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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 | 07:31:23 |
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 : 3670T
Leeds Group PLC
05 January 2017
LEEDS GROUP PLC
Interim Results for the six months ended 30 November 2016
STATEMENT BY THE GROUP CHAIRMAN, JAN G HOLMSTROM
I am pleased to present the interim report of Leeds Group plc ("the Group") for the six months ended 30 November 2016.
The business of Leeds Group is that of a wholesaler of fabrics and haberdashery, and is conducted by its German trading subsidiary Hemmers/Itex Textil Import Export GmbH ("Hemmers") and by Chinoh-Tex Limited, a subsidiary of Hemmers based in Shanghai. These trading companies sell both basic commodity fabrics and also fabrics from their own fashion collections. Approximately 55% of sales are to retailers, with remaining sales activities divided between the wholesale and garment manufacturing sectors.
The Group achieved sales in the period of GBP21,057,000 (2015: GBP18,489,000) and made a profit after tax of GBP848,000 (2015: GBP692,000). Earnings per share were 3.1 pence (2015: 2.5 pence). The weakness of sterling in recent months has had a material impact upon the Group's results. Sales growth of 13.9% over the first half of the previous financial year comprises a fall of 2.7% in sales at constant exchange rates, disguised by the translation effect of weaker sterling, which increased reported sales by 16.6%. Similarly, the translation effect on the balance sheet has increased net assets by GBP1,269,000 since the Group's year end on 31 May 2016. There has been a gain of some GBP300,000 in the value of the Euro denominated parent company loan to Hemmers, and this has been locked in by the use of derivatives. The Group's major transactional currency exposure relates to the value of the Euro against the US Dollar which, in contrast, has enjoyed a period of relative stability.
In Euro terms, revenue at Hemmers fell by 2.9% to EUR22,521,000 (2015: EUR23,203,000). Growth was achieved in the retail and garment manufacturing sectors but this was offset by reduced sales into the wholesale sector, caused in part by an inability to keep up with demand for double folded items, a problem now addressed with the expansion of facilities in Nordhorn and the acquisition of additional folding machines. The reduction in sales and an increased cost base led to a fall on pre-tax profit to EUR734,000 (EUR1,227,000).
The KMR joint venture opened new shops in Berlin, Leipzig and Chemnitz in the period, to bring the total number of stores to 19, and also relocated shops in two other cities to more suitable premises. A project is underway to implement common business software across all shops and the costs associated with this project and with the opening of new shops amounted to some EUR150,000, leading to a pre-tax loss in the period, albeit a little lower than had been budgeted. The business continues to trade in line with the expectations of the Directors, with sales 25% greater than the equivalent period of last year.
External sales revenues and pre-tax profits at Chinoh-Tex were little changed from last year. As well as its contribution to Group pre-tax profit, ChinohTex continues to perform invaluable work in support of its European parent operation through its purchasing strengths, its ability to inspect locally purchased product for quality issues and the consolidation of freight shipments that minimises the cost of shipping stock to Europe.
The expansion of our facilities in Nordhorn is beginning to deliver the expected operational benefits including: increased double folding capacity as noted above; elimination of external warehousing rental costs; creation of a suitable showroom and bringing the KMR administration and warehousing in-house.
Group net debt, which has increased substantially because of the recent property investments, was GBP5,549,000 at 30 November 2015 (30 November 2015: GBP579,000; 31 May 2016: GBP2,646,000). Net cash outflow in the 6 months ended 30 November 2016 reflected the seasonal increase in working capital and capital expenditure as the Nordhorn factory extension was completed. Working capital is expected to fall from its seasonally high level during the second half-year.
In order to maximise funds available for future investments and the investment in the Hemmers facility during the current year, the Board does not propose an interim dividend. Given the global economy with its uncertainties, the board is cautiously optimistic for further growth in the second half of the year. As ever, I offer thanks to our employees throughout the Group who have worked so hard in the period.
Jan G Holmstrom, Chairman.
4 January 2017
Unaudited Consolidated Statement of Comprehensive Income
for the 6 months ended 30 November 2016
6 months 6 months Year to to to 31 May 30 November 30 November 2016 2016 2015 GBP000 GBP000 GBP000 ---------------------------------------- -------------- -------------- ----------- Revenue 21,057 18,489 36,272 Cost of sales (16,492) (14,373) (28,563) ---------------------------------------- -------------- -------------- ----------- Gross profit 4,565 4,116 7,709 Distribution costs (1,308) (1,169) (2,216) Administrative expenses (2,036) (1,916) (3,949) Profit from operations 1,221 1,031 1,544 Finance expense (83) (39) (92) Finance income 1 2 4 Share of post-tax (loss)/profit of joint venture (65) 20 51 Profit before tax 1,074 1,014 1,507 Tax expense (226) (322) (468) ---------------------------------------- -------------- -------------- ----------- Profit for the period attributable to the equity holders of the Parent Company 848 692 1,039 ---------------------------------------- -------------- -------------- ----------- Other comprehensive income: Translation differences on foreign operations 1,269 (257) 693 Other comprehensive income for the period 1,269 (257) 693 ---------------------------------------- -------------- -------------- ----------- Total comprehensive income for the period attributable to the equity holders of the Company 2,117 435 1,732 ======================================== ============== ============== ===========
The results shown in the income statement derive wholly from continuing operations.
There is no tax effect relating to other comprehensive income.
Earnings 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 2016 2016 2015 ---------------------------- -------------- -------------- --------- Basic and diluted (pence) 3.1p 2.5p 3.8p ============================ ============== ============== =========
Unaudited Consolidated Statement of Financial Position
at 30 November 2016
As at As at As at 30 November 30 November 31 May 2016 2015 2016 GBP000 GBP000 GBP000 --------------------------------- -------------- -------------- --------- Assets Non-current assets Property, plant and equipment 7,444 2,271 5,864 Intangible assets 946 784 855 Investment in joint venture 642 559 640 Total non-current assets 9,032 3,614 7,359 --------------------------------- -------------- -------------- --------- Current assets Inventories 10,030 8,142 7,765 Trade and other receivables 7,633 6,255 5,779 Corporation tax recoverable 82 - - Derivative financial asset 102 112 - Cash and cash equivalents 1,681 2,875 1,612 Total current assets 19,528 17,384 15,156 --------------------------------- -------------- -------------- --------- Total assets 28,560 20,998 22,515 ================================= ============== ============== ========= Liabilities Non-current liabilities Loans and borrowings (4,205) (2,380) (3,843) Deferred tax (256) (254) (230) Total non-current liabilities (4,461) (2,634) (4,073) --------------------------------- -------------- -------------- --------- Current liabilities Trade and other payables (3,445) (2,847) (2,283)
Loans and borrowings (3,025) (1,074) (415) Derivative financial liability - - (40) Corporation tax liability - (204) (192) Total current liabilities (6,470) (4,125) (2,930) --------------------------------- -------------- -------------- --------- Total liabilities (10,931) (6,759) (7,003) ================================= ============== ============== ========= TOTAL NET ASSETS 17,629 14,239 15,512 ================================= ============== ============== ========= 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 (767) (743) (767) Foreign exchange reserve 1,911 (308) 642 Retained earnings 12,093 10,898 11,245 TOTAL EQUITY 17,629 14,239 15,512 ==================================== ======== ======== ========
Unaudited Consolidated Cash Flow Statement
for the 6 months ended 30 November 2016
6 months 6 months Year to to to 31 May 30 November 30 November 2016 2016 2015 GBP000 GBP000 GBP000 ------------------------------------------- -------------- -------------- --------- Cash flows from operating activities Profit for the period 848 692 1,039 Adjustments for: Depreciation 294 124 300 Finance expense 83 39 92 Finance income (1) (2) (4) Movement in derivative financial assets (145) (55) 99 Loss on sale of property, plant and equipment - - 1 Share of post-tax loss/(profit) of joint venture 65 (20) (51) Income tax expense 226 322 468 Cash flows from operating activities before changes in working capital and provisions 1,370 1,100 1,944 Increase in inventories (1,434) (1,070) (44) (Increase)/decrease in trade and other receivables (1,234) (382) 538 Increase/(decrease) in trade and other payables 668 277 (621) Cash (absorbed)/generated by operating activities (630) (75) 1,817 Income taxes paid (517) (390) (613) Net cash flows from operating activities (1,147) (465) 1,204 =========================================== ============== ============== ========= Investing activities Purchase of property, plant and equipment (1,248) (686) (4,156) Purchase of intangible assets (84) - - Bank interest received 1 2 4 Net cash used in investing activities (1,331) (684) (4,152) =========================================== ============== ============== ========= Financing activities Purchase of treasury shares - (18) (42) Net drawdown of bank borrowings 2,511 2,098 2,640 Bank interest paid (83) (39) (92) Net cash generated by financing activities 2,428 2,041 2,506 =========================================== ============== ============== ========= Net (decrease)/ increase in cash and cash equivalents (50) 892 (442) Translation gain/(loss) on cash and cash equivalents 119 (44) 27 Cash and cash equivalents at beginning of the period 1,612 2,027 2,027 Cash and cash equivalents at end of the period 1,681 2,875 1,612 =========================================== ============== ============== =========
Unaudited Consolidated Statement of Changes in Equity
for the six months ended 30 November 2016
Share Capital Treasury Foreign Retained Total capital redemption share exchange earnings equity reserve reserve reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ------------------------ ---------- ------------- ---------- ----------- ----------- --------- At 1 June 2016 3,792 600 (767) 642 11,245 15,512 Profit for the period - - - - 848 848 Other comprehensive income - - - 1,269 - 1,269 At 30 November 2016 3,792 600 (767) 1,911 12,093 17,629 ======================== ========== ============= ========== =========== =========== ========= Share Capital Treasury Foreign Retained Total capital redemption share exchange earnings equity reserve reserve reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ------------------------ ---------- ------------- ---------- ----------- ----------- --------- At 1 June 2015 3,792 600 (725) (51) 10,206 13,822 Profit for the period - - - - 692 692 Other comprehensive income - - - (257) - (257) Transaction with shareholders: Purchase of treasury shares - - (18) - - (18) At 30 November 2015 3,792 600 (743) (308) 10,898 14,239 ======================== ========== ============= ========== =========== =========== ========= Share Capital Treasury Foreign Retained Total capital redemption share exchange earnings equity reserve reserve reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ----------------------- ---------- ------------- ---------- ----------- ----------- --------- At 1 June 2015 3,792 600 (725) (51) 10,206 13,822 Profit for the year - - - - 1,039 1,039 Other comprehensive income - - - 693 - 693 Transaction with shareholders: Purchase of treasury shares - - (42) - - (42) At 31 May 2016 3,792 600 (767) 642 11,245 15,512 ======================= ========== ============= ========== =========== =========== =========
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
Interim results
for the 6 months ended 30 November 2016
Notes to the accounts
1. 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 2016 and 30 November 2015 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 financial information for the year ended 31 May 2016 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 31 May 2016 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 2016 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.
2. 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 2016 2016 2015 -------------- -------------- ------------ 27,435,843 27,532,496 27,506,459 ============== ============== ============
3. Reconciliation of movements in net bank debt
6 months 6 months Year to to to 31 May 30 November 30 November 2016 2016 2015 GBP000 GBP000 GBP000 ------------------------------------ -------------- -------------- --------- (Decrease)/increase in cash & cash equivalents (50) 892 (442) Translation gain/(loss) on cash and cash equivalents 119 (44) 27 Increase in loans (2,511) (2,098) (2,640) Translation (loss)/gain on loans (461) 75 (187) Net cash outflow (2,903) (1,175) (3,242) Net (bank debt)/cash at beginning of period (2,646) 596 596 Net bank debt at end of period (5,549) (579) (2,646) ==================================== ============== ============== =========
4. Analysis of net bank debt
6 months 6 months Year to to to 31 May 30 November 30 November 2016 2016 2015 GBP000 GBP000 GBP000 --------------------------------- -------------- -------------- --------- Cash 1,681 2,875 1,612 Loans repayable in less than one year (3,025) (1,074) (415) Loans repayable in more than one year (4,205) (2,380) (3,843) Net bank debt at end of period (5,549) (579) (2,646) ================================= ============== ============== =========
5. Segmental information
6 months 6 months Year to to to 31 May 30 November 30 November 2016 2016 2015 GBP000 GBP000 GBP000 ------------------------------- -------------- -------------- --------- External revenue Hemmers Europe 19,008 16,608 32,775 Hemmers China 2,049 1,881 3,497 Total Group external revenue 21,057 18,489 36,272 =============================== ============== ============== ========= 6 months 6 months Year to to to 31 May 30 November 30 November 2016 2016 2015 GBP000 GBP000 GBP000 ---------------------------------- -------------- -------------- --------- Profit before tax Hemmers Europe (local GAAP) 616 875 1,258 Share of post-tax (loss)/profit of JV (65) 20 51 IFRS adjustment - financial derivatives 89 55 (99) Hemmers Europe (IFRS) 640 950 1,210 Hemmers China 143 155 267 Unrealised profit in stock (2) (9) 3 Holding company 293 (82) 27 Group profit before tax 1,074 1,014 1,507 ================================== ============== ============== ========= 6 months 6 months Year to to to 31 May 30 November 30 November 2016 2016 2015 GBP000 GBP000 GBP000 ------------------------------------------ -------------- -------------- --------- Net assets Hemmers Europe (local GAAP) 12,660 10,024 11,117 IFRS adjustment - financial derivatives 33 80 (28) IFRS adjustment - goodwill amortisation 618 562 613 Hemmers Europe (IFRS) 13,311 10,666 11,702 Hemmers China 1,223 915 1,003 Unrealised profit in stock (37) (41) (32) Holding company 3,132 2,699 2,839 Group net assets 17,629 14,239 15,512 ========================================== ============== ============== ========= Enquiries: Leeds Group plc Cairn Financial Advisers LLP Malcolm Wilson Tony Rawlinson / Liam Murray 07801 224618 020 7213 0880
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR USANRBAAARAR
(END) Dow Jones Newswires
January 05, 2017 02:00 ET (07:00 GMT)
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