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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Leeds Group Plc | LSE:LDSG | London | Ordinary Share | GB0005100606 | ORD 12P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 10.00 | 9.00 | 11.00 | 10.00 | 10.00 | 10.00 | 0.00 | 07:31:04 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Textile Goods, Nec | 27.82M | -840k | -0.0307 | -3.26 | 2.73M |
TIDMLDSG
RNS Number : 7530L
Leeds Group PLC
15 January 2021
Issued on behalf of Leeds Group plc Embargoed: 7.00am
Date: 15 January 2021
Leeds Group plc
("Leeds Group" or the "the Group")
Unaudited Interim Results for the six months ended 30 November 2020
The unaudited interim results of Leeds Group plc ("Leeds Group" or "the Group") for the six months ended 30 November 2020 are presented as follows:
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR) and has been arranged for release by Jan G Holmstrom, Chairman. The Directors of the Company accept responsibility for the content of this announcement.
Enquiries:
Leeds Group plc Cairn Financial Advisers LLP Dawn Henderson - 01937 547877 Liam Murray/Sandy Jamieson - 020 7213 0880
Chairman's Statement
The business of the Group is that of a wholesaler and retailer of fabrics and haberdashery and is conducted by its German trading subsidiary Hemmers/Itex Textil Import Export GmbH ("Hemmers") and Stoff-Ideen-KMR GmbH ("KMR"), a subsidiary of Hemmers also based in Germany. The Chinese subsidiary of Hemmers, Chinoh-Tex Ltd ("Chinoh-Tex") ceased trading in November 2019 and was liquidated in the financial year to 31 May 2020, as such it has been regarded as a discontinued operation in the previous year's figures within these financial statements.
The Group achieved sales from continuing operations in the period of GBP19,956,000 (2019: GBP18,600,000). Even though the Covid-19 situation is still impacting the global economy, sales for Hemmers and KMR in the first six months of the financial year have been higher than expected, with sales at Hemmers increasing to GBP15,598,000 (2019: GBP14,525,000) and KMR sales increasing to GBP4,358,000 (2019: GBP4,075,000). Since the half year end, there have been further countrywide restrictions imposed by the German government, which at present is expected to initially affect trading in both businesses from 16 December 2020 to 31 January 2021. KMR shops will be closed during this period and the business of Hemmers will be reduced, although online business will still be able to continue. Hemmers and KMR management will work hard to manage the situation and reduce all costs as far as possible given the reduced level of trading and both companies should benefit from any government financial support provided.
The Group made a profit from continuing operations after tax of GBP735,000 (2019: loss of GBP712,000). The earnings per share from continuing activities was 2.6 pence (2019: loss per share 2.6 pence). The profit for Hemmers for the half year was GBP729,000 (2019: loss of GBP515,000) and the profit for KMR for the half year was GBP145,000 (2019: loss of GBP251,000). The effect of prior year cost cutting measures is now evident with a reduction in costs. Management is focused on aligning the business with sales demand and competing in markets where it can make acceptable margins.
On 31 December 2020, the UK left the European Union having secured a deal acceptable to both the UK and the European Union. As advised in previous announcements, the Directors' do not believe this will impact the Group as the business of Leeds Group is conducted entirely by Hemmers and KMR both of which are incorporated in Germany, and their exports to the UK account for only approximately 3% of Group revenue.
Group net bank debt, as analysed in note 3, was GBP4,034,000 as at 30 November 2020 (30 November 2019: GBP6,843,000; 31 May 2020: GBP3,517,000). In accordance with the newly introduced IFRS 16 with regard to accounting for leases, right-of-use assets, finance lease liabilities of GBP1,968,000 have been recognised as at 30 November 2020. (30 November 2019: GBP2,707,000; 31 May 2020: GBP2,405,000).
I would like to thank all employees throughout the Group for their continued hard work and support.
Jan G Holmstrom
Chairman
15 January 2021
Unaudited Consolidated Statement of Comprehensive Income
for the six months ended 30 November 2020
6 months 6 months Year to to to 31 May 30 November 30 November 2020 2020 2019 GBP000 GBP000 GBP000 ------------------------------------------- -------------- -------------- -------------------- Continuing operations Revenue 19,956 18,600 35,067 Cost of sales (15,371) (15,039) (29,039) Gross profit 4,585 3,561 6,028 Distribution costs (1,442) (1,561) (2,876) Administrative costs (2,293) (2,741) (4,908) Profit/(loss) from operations 850 (741) (1,756) Finance expense (115) (139) (260) Profit/(loss) before tax 735 (880) (2,016) Taxation - 168 (6) Profit/(loss) from continuing operations 735 (712) (2,022) Discontinued operations (Loss) from discontinued operations - (416) (332) Profit/(loss) for the period/year attributable to the equity holders of the Parent Company 735 (1,128) (2,354) Other comprehensive (loss)/income for the period/year (63) (406) 196 Total comprehensive profit/(loss) for the period/year attributable to the equity holders of the Company 672 (1,534) (2,158) =========================================== ============== ============== ====================
Earnings/(loss) per share for profit attributable to the equity holders of the Company
6 months 6 months Year to to to 31 May 30 November 30 November 2020 2020 2019 ------------------------------------------ -------------- -------------- ---------- Basic and diluted total earnings/(loss) per share (pence) 2.6p (4.1)p (8.6)p ========================================== ============== ============== ========== Basic and diluted earnings/(loss) from continuing operations per share (pence) 2.6p (2.6)p (7.4)p ========================================== ============== ============== ========== Basic and diluted (loss) from discontinued operations per share (pence) - (1.5)p (1.2)p ========================================== ============== ============== ==========
Unaudited Consolidated Statement of Financial Position
at 30 November 2020
As at As at As at 30 November 30 November 31 May 2020 2019 2020 GBP000 GBP000 GBP000 --------------------------------- -------------- -------------- ---------- Assets Non-current assets Property, plant and equipment 8,104 8,043 8,183 Right-of-use assets 1,962 2,695 2,374 Investment property - 965 - Intangible assets 66 69 67 Total non-current assets 10,132 11,772 10,624 --------------------------------- -------------- -------------- ---------- Current assets Inventories 10,851 12,245 10,188 Trade and other receivables 3,862 4,486 3,464 Corporation tax recoverable 77 778 206 Derivative financial asset - 5 - Cash and cash equivalents 905 1,331 1,104 Total current assets 15,695 18,845 14,962 --------------------------------- -------------- -------------- ---------- Total assets 25,827 30,617 25,586 ================================= ============== ============== ========== Liabilities Non-current liabilities Loans and borrowings (1,751) (2,027) (1,950) Lease liabilities (1,075) (1,747) (1,478) Total non-current liabilities (2,826) (3,774) (3,428) --------------------------------- -------------- -------------- ---------- Current liabilities Trade and other payables (2,532) (3,429) (2,877) Loans and borrowings (3,188) (6,147) (2,671) Lease liabilities (893) (960) (927) Derivative financial liability (33) - -
Provisions (100) (100) (100) Total current liabilities (6,746) (10,636) (6,575) --------------------------------- -------------- -------------- ---------- Total liabilities (9,572) (14,410) (10,003) ================================= ============== ============== ========== TOTAL NET ASSETS 16,255 16,207 15,583 ================================= ============== ============== ========== Capital and reserves attributable to equity holders of the company ------------------------------------ ---- -------- -------- -------- Share capital 3,792 3,792 3,792 Capital redemption reserve 600 600 600 Treasury share reserve (807) (807) (807) Foreign exchange reserve 2,678 2,139 2,741 Retained earnings 9,992 10,483 9,257 TOTAL EQUITY 16,255 16,207 15,583 ===================================== ============= ======== ========
Unaudited Consolidated Cash Flow Statement
for the six months ended 30 November 2020
6 months 6 months Year to to to 31 May 30 November 30 November 2020 2020 2019 GBP000 GBP000 GBP000 ------------------------------------------ -------------- -------------- ----------- Cash flows from operating activities Profit/(loss) for the period/year 735 (1,128) (2,354) Adjustments for: Depreciation of property, plant and equipment 381 393 723 Depreciation of right-of-use assets 447 448 876 Depreciation of investment property - 9 13 Amortisation of intangible assets - - 6 Finance expense - interest on bank loans 80 95 174 Finance expense - interest lease liabilities 35 44 86 Movement in derivative financial assets 33 (5) - (Gain)/loss on sale of fixed assets (30) 5 (32) Taxation (credit)/expense - (168) 6 Cash flows generated from/(used in) operating activities before changes in working capital and provisions 1,681 (307) (502) (Increase)/decrease in inventories (713) (944) 1,735 (Increase)/decrease in trade and other receivables (416) (159) 965 (Decrease)/increase in trade and other payables (323) 888 38 Cash generated from/(used in) operating activities 229 (522) 2,236 Taxation received 134 93 519 Net cash flows generated from/(used in) operating activities 363 (429) 2,755 ========================================== ============== ============== ============= Investing activities Purchase of property, plant and equipment (347) (217) (560) Proceeds from sale of fixed assets 38 6 1,317 Net cash (used in)/generated from investing activities (309) (211) 757 ========================================== ============== ============== ============= Financing activities Bank borrowings drawdown/(repaid) 339 1,533 (2,378) Repayment of principal on lease liabilities (475) (436) (840) Repayment of interest on lease liabilities (35) (44) (86) Bank interest paid (80) (95) (174) Net cash (used by)/generated from financing activities (251) 958 (3,478) ========================================== ============== ============== ============= Net (decrease)/increase in cash and cash equivalents (197) 318 34 Translation (loss)/gain on cash and cash equivalents (2) (52) 5 Cash and cash equivalents at beginning of period/year 1,104 1,065 1,065 Cash and cash equivalents at end of period/year 905 1,331 1,104 ========================================== ============== ============== =============
Unaudited Consolidated Statement of Changes in Equity
for the six months ended 30 November 2020
Share Capital Treasury Foreign Retained Total capital redemption share exchange earnings equity reserve reserve reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ------------------------ ---------- ------------- ---------- ----------- ----------- --------- At 1 June 2020 3,792 600 (807) 2,741 9,257 15,583 Profit for the period - - - - 735 735 Other comprehensive loss - - - (63) - (63) At 30 November 2020 3,792 600 (807) 2,678 9,992 16,255 ======================== ========== ============= ========== =========== =========== ========= Share Capital Treasury Foreign Retained Total capital redemption share exchange earnings equity reserve reserve reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ---------------------- ---------- ------------- ---------- ----------- ----------- ---------- At 1 June 2019 3,792 600 (807) 2,545 11,611 17,741 Loss for the period - - - - (1,128) (1,128) Other comprehensive loss - - - (406) - (406) At 30 November 2019 3,792 600 (807) 2,139 10,483 16,207 ====================== ========== ============= ========== =========== =========== ========== Share Capital Treasury Foreign Retained Total capital redemption share exchange earnings equity reserve reserve reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ---------------------- ---------- ------------- ---------- ----------- ----------- --------- At 1 June 2019 3,792 600 (807) 2,545 11,611 17,741 Loss for the year - - - - (2,354) (2,354) Other comprehensive income - - - 196 - 196 At 31 May 2020 3,792 600 (807) 2,741 9,257 15,583 ====================== ========== ============= ========== =========== =========== =========
The following describes the nature and purpose of each reserve within equity:
Reserve Description and purpose ------------------------ ----------------------------------------------------- Capital redemption Amounts transferred from share capital on redemption reserve of issued shares Treasury share reserve Cost of own shares held in treasury Foreign exchange Gains/(losses) arising on retranslation of reserve the net assets of overseas operations into sterling Retained earnings Cumulative net gains/(losses) recognised in the consolidated statement of comprehensive income after deducting the cost of cancelled treasury shares
Notes to the Interim Results
for the six months ended 30 November 2020
1. Basis of preparation
This announcement has been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) as adopted by the European Union ("adopted IFRS"), and with the Companies Act 2006 applicable to companies reporting under IFRS.
Going Concern
When considering its opinion about the application of the going concern basis of preparation of the interim results, the Directors have given due consideration to the historic performance of the Group, the robustness of forecasts prepared for the period to 31 May 2022, the ongoing impact of the Covid-19 pandemic on the business, its suppliers and its customers, the financing facilities available to the Group and the circumstances in which these could be limited or withdrawn.
Forecasts were prepared for the period to 31 May 2022 which indicate a return to profit over the period. These forecasts were prepared in the knowledge of current Covid-19 conditions and assumed that there would be no protracted period of total lockdown. Both Hemmers and KMR are located in Germany and both businesses responded well to the Covid-19 outbreak in March 2020, KMR was directly impacted by the first countrywide lockdown measures put in place in Germany with all stores having to close. After the first lockdown, KMR stores performed ahead of both last year and forecast. Hemmers saw significantly reduced demand during the first lockdown but like KMR, has traded strongly in the first half of the current year, ahead of last year and forecast. Since the countrywide lockdown on 16 December 2020, KMR stores have closed again and Hemmers have again seen reduced trading. Hemmers and KMR management are now working hard to manage the effects on the businesses of the second lockdown in the same way as they did during the first lockdown and will again benefit from any government financial support provided.
Bank debt has reduced in the first half and the businesses are trading within their banking facilities. The Directors have prepared sensitivities on these forecasts and will continually review the current situation with regard to the Covid-19 pandemic, but the Directors are of the currently available facilities will be sufficient for all the various scenarios.
Considering the progress made to restructure the Group, the trading results in the first half of the current financial year, the likely ongoing impact of the Covid-19 pandemic and the headroom available on the Hemmers working capital facility, the Directors are of the opinion that it is appropriate to apply the going concern basis of preparation to the financial statements.
2. Profit/(loss) per share
Ordinary shares of 12 pence each used in the calculation of earnings per share:
6 months 6 months Year to to to 31 May 30 November 30 November 2020 2020 2019 ------------------------------ -------------- -------------- ------------ Number of shares (basic and diluted) 27,320,843 27,320,843 27,320,843 ============================== ============== ============== ============
3. Analysis of net bank debt
6 months 6 months Year to to to 31 May 30 November 30 November 2020 2020 2019 GBP000 GBP000 GBP000 -------------------------------------- -------------- -------------- --------- Cash 905 1,331 1,104 Loans repayable in less than one year (3,188) (6,147) (2,671) Loans repayable in more than one year (1.751) (2,027) (1,950) Net bank debt at end of period/year (4,034) (6,843) (3,517) ====================================== ============== ============== =========
4. Segmental information
Chinoh-Tex, Hemmer's China based subsidiary, ceased trading in November 2019 and, therefore, has been reported as a discontinued operation.
Group external revenue 6 months 6 months Year to to to 31 May 30 November 30 November 2020 2020 2019 GBP000 GBP000 GBP000 -------------------------- -------------- -------------- ---------- Continuing operations Hemmers 15,598 14,525 27,060 KMR 4,358 4,075 8,007 19,956 18,600 35,067 Discontinued operations Chinoh-Tex - 493 488 Group external revenue 19,956 19,093 35,555 ========================== ============== ============== ========== Group profit/(loss) before tax 6 months 6 months Year to to to 31 May 30 November 30 November 2020 2020 2019 GBP000 GBP000 GBP000 --------------------------------- -------------- -------------- ----------- Continuing operations Hemmers 729 (515) (1,593) KMR 145 (251) (331) Holding company (139) (114) (92) 735 (880) (2,016) Discontinued operations Chinoh-Tex - (416) (332) Group profit/(loss) before tax 735 (1,296) (2,348) ================================= ============== ============== =========== Group net assets 6 months 6 months Year to to to 31 May 30 November 30 November 2020 2020 2019 GBP000 GBP000 GBP000 -------------------------- -------------- -------------- ---------- Continuing operations Hemmers 11,779 11,180 11,211 KMR 1,729 1,865 1,394 Holding company 2,747 2,956 2,978 16,255 16,001 15,583 Discontinued operations Chinoh-Tex - 206 - Group net assets 16,255 16,207 15,583 ========================== ============== ============== ==========
5 . Forward-Looking Statements
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
6. Other information
The financial information in this report does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.
The interim results for the six months ended 30 November 2020 and 30 November 2019 are unaudited. The interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as endorsed by the European Union. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Company's latest annual audited financial statements. The Group has chosen not to comply with IAS 34 'Interim Financial Statement' in these interim financial statements.
The financial information for the year ended 31 May 2020 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 31 May 2020 have been filed with the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for the year ended 31 May 2020 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
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