We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Clinton Card | LSE:CC. | London | Ordinary Share | GB0002036720 | ORD 10P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 7.00 | 0.00 | 00:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMCC.
RNS Number : 9235Q
Clinton Cards PLC
27 October 2011
Embargoed until 0700 27 October 2011
CLINTON CARDS PLC
("the Company" or "the Group")
Unaudited Preliminary Results for the 52 weeks ended 31 July 2011
KEY HEADLINES
-- Management team strengthened, including the appointment of Darcy Willson-Rymer as Group CEO -- Successful extension of debt facilities to July 2013 -- Like for like sales reduced by 2.9%, in a challenging trading environment
-- Strategic review underway with an early focus on improving customer experience, the store portfolio, supply chain management and digital offering
**Restated FINANCIAL HIGHLIGHTS 52 weeks 52 weeks ended ended 31 July 1 August 2011 2010 (unaudited) (unaudited) --------------------------------------------------- ------------ ------------ Continuing operations GBP'000 GBP'000 Revenue (excluding VAT) Clintons 312,878 336,922 Birthdays Retail 51,340 57,085 ------------ ------------ Group revenue 364,218 394,007 ------------ ------------ Adjusted operating profit/(loss) * Clintons 7,004 19,354 Birthdays Retail (3,801) (516) ------------ ------------ Group adjusted operating profit 3,203 18,838 ------------ ------------ Operating (loss)/profit Clintons 485 16,968 Birthdays Retail (8,597) (1,265) ------------ ------------ Group operating (loss)/profit (8,112) 15,703 ------------ ------------ Loss for the period from discontinued operations (2,943) (952) ------------ ------------ Net Debt (excluding finance costs capitalised) 34,327 35,775 ------------ ------------ Reconciliation of statutory values to adjusted measures Group operating (loss)/profit (8,112) 15,703 Exceptional items: Net impairment to property, plant and equipment 5,686 477 Charges in respect of onerous leases 4,644 1,189 Loss on sale of property, plant and equipment 985 1,469 ------------ ------------ Group adjusted operating profit 3,203 18,838 ------------ ------------ ** The prior year comparatives have been restated to reflect the results of Birthdays (Ireland) Limited as discontinued
* In the context of the figures throughout the statement, adjusted measures are defined as continuing statutory values before charging losses on sale of property, plant and equipment, the change in the fair value of financial instruments and exceptional items
Don Lewin, OBE, Chairman commented:
"Our business is continuing to evolve and, benefiting from a strengthened management team, we are embarking on a series of initiatives to improve the Group's performance. Together these represent important steps both in our ability to continue to meet the changing needs of our customers and to ensure that we establish a solid platform for driving investor returns."
Enquiries:
Clinton Cards PLC (27 October 2011) 020 7067 0700
Don Lewin, OBE, Non Executive Chairman (thereafter) 020 8502 3711
Darcy Willson-Rymer, Group Chief Executive Officer
Paul Salador, Group Finance Director
Weber Shandwick Financial 020 7067 0700
Nick Oborne / John Moriarty / Robert Cook
CLINTON CARDS PLC
("the Company" or "the Group")
Unaudited Preliminary Results for the 52 weeks ended 31 July 2011
MESSAGE FROM THE CHAIRMAN
Evolving the Clintons story
Clinton Cards has come through a challenging year, a period in which a number of iconic retailers have suffered and struggled against ongoing economic uncertainty. I am therefore pleased to report that the Group has agreed an extension to the revolving credit facility with its joint lenders until July 2013.
Our business is continuing to evolve and, benefiting from a strengthened management team, we are embarking on a series of initiatives to improve the Group's performance. Together these represent important steps both in our ability to continue to meet the changing needs of our customers and to ensure that we establish a solid platform for driving investor returns.
My main focus will be to continue to work with the Board to transform the business so that the foundations are established for realising commercial success, enabling Clintons to prosper in a rapidly changing retail landscape.
Although the business continues to face a number of challenges, Clintons remains an exciting and positive place to work, supported by a strong and resilient presence on our nation's high streets.
Progress during 2011
Our actions to drive down cost, to differentiate our offering and to improve profitability will take time to show through in our results but the months ahead should provide clear evidence of the progress we are making.
Against this backdrop, I am delighted to welcome to the Board Darcy Willson-Rymer. Darcy was previously Managing Director of Starbucks UK. He will build upon the opportunities created by the changes we have started to make and robustly address the challenges that lie ahead. Darcy has an excellent track record of managing change as well as substantial retail experience.
Looking to the future
There is a shared recognition across the Group of the need to respond to the challenges of having a visible high street presence and a resilient business model if we are to return to a period of sustained performance. In the coming months we will outline in more detail the outcome of the strategic review being led by Darcy Willson-Rymer and the journey that lies ahead. We start this new and exciting phase with a very strong brand and an improving portfolio of stores and products.
Don Lewin, OBE
Chairman
Business and Financial Review
Trading
In the 52 weeks ended 31 July 2011 trading has been conducted in an environment characterised by low consumer confidence and weak footfall. These factors impacted significantly on Group sales which declined by 2.9% on a like for like basis comprising a reduction in Clintons of 3.4% from 596 stores and an increase of 0.4% from 127 Birthdays stores. Total revenue from continuing operations for the 52 weeks ended 31 July 2011 was GBP364.2m compared with GBP394.0m for the 52 weeks ended 1 August 2010. Adjusted operating profit for the Group was GBP3.2m (2010: GBP18.8m). This figure comprises a profit of GBP7.0m (2010: GBP19.3m) for Clintons and a loss of GBP3.8m (2010: GBP0.5m loss) for the Birthdays brand.
At the beginning of the period Birthdays was trading from 14 stores in the Republic of Ireland which had suffered from a combination of declining sales and increased occupancy costs. During the period under review it became apparent that this position was unlikely to reverse in the medium term with expectations that full year losses to July 2011 would escalate to approximately GBP1.4m. Accordingly the Board decided to seek to dispose of the operation. On 1(st) March 2011 the Group petitioned the Court to appoint a liquidator to instigate an orderly winding up of its subsidiary Birthdays (Ireland) Limited. The largest unsecured creditor was its parent company, Birthdays Retail Limited, with GBP1.5m owed.
Against a backdrop of this challenging environment and the significant reduction in revenues across the Group, we have taken a more robust view of forecast trading performances which have impacted carrying values of both assets and liabilities. This has resulted in a significant increase in impairment of store based fixed assets of GBP5.7m (2010: GBP0.5m) and an increase in provision for onerous leases of GBP4.6m (2010: GBP1.2m). These two non-cash items are considered to be exceptional by their size and have been shown accordingly in the Group's results.
Capital Investment
In the 52 weeks to 31 July 2011 the Group invested a total of GBP6.6m in the business. GBP3.7m was invested in the store portfolio, GBP2.5m on information technology systems and GBP0.4m on the motor vehicle fleet.
When reviewing the amount invested in new and future stores, it should be noted that contributions from landlords in the form of reverse premiums and/or extended rent free periods in excess of three months amounted to GBP2.0m. This amount is included in deferred income and credited to the income statement over the period of the respective leases but excluded from the table below.
Investment by brand:
Clinton Birthdays Cards Retail Group GBPm GBPm GBPm New and future stores 1.4 0.2 1.6 Modernisation of existing stores 1.6 0.5 2.1 -------- ---------- ------ 3.0 0.7 3.7 Information systems 2.5 Other 0.4 ------ Total investment 6.6 ======
Group losses arising from the sale of property, plant and equipment in the period amounted to GBP1.0m (2010: GBP1.5m).
Cash Flow, Interest and Borrowings
Net debt before financing costs at 31 July 2011 was GBP34.3m, a reduction of GBP1.5m compared with GBP35.8m at 1 August 2010. Cash generated from operations during the 52 week period amounted to GBP10.8m compared with GBP25.3m in the 52 weeks to 1 August 2010.
Average net borrowings for the 52 week period were GBP22.9m compared to GBP26.0m in the 52 weeks to 1 August 2010.
The net interest paid in the period to 31 July 2011 amounted to GBP1.88m (52 weeks to 1 August 2010: GBP1.96m). Interest on amounts drawn down against the Group's revolving credit facility is paid at LIBOR plus a lender's margin. To minimise exposure to fluctuations in LIBOR, a hedge agreement was entered into on 31 July 2009 expiring in December 2011. This comprises an interest rate swap with a fixed rate of interest of 1.5% until July 2010 and 2.3% until December 2011. The Board will review its strategic options for future hedging arrangements on a monthly basis to ensure interest rate risks are mitigated.
Net corporation tax paid in the period amounted to GBP0.8m (2010: GBP4.3m) of which GBP0.4m related to the final instalment for 2010 and GBP0.4m to the interim instalment for 2011.
Cash expenditure in the 52 weeks to 31 July 2011 on property, plant and equipment was GBP6.7m (2010: GBP4.6m).
Inventory has increased by GBP6.3m over the 52 week period due to an increase in seasonal carryover and an extension of our gift offering. The seasonal stock carryover will be sold through in the next appropriate season. A higher proportion of stock is made up of gift items and reflects the increase in gifting revenue generated during the 52 week period. Management recognise the need for improvement of controls in relation to stock holdings and we have now strengthened processes in this area.
Trade creditors have increased primarily due to extended creditor terms, a proportion of which will reverse in the next 52 week period. In addition rent creditors have increased due to the August quarter rent payments falling due after the year end.
Financing
We are pleased to report that the Group has agreed an extension to its revolving credit facility with its joint lenders, Barclays Bank and Royal Bank of Scotland, until July 2013. The maximum available draw down will be GBP55m which we would only expect to fully utilise for a short period in October 2012.
Taxation
There is a Group taxation charge of GBP1.4m (2010: GBP3.6m) which is offset by a GBP0.4m credit relating to discontinued operations. GBP1.5m related to deferred tax of which GBP2.6m was an adjustment to prior year mainly due to revised asset values on shops acquired from Birthdays Limited in 2009. This also created a prior year adjustment of (GBP0.5m) for corporation tax. No corporation tax liability arose for the current 52 week period.
Earnings Per Share and Dividend
The adjusted basic loss per share for the 52 weeks to 31 July 2011 was 2.25p compared to a profit of 5.28p for the 52 weeks to 1 August 2010.
The basic loss per share from continuing operations was 7.26p (2010: profit 3.57p)
The Board has decided not to propose a final dividend for the 52 weeks to 31 July 2011 (2010:Nil). In the longer term, the Board remains committed to paying a dividend when there is evidence of a consistent upward trend in profitability.
Shareholders' Funds
Total shareholders' funds at 31 July 2011 amounted to GBP23.0m (2010: GBP38.2m). Net assets per share at the period end were 11.1p (2010: 18.48p).
Store Development
The Clintons brand
In the 52 week period, we opened one new store, relocated six stores and disposed of 14 stores resulting in 641 stores trading at 31 July 2011 with a trading area of 1.24 million square feet. The average trading area of a Clintons store at the year end is 1,931 square feet.
Utilising the experience gained from our four new format stores, which have had positive customer feedback, we have designed a lower cost refit to modernise all stores. These will be trialled in three additional stores before Christmas.
The Birthdays brand
In the 52 week period, we relocated two stores and disposed of 20 stores, including 14 relating to the liquidation of Birthdays (Ireland) Limited, resulting in 156 stores trading at 31 July 2011. The average trading area of a Birthdays store at the year end is 1,746 square feet and a total trading area of 0.27 million square feet.
Staff
The average number of staff employed during the period was 8,350 (2010: 8,463). Administrative staff totalled 231 (2010: 236) and store and field staff totalled 8,119 (2010: 8,227). Many of the store staff are part time employees and the number of full time equivalent staff was 4,795 (2010: 5,065). Staff have moved across the two brands either as a result of re-branding stores or to fill vacancies at all levels within the business. The Group operates a policy of appointing internal candidates wherever possible to fill any vacancies which arise. Clearly the operation of two sizeable chains enhances these opportunities.
Strategy and Outlook
The first 12 weeks of the current financial year to 23(rd) October have seen like for like sales 1.5% lower than the same period last year, with the Clinton brand 1.5% lower and Birthdays reduced by 1.3%.
The strengthened management team is undertaking a review of the Group's operations, with an early focus on improving customer experience, our store portfolio, supply chain management and digital offering. While the current macro-economic environment remains challenging, the team believes that this review and subsequent actions will benefit the Group's future performance. The team is excited about taking the business forward.
Darcy Willson-Rymer
Group Chief Executive Officer
Paul Salador
Group Finance Director
Unaudited Consolidated Statement of Comprehensive Income
For the 52 weeks to 31 July 2011
**Restated 52 weeks 52 weeks ended ended 31 July 1 August 2011 2010 (unaudited) (unaudited) Continuing operations Note GBP'000 GBP'000 Revenue (including VAT) 432,037 457,459 ------------ ------------ Revenue (excluding VAT) 4 364,218 394,007 Cost of sales (including exceptional items) (357,589) (365,374) ------------ ------------ Gross profit 6,629 28,633 Other operating income 94 148 Loss on sale of property, plant and equipment (985) (1,469) Administrative expenses (13,850) (11,609) Operating (loss)/profit (8,112) 15,703 ------------ ------------ Analysed as: Operating profit before exceptional items 2,218 17,369 Net impairment to property, plant and equipment * (5,686) (477) Charges in respect of onerous leases * (4,644) (1,189) ------------ ------------ Operating (loss)/profit 4 (8,112) 15,703 Finance income 96 253 Finance costs (2,992) (3,149) Change in fair value of financial instruments 356 (824) Unwinding of property provision discount (10) (7) ------------ ------------ (Loss)/profit before taxation (10,662) 11,976 Taxation 7 (1,428) (3,646) ------------ ------------ (Loss)/profit from continuing operations (12,090) 8,330 Loss for the period from discontinued operations (2,943) (952) ------------ ------------ (Loss)/profit for the period attributable to owners of the company (15,033) 7,378 Other comprehensive income (net of tax): Currency translation differences (233) (92) ------------ ------------ Total comprehensive (expenses)/income for the period attributable to owners of the company (15,266) 7,286 ------------ ------------ Earnings/(loss) per share for profit attributable to owners of the company 8 From continuing operations: Basic (loss)/earnings per share (pence) (5.66) 4.03 Diluted (loss)/earnings per share (pence) (5.66) 4.00 From continuing & discontinued operations: Basic (loss)/earnings per share (pence) (7.26) 3.57 Diluted (loss)/earnings per share (pence) (7.26) 3.54 ** The prior year comparatives have been restated to reflect the results of Birthdays (Ireland) Limited as discontinued Non-GAAP measure: adjusted profit before taxation from continuing operations 2 GBP'000 GBP'000 (Loss)/profit before taxation (10,662) 11,976 Adjustments for: IAS32 and IAS39 'Financial Instruments' - Fair value remeasurements (356) 824 Loss on disposal of property, plant and equipment 985 1,469 Exceptional items * 10,330 1,666 --------- -------- Adjusted profit before taxation 297 15,935 --------- --------
Unaudited Consolidated Balance Sheet
as at 31 July 2011
As at As at 31 July 1 August 2011 2010 (unaudited) (audited) Note GBP'000 GBP'000 Non current assets Goodwill 17,326 17,326 Other intangible assets 1,750 1,750 Property, plant and equipment 9 48,729 58,162 Deferred tax asset - 172 ------------ ---------- 67,805 77,410 ------------ ---------- Current assets Inventories 10 43,202 37,653 Trade and other receivables 11 18,917 17,882 Current tax asset 886 - Cash and cash equivalents 12 19,673 7,225 ------------ ---------- 82,678 62,760 ------------ ---------- Total assets 150,483 140,170 ------------ ---------- Current liabilities Borrowings (53,527) (41,566) Trade and other payables 13 (55,458) (47,370) Derivative financial instruments (218) (574) Current tax liabilities - (456) Provisions 14 (5,221) (639) ------------ ---------- (114,424) (90,605) ------------ ---------- Net current liabilities (31,746) (27,845) ------------ ---------- Non current liabilities Deferred tax liabilities (1,289) - Other non current liabilities (9,025) (9,417) Provisions 14 (2,772) (1,909) ------------ ---------- (13,086) (11,326) ------------ ---------- Total liabilities (127,510) (101,931) ------------ ---------- Net assets 22,973 38,239 ------------ ---------- Shareholders' equity Called up share capital 20,693 20,693 Share premium account 5,873 5,873 Capital redemption reserve 50 50 Translation reserve - 233 Other reserves 308 308 Retained Earnings (3,951) 11,082 ------------ ---------- Total equity 22,973 38,239 ------------ ----------
Unaudited Consolidated Statement of Changes in Equity
as at 31 July 2011
Called-up Share Capital share premium redemption Translation Other Retained Total capital account reserve reserve reserves earnings equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 2 August 2009 20,693 5,873 50 325 308 3,704 30,953 ---------- --------- ------------ ------------ ---------- ---------- --------- Profit for the period - - - - - 7,378 7,378 Other comprehensive income: Currency translation differences - - - (92) - - (92) ---------- --------- ------------ ------------ ---------- ---------- --------- Total comprehensive income/(expense) for the period - - - (92) - 7,378 7,286 At 1 August 2010 20,693 5,873 50 233 308 11,082 38,239 ---------- --------- ------------ ------------ ---------- ---------- --------- (Loss)/profit for the period - - - - - (15,033) (15,033) Other comprehensive income: Currency translation differences - - - (233) - - (233) ---------- --------- ------------ ------------ ---------- ---------- --------- Total comprehensive income/(expense) for the period - - - (233) - (15,033) (15,266) ---------- ---------- At 31 July 2011 20,693 5,873 50 - 308 (3,951) 22,973 ---------- --------- ------------ ------------ ---------- ---------- ---------
Unaudited Consolidated Cash Flow Statement
For the 52 weeks ended 31 July 2011
**Restated 52 weeks 52 weeks ended ended 31 July 1 August 2011 2010 (unaudited) (unaudited) Note GBP'000 GBP'000 Cash flows from operating activities (Loss)/profit before tax from continuing operations (10,662) 11,976 Loss before tax from discontinued operations (3,329) (952) Adjustments for: Net finance costs 2,550 3,752 Depreciation 8,380 9,487 Net impairment of property, plant and equipment 5,686 657 Loss on sale of property, plant and equipment 985 1,469 Net assets written off relating to discontinued operations 1,360 - ------------ ------------ Operating cash flows before movements in working capital 4,970 26,389 Increase in inventories (6,283) (1,436) (Increase)/decrease in trade and other receivables (1,647) 1,443 Increase/(decrease) in trade and other payables 8,270 (1,930) Movement in provisions 5,445 785 ------------ ------------ Cash generated from operations 10,755 25,251 Interest received 96 253 Interest paid (1,977) (2,216) Net taxation paid (808) (4,252) ------------ ------------ Net cash generated from operating activities 8,066 19,036 ------------ ------------ Cash flows from investing activities Cash disposed of with discontinued operations (486) - Proceeds/(payments) relating to disposal of property, plant and equipment 539 (246) Purchase of property, plant and equipment (6,671) (4,621) ------------ ------------ Net cash used in investing activities (6,618) (4,867) ------------ ------------ Cash flows from financing activities Increase/(decrease) in borrowings 15 11,000 (16,000) Net cash used in financing activities 11,000 (16,000) ------------ ------------ Net increase/(decrease) in cash and cash equivalents 12,448 (1,831) Cash and cash equivalents at beginning of period 7,225 9,056 Cash and cash equivalents at end of period 12 19,673 7,225 ------------ ------------ ** The prior year comparatives have been restated to reflect the results of Birthdays (Ireland) Limited as discontinued
The net debt reconciliation is given in note 14
Notes to the Preliminary Financial Information
1 General Information
The principal activity of the Group is the specialist retailing of greetings cards and associated products. This is carried out through two brands on the high street, Clinton Cards and Birthdays.
Clinton Cards PLC is a Public Limited Company incorporated and domiciled in England and Wales.
The preliminary financial information is unaudited and was approved by the Board of Directors on 25 October 2011.
2 Basis of preparation
This unaudited preliminary consolidated financial information has been prepared in accordance with the Disclosure and Transparency Rules of the UK Financial Services Authority and International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretation Committee (IFRIC) interpretations, as endorsed by the European Union (EU). The accounting policies applied are consistent with those described in the Annual Report and Financial Statements 2010, apart from those arising from the adoption of new International Financial Reporting Standards detailed below, which will be described in more detail in the Annual Report and Financial Statements 2011.
This consolidated financial information does not constitute statutory financial statements for the 52 weeks ended 31 July 2011 or the 52 weeks ended 1 August 2010 as defined in section 434 of the Companies Act 2006. The Annual Report and Financial Statements for the 52 weeks ended 1 August 2010 were approved by the Board of Directors and have been filed with the Registrar of Companies and the Annual Report and Financial Statements for 2011 will be filed with the Registrar in due course. The report of the auditors on those financial statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
Use of adjusted measures
Adjusted operating profits or losses and adjusted net profits or losses are defined as operating profits or losses and net profits or losses before charging profits or losses on the sale of property, plant and equipment, the movement in the fair value of financial instruments and exceptional profits on acquisition.
3 Accounting policies
The accounting policies adopted are consistent with those of the annual financial statements for the 52 weeks ended 31 July 2011 as described in those financial statements.
The following new standards have been adopted in the period and have had an impact on the Group:
-- IFRS 5 (amendment) 'Non-current assets held for sale and discontinued operations'
The following new standards and amendments to existing standards have been published and are mandatory for the Group's accounting periods for the financial year ending 31 July 2011, but do not currently have a material impact on the Group:
-- IAS 1 (amendment) 'Presentation of financial statements' -- IAS 36 (amendment) 'Impairment of assets' -- IAS 32 (amendment) 'Classification of rights issues' -- IFRIC 19 'Extinguishing financial liabilities with equity instruments'
The following new standards and amendments to existing standards have been issued but not effective for the year ending 31 July 2011 and not early adopted:
-- IFRS 9 'Financial instruments' -- Revised IAS 24 (revised) 'Related party disclosures' -- IFRIC 14 (amendment) 'Prepayments of a minimum funding requirement' 4. Segmental information
For management purposes, the Group is currently organised into two operating divisions namely Clinton Cards and Birthdays Retail. These divisions are the basis on which the Group reports its segment information.
Clinton Birthdays Continuing Store information Cards Retail operations No. No. No. Store numbers Stores at 2 August 2009 681 180 861 Additions 2 17 19 Disposals (including relocations) (30) (21) (51) Relocations 1 - 1 -------- ---------- ------------ Stores at 1 August 2010 654 176 830 Additions 1 6 7 Disposals (including relocations) (20) (14) (34) Relocations 6 2 8 Discontinued operations - (14) (14) -------- ---------- ------------ Stores at 31 July 2011 641 156 797 -------- ---------- ------------ Trading area (square feet) 000 000 000 Trading area at 2 August 2009 1,307 298 1,605 Additions 5 28 33 Disposals (42) (29) (71) Relocations (8) - (8) -------- ---------- ------------ Trading area at 1 August 2010 1,262 297 1,559 Additions 3 5 8 Disposals (41) (17) (58) Relocations 13 3 16 Discontinued operations - (16) (16) -------- ---------- ------------ Trading area at 31 July 2011 1,237 272 1,509 -------- ---------- ------------ Average store size sq ft sq ft sq ft At 2 August 2009 1,919 1,657 1,864 At 1 August 2010 1,930 1,688 1,878 At 31 July 2011 1,931 1,746 1,895 Segmental information 4 (continued) Clinton Birthdays Continuing Discontinued Income statement Cards Retail operations operations Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 52 weeks ended 31 July 2011 Revenue (excluding VAT) 312,878 51,340 364,218 3,347 367,565 -------- ---------- ------------ ------------- --------- Adjusted operating profit/(loss) 7,004 (3,801) 3,203 (558) 2,645 Net impairment to property, plant and equipment (4,126) (1,560) (5,686) - (5,686) Charges in respect of onerous leases (1,819) (2,825) (4,644) (1,411) (6,055) Loss on sale of property, plant and equipment (574) (411) (985) - (985) -------- ---------- ------------ ------------- --------- Operating profit/(loss) as reported 485 (8,597) (8,112) (1,969) (10,081) Assets written off on liquidation - (1,360) (1,360) Net finance costs (2,550) - (2,550) ------------ ------------- --------- Loss before tax (10,662) (3,329) (13,991) Taxation (1,428) 386 (1,042) ------------ ------------- --------- Loss after tax (12,090) (2,943) (15,033) ------------ ------------- --------- 52 weeks ended 1 August 2010 Revenue (excluding VAT) 336,922 57,085 394,007 6,035 400,042 -------- ---------- ------------ ------------- --------- Adjusted operating profit/(loss) 19,354 (516) 18,838 (747) 18,091 Net impairment to property, plant and equipment (364) (113) (477) (180) (657) Charges in respect of onerous leases (1,189) - (1,189) - (1,189) Loss on sale of property, plant and equipment (833) (636) (1,469) - (1,469) -------- ---------- ------------ ------------- --------- Operating profit/(loss) as reported 16,968 (1,265) 15,703 (927) 14,776 Net finance costs (3,727) (25) (3,752) ------------ ------------- --------- Profit before tax 11,976 (952) 11,024 Taxation (3,646) - (3,646) ------------ ------------- --------- Profit after tax 8,330 (952) 7,378 ------------ ------------- --------- Clinton Birthdays Continuing Discontinued Cards Retail operations operations Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Balance Sheet Assets at 31 July 2011 126,742 23,741 150,483 - 150,483 Liabilities as at 31 July 2011 (61,649) (12,334) (73,983) - (73,983) --------- ---------- ------------ ------------- --------- Net assets excluding Group borrowings 65,093 11,407 76,500 - 76,500 --------- ---------- ------------ ------------- Group borrowings (53,527) --------- Net assets as at 31 July 2011 22,973 --------- Assets at 1 August 2010 116,731 21,644 138,375 1,795 140,170 Liabilities as at 1 August 2010 (52,608) (6,526) (59,134) (1,231) (60,365) --------- ---------- ------------ ------------- --------- Net assets excluding Group borrowings 64,123 15,118 79,241 564 79,805 --------- ---------- ------------ ------------- Group borrowings (41,566) --------- Net assets as at 1 August 2010 38,239 --------- Other segment information Clinton Birthdays Continuing Discontinued Cards Retail operations operations Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Non current assets 52 weeks ended 31 July 2011 Additions to property, plant and equipment 5,927 682 6,608 4 6,612 Depreciation 7,352 988 8,340 40 8,380 Impairment recognised in the period 4,511 1,602 6,113 - 6,113 Impairment reversed in the period (384) (43) (427) - (427) 52 weeks ended 1 August 2010 Additions to property, plant and equipment 2,860 1,465 4,325 - 4,325 Depreciation 8,279 1,208 9,487 - 9,487 Impairment recognised in the period 1,681 100 1,781 180 1,961 Impairment reversed in the period (1,317) 13 (1,304) - (1,304)
Revenue principally arises from the provision of goods. There are no sales between the business segments.
5 Discontinued operations
After a period of actively seeking to sell the Birthdays Ireland business, a decision was taken to explore alternative options. On 1 March 2011 following a petition placed before the Courts, Birthdays (Ireland) Limited was placed into liquidation. As control of the Company ceased at that date the results and assets were deconsolidated and treated as discontinued in the results of the 52 weeks ended 31 July 2011.
As a result, the prior period comparatives have been restated to remove the results of Birthdays (Ireland) Limited which are shown as discontinued operations.
52 weeks 52 weeks ended ended 31 July 1 August 2011 2010 GBP'000 GBP'000 Revenue 3,347 6,035 Expenses (3,905) (6,987) --------- --------- Loss before tax of discontinued operations (558) (952) Tax 386 - --------- --------- Loss after tax of discontinued operations (172) (952) Net assets written off at liquidation (1,360) - Provision for onerous lease (1,411) - --------- --------- (2,943) (952) --------- --------- The cash flows of Birthdays' Republic of Ireland operations up to the date of the liquidation are shown below: Operating cash flows 332 (661) Investing cash flows (4) (7) --------- --------- Total cash flows 328 (669) --------- --------- Balance Sheet Property, plant and equipment 455 491 Inventories 913 736 Deferred tax asset (116) (116) Trade and other receivables 279 379 Cash and cash equivalents 486 158 Trade, other payables and provisions (658) (484) --------- --------- Net assets written off relating to discontinued operations 1,360 1,165 --------- --------- Basic and diluted loss per share (pence) (1.42) (0.46) 6 Finance Costs Discontinued Continuing operations operations ------------------------ -------------------- 52 weeks 52 weeks 52 weeks 52 weeks 2011 2010 2011 2010 Finance income: GBP'000 GBP'000 GBP'000 GBP'000 Interest on bank deposits 96 253 - - Total finance income 96 253 - - ----------- ----------- --------- --------- Finance costs: Interest payable on bank loans and overdraft (2,008) (2,189) - - Amortisation of finance costs (984) (985) - - Total finance costs (2,992) (3,174) - - ----------- ----------- --------- --------- Change in fair value of derivative financial instruments 356 (824) - - ----------- ----------- --------- --------- Unwinding of property provision discount (10) (7) - - ----------- ----------- --------- --------- Finance costs - net (2,550) (3,752) - - ----------- ----------- --------- --------- 7 Taxation Discontinued Continuing operations operations ------------------------ -------------------- 52 weeks 52 weeks 52 weeks 52 weeks 2011 2010 2011 2010 Analysis of charge in period: GBP'000 GBP'000 GBP'000 GBP'000 UK corporation tax Current period 386 3,991 (386) - Previous periods (535) (584) - - ----------- ----------- --------- --------- Total current tax (credit)/charge (149) 3,407 (386) - ----------- ----------- --------- --------- Deferred tax Current period (1,065) (183) - - Previous periods 2,642 422 - - ----------- ----------- --------- --------- Total deferred tax charge 1,577 239 - - ----------- ----------- --------- --------- Taxation charge/(credit) for the period 1,428 3,646 (386) - ----------- ----------- --------- --------- Reconciliation between expected and actual tax charge: (Loss)/profit before taxation (10,662) 11,976 (3,329) (952) ----------- ----------- --------- --------- (Loss)/profit before tax at standard rate of UK corporation tax of 27.33% (2010: 28%) (2,914) 3,353 (910) (266) Tax rate differences 245 29 40 (29) Expenses not deductible for tax purposes 1,092 336 251 - Prior year adjustment to corporation tax (534) (584) - - Group relief surrendered (229) (222) 229 222 Non qualifying depreciation and disposal of fixed assets 1,126 312 4 73 Prior year adjustment to deferred tax 2,642 422 - - ----------- ----------- --------- --------- Taxation charge/(credit) for the period 1,428 3,646 (386) - ----------- ----------- --------- ---------
There is no tax associated with items within Other Comprehensive Income (2010: Nil)
8 Earnings per share
The basic earnings per share is calculated by dividing the (loss)/profit after taxation by the weighted average number of shares in issue during the period. For diluted earnings per share the weighted average number of ordinary shares is increased to assume conversion of all dilutive potential ordinary shares.
52 weeks to 31 July 52 weeks to 1 August 2011 2010 -------------------------------- -------------------------------- Weighted Weighted average Per average Per number share number share Earnings of shares amount Earnings of shares amount GBP'000s '000 pence GBP'000s '000 pence (Loss)/profit from continuing operations (12,090) 206,925 (5.84) 8,330 206,925 4.03 Loss from discontinued operations (2,943) - (1.42) (952) - (0.46) --------- ----------- -------- --------- ----------- -------- Basic (loss)/profit per share (15,033) 206,925 (7.26) 7,378 206,925 3.57 Effect of dilutive warrants issued - - - - 1,210 - --------- ----------- -------- --------- ----------- -------- Diluted (loss)/profit per share (15,033) 206,925 (7.26) 7,378 208,135 3.54 ========= =========== ======== ========= =========== ========
Supplementary earnings per share figures are presented as set out below. These exclude the effect of losses on sale of property, plant and equipment, the change in the fair value of financial instruments and exceptional items.
52 weeks to 31 July 52 weeks to 1 August 2011 2010 -------------------------------- -------------------------------- Weighted Weighted average Per average Per number share number share Earnings of shares amount Earnings of shares amount GBP'000s '000 pence GBP'000s '000 pence Basic (loss)/profit per share (15,033) 206,925 (7.26) 7,378 206,925 3.57 Net impairment to property, plant and equipment 5,686 - 2.74 477 - 0.23 Charges in respect of onerous leases 4,644 - 2.24 1,189 - 0.57 Loss from discontinued operations before tax 3,329 - 1.61 952 - 0.46 Change in fair value of financial instruments (356) - (0.17) 824 - 0.40 Loss on sale of property, plant and equipment 985 - 0.48 1,469 - 0.71 Related taxation effect (3,905) - (1.89) (1,375) - (0.66) --------- ----------- -------- --------- ----------- -------- Basic adjusted (loss)/profit from continuing operations (4,651) 206,925 (2.25) 10,914 206,925 5.28 Effect of dilutive warrants issued - - - - 1,210 (0.02) --------- ----------- -------- --------- ----------- -------- Diluted adjusted (loss)/ profit from continuing operations (4,651) 206,925 (2.25) 10,914 208,135 5.26 ========= =========== ======== ========= =========== ======== 9 Property, plant and equipment Freehold land Short Fixtures and leasehold and Motor Computer buildings property fittings Vehicles equipment Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Group Cost At 2 August 2009 5,585 16,730 82,961 2,108 8,722 116,106 Additions - 782 1,210 509 1,824 4,325 Disposals - (350) (2,651) (632) - (3,633) ----------- ----------- ---------- ---------- ----------- -------- At 1 August 2010 5,585 17,162 81,520 1,985 10,546 116,798 Additions - 929 2,715 436 2,532 6,612 Disposals - (643) (3,510) (356) (271) (4,780) Transfer to discontinued operations - (261) (2,023) - (40) (2,324) ----------- ----------- ---------- ---------- ----------- -------- At 31 July 2011 5,585 17,187 78,702 2,065 12,767 116,306 ----------- ----------- ---------- ---------- ----------- -------- Accumulated depreciation and impairment At 2 August 2009 325 6,755 39,379 1,442 3,001 50,902 Charge for the period 32 1,126 6,782 275 1,272 9,487 Impairment recognised in the period - 541 1,420 - - 1,961 Impairment reversed in the period - (355) (949) - - (1,304) Disposals - (238) (1,698) (474) - (2,410) ----------- ----------- ---------- ---------- ----------- -------- At 1 August 2010 357 7,829 44,934 1,243 4,273 58,636 Charge for the period 32 979 5,524 286 1,559 8,380 Impairment recognised in the period - 1,463 4,650 - - 6,113 Impairment reversed in the period - (194) (233) - - (427) Disposals - (324) (2,404) (257) (271) (3,256) Transfer to discontinued operations - (150) (1,694) - (25) (1,869) ----------- ----------- ---------- ---------- ----------- -------- At 31 July 2011 389 9,603 50,777 1,272 5,536 67,577 ----------- ----------- ---------- ---------- ----------- -------- Net book value at 31 July 2011 5,196 7,584 27,925 793 7,231 48,729 ----------- ----------- ---------- ---------- ----------- -------- Net book value at 1 August 2010 5,228 9,333 36,586 742 6,273 58,162 ----------- ----------- ---------- ---------- ----------- -------- 10 Inventories
Inventories represent finished goods for resale, excluding any inventories held on a sale or return basis. The value of sale or return inventories at 31 July 2011 was GBP1.0m (2010: GBP0.7m).
11 Trade and other receivables 31 July 1 August 2011 2010 GBP'000 GBP'000 Other receivables 1,780 957 Prepayments 17,137 16,925 -------- --------- 18,917 17,882 -------- --------- Movement on the provision for impairment of trade and other receivables are as follows: Beginning of financial period 4 214 Provision for receivables impairment 3 - Amounts utilised - (210) -------- --------- End of financial period 7 4 -------- --------- 12 Cash and cash equivalents 31 July 1 August 2011 2010 GBP'000 GBP'000 Cash in hand and at bank held in Sterling 14,749 5,427 Sterling equivalent of cash in hand and at bank held in Euros - 148 Short term deposits held in Sterling 4,924 1,650 19,673 7,225 -------- --------- 13 Trade and other payables 31 July 1 August 2011 2010 GBP'000 GBP'000 Trade payables 31,793 24,879 Other taxation and social security 3,710 3,980 Other payables 9,397 6,765 Deferred income 1,632 1,443 Other accruals 8,926 10,303 -------- --------- 55,458 47,370 -------- --------- 14 Provisions Onerous Employee leases benefits Total Group GBP'000 GBP'000 GBP'000 At 2 August 2009 1,556 108 1,664 Utilised in the period (337) (30) (367) Charged in the period 1,189 55 1,244 Unwinding of discount 7 - 7 -------- ---------- --------- At 1 August 2010 2,415 133 2,548 Utilised in the period (611) (83) (694) Charged in the period 6,055 74 6,129 Unwinding of discount 10 - 10 -------- ---------- --------- At 31 July 2011 7,869 124 7,993 -------- ---------- --------- The maturity profile of the provisions is as follows: As at As at 31 July 1 August 2011 2010 GBP'000 GBP'000 Within one year 5,221 639 ---------- --------- Current liabilities 5,221 639 ---------- --------- Between one and five years 2,031 1,816 More than five years 741 93 ---------- --------- Non current liabilities 2,772 1,909 ---------- --------- Total provisions 7,993 2,548 ---------- --------- The Company has no provisions. 15 Reconciliation of net debt Cash Borrowings Total Group GBP'000 GBP'000 GBP'000 Balance at 2 August 2009 9,056 (56,581) (47,525) Cash flow (1,831) 16,000 14,169 -------- ----------- --------- Amortisation of finance costs - (985) (985) Balance at 1 August 2010 7,225 (41,566) (34,341) -------- ----------- --------- Cash flow 12,448 (11,000) 1,448 Additional finance costs - 23 23 Amortisation of finance costs - (984) (984) -------- ----------- --------- Balance at 31 July 2011 19,673 (53,527) (33,854) Financing costs capitalised - (473) (473) -------- ----------- --------- Net debt before financing costs 19,673 (54,000) (34,327) ======== =========== ========= 16 Dividends
The directors are not proposing a final dividend in respect of the financial period ended 31 July 2011 (2010:Nil).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR MFBTTMBITTBB
1 Year Clinton Cards Chart |
1 Month Clinton Cards 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