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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Ashley (laura) Holdings Plc | LSE:ALY | London | Ordinary Share | GB0000533728 | 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% | 0.35 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:8341K Ashley (Laura) Hldgs PLC 08 May 2003 8 May 2003 LAURA ASHLEY HOLDINGS plc ("the Company") Results for the 52 weeks to 25 January 2003 Summary * Loss before tax and exceptional items #4.9m (2002: profit before tax and exceptional items #9.3m) * Group sales up 5.5% to #292.0m (2002: #276.8m) * 1 for 4 rights issue (net proceeds: #8.2m) announced to fund closure of stores in Continental Europe and Group working capital. Exit from loss-making operations in Continental Europe underway * UK Home Furnishings total sales up 17%, like-for-like sales up 9% * UK Fashion total sales down 1%, like-for-like sales flat * Mail Order sales up 31% * UK selling space increased by 3%, with 18 new stores opened in the year Commenting on the results, KC Ng, Chief Executive Officer, said: "This has been a very challenging year for Laura Ashley. While we have seen some progress in the UK, particularly with another excellent performance from Home Furnishings, overall the result is disappointing, primarily due to a serious decline in Continental Europe. However, our strategy to resolve this problem is in place and we are now in a position to see the real benefits of our multi-channel approach in the UK coming through in our performance. I would like to thank the staff for their continued efforts and dedication and to express my sincere appreciation to all our shareholders for their continued support." Enquiries: Laura Ashley Holdings plc 020 7404 5959 (8 May) David Cook, Chief Financial Officer 020 7880 5100 (thereafter) Diana Bourne, Head of Public Relations Brunswick 020 7404 5959 Tom Buchanan Katya Reynier Deborah Spencer Overview The year ended 25 January 2003 has been another challenging trading period for the Company, reflecting in part the continuing global economic downturn and uncertainty that remained throughout the year, particularly in Continental Europe. During the year, the Company has taken action to mitigate the losses in Continental Europe and announced in January that it would close a majority of its stores in the region. In order to fund the closure of these stores and to improve working capital, the Company has undertaken a successful 1 for 4 rights issue. The Board firmly believes that this action will place the Company on a firmer foundation for future trading. For the 52 weeks ended 25 January 2003, Laura Ashley recorded a 5.5% increase in total Group turnover to #292.0 million (2002: #276.8 million). Overall retail like-for-like sales for the period were up 3% (UK +6%, Continental Europe -9%). In line with our announcement of 13 March 2003, the Group recorded a loss before tax and exceptional items of #4.9 million (2002: profit before tax and exceptional items #9.3 million). In addition, this year, we have a further #9.2 million of charges relating to the closure of 46 of our Continental European stores bringing losses before tax to #14.1 million. The reported loss was in part due to increased costs arising from previously announced investments in the future of the business, in areas such as systems, distribution, customer services and the growth in UK store numbers. A full review of costs has been undertaken and reductions in a number of areas are expected this year. Home Furnishings This was another strong year of growth for Home Furnishings with total sales up 14% (UK +17%, Continental Europe -6%) and like-for-like sales up 7% (UK+9%, Continental Europe -6%). The division now accounts for 67% of total retail sales. New stand alone Home Furnishings stores continue to be profitable and we have seen particular growth in cabinet furniture, lighting and accessory products. Overall, Group margins have fallen. Much of this decrease in margin is caused by previously announced Home Furnishings factors, such as the clearance of furniture in the first half, increased promotional activity and the continued change in product mix towards furniture. Home Furnishings continues to benefit from the expansion of our multi-channel retailing approach, particularly Mail Order and Internet and will continue to be a focus for future opportunities. Fashion Total retail sales were down 4% (UK -1%, Continental Europe -15%). Like-for-like sales were down 2% (UK 0%, Continental Europe -14%). Clearly the trading position in Continental Europe has impacted the Group as a whole. This situation worsened after the year end on news of our store closure plans. In the UK, we are encouraged to note an improvement in sales over the first quarter of the current financial year. Continental Europe As previously reported, over the first half in Continental Europe there was a steep decline in Fashion sales as a result of which the Company undertook a strategic review to determine the best way of addressing the problems in that region. As part of this review, the Company announced in November 2002 that it was to close five stores in France and six in Germany. In our trading update for the 23 week period ended 4 January 2003, we reported that trading in our operations in Continental Europe had worsened. Following the disappointing Christmas trading period, the Company announced on 23 January that it intended to close a further 35 stores across Continental Europe, including all the stores in Germany. We are currently in discussions with several parties to reach franchise agreements for our stores in Continental Europe. We will make any further announcements about the progress of these talks as soon as is appropriate. The Company is committed to maintaining a presence in Continental Europe through its franchising and licensing activities. Mail Order Mail Order is a central feature of our multi-channel approach to retailing, in which our fashion catalogues not only drive sales directly, but also encourage customers to visit our stores. During the year, the Mail Order business continued to grow, with sales up 31% on the same period last year. We have seen a successful re-launch of the Fashion Mail Order business and further expansion in Home Furnishings. The active customer database grew by over 25%. Further growth is anticipated during the current year, as the investment phase in growing critical mass in this business continues. E-Commerce In its first full year of trading, e-commerce has become an established part of our multi-channel business, with 68,000 registered users. Demand was particularly strong in the second half and we are confident of further strong growth in the coming year. Store Portfolio Over the last year, we have opened 18 new, mainly Home Furnishings stores in the UK. With the closure of six stores in the same period, the overall selling space has increased by 3%. As previously reported, we have continued to open new, edge of town Home Furnishings stores, the most recent being Weybridge, Norwich and Rugby which were opened after the year end. We now have a total of 31 such stores and they are performing well. Our current strategy for Continental Europe means that we will retain 19 stores, which will operate as part of our own portfolio. However, if the current discussions with potential franchise partners in Continental Europe are successful, the stores that we plan to keep open, plus some of the stores currently scheduled to close will be operated as Laura Ashley franchise stores. Franchising and Licensing We have continued to develop our franchising activities with the recent launch of four new franchise stores in Japan, including stand alone stores in Ooizumi and Motomachi and a concession within a department store in Riyadh, Saudi Arabia. In North America, the number of franchise stores had reduced to three at the end of April 2003. Overall licensing revenue was lower than last year due to the soft US market. However for the next financial year, we anticipate some recovery and are in current negotiations with three prospective licensees. In addition, our manufacturing company, Texplan Manufacturing Limited, has performed to expectations and has successfully negotiated a new contract with Homebase for the supply of a new range of Laura Ashley paint, which is now produced in-house by Texplan. Dividend In light of the difficulties faced during the year and Laura Ashley's current financial result, it is not possible to pay a dividend this year. Current trading Trading in the 14 weeks to 3 May 2003 shows total retail sales flat on last year (UK +6%, Continental Europe -33%). Total like-for-like sales are down 1% (UK +3%, Continental Europe -27%). These figures demonstrate the impact of Continental European trading on total Group sales. As mentioned above, we are actively working towards a resolution to our problems in these territories. Consolidated Profit and Loss Account For the financial year ended 25 January 2003 Total Total 2003 2002 Notes #m #m ___________________________________________________ ______ _____________ _____________ Turnover 1 292.0 276.8 Cost of sales (174.3) (155.1) ___________________________________________________ ______ _____________ _____________ Gross profit 117.7 121.7 ___________________________________________________ ______ _____________ _____________ Operating expenses 2 (122.2) (113.2) ___________________________________________________ ______ _____________ _____________ Operating (loss)/profit (4.5) 8.5 Share of operating profit of associate 0.9 1.1 Losses on termination of operations (9.2) - ___________________________________________________ ______ _____________ _____________ (Loss)/profit on ordinary activities before interest (12.8) 9.6 Interest receivable 0.2 0.5 Interest payable (1.5) (0.8) ___________________________________________________ ______ _____________ _____________ (Loss)/profit on ordinary activities before taxation (14.1) 9.3 Taxation on (loss)/profit on ordinary activities 3 (1.4) (1.2) ___________________________________________________ ______ _____________ _____________ (Loss)/profit for the financial year (15.5) 8.1 ============================================ ===== =========== =========== (Loss)/earnings per share - basic and diluted 4 (2.62)p 1.37p ============================================ ===== =========== =========== The Group's current year results shown above are derived entirely from continuing operations. No note of historical cost profits and losses is given as the results above are on an unmodified historical cost basis. Statement of Total Recognised Gains and Losses For the financial year ended 25 January 2003 2003 2002 #m #m ___________________________________________________ ______ _____________ _____________ (Loss)/profit on ordinary activities after taxation (15.5) 8.1 Exchange differences arising on translation of net investments in overseas subsidiary undertakings (0.5) (0.5) ___________________________________________________ ______ _____________ _____________ Total recognised (losses)/gains for the financial year (16.0) 7.6 ============================================ ===== =========== =========== Balance Sheets As at 25 January 2003 Group Company _____________________ _____________________ 2003 2002 2003 2002 Notes #m #m #m #m ________________________________________ _____ ___________ _________ ___________ _________ Fixed assets Tangible fixed assets 40.1 38.3 2.7 2.8 Investment in associated undertaking 3.3 3.1 0.8 0.8 Investment in subsidiary undertakings - - 98.5 98.5 Own shares 0.8 0.8 0.8 0.8 Total investments 4.1 3.9 100.1 100.1 ________________________________________ _____ ___________ _________ ___________ _________ 44.2 42.2 102.8 102.9 ________________________________________ _____ ___________ _________ ___________ _________ Current assets Stocks 47.0 51.7 - - Debtors Amounts falling due within one year 26.7 26.7 3.7 3.8 Amounts falling due after more than one - - 12.2 12.2 year Total debtors 26.7 26.7 15.9 16.0 Short-term deposits and cash 11.8 7.0 3.4 2.7 ________________________________________ _____ ___________ _________ ___________ _________ 85.5 85.4 19.3 18.7 ________________________________________ _____ ___________ _________ ___________ _________ Creditors: amounts falling due within one year Trade and other creditors 62.0 53.9 2.1 2.1 ________________________________________ _____ ___________ _________ ___________ _________ Net current assets 23.5 31.5 17.2 16.6 ________________________________________ _____ ___________ _________ ___________ _________ Total assets less current liabilities 67.7 73.7 120.0 119.5 ________________________________________ _____ ___________ _________ ___________ _________ Creditors: amounts falling due after more than one year Trade and other creditors 8.4 3.1 - - ________________________________________ _____ ___________ _________ ___________ _________ 8.4 3.1 - - ________________________________________ _____ ___________ _________ ___________ _________ Provisions for liabilities and charges 6 6.8 2.1 0.2 0.2 ________________________________________ _____ ___________ _________ ___________ _________ Net assets 52.5 68.5 119.8 119.3 ================================== ==== ========= ======== ========= ======== Capital and reserves Share capital 29.8 29.8 29.8 29.8 Share premium account 85.7 85.7 85.7 85.7 Profit and loss account (63.0) (47.0) 4.3 3.8 ________________________________________ _____ ___________ _________ ___________ _________ Equity shareholders' funds 7 52.5 68.5 119.8 119.3 ================================== ==== ========= ======== ========= ======== Consolidated Cash Flow Statement For the financial year ended 25 January 2003 2003 2002 Notes #m #m _________________________________________________________ _____ ____________ __________ Net cash inflow from operating activities 8 8.7 3.5 Dividend received from associated undertaking 0.2 0.2 Returns on investments and servicing of finance Interest received 0.4 0.4 Interest paid (1.0) (0.6) Interest element of finance lease rental payments (0.4) (0.2) _________________________________________________________ _____ ___________ __________ Net cash outflow for returns on investments and the servicing (1.0) (0.4) of finance _________________________________________________________ _____ ___________ __________ Net tax paid (2.0) (0.2) ================================================== ===== ========== ========= Capital expenditure and financial investment Acquisition of tangible fixed assets (15.1) (14.4) Disposal of tangible fixed assets 0.1 0.2 _________________________________________________________ _____ ___________ __________ Net cash outflow for capital expenditure and financial (15.0) (14.2) investment ================================================== ===== ========== ========= Net cash outflow before financing (9.1) (11.1) ================================================== ===== ========== ========= Financing Loans taken out 14.1 2.5 Capital element of finance lease rental payments (0.5) (0.5) _________________________________________________________ _____ ___________ __________ Net cash inflow from financing 13.6 2.0 ================================================== ===== ========= ========= Net increase/(decrease) in cash 4.5 (9.1) ================================================== ===== ========== ========= Reconciliation of Net Cash Flow to Movement in Net (Debt)/Funds 2003 2002 #m #m _________________________________________________________ _____ ___________ __________ Net increase/(decrease) in cash 4.5 (9.1) Cash inflow from changes in financing (13.6) (2.0) _________________________________________________________ _____ ___________ __________ Change in net funds resulting from cash flows (9.1) (11.1) Other non-cash items: New finance leases - (2.8) Translation differences 0.3 (0.3) _________________________________________________________ _____ ___________ __________ Change in net funds during the period (8.8) (14.2) Net funds at the beginning of the period 0.3 14.5 ________________________________________________________ _____ ___________ __________ Net(debt)/funds at the end of the period (8.5) 0.3 ================================================== ===== ========== ========= 1 Segmental Analysis Total Net Total Net assets assets 2003 2003 2002 2002 #m #m #m #m ________________________________________________ _________ _______ ________ _________ Turnover Retail 254.7 37.6 241.2 54.0 Non-retail 37.3 14.9 35.6 14.5 ________________________________________________ _________ ________ ________ _________ 292.0 52.5 276.8 68.5 ========================================= ======= ====== ======= ======== (Loss)/profit before taxation Branch contribution Retail 16.5 26.8 Non-retail 10.3 12.1 ________________________________________________ _________ ________ ________ _________ 26.8 38.9 Indirect overhead costs (31.3) (30.4) ________________________________________________ _________ ________ ________ _________ Operating (loss)/profit (4.5) 8.5 Share of profit of associate 0.9 1.1 Losses on termination of operations (9.2) - Net interest payable (1.3) (0.3) ________________________________________________ _________ ________ ________ _________ (Loss)/profit on ordinary activities before taxation (14.1) 9.3 ========================================== ======== ======= ======= ======== Retail turnover reflects sales through Laura Ashley managed stores, Mail Order and Internet. Non-retail includes Licensing, Franchising and Manufacturing. Retail branch contribution reflects turnover and contribution through Laura Ashley managed stores, Mail Order and Internet, by geographical origin. Branch contribution is stated after deducting direct operating expenses but before exceptional items, buying, marketing and administrative costs. Total External Total Intersegment External Intersegment 1 Segmental Analysis sales sales sales sales sales sales continued 2003 2003 2003 2002 2002 2002 #m #m #m #m #m #m ____________________________________ _______ ____________ __________ __________ ____________ ___________ Analysis by geographical segment Turnover by origin UK & Ireland 292.6 38.4 254.2 280.1 44.3 235.8 Continental Europe 35.9 - 35.9 39.1 - 39.1 Other 1.9 - 1.9 1.9 - 1.9 ____________________________________ _______ ____________ __________ __________ ____________ ___________ 330.4 38.4 292.0 321.1 44.3 276.8 =============================== ======= ========== ========= ======== ========== ========== (Loss)/ Profit profit before before taxation Net assets taxation Net assets 2003 2003 2002 2002 #m #m #m #m ____________________________________ _______ ____________ __________ __________ ____________ ___________ (Loss)/profit before taxation and net assets UK & Ireland 0.1 61.7 11.4 62.0 Continental Europe (15.1) (13.0) (3.2) 3.2 Other 0.9 3.8 1.1 3.3 ____________________________________ _______ ____________ __________ __________ ____________ ___________ (14.1) 52.5 9.3 68.5 =============================== ======= ========== ========= ======== ========== ========== External External sales sales 2003 2002 #m #m ____________________________________ _______ ____________ __________ __________ ____________ ___________ Geographical analysis of turnover by destination UK & Ireland 223.2 204.9 North America 5.4 5.3 Continental Europe 35.9 39.1 Other 27.5 27.5 ____________________________________ _______ ____________ __________ __________ ____________ ___________ 292.0 276.8 =============================== ======= ========== ========= ======== ========== ========== North America turnover reflects sales made as part of a franchise arrangement following the disposal of the North American business on 2 July 1999. Retained European operations closures Total 2003 2003 2003 #m #m #m _____________________________________ __________ ___________ ___________ __________ ____________ ______________ Analysis of continuing operations Turnover 271.4 20.6 292.0 Cost of sales (162.0) (12.3) (174.3) _____________________________________ __________ ___________ ___________ __________ ____________ ______________ Gross profit 109.4 8.3 117.7 Total operating expenses (108.5) (13.7) (122.2) _____________________________________ __________ ___________ ___________ __________ ____________ ______________ Operating profit/(loss) 0.9 (5.4) (4.5) Share of operating profit of 0.9 - 0.9 associate Losses on termination of operations - (9.2) (9.2) Net interest payable (1.3) - (1.3) _____________________________________ __________ ___________ ___________ __________ ____________ ______________ Profit/(loss) on ordinary activities before 0.5 (14.6) (14.1) taxation =============================== ======== ========= ========= ========= ========== ============ A strategic decision was made during the year to close 46 European stores. As the closures do not have a material effect on the nature and focus of the Group operations and not all of the closures have been completed within three months of the start of the current financial year, they do not represent a discontinued operation. A provision has been made in respect of the closure costs (see note 6). Total Total 2 Operating expenses 2003 2002 #m #m Distribution costs (89.6) (83.5) Administrative expenses (32.6) (29.7) ___________________________________________________________ _________ _________ ________ ________ Operating expenses (122.2) (113.2) __________________________________________________________ _________ _________ ________ ________ 3 Taxation 2003 2002 #m #m UK corporation tax Current year 0.7 2.8 Prior years 0.2 (2.5) __________________________________________________________ _________ _________ ________ ________ 0.9 0.3 Relief for overseas tax (0.2) (0.2) ___________________________________________________________ _________ _________ ________ ________ 0.7 0.1 Overseas tax 0.3 0.5 Tax charge on associated undertaking 0.4 0.4 __________________________________________________________ __________ __________ ________ ________ Total current tax 1.4 1.0 Deferred tax charge - 0.2 ___________________________________________________________ _________ _________ ________ ________ Taxation on (loss)/profit on ordinary activities 1.4 1.2 ==================================================== ========= ========= ======= ======= 4 (Loss)/earnings per share 2003 2002 Basic and diluted (loss)/earnings attributable to ordinary (15.5) 8.1 shareholders (#m) __________________________________________________________ __________ __________ ________ ________ Weighted average number of ordinary shares ('000) - basic and 594,340 594,340 diluted _________________________________________________________ __________ __________ ________ ________ (Loss)/earnings per share (2.62)p 1.37p =================================================== ======== ======== ======= ======= 5 Principal exchange rates 2003 2002 Average Period Average Period end end ___________________________________________________________ ___________ __________ _________ __________ US Dollar 1.51 1.63 1.44 1.41 Euro 1.58 1.51 1.61 1.63 Japanese Yen 188 192 176 190 ___________________________________________________________________ ___________ __________ _________ __________ 6 Provision for liabilities and charges Pensions Deferred tax Total Restructuring #m #m #m #m ______________________________________________ ____________ ___________ ____________ ____________ At 26 January 2002 1.1 0.8 0.2 2.1 Utilisation (0.3) (0.6) - (0.9) Charge to profit and loss account 9.2 0.3 - 9.5 Transfer to fixed assets (3.9) - - (3.9) ______________________________________________ ____________ ___________ ____________ ____________ At 25 January 2003 6.1 0.5 0.2 6.8 ========================================= ========== ========== ========== ========== Restructuring provisions Rationalisation of administrative functions * 0.2 Rationalisation of store portfolio * 0.3 Provision for termination of European operations ** 5.6 ______________________________________________ ____________ ___________ ____________ ____________ 6.1 ========================================= ========== ========== ========== ========== * Onerous lease provisions which are being utilised over the length of the lease period. ** Onerous lease, redundancy costs and stock write-off provisions which will be utilised during the current financial period. Deferred tax The deferred tax liability represents a provision for capital allowances in excess of depreciation relating to the Company. 7 Reconciliation of movements in shareholders' funds 2003 2002 #m #m (Loss)/profit for the financial year (15.5) 8.1 Other recognised losses (net) (0.5) (0.5) ___________________________________________________ ____________ ___________ ____________ _______ Net (decrease)/addition to shareholders' funds (16.0) 7.6 Opening equity shareholders' funds 68.5 60.9 ___________________________________________________ ____________ ___________ ____________ _______ Closing equity shareholders' funds 52.5 68.5 ============================================ ========== ========== ========== ====== 8 Reconciliation of operating (loss)/profit to net cash inflow from operating activities 2003 2002 #m #m Operating (loss)/profit (4.5) 8.5 ___________________________________________________ ____________ ___________ ____________ _______ Depreciation charge 8.4 6.3 Impairment release of fixed assets - (0.1) (Profit)/loss on sale of fixed assets (0.1) 0.3 Decrease/(increase) in stocks 5.0 (7.2) Increase in debtors (0.1) (2.0) Increase in creditors 0.5 0.2 Movement on provisions (0.1) (0.8) Net cash outflow in respect of restructuring (0.4) (1.7) ___________________________________________________ ____________ ___________ ____________ _______ Net cash inflow from operating activities 8.7 3.5 ============================================ ========== ========== ========== ====== NOTE The above financial information does not constitute statutory accounts as defined by section 240 of the Companies Act 1985. It is an extract from the 2003 financial statements which have not yet been filed with the Registrar of Companies. The Auditors' Report, dated 07 May 2003, on the financial statements for the year ended 25 January 2003, which received an unqualified opinion does not contain a statement under section 237(2) or (3) of the Companies Act 1985. The comparative information is an extract from the statutory accounts for the financial year ended 26 January 2002. Those accounts, on which the Auditors issued an unqualified opinion, which does not contain a statement under either section 237(2) or (3) of the Companies Act 1985, have been filed with the Registrar of Companies. A copy of the full accounts will be sent to shareholders on the Register of Members as at 07 May 2003 or can be obtained from the Secretary, Laura Ashley Holdings plc, 27 Bagleys Lane, Fulham, SW6 2QA. ANNUAL GENERAL MEETING The Company's AGM will be held on Monday, 16 June 2003 at 2:00pm at the Ballroom, Claridge's Hotel, Brook Street, London, W1A 2JQ This information is provided by RNS The company news service from the London Stock Exchange END FR SSDSFASDSEFI
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