We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| European Home | LSE:EHR | London | Ordinary Share | GB0001373736 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 22.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
RNS Number:2568V
European Home Retail plc
07 December 2005
For Immediate Release 7th December 2005
European Home Retail plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31st OCTOBER 2005
European Home Retail plc, the leading European home retail group, announces
interim results for the six months ended 31st October 2005.
Key Points
* Turnover up 28% to #101.6 million (2004: #79.4m) reflecting maiden
contribution of internet businesses
* Operating profit before exceptionals, joint venture and associate,
#1.2m (2004 #2.3 million)
* Loss before tax and exceptional items of #0.6 million (2004: profit
#2.1 million) following anticipated investment in eeZee tv
* Basic Loss Per Share of 1.58 pence per share (2004: earnings of
2.98 pence per share)
* Interim dividend of 1.12 pence per share declared (2004: 1.07p
pence per share)
* Full year pre-tax profit expected to be not less than #3.5 million,
with substantial uplift anticipated in year ending 30th April 2007
* Internet unique users in November increased by over 60% to 2.6
million (November 2004: 1.6 million)
* Kitbag awarded exclusive rights for 45 countries to World Cup shop
from FIFA.com for 2006 World Cup plus five year contract for Celtic Football
Club, complementing existing Manchester United, Chelsea and Barcelona club
contracts.
* Outsourcing of Farepak hamper business proceeding smoothly and on
line to deliver cost savings
* Change of format for eeZee tv from live to "as live" thereby
eliminating losses going forward
William Rollason, Chief Executive, said:
"The period just reported has been in line with expectations and represents the
first full six months of trading with all of our new acquisitions.
We are, however, not immune to the overall economic conditions and November
trading results for Kleeneze Europe have seen revenue fall below expectations.
As a result we now expect current year profit before taxation and amortisation
to be not less than #3.5 million.
The strategy that we have put in place to widen our product range and
distribution channels will have been successfully implemented by the year end.
The year ending 30th April 2007 will also benefit substantially from the
elimination of #2.1 million of operating losses at eeZee tv as well as improved
efficiencies within our Catalogue Home Shopping division and further growth in
our internet retailing activities."
Contacts:
European Home Retail plc 01793 606000
William Rollason, Chief Executive
Chris Hulland, Finance Director
Buchanan Communications 020 7466 5000
Richard Oldworth/Suzanne Brocks
EUROPEAN HOME RETAIL PLC
CHAIRMAN'S STATEMENT
Revenue for the first six months increased by 28% to #101.6 million (2004: #79.4
million) due to the first time contribution of our internet businesses.
Excluding the acquisitions revenue grew by 16% primarily due to the increase in
low margin voucher business in the Catalogue Home Shopping division
Due to the seasonal loss making nature of our internet businesses, which we
acquired in the second half of last year, Group operating profit before
exceptional items, joint venture and associate was reduced to #1.2 million
(2004: #2.3 million). Excluding the acquisitions made last financial year,
operating profit grew by 17% primarily due to a timing difference on the
marketing expenditure at Farepak.
The Group recorded a loss before tax and exceptional items of #0.6 million
(2004: profit #2.1 million) due to the anticipated share of our investment in
eeZee tv of #1.1 million (2004: #nil) and the increased net finance charge of
#0.6 million (2004: net finance income #0.05 million)
The share of our investment in eeZee tv led to basic losses per share, excluding
non-operating items, of 1.58 pence (2004: earnings 2.98 pence).
Net debt at 31st October 2005 was #7.6 million (2004: Net funds of #10.8
million). Net liabilities at 31st October 2005 were #10.9 million (2004: #11.8
million and 30th April 2005: #9.1 million).
IFRS
Our results for the period and comparatives have been prepared in accordance
with International Financial Accounting Standards. Details showing the
adjustments to published results for the financial year ended 30th April 2005
and the six months ended 31st October 2004 are shown in the report "Adoption of
International Financial Reporting Standards" which can be found on the Company's
investor relations website at www.europeanhomeretail.com
CATALOGUE HOME SHOPPING
Revenue for the first six months increased by 16% to #92.3 million (2004: #79.3
million). This is primarily due to the increase in low margin voucher business
at Farepak. Operating profit increased by 17% to #3.4 million (2004: #2.9
million) due to a timing difference in the marketing costs at Farepak.
At Kleeneze Europe revenue grew by 4% to #45.4 million (2004: #43.8 million).
The number of active distributors in the UK and Ireland increased to 13,504
(2004: 13,374) and we continued to work on average sales per retailer per period
("ASR"), which grew in the six months by 13% to #813 (2004: #720). We have
achieved this by enhancing the offering in our Health & Beauty catalogue, which
we have now increased to 48 pages from 32 pages, and continuing our focus groups
to ensure that the main book remains attractive to our customers. Margins in
the first six months reduced slightly due to a one off 9% increase in
distribution charges, which includes a fuel surcharge levied on us following the
recent increases in oil prices. Our Dutch operation started quickly last year
and although the number of active distributors has fallen, it is now at the same
level as Ireland where we have been trading since 1995. We remain confident that
further growth will arise in the second half.
At Farepak we are focusing on Christmas 2005 deliveries to our customers. The
outsourcing of our hamper production has proceeded smoothly and is on track to
produce the anticipated savings. Our voucher business has seen considerable
growth albeit at low margins. The recruitment season for 2006 has commenced and
the initial enquiries are ahead of the same time last year. Our Christmas 2006
product range has been extended and our voucher offering has been further
improved to provide competitive differentiation in this growing area.
INTERNET RETAILING
Revenue for the first six months was #9.4 million (2004: #0.1 million) and there
was an operating loss of #1.7 million (2004: #0.1 million). We acquired I Want
One of Those.com Limited ("IWOOT") in October 2004 and Kitbag.com Limited ("
Kitbag") in April this year. Both businesses are traditionally loss making in
the first six months of the financial year.
We re-launched IWOOT's website on 2nd September 2005 to increase its capacity
and speed to reflect the increased number of items and categories as we now
carry over 750 items on the site across nine categories. IWOOT's website
received 1.2 million unique visitors in November, a 47% increase over last year.
We continue to add new customers to our database, which has increased by 25%
since acquisition. We have re-located IWOOT's distribution to a dedicated
warehouse in South London to handle the increased turnover.
Kitbag has recently signed a five year contract for the exclusive internet and
catalogue retailing rights for Celtic Football Club. This continues our
strategy of representing major football club brands and will complement
Manchester United, Chelsea and Barcelona. We also won the exclusive rights to
run the World Cup shop for FIFA.com for the duration of the 2006 World Cup,
covering 45 countries. Kitbag received 1.4 million unique visitors to its
website in November - a 74% increase over November last year.
TELEVISION SHOPPING
eeZee tv, broadcasting on Sky 659, grew its audience as it established itself in
the television shopping spectrum. Our Retailer Hours, currently comprising
Carphone Warehouse and Robert Dyas, have been well received and we are
negotiating with other well known High Street retailers to increase these. We
continue to work on flowing product through eeZee tv into our catalogues and the
first items will be in our catalogues to be released in December. We believe
that there is much more that can be done to improve the flow of product across
our platforms. The popularity of our Kleeneze Show continues to increase and we
are now broadcasting this show four times a week.
DIVIDEND
The Board is declaring an interim dividend of 1.12 pence per share, a 5%
increase over last year (2004: 1.07 pence per share) reflecting the Board's
confidence in the Group's ongoing growth prospects. This will be paid on 21st
March 2006 to shareholders on the register on 16th December 2005.
OUTLOOK
The period just reported has been in line with expectations and represents the
first full six months of trading with all of our new acquisitions. We have
already seen some benefits from widening the product range and the distribution
channels, which will continue to increase.
In our Catalogue Home Shopping division we grew revenue in spite of an
increasingly difficult retail environment. We are, however, not immune to the
overall economic conditions and, in November, we have seen revenue at Kleeneze
Europe fall below expectations. Our Kleeneze Christmas catalogue is trading
well year on year but we are seeing sales of the main book, which represents
some 60% of total revenue, slowing down. We will launch a new main book later
this month and based on our customer research we expect this to trade well. The
slow down in revenue growth has reduced our ability to offset the significant
increases in distribution charges that we have had to absorb during this year,
which we have capped at RPI going forward. Recognising this we have taken steps
to reduce the cost base and improve efficiencies in the Catalogue Home Shopping
division so that our margin going forward should not be affected. We remain on
track to launch in Germany during the early part of 2006. Farepak's 2005
Christmas season is trading in line with our expectations.
In our Internet Retailing division the Christmas period represents a significant
part of the year's trading and the early indications are that we will meet our
expectations. We are encouraged by the increase in traffic at both IWOOT and
Kitbag.
Television Shopping remains a good opportunity for us. We have recently changed
the format of eeZee tv by moving from a live to a pre recorded format. This will
enable us to reduce the cost base substantially over the next two months so that
our investment will be lower in the second half of this year and we expect the
business to be in a breakeven position next financial year. We are accelerating
the flow through of successful product from eeZee tv into our catalogues. In
November we released a catalogue across the Kleeneze network dedicated to the
most successful products from IWOOT, eeZee tv and Kitbag. Early indications are
that this has been well received.
With a continuation of the recent slow down in revenue growth at Kleeneze
Europe, profit before tax and amortisation for the year ending 30th April 2006
will be lower than the current expectations but should not be less than #3.5
million.
The strategy that we have put in place to widen our product range and
distribution channels will have been successfully implemented by the year end.
The year ending 30th April 2007 will also benefit substantially from the
elimination of #2.1 million of operating losses at eeZee tv as well as improved
efficiencies within our Catalogue Home Shopping division and further growth in
our internet retailing activities.
Sir Clive Thompson
7th December 2005
European Home Retail plc
Consolidated Income Statement for the six months ended 31st October 2005
6 months ended 31st October 2004
Before
6 months ended exceptional Exceptional
Note 31st October items items Total
2005
#'000 #'000 #'000 #'000
Revenue 2 101,642 79,447 - 79,447
Cost of sales (83,105) (64,567) - (64,567)
Gross profit 18,537 14,880 - 14,880
Selling and distribution costs (7,308) (5,164) - (5,164)
Other administrative expenses (9,756) (7,450) - (7,450)
Intangible amortisation (265) (11) - (11)
Total administrative expenses (10,021) (7,461) - (7,461)
Operating profit 2 1,208 2,255 - 2,255
Profit on the sale of property, plant and 4 - - 522 522
equipment
Profit on the sale of financial assets 4 - - 884 884
Group profit before share of results
of joint venture and associate 1,208 2,255 1,406 3,661
Share of results of associate after taxation (74) (139) - (139)
Share of results of joint venture after (1,071) (43) - (43)
taxation
Profit on ordinary activities before net 63 2,073 1,406 3,479
finance and tax
Finance income 254 186 - 186
Other finance costs (689) (138) - (138)
Unwind of discount (186) - - -
Total finance costs (875) (138) - (138)
(Loss)/profit on ordinary activities before (558) 2,121 1,406 3,527
taxation
Taxation 5 (179) (701) 132 (569)
(Loss)/profit after tax (737) 1,420 1,538 2,958
(Loss)/earnings per ordinary share - basic 6 (1.58)p 2.98p 6.26p
(Loss)/earnings per ordinary share - diluted 6 (1.58)p 2.95p 6.20p
Dividend proposed per ordinary share 1.12p 1.07p
Dividend paid per ordinary share 2.23p 2.00p
All (loss)/profit is attributable to equity shareholders.
Consolidated Statement of Recognised Income and Expense for the six months ended
31st October 2005
6 months ended 31st October 2004
6 months ended Before
31st October exceptional Exceptional
2005 items items Total
Total
#'000 #'000 #'000 #'000
(Loss)/profit for the period (737) 1,420 1,538 2,958
Currency translation differences (9) 18 - 18
Total recognised income and expense for the period (746) 1,438 1,538 2,976
All recognised income and expense is attributable to equity shareholders,
including that resulting from the adoption of IAS 39.
European Home Retail plc
Consolidated Income Statement for the year ended 28th April 2005
Before Year ended
exceptional Exceptional 28th April
Note items items 2005
Total
#'000 #'000 #'000
Revenue 2 175,874 - 175,874
Cost of sales (140,836) - (140,836)
Gross profit 35,038 - 35,038
Selling and distribution costs (12,384) - (12,384)
Other administrative expenses 3 (15,886) (2,138) (18,024)
Intangible amortisation (624) - (624)
Total administrative expenses (16,510) (2,138) (18,648)
Operating profit/ (loss) 2 6,144 (2,138) 4,006
Profit on the sale of property, plant and equipment 4 - 522 522
Profit on the sale of financial assets 4 - 884 884
Group profit/ (loss) before share of results of joint venture 6,144 (732) 5,412
and associate
Share of results of associate after taxation 589 - 589
Share of results of joint venture after taxation (901) - (901)
Profit/ (loss) on ordinary activities before net finance and 5,832 (732) 5,100
tax
Finance income 468 - 468
Other finance costs (756) - (756)
Unwind of discount (167) - (167)
Total finance costs (923) - (923)
Profit/ (loss) on ordinary activities before taxation 5,377 (732) 4,645
Taxation 5 (1,501) 1,113 (388)
Profit for the year 3,876 381 4,257
Earnings per ordinary share - basic 6 8.15p 8.96p
Earnings per ordinary share - diluted 6 8.07p 8.87p
Dividend proposed per ordinary share 2.23p
Dividend paid per ordinary share 3.07p
All profit from the year is attributable to shareholders.
Consolidated Statement of Recognised Income and Expense for the year ended
28th April 2005
Before
exceptional Exceptional
items items Total
#'000 #'000 #'000
Profit for the period 3,876 381 4,257
Actuarial loss on defined benefit scheme (218) - (218)
Currency translation differences (13) - (13)
Total recognised income and expense for the period 3,645 381 4,026
All recognised income and expense is attributable to equity shareholders.
European Home Retail plc
Consolidated Balance Sheet as at 31st October 2005
31st October 31st October 28th April
2005 2004 2005
#'000 #'000 #'000
Non-current assets
Goodwill 20,787 11,010 20,771
Intangible assets 4,182 2,625 4,119
Property, plant and equipment 9,951 9,945 10,253
Investments in associate 8 - 82
Investments in joint venture 2,996 1,713 2,066
Deferred tax 959 857 1,017
38,883 26,150 38,308
Current assets
Inventories 24,831 30,029 10,822
Trade and other receivables 14,256 11,414 6,681
Derivatives 44 - -
Cash and cash equivalents 2,190 17,024 581
Corporation tax assets 418 - -
41,739 58,467 18,084
Non-current assets classified as held for sale - 1,000 1,000
Total assets 80,622 85,617 57,392
Current liabilities
Interest-bearing loans and borrowings (6,136) (387) (21,701)
Non interest-bearing loans and borrowings (1,875) (2,250) (2,250)
Obligations under finance leases (27) (52) (66)
Trade and other payables (77,149) (85,282) (32,060)
Corporation tax liabilities - (393) (558)
(85,187) (88,364) (56,635)
Non-current liabilities
Interest-bearing loans and borrowings (64) (159) (112)
Non interest-bearing loans and borrowings (1,696) (3,410) (3,486)
Trade and other payables - - (100)
Obligations under finance leases - (20) -
Deferred tax (1,079) (797) (1,143)
Retirement benefit obligations (705) (474) (742)
Provisions (2,781) (4,148) (4,230)
(6,325) (9,008) (9,813)
Total liabilities (91,512) (97,372) (66,448)
Net liabilities (10,890) (11,755) (9,056)
Equity
Called up share capital: ordinary 2,410 2,345 2,410
Called up share capital: preference 500 500 500
Share premium account 1,154 1,155 1,154
Other reserve 411 411 411
Foreign currency translation (9) 18 (13)
Retained earnings (15,356) (16,184) (13,518)
Total equity (10,890) (11,755) (9,056)
European Home Retail plc
Consolidated Cash Flow Statement for the six months ended 31st October 2005
6 months ended 6 months ended Year ended
31st October 31st October 28th April
2005 2004 2005
#'000 #'000 #'000
Cash flows from operating activities
Operating profit 1,208 2,255 4,006
Depreciation 702 541 1,063
Finance income 720 1,280 1,850
Finance expense (1,223) (1,233) (2,261)
Amortisation of intangibles 265 11 624
Share options charge 62 70 140
Defined benefit pension scheme credit (38) (43) (86)
Increase in inventories (14,009) (22,631) (2,099)
(Increase)/decrease in receivables and prepayments (7,973) (3,320) 2,120
Increase/(decrease) in payables and accruals 44,065 51,315 (2,786)
Profit on sale of property, plant and equipment (2) (26) (23)
Net cash inflow from operating activities 23,777 28,219 2,548
Dividends received from associate 22 706 1,266
Income tax (paid)/received (758) 155 213
Net cash flows from operating activities 23,041 29,080 4,027
Cash flows from investing activities
Purchase of property, plant and equipment (271) (696) (1,335)
Proceeds from sale of property, plant and equipment 1,000 2,178 2,150
Investment in joint venture - (1,330) (1,654)
Acquisition of subsidiaries, net of cash acquired (266) (959) (10,125)
Purchase of intangible assets (462) (456) (686)
Proceeds from sale of financial assets - 1,217 1,218
Tax payable on investing activities - - (145)
Net cash flows from investing activities 1 (46) (10,577)
Cash flows from financing activities
Payment of finance lease liabilities (39) - (28)
Proceeds from issue of new shares - 12 12
Loans to joint venture (2,430) (416) (1,313)
Repayment of loans and borrowings (2,676) (51) (681)
Dividends paid to preference shareholders (27) (18) (34)
Dividends paid to equity shareholders (1,075) (938) (1,440)
Net cash flows used in financing activities (6,247) (1,411) (3,484)
Net increase/(decrease) in cash and cash equivalents 16,795 27,623 (10,034)
Cash and cash equivalents at beginning of period (20,632) (10,598) (10,598)
Cash and cash equivalents at end of period (3,837) 17,025 (20,632)
European Home Retail plc
Notes
1. Basis of preparation
These interim financial statements are the first to be issued since the Group
adopted International Accounting Standards and International Financial Reporting
Standards (collectively 'IFRS') on 29th April 2005.
A separate document "Adoption of International Financial Reporting Standards"
gives details of the Group's new IFRS accounting policies and shows the impact
of applying these new policies to the comparative information for the year ended
28th April 2005 and the six months ended 31st October 2004. Copies of this
document are available on the Group's website - www.europeanhomeretail.com.
The accounting policies included in the document "Adoption of Financial
Reporting Standards" are those that the Group expects to adopt in its first set
of financial statements prepared under IFRS for the year ending 30th April 2006.
Those policies assume that the EU will endorse by 30th April 2006 all
standards issued by the IASB and interpretations issued by IFRIC that are
applicable to the year ending 30th April 2006. However, future endorsements
cannot be determined with certainty and the IASB and IFRIC may issue new
standards or interpretations respectively, which will be applicable to the
financial statements for the year ending 30th April 2006. It is therefore
possible that the accounting policies presented in section 5 may be amended by
the time the financial statements for the year ending 30th April 2006 are
presented.
The accounting policies applied in the preparation of these interim financial
statements are the same as those set out in the document "Adoption of Financial
Reporting Standards" with the exception that the Group adopted IAS 32 Financial
Instruments: Disclosure and Presentation and IAS 39 Financial Instruments:
Recognition and Measurement with effect from 29th April 2005. The impact of
adopting these standards on net equity is presented in note 10. Financial
instruments were accounted for using the Group's previous UK GAAP accounting
policies in the comparative periods.
The comparative figures for the year ended 28th April 2005 do not constitute
statutory accounts for the purposes of section 240 of the Companies Act 1985. A
copy of the statutory accounts for the year ended 28th April 2005, prepared
under UK GAAP, has been delivered to the Registrar of Companies and contained an
unqualified auditors' report in accordance with Section 235 of the Companies Act
1985.
European Home Retail plc
Notes continued
2. Segmental analysis
6 months ended 6 months ended Year ended
31st October 2005 31st October 2004 28th April
2005
#'000 #'000 #'000
Revenue
Catalogue Home Shopping 92,351 79,343 170,646
Internet Retailing 9,390 104 5,228
Television Shopping - - -
101,741 79,447 175,874
Intragroup (99) - -
101,642 79,447 175,874
Operating profit/(loss) before exceptional items
Catalogue Home Shopping 3,437 2,870 8,052
Internet Retailing (1,739) (74) (1,064)
Television Shopping (91) (74) (147)
1,607 2,722 6,841
Central costs (399) (467) (697)
1,208 2,255 6,144
Operating profit/(loss) including exceptional items
Catalogue Home Shopping 3,437 2,870 6,461
Internet Retailing (1,739) (74) (1,062)
Television Shopping (91) (74) (387)
1,607 2,722 5,012
Central costs (399) (467) (1,006)
1,208 2,255 4,006
3. Operating exceptional items
6 months ended 6 months ended Year ended
31st October 2005 31st October 2004 28th April
2005
#'000 #'000 #'000
Catalogue Home Shopping - - (1,489)
Internet Retailing - - -
Television Shopping - - (340)
- - (1,829)
Central costs - - (309)
- - (2,138)
During the year end 28th April 2005, the Catalogue Home Shopping Division
incurred an exceptional charge of #1.5 million comprising:
* #0.3 million of costs relating to the management restructure programme
at Kleeneze Europe.
* #0.5 million start up costs in relation to Kleeneze Europe's entry
into the Netherlands.
* #0.2 million relating to costs written off as a result of a change in
VAT legislation.
* #0.5 million in respect of redundancy and associated costs resulting
from the closure of Farepak's hamper production facilities in Swindon.
In addition, the Television Shopping Division incurred an exceptional charge of
#0.3 million relating to set up costs of eeZee tv and a further #0.3 million was
incurred on abortive acquisitions and included within central costs.
European Home Retail plc
Notes continued
4. Non operating exceptional items
6 months ended 6 months ended Year ended
31st October 2005 31st October 28th April
2004 2005
#'000 #'000 #'000
Profit on disposal of fixed assets - continuing operations - 522 522
Profit on disposal and closure of operations - 884 884
- 1,406 1,406
During the six months ended 31st October 2004, Farepak disposed of freehold
premises for cash proceeds of #2.1 million. The net book value of fixed assets
disposed of was #1.5 million and the costs of disposal were #0.1 million giving
rise to a profit on disposal of #0.5 million. On 22nd July 2004, following the
disposal of Display Marketing Group, 190,763 Ordinary shares in Premier Direct
Group plc were sold for #1.2 million. The net book value of this investment was
#0.3 million, giving rise to a profit on disposal of #0.9 million.
5. Tax on profit on ordinary activities
The taxation charge for the period has been calculated on the basis of the
estimated effective tax rate for the full year of 28.8% (2004: 31.8%) of taxable
profits adjusted for the impact of International Accounting Standards in the
period to 31st October 2005. The taxation charge for the period includes #nil
share of taxation charge of the associate (2004: #8,000 credit).
An exceptional tax charge of #0.1 million was recognised in the six months to
31st October 2004 relating to the disposal of freehold property in the period.
This charge was offset by an exceptional tax credit of #0.2 million relating to
the release of a deferred tax liability no longer required following disposal of
the property. At 28th April 2005, an exceptional tax credit of #1.1 million was
recognised
6. Earnings per Ordinary share
Basic earnings per share
Basic earnings per share has been calculated using the weighted average number
of Ordinary shares in issue during the period of 48,210,260 (2004: 46,892,595
and 28th April 2005: 47,004,110). Earnings are defined as profit or loss after
taxation and preference dividends.
Diluted earnings per share
Diluted earnings per share have been calculated using an average number of
shares of 48,485,480 (2004: 47,341,263 and 28th April 2005: 47,474,061). The
basic weighted average number of shares has been adjusted for the fair value of
shares under the three Kleeneze plc share option schemes.
Normalised basic earnings per share
Normalised basic earnings per share has been calculated using the loss after
taxation, amortisation of the intangible assets and preference dividends on
continuing operations of #0.5 million (2004: #1.2 million). Taxation of #0.1
million (2004: #0.5 million) has been charged against the profit arising on
continuing operations in the period. The weighted average number of Ordinary
shares in issue used in the calculation of normalised basic earnings per share
is 48,210,260 (2004: 46,892,595 and 28th April 2005: 47,004,110).
Normalised diluted earnings per share
Normalised diluted earnings per shares has been calculated using the loss after
taxation, amortisation of the intangible assets and preference dividends on
continuing operations of #0.5 million (2004: #1.2 million). Taxation of #0.1
million (2004: #0.5 million) has been charged against the profit arising on
continuing operations in the period. The average number of shares has been
adjusted for the fair value of shares under the three European Home Retail plc
share option schemes totalling 260,467 shares (2004: 448,668 shares). The
weighted average number of Ordinary shares in issue used in the calculation of
normalised diluted earnings per share is 48,485,480 (2004: 47,341,263 and 28th
April 2005: 47,474,061).
European Home Retail plc
Notes continued
6. Earnings per ordinary share (continued)
6 months ended 6 months ended Year ended
31st October 2005 31st October 28th April
2004 2005
#'000 #'000 #'000
(Loss)/profit after tax (737) 2,958 4,257
Preference dividends (27) (23) (45)
Add back: intangible amortisation 265 11 624
Deduct: exceptional and non operating items after tax - (1,538) (381)
(499) 1,408 4,455
(Loss)/ Earnings per share - normalised basic (1.04)p 3.00p 9.48p
(Loss)/ Earnings per share - normalised diluted (1.03)p 2.97p 9.38p
7. Dividends
6 months ended 6 months ended Year ended
31st October 2005 31st October 2004 28th April
2005
#'000 #'000 #'000
Equity dividends
Preference shares of #1
499,980 9% cumulative preference shares 23 23 45
Ordinary shares of 5p
Interim (2004: 1.07 pence per share) - - 502
Final (2005: 2.23 pence per share; 2004: 2.00 pence per 1,076 938 938
share)
1,099 961 1,485
Under IFRS, final dividends are recognised as a liability and a deduction from
equity in the period when they have been declared and approved by the Company in
general meeting. Interim dividends are recognised as a deduction from equity in
the period in which they are paid.
8. Reconciliation of net cash inflow to movement in net debt
6 months ended 6 months ended Year ended
31st October 31st October 28th April
2005 2004 2005
#'000 #'000 #'000
Increase/(decrease) in cash 16,795 27,623 (10,034)
Repayment of loan notes 2,529 - -
Repayment of loans 147 51 681
Repayment of finance lease liabilities 39 - 28
Cash movement in net debt 19,510 27,674 (9,325)
Non cash movement in net debt (85) (5,660) (6,520)
Net debt at start of period (27,034) (11,189) (11,189)
Net (debt)/funds at end of period (7,609) 10,825 (27,034)
Loan notes (85) (5,660) (5,736)
Loans - - (690)
Finance leases - - (94)
Non cash movement in net debt (85) (5,660) (6,520)
European Home Retail plc
Notes continued
9. Analysis of movement in reserves
Issued Share Other Translation Retained
capital premium reserve reserve earnings Total
#'000 #'000 #'000 #'000 #'000 #'000
Balance at 1st May 2004 2,844 1,143 411 - (17,226) (12,828)
Change of accounting policy - - - - (1,564) (1,564)
Employee share option scheme - - - - 29 29
Employee benefits - - - - (457) (457)
Dividend - equity - - - - 938 938
Balance at 1st May 2004 (as restated) 2,844 1,143 411 - (18,280) (13,882)
Profit for the period - - - - 2,957 2,957
Issue of shares 1 12 - - - 13
Employee share option scheme - - - - 90 90
Currency translation difference - - - 18 (18) -
Dividend - equity - - - - (933) (933)
Balance at 31st October 2004 2,845 1,155 411 18 (16,184) (11,755)
Profit for the period - - - - 1,300 1,300
Issue of shares 65 (1) - - 2,031 2,095
Employee share option scheme - - - - 77 77
Employee benefits - - - - (218) (218)
Currency translation difference - - - (31) 31 -
Dividend - equity - - - - (555) (555)
Balance at 28th April 2005 2,910 1,154 411 (13) (13,518) (9,056)
Adoption of IAS 32 and IAS 39 - - - - (31) (31)
At 29th April 2005 2,910 1,154 411 (13) (13,549) (9,087)
Employee share option scheme - - - - 39 39
Currency translation differences - - - 4 (4) -
Loss for the period - - - - (737) (737)
Dividends - equity - - - - (1,105) (1,105)
At 31st October 2005 2,910 1,154 411 (9) (15,356) (10,890)
All recognised income and expense is attributable to equity shareholders
including the impact of IAS 39 adoption at 29th April 2005.
10. Adoption of Financial Instrument Standards (IAS 32/IAS 39)
The unaudited expected impact on the 29th April 2005 consolidated balance sheet
of adopting IAS 32 and IAS 39 is summarised below:
Year end Impact of adopting As at
28th April 2005 IAS 39 and IAS 39 29th April 2005
#'000 #'000 #'000
Derivatives* - 31 31
Financial assets 581 - 581
Financial liabilities (27,615) - (27,615)
Deferred tax (122) - (122)
Other net assets 36,219 - 36,219
9,063 31 9,094
* At 29th April 2005, the Group held a number of forward currency contracts not
previously recognised within the financial statements, but now recognised at
fair value.
11. Announcement
The interim report was approved by the Board on 7th December 2005.
This announcement will be posted to shareholders on 22nd December 2005 and
copies will be available from the registered office at Westmead Drive, Westlea,
Swindon SN5 7YZ or from the web site at www.europeanhomeretail.com
Independent Review Report to European Home Retail plc on the preliminary IFRS
consolidated financial information for the six months ended 31 October 2005
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 31st October 2005 which comprises the Consolidated Income
Statement, Consolidated Statement of Recognised Income and Expense, Consolidated
Balance Sheet, Consolidated Cash Flow Statement and the related notes 1 to 11.
We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report is made solely to the Company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by the law, we do not
accept or assume responsibility to anyone other than the Company for our work,
for this report, or for the conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority.
As disclosed in note 1, the next annual financial statements of the Group will
be prepared in accordance with those IFRS's adopted for use by the European
Union. The accounting policies are consistent with those that the directors
intend to use in the next financial statements. There is, however, a
possibility that the directors may determine that some changes to these policies
are necessary when preparing the full annual financial statements for the first
time in accordance with those IFRS's adopted for use by the European Union.
This is because, as disclosed in note 1, further standards and interpretations
may also be issued by the European Union that will become applicable for the
Company's financial year to 30th April 2006.
Review of work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of interim financial information' issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making
enquiries of management and applying analytical procedures to the financial
information and underlying financial data, and based thereon, assessing whether
the accounting policies have been applied. A review excludes audit procedures
such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore produces a lower
level of assurance than an audit. Accordingly, we do not express an opinion on
the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the preliminary financial information as presented for the six
months ended 31st October 2005.
Ernst & Young LLP
London
7 December 2005
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UUGRPPUPAPWQ
1 Year European Home Retail Chart |
1 Month European Home Retail Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
