Final Results

RNS Number:1685K
Bristol & London PLC
24 March 2005


EMBARGOED FOR 7.00 A.M.

                                                                   24 March 2005



                             BRISTOL & LONDON PLC
                     ("THE COMPANY" OR "BRISTOL & LONDON")

                          PRELIMINARY RESULTS FOR THE
                        FULL YEAR ENDED 31 JANUARY 2005

Highlights:

-      Review of financial reporting and forecasting complete, new and more 
       robust systems in place

-      Agreement with Carstar Accident Management in place and contributing to 
       the current year

-      Chief Operating Officer to be appointed to identify and manage new 
       business opportunities

-      Sales function expanded and strengthened

-      Increase in number of protocols with UK motor insurers has reduced debtor 
       days

-      New business in Scotland now producing significant contribution

-      Recommended dividend for the full year to 31 January 2005 is 1.13 pence 
       per share

Bob Woods, Executive Chairman said: "We are confident that our strategy of a
strengthened management team through the forthcoming appointment of a new Chief
Operating Officer, expanded sales force, agreement with Carstar and possible
further similar agreements, revenue from other smaller dealer groups and
development of new markets, especially Scotland, should yield the results
necessary to build shareholder value and to enable the Company's performance to
improve significantly in the current year."

Enquiries:
Peter Gaze                  PGA & Co.                        020 7808 7676



CHAIRMAN'S STATEMENT

Overview

The year to 31 January 2005 has been extremely disappointing.  Intense
competitive pressures and the delay in the start of the recently announced
Carstar Accident Management Ltd ("Carstar") contract have been the major
contributors to Bristol & London's slower than desired recovery.

Turnover for the year to 31 January 2005 amounted to #7.74m compared to #8.69m
for the previous year. Profit before tax for the year to 31 January 2005
amounted to #1.17m, compared to #2.25m for the previous year.

Operations and strategy

Due to increased competition in the credit hire market, the Board has identified
a need to capture business more effectively.  Over the past year we have taken a
number of steps intended to enable us to respond to the challenge, although the
Board recognises that further action is required to facilitate a more complete
recovery of the Company's business.  We have, therefore, decided to strengthen
our management team through the appointment of a Chief Operating Officer whose
primary role will be the identification and management of new business
opportunities. Recruitment for this new position is underway and the Company
expects to announce the appointment during the second quarter of the current
year.

I am also pleased to report that following the appointment to the Board of our
new Finance Director, Lewis Ross, in September 2004, our finance function is now
more robust.  Lewis has transformed the way in which we monitor our business and
how we forecast future performance.

We have also increased the size of our sales team substantially during the year.
We have high expectations of the performance of the expanded team as it
develops and already have an increasing new business pipeline.

Our agreement with Carstar was announced on 3 March 2005 and whilst it is
unfortunate that the agreement took longer to complete than we envisaged and did
not provide any increase to turnover for the year ended 31 January 2005 as we
had expected at the time of the interim results in September, we believe this to
be the first in a series of similar new business developments.

Outlook

The Board is confident that our strategy of a strengthened management team
through the forthcoming appointment of a new Chief Operating Officer, expanded
sales force, agreement with Carstar and possible further similar agreements,
revenue from other smaller dealer groups and development of new markets,
especially Scotland, should yield the results necessary to build shareholder
value and to enable the Company's performance to improve significantly in the
current year.

Dividend
In line with its stated dividend policy, the board is recommending the payment 
of a final dividend of 1.13p per share to be paid on 25 April 2005 to 
shareholders on the register at the close of business on 8 April 2005.

Robert Woods Executive Chairman



FINANCE DIRECTOR'S REVIEW

Turnover for the year to 31 January 2005 amounted to #7.74m compared to #8.69m
for the previous year.

Cost of sales for the year to 31 January 2005 amounted to #3.93m compared to
#3.87m for the previous year.  This increase was due to two main factors:  The
depreciation charged on motor vehicles has been revised from 20% reducing
balance to 20% straight line, which is considered to be a more prudent and
appropriate policy going forward.  The cost of motor vehicle insurance was much
greater in the year to 31 January 2005, which has been significantly
re-negotiated for the current year.

Profit before tax for the year to 31 January 2005 amounted to #1.17m, compared
to #2.25m for the previous year.

The tax charge for the year to 31 January 2005 was 30.5% of the profit before
taxation, compared to 32.5% for the previous year.

Debtor days have been reduced from 184 in the previous year to 168 at 31 January
2005.  This improvement is due to an increase in the numbers of protocol
agreements negotiated with insurance companies, combined with enhanced internal
collection procedures.

During the second half of the year, we carried out a complete appraisal of
performance measurement and forecasting procedures, and have implemented a
series of improved controls that have established a much greater robustness in
our financial reporting with which the Board is now satisfied.

Interest rate risk

The Company borrows in sterling at floating rates of interest.  No interest rate
caps or swaps are used to manage exposure to interest rate fluctuations.

Liquidity risk

The Company policy is to finance all new vehicle purchases by way of hire
purchase contracts and the number of vehicles acquired by contract hire is now
minimal.  The Company does not "cross hire" vehicles on short term contracts
from hire companies since this could damage the Company's reputation for
quality.

Going concern

After making enquiries, the Directors have a reasonable expectation that the
Company has adequate resources to continue in operational existence for the
foreseeable future.  For this reason, they continue to adopt the going concern
basis in preparing the financial statements.

Lewis Ross
Finance Director


PROFIT AND LOSS ACCOUNT
for the year ended 31 January 2005
                                                                                       2005              2004
                                                                                          #                 #

Turnover                                                                          7,739,062         8,688,074
Cost of sales                                                                   (3,931,560)       (3,865,102)

Gross profit                                                                      3,807,502         4,822,972

Administrative expenses                                                         (2,015,786)       (2,099,512)

Operating profit                                                                  1,791,716         2,723,460

Other interest receivable and similar income                                              -             2,755
Interest payable and similar charges                                              (620,676)         (476,741)

Profit on ordinary activities before taxation                                     1,171,040         2,249,474

Profit on ordinary activities before taxation and flotation costs                 1,171,040         2,502,059

Flotation costs                                                                           -         (252,585)

                                                                                  1,171,040         2,249,474

Profit on ordinary activities before taxation                                      (356,703)         (729,865)

Tax on profit on ordinary activities                                                814,337         1,519,609     

Profit on ordinary activities after taxation                                      (542,103)       (1,150,000)

Dividends                                                                           272,234           369,609

Retained profit for the year

Earnings per share                                                                
- basic                                                                                3.4p              6.3p
- diluted                                                                              3.3p              6.3p


All of the above amounts arose from continuing operations.

There are no recognised gains or losses other than those noted in the profit &
loss account.


BALANCE SHEET
at 31 January 2005                                                        2005                        2004
                                                               #             #             #             #
Fixed assets                                                         9,324,636                   7,276,680
Tangible assets
Current assets                                         4,918,813                   5,987,809

Debtors
Cash at bank and in hand                                  11,879                     457,809
                                                       4,930,692                   6,445,618
Creditors: amounts falling due                       (4,305,954)                 (5,962,677)

within one year
Net current assets                                                     624,738                     482,941
Total assets less current liabilities                                9,949,374                   7,759,621
Creditors: amounts falling due                                     (7,304,967)                 (5,536,594)

after more than one year
Provisions for liabilities and charges                               (486,391)                   (337,245)

Deferred tax
Net assets                                                           2,158,016                   1,885,782
Capital and reserves                                                   241,974                     241,974

Called up share capital
Share premium account                                                  725,792                     725,792
Profit and loss account                                              1,190,250                     918,016
Equity shareholders' funds                                           2,158,016                   1,885,782


CASH FLOW STATEMENT
for the year ended 31 January 2005

                                                                                     2005           2004
                                                                                        #              #
Net cash inflow from operating activities                                       4,185,796      2,773,456
Returns on investments and servicing of finance                                 (620,676)      (516,968)
Taxation paid                                                                 (1,226,815)      (635,000)
Capital revenue/(expenditure)                                                   1,043,088    (1,128,616)
Equity dividends paid                                                           (793,673)      (975,000)
Financing                                                                     (4,437,655)        802,582
(Decrease)/increase in cash in period                                         (1,849,935)        320,454


Notes to cash flow statement
                                                                                         2005            2004
                                                                                            #               #
(a) Reconciliation of operating profit to net                                       1,791,716       2,723,460
cash flow from operating activities

Operating profit
Depreciation charges                                                                1,372,067         829,082
(Increase)/decrease in debtors                                                      1,167,510       (317,444)
(Decrease)/increase in creditors                                                    (102,061)       (436,885)
Profit on disposal of fixed assets                                                   (43,436)        (24,757)
Net cash inflow from operating activities                                           4,185,796       2,773,456


(b) Returns on investments and servicing of finance

Interest paid                                                                       (224,512)       (261,012)
Interest element of finance lease and hire purchase rental payments.                (368,750)       (249,844)
Interest on overdue tax                                                              (27,414)         (8,867)
Interest received                                                                           -           2,755
Net cash outflow from returns on investments

and servicing of finance                                                            (620,676)       (516,968)


(c) Capital expenditure
                                                                                    (772,498)
Purchase of tangible fixed assets                                                                 (1,604,815)
Proceeds from the sales of fixed assets                                             1,815,586         476,199
Net cash outflow from capital expenditure                                           1,043,088     (1,128,616)


(d) Financing

Receipts from issue of shares                                                               -         300,000
Share issue costs                                                                           -         (9,000)
(Repayment)/drawdown of invoice discounting facility                              (1,867,656)         273,558
Capital repayments of hire purchase and finance lease agreements                  (2,411,451)       (678,647)
Proceeds from loans                                                                         -       1,036,928
Loan repayments                                                                     (158,548)       (120,257)
Net cash inflow/(outflow) from financing                                          (4,437,655)         802,582





NOTES TO THE ACCOUNTS

Basis of preparation

The financial statements have been prepared in accordance with applicable
accounting standards and under the historical cost convention

Fixed assets and depreciation

Depreciation is provided to write off the cost less the estimated residual value
of tangible fixed assets by instalments over their estimated useful economic
lives to the company as follows:



Motor vehicles                  - 20% straight line
Computers and software          - 33 1/3% straight line
Fixtures and fittings           - 15% straight line
Buildings                       - 2% straight line

Debtors

Trade debtors are discounted to the amount which, in the opinion of the
directors, will be recovered from insurers. The discount estimates are regularly
reviewed and as the business and industry matures they can be calculated to a
greater degree of accuracy.

Leasing and hire purchase commitments

Assets held under finance leases, which are leases where substantially all the
risks and rewards of ownership of the asset have passed to the company, and hire
purchase contracts are capitalised in the balance sheet and are depreciated over
their useful lives. The capital elements of future obligations under leases and
hire purchase contracts are included as liabilities in the balance sheet. The
interest elements of the rental obligations are charged in the profit and loss
account over the periods of the leases and hire purchase contracts and represent
a constant proportion of capital repayments outstanding.

Rentals payable under operating leases are charged in the profit and loss
account on a straight line basis over the lease term.

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events have occurred at that date that will result in an obligation to pay more,
or a right to pay less or to receive more, tax, with the following exceptions:



*                    provision is made for tax on gains arising from the
revaluation (and similar fair value adjustments) of fixed assets, and gains on
disposal of fixed assets that have been rolled over into replacement assets,
only to the extent that, at the balance sheet date, there is a binding agreement
to dispose of the assets concerned. However, no provision is made where, on the
basis of all available evidence at the balance sheet date, it is more likely
than not that the taxable gain will be rolled over into replacement assets and
charged to tax only where the replacement assets are sold; and



*                     deferred tax assets are recognised only to the extent that
the directors consider that it is more likely than not that there will be
suitable taxable profits from which the future reversal of the underlying timing
differences can be deducted.



Deferred tax is measured on an undiscounted basis at the tax rates that are
expected to apply in the periods in which timing differences reverse, based on
tax rates and laws enacted or substantively enacted at the balance sheet date.

Value added tax

In accordance with industry practice output value added tax is accrued until the
settlement amount of invoices is known with certainty.

Turnover

Turnover represents the amounts invoiced (excluding value added tax) less
estimated discounts on settlement for the provision of vehicle hires to third
parties.

Dividends                                                                                 2005          2004
                                                                                             #             #
Dividend on equity shares - paid  1.11p per share (2004: 2.61p)                        268,673       625,000
- proposed 1.13 p per share (2004: 2.17p)                                              273,430       525,000
                                                                                       542,103     1,150,000

Earnings per ordinary share

The calculation of basic earnings per share is based on earnings of #814,337
(2004: #1,519,609), and on 24,197,352 (2004: 24,047,510) ordinary shares, being
the weighted average number of ordinary shares in issue during the year.


The diluted earnings per share is based on earnings of #814,337 (2004:
#1,519,609) and on 24,904,514  (2004: 24,288,943) ordinary shares, calculated as
follows:
                                                                                          2005           2004
                                                                                             #              #
Basic weighted average number of shares                                             24,197,352     24,047,510
Dilutive potential ordinary shares                                                     707,162        241,433

Employee share options
                                                                                    24,909,514     24,288,943






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