Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

 Information  X 
Enter a valid email address

Armour Group PLC (ONEV)

  Print      Mail a friend

Tuesday 06 November, 2007

Armour Group PLC

Final Results

Armour Group PLC
06 November 2007


                                ARMOUR GROUP PLC                                
                           ('Armour' or the 'Group')                            

             Preliminary Results for the year ended 31 August 2007              


                     FINANCIAL HIGHLIGHTS - GROWTH ON 2006                      


Group Total

-         Sales of £57.4 million, up 33%.

-         Operating profit of £3.8 million, up 40%.

-         EBITDA of £5.9 million, up 27%.

-         Basic underlying earnings per ordinary share of 4.7p, up 9%.

-         Basic loss per ordinary share of 1.3p.

-         Cash inflow from operating activities of £5.4 million, up 77%.

-         Recommended dividend of 0.65p, up 18%.

-         Net debt of £2.9 million, down 44%.


Continuing Operations

-         Sales of £55.2 million, up 38%.

-         Operating profit of £4.1 million, up 46%.

-         EBITDA of £6.1 million, up 31%.

-         Basic underlying earnings per ordinary share of 5.0p, up 16%.

-         Basic earnings per ordinary share of 3.1p, up 19%.



George Dexter, Chief Executive of Armour Group plc commented:


'This year's results demonstrate the strength of our core continuing businesses
and reflect a year of good progress. The strong performance has been driven by
the fundamentals that underpin the Group's businesses, being strong brands,
quality products, comprehensive product ranges and unrivalled distribution.


Armour Automotive's sales increased by 6%. Sales to our retail customer base,
which represents 61% of the division's sales, increased 2% due to record sales
through the national accounts channel in both the UK and Sweden. This
compensated for a decline in sales to smaller independent retailers in the UK
which have suffered in uncertain market conditions. Mutant, the Group's brand of
affordable high quality in-car audio systems has a distinctive identity and
appeal and has continued to win market share. Autoleads, our branded range of
specialist connectivity solutions for the in-car communication and entertainment
market has had a steady year and is responding to the increasingly complex
connectivity and fitting solutions required by the in-car aftermarket. Sales to
non-retail customers increased by 11%. This growth has come from our Veba
branded in-car multi-media systems, manufacturer incentive programmes driving
demand, and our CTI range of GSM and GPS Antennae.


Armour Home has had a very successful year with sales from continuing operations
increasing by 60%. All our core brands and channels to market showed healthy
increases, complemented by a full year's contribution from Alphason. On a
like-for-like basis, sales from continuing operations increased by 23%. Sales
into the retail channel grew by 30%. The brands driving this growth are QED
cables, Q Acoustics, Goldring and Alphason. In addition, we secured the
exclusive distribution rights to the NAD, PSB and Tivoli product ranges which
added a further £0.6 million. Sales in the home automation channel increased by
9%, driven by the introduction of new products such as our Systemline
Soundserver and the continued growth of Systemline Modular, our market leading
multi-room entertainment system. Export sales increased by 15%, the growth
principally coming from QED, Q Acoustics and Systemline Modular.


Our investment in research and development of new products is a critical element
of delivering future sales growth. Over the last year, to meet the needs of the
increased number of new product programmes, we have expanded our in-house
development teams and increased our partnership programmes with leading
technical and design companies. The largest investment in new product
development has been the creation of our Concept Design Centre ('CDC'), whose
remit is to focus on emerging technologies and future development strategies for
our core product categories. CDC is leading the development of key new products
that range from the next generation of multi-room entertainment systems to
complex in-car connectivity and engine diagnostic devices.


The Group is focused on delivering sustainable growth. To achieve this, we
continue to invest in the strong fundamentals that underline the Group. I am
confident that the Group is well positioned to meet the challenges that lie


For further information please contact:

Armour Group plc                                      Tel: 01892 502700
George Dexter, Chief Executive
John Harris, Finance Director

KBC Peel Hunt Ltd, Nominated Adviser and Broker       Tel: 020 7418 8900
Richard Kauffer, David Anderson

Threadneedle Communications, Financial PR             Tel: 020 7936 9666
Trevor Bass, Alex White


                                  ABOUT ARMOUR                                  


Armour Group plc is the UK's leading consumer electronics group focused on the
in-car communications and entertainment and home entertainment markets.


The Group has an impressive brand portfolio, which boasts some of the UK's
market leaders, regularly winning industry awards for quality and innovation. In
the UK consumer electronics market, the Group has direct access to over 5,000
retail outlets.


It comprises two divisions: Armour Automotive and Armour Home.


Armour Automotive

The Armour Automotive division is the market leader in Europe in the design,
manufacture and supply of products for the in-car entertainment and
communications markets.


Its proprietary brands include Autoleads (connectivity leads and smartleads such
as the telemute lead used in mobile telephone hands free kits), CTI (GSM and GPS
aerials), VEBA (a range of in-car audio-visual entertainment systems) and Mutant
(a range of quality amplifiers and speakers for the in-car entertainment


Armour Automotive's customers have voted Autoleads as 'Best Cable Product' and
the Mutant MT3004X amplifier as 'Best 4 Channel Amplifier below £150' at the Car
Audio Retailer magazine 2007 ICE (in-car entertainment) awards.


Automotive supplies both retail and non-retail customers which include Halfords,
Motorworld, BMW, Hyundai and Vodafone and over 1,000 independent automotive
aftermarket retailers.


Armour Home

The Armour Home division designs, manufactures, and supplies products into the
hi-fi, home theatre and home entertainment market and is a market leader in the


Its proprietary brands include QED (quality cables and interconnects),
Systemline (multi-room home entertainment systems), Alphason (hi-fi and
audio-visual furniture), Goldring (turntables, styli and headphones), Myryad
(mid to high end hi-fi separates) and Q Acoustics (range of high quality, value
for money speakers).


In September 2007, Lenbrook America was appointed as the exclusive distributor
in the USA of Armour Home's award winning range of QED cables.


The Armour Home division also distributes third party brands, typically on an
exclusive basis in the UK. These brands include Grado headphones, Nevo remote
controls, Sonance speakers, NAD hi-fi separates, Tivoli radios and Audica


Armour Home won six What Hi-Fi? Sound and Vision awards in 2007 in regard to
products within the QED, Q Acoustics, SoundStyle and Grado brands. In addition,
UK independent electrical retailers voted Alphason 'Best Accessory Company' in
the Independent Marketing Awards 2007. Alphason also won 'AV Furniture
Manufacturer of the Year' (What Plasma & LCD TV? awards 2007), 'Best Furniture
Maker' (What Home Cinema? awards 2007) and 'Product of the Year ' (Get Connected
awards 2007).


The Home division's customers are both retail and non-retail and include Comet,
Argos, John Lewis Partnership, Tesco, Sevenoaks Sound and Vision, Berkeley
Homes, Taylor Wimpey, Barratt Homes and David Wilson Homes.

                              CHAIRMAN'S STATEMENT                              


I am delighted to report record trading results for Armour Group plc for the
year ended 31 August 2007, which show significant growth over last year. Group
sales have increased by 33% to £57.4 million (31 August 2006: £43.0 million) and
operating profit has increased by 40% to £3.8 million (31 August 2006: £2.7
million as restated).


In September 2007, we announced the sale of the non-core, custom installation
services business. The Group is now fully focused on its fast growing and highly
successful branded product businesses in the home and automotive markets. Having
adjusted for the sale, the Group's sales and operating profit from continuing
operations have increased by 38% and 46% respectively.


The Group has reported strong net cash inflow from operating activities of £5.4
million (31 August 2006: £3.0 million). This has reduced net debt to £2.9
million (31 August 2006: £5.2 million). The deferred consideration for Alphason
Designs Limited ('Alphason') was agreed and settled in October 2007.


Basic underlying earnings per share from continuing operations have grown by 16%
to 5.0p (31 August 2006: 4.3p as restated). The proposed final dividend has been
increased by 18% to 0.65p (31 August 2006: 0.55p) per ordinary share.


Both our core operating divisions have enjoyed good growth in both sales and
operating profit. Armour Automotive reported sales growth of 6% and an increase
in operating profit of 25% in challenging market conditions. Armour Home's
continuing operations, which include a full year's contribution from Alphason,
have seen sales increase by 60% and operating profit by 52%. On a like-for-like
basis, sales and operating profit were up 23% and 12% respectively.


Sales in the UK from continuing operations were up by 44% overall and 18% on a
like-for-like basis. Export sales were up 10%. The Group now exports to 63
countries around the world. We have continued to expand our channels to market
over the past year. This expansion has taken our products into the hotel market,
luxury goods retailers and television shopping channels. We have also launched a
new e-commerce web site,


During the year, we were pleased to be appointed as the exclusive UK distributor
for Tivoli, the prestige radio brand, and NAD and PSB, the world-renowned hi-fi
brands. Following this appointment, our relationship with Lenbrook Corporation
of Canada, owners of the NAD and PSB brands, has grown. In September 2007, we
announced the appointment of Lenbrook America as the exclusive distributor in
the USA of Armour Home's award winning range of QED cables and interconnects.


Our investment in new product development remains central to our strategy for
delivering year-on-year organic growth. Last year we invested a record amount in
developing high quality products to add to our brand portfolio. We have in place
many new product programmes, which, we expect, will deliver innovative and
exciting new products over the coming year.


The success of the Group is a reflection of the hard work, dedication and
professionalism of our employees. Once again, I would like to acknowledge the
Board's appreciation of their commitment and efforts over the year.


The Group continues to invest significantly in new product development, promote
our high quality brand portfolio and develop our channels to market. This
strategy lies at the heart of achieving organic growth and maintaining our
position as one of the UK's leading consumer electronics groups in the
automotive and home markets. The Board remains confident of the Group's future


6 November 2007

Consolidated Profit and Loss Account

For the year ended 31 August 2007

                                                            31 August   31 August
                                                                2007         2006
                                            Note                £000         £000
Continuing operations                         2               55,171       40,004
Discontinued operations                      2,4               2,185        2,977
                                                              57,356       42,981
Operating profit                                                                 
Continuing operations                         2                4,118        2,826
Discontinued operations                      2,4               (360)        (139)
                                                               3,758        2,687
Share of loss in associated                   3                 (15)            -
Loss on disposal of discontinued              4              (2,711)            -
Profit on ordinary activities                                  1,032        2,687
before interest                                                                  
Interest receivable                                               22           29
Interest on discounted deferred                                (113)        (159)
Interest payable and similar                                   (652)        (508)
Profit on ordinary activities                                    289        2,049
before taxation                                                                  
Taxation on profit on ordinary                5              (1,155)        (563)
(Loss)/profit for the year                    8                (866)        1,486
Earnings/(loss) per ordinary share            7                                  
From continuing and discontinued operations                                                                       
Basic                                                         (1.3)p         2.4p
Diluted                                                       (1.3)p         2.4p
From continuing operations                                                       
Basic                                                           3.1p         2.6p
Diluted                                                         3.1p         2.5p
From discontinued operations                                                     
Basic                                                         (4.4)p       (0.2)p
Diluted                                                       (4.4)p       (0.1)p

* Note 1

Consolidated Statement of Total Recognised Gains and Losses

For the year ended 31 August 2007


                                                          31 August     31 August
                                                               2007          2006
                                                               £000          £000
(Loss)/profit for the year                                                  
Group                                                         (851)         1,486
Associated undertakings                                        (15)             -
                                                              (866)         1,486
Currency translation differences on foreign                     (7)             -
currency net investments                                                    
Total recognised gains and losses relating to                 (873)         1,486
the year                                                                    
Share-based payment prior year adjustment (Note 1)             (72)              
Total gains and losses recognised since last                  (945)              
statutory financial statements                                              

* Note 1

Consolidated Balance Sheet

At 31 August 2007                                                                              
                                        Note               31 August    31 August  
                                                               2007          2006            
                                                               £000          £000       
Fixed assets                                                                      
Intangible assets                                            19,914        23,338      
Tangible assets                                               1,741         2,256       
Investments                             3                       357             -         
                                                             22,012        25,594      
Current assets                                                                    
Stocks                                                       10,490         9,836       
Debtors                                                      11,721         9,993       
Cash at bank and in hand                                        892           186        
                                                             23,103        20,015      
Creditors: amounts falling due                                                    
within one year                                                                   
Creditors                                                  (15,860)      (13,547)  
Borrowings                                                    (714)       (1,610)  
                                                           (16,574)      (15,157)  
Net current assets                                            6,529         4,858       
Total assets less current                                    28,541        30,452      
Creditors: amounts falling                                                        
due after more than one year                                      -         (127)  
Borrowings                                                  (3,082)       (3,767)  
                                                            (3,082)       (3,894)  
Net assets                                                   25,459        26,558  
Capital and reserves                                                              
Called up ordinary share                                      6,848         6,841  
Share premium account                                         8,513         8,496  
Other reserves                                                  871           871  
Profit and Loss Account                                       9,427        10,550  
Share trust reserve                                           (200)         (200)  
Shareholders' funds                     8                    25,459        26,558  


* Note 1

Consolidated Cash Flow Statement

For the year ended 31 August 2007

                                    Note      31 August 2007       31 August 2006  
                                                 £000   £000        £000     £000
Net cash inflow from operating       9(a)              5,353                3,032  
Returns on investments and                                                       
servicing of finance                                                             
Interest received                                  22                  29               
Interest paid                                   (507)               (470)         
Bank loan arrangement costs                        -                (150)         
Interest element of finance lease                 (4)                 (7)         
Net cash outflow from returns on                        (489)               (598)
investments and servicing of finance                                                                          
Corporate taxation paid                                 (919)               (649)
Capital expenditure and financial                                                
Payments to acquire tangible assets             (825)               (920)         
Sale of tangible assets                            84                  25            
Net cash outflow from capital                                                    
expenditure and financial investment                    (741)               (895)
Acquisitions and disposals                                                       
Purchase of subsidiary undertakings             (155)            (10,402)         
Net cash acquired with subsidiary                   -               3,659           
Investment in associated                        (372)                   -             
Net cash outflow from acquisitions                      (527)             (6,743)
and disposals                                                                    
Dividend paid                                           (371)               (296)
Net cash inflow/(outflow) before                        2,306             (6,149)
Issue of ordinary share capital                    24               5,892           
New bank loans                                      -               5,000           
Repayment of bank loans                         (720)             (3,483)         
Capital element of finance lease                 (44)                (56)         
rental repayments                                                                
Net cash (outflow)/inflow from                          (740)               7,353  
Net cash inflow after financing,                                                 
being the                           9(b)                1,566               1,204  
increase in cash in the year                                                     


Notes to the preliminary financial information

1.      Basis of preparation


The financial information set out in this announcement does not constitute the
Group's financial statements for the year ended 31 August 2007 and the year
ended 31 August 2006. Financial statements for the year ended 31 August 2006
have been delivered to the Registrar of Companies and those for 2007 will be
delivered in due course. The auditors' report on both accounts was unqualified,
did not include references to any matters to which the auditors drew attention
by way of emphasis without qualifying their report and did not contain a
statement under section 237 (2) - (3) of the Companies Act 1985.


In accordance with Rule 20 of the AIM Rules, the full audited accounts of Armour
Group plc for the year ended 31 August 2007 are expected to be posted to
shareholders no later than 19 November 2007 and will be available to the public
at the Company's registered office, Lonsdale House, 7-9 Lonsdale Gardens,
Tunbridge Wells, Kent, TN1 1NU and available to view on the Company's website at from that date.


This year the Group has adopted FRS 20: Share-based payment. In accordance with
the transitional provisions of FRS 20, it has been applied retrospectively to
all grants of equity instruments made after 7 November 2002 that remained
unvested as at 1 September 2006.


The Group's figures for the year ended 31 August 2006 have been restated to
reflect the adoption of FRS 20. The restatement has resulted in a net decrease
in profit of £72,000, being the share-based payment charge net of deferred
taxation of £31,000. Net assets at 31 August 2006 have increased by £56,000,
being the deferred taxation asset for the year ended 31 August 2006 and a
further deferred taxation asset of £25,000 relating to those share-based
payments that had been granted after 7 November 2002 but that had not vested by
1 September 2005.


The Group's share-based payment charge for the year ended 31 August 2007 is


2.      Turnover and operating profit by class of business


                                               31 August 2007     31 August 2006  
                                                    Operating          Operating
                                           Turnover    Profit Turnover    Profit
                                               £000      £000     £000      £000
Continuing operations                                                           
Armour Automotive                            17,290     2,180   16,381     1,744
Armour Home                                  37,881     4,604   23,623     3,026
Amortisation of goodwill                          -   (1,168)        -  (1,012) 
Central costs                                     -   (1,498)        -     (932)
Total continuing operations                  55,171     4,118   40,004     2,826
Discontinued operations                                                         
Armour Home                                   2,185     (269)    2,977      (49)
Amortisation of goodwill                          -      (91)        -      (90)
Total continuing operations                   2,185     (360)    2,977     (139)
Total Group                                  57,356     3,758   42,981     2,687

3.      Investment in associated undertakings

In September 2006, the Group acquired a 25% strategic investment in Audica
Limited. In the Group's financial statements, this has been accounted for using
the equity method of accounting. The Consolidated Profit and Loss Account
includes the Group's share of the operating results, interest, pre-taxation
results and attributable taxation. The Consolidated Balance Sheet shows the
Group's share of identifiable net assets including any unamortised premium paid
on acquisition. This premium is amortised to nil through the Consolidated Profit
and Loss Account in equal instalments over its estimated useful life of 20

25% of net liabilities acquired                                          4
Consideration paid including costs                                     372
Premium paid on acquisition                                            376
Investment made in associated                                          372
Amortisation of acquisition premium                                   (18)   
Share of profit in associated undertaking                                3    
Carrying value of investment at 31 August                              357

4.      Discontinued operations


In August 2007, the Group sold the entire share capital of Armour Custom
Services Limited and The Hi-End Limited, which together formed the custom
installation services business segment within Armour Home. The loss on disposal
has been calculated as follows:


Fixed assets                                                            463
Stocks                                                                  547
Debtors                                                                 600
Creditors                                                             (183)
Sale proceeds                                                           400
Cost of sale                                                           (30)
Provision for onerous lease                                           (120)
Loss before goodwill                                                (1,177)
Goodwill written off                                                (1,534)
Loss on disposal                                                    (2,711)


5.      Taxation on profit on ordinary activities
                                                    31 August    31 August
                                                         2007         2006
                                                         £000         £000
UK Corporation Tax at 30% (2006:30%)                  (1,121)        (699)
Adjustment in respect of prior years                       10           39
Overseas taxation                                        (38)         (20)
Current taxation                                      (1,149)        (680)
Deferred taxation - current year                          (6)           86
Deferred taxation - prior year (Note 1)                     -           31
                                                      (1,155)        (563)


6.      Dividend

                                                    31 August    31 August   
                                                         2007         2006        
                                                         £000         £000    
Proposed dividend for the year of 0.65p (2006:          (439)        (371)
per ordinary share                                                         


The Board is recommending an 18% increase in the final dividend for the year of
0.65p (31 August 2006: 0.55p) per ordinary share. The dividend is payable on 11
January 2008 to shareholders on the register on 14 December 2007. The proposed
dividend for the year has not been accrued in the Consolidated Balance Sheet as
at 31 August 2007. The dividend proposed in the financial statements as at 31
August 2006, and approved by shareholders at the Annual General Meeting held on
12 December 2006, was paid during the year.


7.      Earnings/(loss) per ordinary share


The weighted average number of ordinary shares in issue during the year was
67,493,840 (31 August 2006: 61,664,304). Diluted earnings per share is
calculated with reference to 68,831,976 (31 August 2006: 63,184,137) ordinary
shares. The effect of the exercise of options on the weighted average number of
ordinary shares in issue is 1,338,136 (31 August 2006: 1,519,833).


The 966,000 ordinary shares held by the Armour Employees' Share Trust are not
included in either the weighted average, or diluted weighted average, ordinary
shares in issue during the year.


Underlying earnings per ordinary share is also shown calculated by reference to
earnings before the amortisation of goodwill, non-operating exceptional items
and share-based payments. The Directors consider that this gives a useful
additional indication of underlying performance.


Continuing and discontinued operations:

                         31 August 2007            31 August 2006            
                          £000   Basic p  Diluted    £000   Basic p  Diluted 
                                             p                          p    
(Loss)/profit for the     (866)   (1.3)    (1.3)    1,486     2.4      2.4   
Amortisation of goodwill  1,259    1.9      1.8     1,102     1.8      1.7   
Loss on disposal of       2,711    4.0      4.0       -        -        -    
Share-based payments       87      0.1      0.1       72      0.1      0.1   
(Note 1)                                                                     
Underlying earnings       3,191    4.7      4.6     2,660     4.3      4.2   



Continuing operations:


The profit from continuing operations is calculated in the table below:

                                                      31 August     31 August
                                                           2007          2006
                                                           £000          £000
(Loss)/profit for the year                                (866)         1,486
Loss for the year from discontinued operations              268            98
Loss on disposal of discontinued operations               2,711             -
Profit from continuing operations                         2,113         1,584


The loss for the year from discontinued operations is the operating loss of
£360,000 (31 August 2006: £139,000) less the taxation benefit of £92,000 (31
August 2006: £41,000).

                                 31 August 2007             31 August 2006      
                            £000  Basic p  Diluted     £000  Basic p  Diluted
                                                 p                          p
Profit for the year        2,113      3.1      3.1    1,584      2.6      2.5
Amortisation of goodwill   1,168      1.8      1.7    1,012      1.6      1.6
Share-based payments          83      0.1      0.1       68      0.1      0.1
(note 1)                                                                     
Underlying earnings        3,364      5.0      4.9    2,664      4.3      4.2


8.      Reconciliation of movements in shareholders' funds

                                                   31 August 2007 31 August 2006
                                                             £000           £000     
Opening shareholders' funds as                             26,502         18,819        
previously reported                                                             
Prior year adjustment (Note 1)                                 56             25
Opening shareholders' funds restated                       26,558         18,844
(Loss)/profit for the year                                  (866)          1,486
Dividend paid                                               (371)          (296)
(Loss)/profit for the year retained                       (1,237)          1,190
New share capital subscribed                                   24          6,120
New share capital issue costs                                   -          (228)         
Ordinary shares issued as                                       -            529
consideration for acquisition                                                   
Share-based payments                                          121            103
Currency translation differences on                           (7)              -
foreign currency investments                                                    
Net movement in shareholders' funds                       (1,099)          7,714
Closing shareholders' funds                                25,459         26,558        

9.      Group cash flow statement

(a)    Reconciliation of operating profit to net cash inflow from operating
                                                      31 August     31 August
                                                           2007          2006
                                                           £000          £000
Operating profit                                          3,758         2,687
Depreciation and other amounts written off                  784           760
tangible fixed assets                                                        
Amortisation of goodwill                                  1,259         1,102
Share-based payments                                        121           103
Increase in stocks                                      (1,201)         (724)
Increase in debtors                                     (1,926)         (173)
Increase/(decrease) in creditors                          2,549         (737)
Loss on disposal of tangible fixed assets                     9            14      
Net cash inflow from operating activities                 5,353         3,032    

(b)    Reconciliation of net cash flow to movement in net debt

                                                   31 August 2007 31 August 2006
                                                             £000           £000
Increase in cash                                            1,566          1,204     
New bank loans                                                  -        (5,000)    
Repayment of bank loans                                       720          3,483     
Cash outflow from finance leases                               44             56      
Change in net debt resulting from                           2,330          (257)
cash flows                                                                      
New finance leases                                              -          (114)
Bank loan arrangement costs                                     -            150
Bank loan arrangement costs                                  (35)           (31)
Exchange adjustments                                          (8)              -
Movement in net debt in the year                            2,287          (252)
Opening net debt                                          (5,191)        (4,939)
Closing net debt                                          (2,904)        (5,191)       

(c)    Analysis of net debt movement
                        31 August  Cash flow      non-cash   Exchange  31 August
                             2006       £000       changes       £000       2007
                             £000                    £000                   £000              
Cash                          186        714             -        (8)        892
Overdraft                   (852)        852             -          -          -
                            (666)      1,566             -        (8)        892
Short-term debt             (688)        720         (720)          -      (688)
Long-term debt            (3,767)          -           685          -    (3,082)
Finance leases               (70)         44             -          -       (26)
                          (5,191)      2,330          (35)        (8)    (2,904)


10.  Annual General Meeting


The Annual General Meeting will be held at the offices of Arnold & Porter (UK)
LLP, Tower 42, 25 Old Broad Street, London, EC2N 1HQ on 11 December 2007 at
12.00 noon.

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

a d v e r t i s e m e n t