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Legendary Invest PLC (LEG)

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Monday 23 December, 2002

Legendary Invest PLC

Interim Results

Legendary Investments PLC
23 December 2002

For Immediate Release
23 December 2002

                           LEGENDARY INVESTMENTS PLC

                         ('Legendary' or the 'Company')

           Interim results for the six months ended 30 September 2002

The Company today announces its interim results for the six months ended 30
September 2002. The main points are:

The Company has remained firmly focused on the core investment strategy of
retail and branded products. Its principal investments include:

Legends Surf Shop plc (specialist boardwear retailer)

*      Another six months of excellent progress

*      Profit before taxation of £373,587 in the six months to 31 July 2002

*     Three new locations trading by Christmas

The Accessory People plc (branded mobile phone accessories)

*      Anticipate another year of excellent growth

*      Opportunities to take market share

Moss Bros Group plc (menswear)

*     Like-for-like sales during the first 11 weeks increased 7 per cent.

*     Well prepared for important Christmas period

BioProjects International plc (investment company specialising in biotech

*     Successful debut on AIM raising £4.1 million net in May 2002

BioProgress Technology International, Inc.

*     Performance milestones successfully achieved across all existing contracts

Commenting on the results, Shami Ahmed, Chief Executive, said: 'We shall
continue to execute our clearly defined strategy of seeking exposure to niche
markets that exhibit strong growth, such as surf boardwear and branded telecom
accessories. We believe that the current economic down-cycle may bottom out
during the latter parts of 2003 and that the upswing when it comes will lead to
considerable enhanced value to shareholders.'

For further information:-

Shami Ahmed, Legendary Investments plc                        Tel: 020 8903 9037

                           LEGENDARY INVESTMENTS PLC

           Interim results for the six months ended 30 September 2002

                          Chief Executive's Statement

                   Portfolio Development Strategy and Update

The six-month period ended 30 September 2002 has seen relentless market
volatility. Negative sentiment continues to drive investment patterns and the
predominant theme has been risk aversion that has inevitably driven down
valuations. As with previous periods, we continue to value our portfolio
prudently. In line with our existing policies, we mark to market the carrying
value of quoted investments; likewise, we regularly review valuations attributed
to unquoted ones.

The decline in opening shareholders' funds was largely due to falls in the share
price of Moss Bros Group plc and BioProgress Technology International, Inc. and
a write down to the profit and loss account by £0.2 million. of our non-core
unquoted interest in Global Money Transfer Holdings Limited, as this company
went into administration on 20 September 2002. Since the period end, there has
been a significant recovery in the value of the Company's Moss Bros Group plc

In the first half of the year, we remained focused on the strategy that has been
the bedrock of our activity for some time. We have continued to review our
portfolio, where the heaviest focus is on retail investments and branded
products and, in particular, we remain committed to strengthening our position
in the extreme sportswear market where we see attractive industry prospects.

The volatility and values associated with companies in the equity markets
discourage fundraising and, as a consequence, the timing of disposals has
lengthened significantly. We believe 2003 will see our investments continuing to
mature. Even if the IPO window remains closed, the Board believes that our
investee companies have sufficient funds to take products to market, reducing
their need to have recourse to the public equity markets in the short term.

The portfolio is prudently valued and we are encouraged to see that many of our
investments continue to make good commercial progress.

Retail Portfolio

Our retail development strategy has been and continues to be based on our key
premise of delivering value to investee companies by taking advantage of the
considerable skills and experience of the Board in the three key areas of brand
development, distribution and sourcing.

Our first success in executing this strategy has been Legends Surf Shops plc
('Legends'), a leading specialist retailer of fashionable extreme sports branded
and leisure wear. The Legends management continues to do an outstanding job in
pathfinding this exciting new retail niche.

We continue to look for new investments in this niche sector and opportunities
continue to arise and encourage us. During the period we reviewed two
interesting unquoted businesses with a view to bringing one or both into the
'fold'. Exploratory talks continue. To take advantage of the depressed market
valuations for these new investments, as a first phase of this endeavour, the
Company has entered into an agreement for the provision of a credit facility
from myself, for a maximum amount of £500,000, and which the Company may draw
down at any time. I am entitled to receive interest on the amount of the credit
facility drawn down at a rate of 2% above base rate of the National Westminster
Bank plc with interest payable quarterly in arrears. The facility is capable of
being repaid at any time with 21 days' notice provided the Company has
sufficient working capital and otherwise in full by no later than 1 August 2003.
The independent director of Legendary, Smit Berry, having consulted with the
Company's nominated adviser, believes that the terms of the facility are fair
and reasonable insofar as the shareholders of Legendary are concerned.

Legends Surf Shops plc

After an excellent trading performance last year that seemed difficult to match,
Legends has continued to deliver the goods in the first six months ended 31 July
2002. Profit before taxation was £373,587 in the six months to 31 July, on sales
of £7.4 million. Whilst the business is very much driven by second half
profitability, this result underlines the continued progress being made and
offers much for the full year.

The number of stores open at Christmas will be 23 and will include the
significant new stores at Southampton, Cardiff and Birmingham. This compares to
14 stores and a pre-tax profit of £401,000 for the full year to 31 January 1999,
which was the year prior to our active involvement.

Critically, this progress has been kept on track with a particular emphasis on
investment in infrastructure that is being phased in to support the bigger store
count. The newer openings which are in the larger format are trading well ahead
of the smaller older format stores. A further three stores are planned for next
year including a new store opening in Leeds and significant resites in Brighton
and Leamington Spa.

Legends' good performance in the first half of the year once again confirms our
belief in the strength of the high quality Legends brand and its capacity for
expansion. The second half should continue to reflect the contribution for the
whole period from some of the larger stores opened during the first half.
Competitive forces remain strong but Legends are confident of maintaining
year-on-year growth.

Legendary has been assisting with the development of Legends' own brand
offerings in sports and leisure wear targeting young fashion consumers under the
'Siesta' and 'Paranoid' brands. This programme is making good progress and will
help drive the creation of long term value in the business. To date, these
ranges have been successfully received in the stores and this pilot is providing
the opportunity to understand and refine the brand.

 Moss Bros Group plc

At 30 September 2002 Legendary continued to hold an interest in Moss Bros Group
plc ('Moss Bros'), the men's clothing retailer. Legendary announced its interest
in acquiring the entire issued share capital last December. Legendary's interest
is 5.45 per cent. of the issued share capital of Moss Bros. We continue to
review our investment.

Moss Bros operates 96 stores under three fascias: Moss, Cecil Gee and Hugo Boss.
The interim results for the six months to 27 July 2002 show a reduced operating
loss of £3.7 million against a £4.8 million loss for the same period last year.
Its board of directors note that trading is heavily biased towards the second
half of the financial year, which includes the peak Christmas trading season,
and expects to achieve substantially better results for the second half.

As at 30 September 2002, Moss Bros. shares were trading at a price of 31p a
share, compared to a price of 43p at the start of the period, reducing
Legendary's net assets by £554,031. Since September, the Moss Bros share price
has risen strongly to 40.25p a share, which represents a material recovery over
our closing valuations.

The Accessory People plc

The Accessory People plc ('TAP'), like all of its competitors, has experienced
tight market conditions in the telecommunications market. TAP is a supplier of
branded handset accessories in the UK and has continued to trade well with a
strengthened management and systems and a sound product base. TAP's business
does not rely on the sale of new handsets.

TAP continues to recover from its problems of last year and is showing sales
gains in improving market circumstances. It is no secret that the process has
been helped by the fact that a number of TAP's weaker but significantly larger
competitors, less able to withstand loss of business and reduced margin, have
ceased trading. With a significantly brighter competitive landscape, TAP now has
an opportunity of taking market share and its Board expect to report a
favourable year end outcome.

Other Investments

BioProgress Technology International, Inc. ('BioProgress') continues to build
relationships with, and licence tier one suppliers for a number of consumer
markets. BioProgress' management now see no significant reasons why their
patented XGel(R) technology cannot be developed into new natural gelatin-free
materials products including flushable and biodegradable ostomy pouches and for
use in the oral encapsulation of drugs, dietary supplements and OTC medicines.

The share price weakness of BioProgress has resulted from investors' fears of
future funding for the biotechnology sector generally. In BioProgress' case
these fears have proved largely unfounded and there have been few slippages in
projected timetables for new product launches. The business has started to build
a revenue base and we expect to see improved performance as new business closes
on 5 December 2002 BioProgress issued a trading update for the quarter ending 30
September 2002. During the period of this report BioProgress successfully
satisfied several milestones with its current contracts, which enabled deferred
revenue to be recognised giving rise to a profit for the period of $881,815. At
the date of the report it had a total of $9,300,000 unbilled contracts in hand.

Legendary continues to hold various investments in the life science area where
we see particular medium and long-term opportunities, combining superior growth
prospects with defensive qualities sheltered from the extremes of economic
cycles. Such investments are in specialist funds in the biotechnology area with
the necessary management skills to add value.

The largest of these investments is BioProjects International plc
('BioProjects') which was admitted to trading on AIM in May 2002 and provides
finance for early-stage bio-tech businesses. BioProjects remains well funded and
has three promising businesses: a 25.3 per cent. interest in the fully diluted
share capital of Acrobot (robotic technology for orthopaedic surgery); 29.5 per
cent. of Acolyte (developing novel approaches to the treatment of infectious
diseases); and 27.8 per cent. of ViaLogy (signal identification technology for
high-throughput drug screening applications).


We shall continue to execute our defined strategy. We believe that the current
economic down-cycle will bottom out during the latter parts of 2003 and that the
upswing when it comes will lead to considerable enhanced value to shareholders.

Shami Ahmed

Chief Executive

23 December 2002


30 September 2002
                                                              Six Months ended     Six Months ended                 Year
                                                             30 September 2002    30 September 2001                ended
                                                                   (Unaudited)          (Unaudited)        31 March 2002
                                                                     (£'000's)            (£'000's)            (£'000's)

Administrative expenses                                                  (233)                (205)                (519)
Operating loss                                                           (233)                (205)                (519)
Investment income and losses                                             (934)              (1,799)              (1,430)
Loss on ordinary activities before interest and tax                    (1,167)              (2,004)              (1,949)
Interest receivable                                                          6                   24                   21
Income from fixed asset investments                                          -                    -                   24
Interest payable                                                             -                    -                  (3)
Loss on ordinary activities before taxation                            (1,161)              (1,980)              (1,907)
Tax                                                                          -                    -                    -
Retained loss                                                          (1,161)              (1,980)              (1,907)
Basic loss per ordinary share                                            0.22p                0.37p                0.36p
Fully diluted loss per ordinary share                                    0.22p                0.37p                0.36p

Continuing Operations

None of the Company's activities were acquired or discontinued during the
current period.

Total Recognised Gains and Losses

The Company has no recognised gains or losses other than the loss for the
current period.


30 September 2002

                                                   Six Months ended  Six Months ended        Year ended
                                                       30 September      30 September      30 September
                                                               2002              2001              2001
                                                        (Unaudited)       (Unaudited)       (Unaudited)
                                                          (£'000's)         (£'000's)         (£'000's)

Tangible fixed assets                                             4                 6                 6
Tangible assets                                               4,877             4,261             5,791
Investments                                                   4,881             4,267             5,797

Current asset investments                                     1,375               172               289
Debtors                                                         108               333                32
Cash at bank and in hand                                        127                 -               315
                                                              1,610               505               636

Creditors: amounts falling due within one year              (3,320)             (513)           (2,101)
Net current assets                                          (1,710)               (8)           (1,465)
Total assets less current liabilities                         3,171             4,259             4,332


Capital and reserves

Called up share capital                                         532               532               532
Share premium account                                         7,881             7,881             7,881
Profit and loss account                                     (5,242)           (4,154)           (4,081)
Total capital and reserves                                    3,171             4,259             4,332

The accounts on pages 3 to 5 were approved by the board of directors on 
20 December 2002.


30 September 2002

1     Accounting policies

The accounts have been prepared in accordance with applicable accounting
standards under the historical cost accounting rules.

2     Basis of Preparation of Interim Financial Information

The financial information contained in this interim statement has not been
audited or reviewed by the Company's Auditors and does not constitute accounts
as defined by section 240 of the Companies Act 1985. The financial information
for the year ended 31 March 2002 is based on the statutory accounts for that
year. Those accounts, upon which the Auditors issued an unqualified opinion,
have been delivered to the Registrar of Companies.

The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year ended
31 March 2002.

3     Earnings per share

The calculation of loss per share is based on the profit after tax for the
financial period divided by the weighted average number of ordinary shares in
issue during the period. The weighted average number of shares in issue as well
as fully diluted during the period was 532,067,198 ordinary shares of 0.1p each

4     Post balance sheet events

There have been no significant post balance sheet events.

5     Interim report

This Interim Report will also be available on written application to the Company
Secretary, Legendary Investments plc, 4th Floor, Wembley Point, 1 Harrow Road,
Wembley, Middlesex, HA9 6DE. This statement has not been subject to an audit.

                      This information is provided by RNS
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