS CURRENT LIABILITIES          14,221     12,879

CREDITORS: amounts falling due after more
than one year                                   (268)      (380)
                                              -------    -------
NET ASSETS                                     13,953     12,499
                                              =======    =======
CAPITAL AND RESERVES
Called up share capital                         1,435        457
Share premium account                          30,787     23,152
Share option reserve                              126        159
Profit and loss account                      (36,269)   (29,143)
Merger reserve                                 17,874     17,874
                                              -------    -------
SHAREHOLDERS' FUNDS                            13,953     12,499
                                              =======    =======




STATEMENT OF MOVEMENTS IN RESERVES - 52 WEEKS ENDED 3 MARCH 2007

                                                                  Total      Total
                  Called    Share    Share     Profit          52 weeks   53 weeks
                up share  premium   option   and loss           ended 3    ended 4
                 capital  account  reserve    account   Merger    March      March
                                                       reserve     2007       2006
                   £'000    £'000    £'000      £'000    £'000    £'000      £'000

At 5 March 2006      457   23,152      159   (29,143)   17,874   12,499     11,580
Loss for the
financial period       -        -        -    (7,126)        -  (7,126)    (5,281)
Share option           -        -     (33)          -        -     (33)         79
reserve
Issue of shares      978    7,848        -          -        -    8,826      6,339
Share issue costs      -    (213)        -          -        -    (213)      (218)
                  ------  -------  -------   --------   ------   ------     ------
At 3 March 2007    1,435   30,787      126   (36,269)   17,874   13,953     12,499
                  ======  =======  =======   ========   ======   ======     ======





CONSOLIDATED CASHFLOW STATEMENT - 52 WEEKS ENDED 3 MARCH 2007

                                              Note     52 weeks    53 weeks
                                                          ended       ended
                                                        3 March     4 March
                                                           2007        2006
                                                          £'000       £'000

Net cash outflow from operating                  4      (3,507)     (9,323)
activities                                             --------    --------

Returns on investments and servicing of
finance
Interest paid                                             (557)       (233)
Interest received                                           141         398
                                                       --------    --------
Net cash (outflow) / inflow from returns
on investments and servicing of finance                   (416)         165
                                                       --------    --------
Taxation
UK corporation tax paid                                       -       (333)
                                                       --------    --------
Net cash outflow from taxation                                -       (333)
                                                       --------    --------
Capital expenditure and financial
investment
Payments to acquire plant and equipment                   (245)       (125)
Receipts from sales of fixed assets                          71           -
                                                       --------    --------
Net cash outflow from capital
expenditure and financial investment                      (174)       (125)
                                                       --------    --------
Acquisitions
Purchase of subsidiary undertakings                           -     (8,635)
Net cash acquired with subsidiary                             -       1,261
undertakings                                           --------    --------
                                                              -     (7,374)
                                                       --------    --------
Net cash outflow before management of
liquid resources and financing                          (4,097)    (16,990)
                                                       --------    --------
Management of liquid resources
Decrease in short term deposits                               5       2,095
                                                       --------    --------
Financing
Issue of ordinary share capital                           8,613       6,121
Repayment of finance leases                               (119)       (570)
Bank loan (repaid) / drawn down                         (2,796)       3,368
                                                       --------    --------
Net cash inflow from financing                            5,698       8,919
                                                       --------    --------
Increase/(decrease) in cash in the                        1,606     (5,976)
period                                                 ========    ========



1. BASIS OF PREPARATION / STATUTORY ACCOUNTS

This Preliminary Statement was approved by the Directors on 13 June 2007. The
financial information contained in this  announcement of audited final results
does not constitute the group's statutory accounts for the 52 weeks ended 3
March  2007 or 53 weeks ended 4 March 2006.

The accounting policies that have been applied are consistent with those applied
in the preceding annual accounts. The  accounts for the 53 weeks ended 4 March
2006 have been delivered to the Registrar of Companies. The statutory accounts 
for the 53 weeks ended 4 March 2006 have been reported on by the Company's
auditors; the report on these accounts was  unqualified and they did not contain
any statement under section 237(2) or (3) of the Companies Act 1985.

The statutory accounts for the 52 weeks ended 3 March 2007 have been reported on
by the Company's auditors; the report  on these accounts was unqualified and
they did not contain any statement under section 237(2) or (3) of the Companies 
Act 1985. These accounts will be delivered to the Registrar of Companies as soon
as is practicable.


2. OPERATING EXCEPTIONALS

Operating exceptional items in the period relate to one off restructuring costs
relating to the closure of the Tamworth warehouse and £250,000 of bad debt
provision to write down the book value of debtors to their recoverable amount.
In the comparative period, exceptional items related to one-off integration
costs associated with the company's acquisitions and ongoing restructuring.

3. BASIC AND DILUTED LOSS PER ORDINARY SHARE

The calculation of loss per ordinary share for the current period is based on
the loss for the 52 weeks of £7,126,000 (2006 - loss of £5,281,000) and the
weighted average number of ordinary shares of 65,752,397 (2006 - 45,147,626).
The company had 143,488,122 ordinary shares in issue as of 3 March 2007.

FRS14 requires presentation of diluted earnings per share where a company could
be called upon to issue shares that would decrease net profit or increase net
loss per share. For a loss making company with outstanding share options, the
net loss per share would be decreased by the exercise of options, and hence no
adjustment has been made to the diluted loss per share as presented.


4. RECONCILIATION OF OPERATING LOSS TO OPERATING CASH FLOWS

                                                      52 weeks   53 weeks
                                                         ended      ended
                                                       3 March    4 March
                                                          2007       2006   
                                                         £'000      £'000

Operating loss                                         (6,710)    (5,446)
Movements on goodwill                                      351        140
Depreciation                                               296        372
Profit on sale of fixed assets                            (23)          -
Decrease (increase) in debtors                           1,623        154
Decrease in creditors                                    (503)    (7,055)
Share option (credit) / charges                           (33)         79
Decrease in stocks                                       1,492      2,433
                                                     --------    --------
Net cash outflow from operating                        (3,507)    (9,323)
activities                                           ========    ========


5. ANALYSIS AND RECONCILIATION OF NET DEBT

                                             At 5                At 3
                                            March      Cash     March
                                             2006      flow      2007
                                            £'000     £'000     £'000

Cash at bank and in hand                      900       752     1,652
Bank overdraft                              (854)       854         -
                                           ------     ------    ------
                                               46     1,606     1,652
                                           ------     ------    ------
Debt due within one year                  (6,723)     2,796   (3,927)
Finance leases                              (501)       119     (382)
                                           ------     ------    ------
                                          (7,224)     2,915   (4,309)
                                           ------     ------    ------
Current asset investments                   3,005       (5)     3,000
                                           ------     ------    ------
Total net debt                            (4,173)     4,516       343
                                           ======     ======    ======


                                                         2007      2006
                                                        £'000     £'000

Increase / (decrease) in cash in the year               1,606   (5,976)
Cash outflow / (inflow) from change in debt             2,915   (2,581)
financing
Cash inflow from change in liquid resources               (5)   (2,095)
                                                      -------   -------
Change in net debt resulting from cash flows            4,516  (10,652)
                                                      -------   -------
Loans and finance leases acquired with subsidiary           -   (4,426)
                                                      -------   -------
Change in net debt resulting from non cash flows            -   (4,426)
                                                      -------   -------
Change in net debt                                      4,516  (15,078)
Net (debt) / funds at 5 March 2006                    (4,173)    10,905
                                                      -------   -------
Net debt at 3 March 2007                                  343   (4,173)
                                                      =======   =======





                      This information is provided by RNS
            The company news service from the London Stock Exchange