REG - Leeds Group PLC - Final Results & Notice of AGM
22/10/2024 07:00
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RNS Number : 0224J Leeds Group PLC 22 October 2024
Date: 22 October 2024
Leeds Group plc
("Leeds Group" or "the Group")
Final Results for the year ended 31 May 2024
and Notice of AGM
Leeds Group announces its audited final results of the Group for the year to
31 May 2024 and that its Annual General Meeting will be held at 11.30am on 20
November 2024 at the Radisson Blu Hotel, Chicago Avenue, Manchester Airport,
M30 3RA.
Strategic Report
Chairman's Statement
For many years, Hemmers, the main subsidiary of the Group, had been loss
making and the Directors had looked at all the various options available to
return Hemmers to profitability. In the end, the Directors believed that
Hemmers, in the long term, was not able to operate as a profitable standalone
entity and that the best interests of Hemmers would be better served as part
of a larger organisation reflecting the general consolidation that is taking
place in the textile market and thereby offering economies of scale in terms
of purchasing and sales. The Directors, therefore, concluded that it was in
the best interests of shareholders to sell Hemmers.
On 26 March 2024, Leeds Group announced that the sale of Hemmers had been
completed. The cash consideration of £501,000 was based on the net book value
of the assets of Hemmers, excluding its three properties, less an agreed
discount. The Group retained the three properties, through its subsidiary
company LG Nordhorn, and secured an agreement with Hemmers to lease all three
of the properties. However, Hemmers has recently given notice on one of the
properties effective 30 November 2024 and this property is now being marketed
for rental.
Following the sale, Leeds Group was considered to be an AIM Rule 15 cash shell
as it no longer had any substantial trading activities. Under the AIM Rules,
the Company had six months from the date of sale to either make an
acquisition, which would constitute a reverse takeover under Rule 14 of the
AIM Rules or be re-admitted to trading on AIM as an investing company under
the AIM Rules (which requires the raising of at least £6 million) failing
which its shares would then be suspended from trading on AIM pursuant to Rule
40 of the AIM Rules. As previously communicated, the Company has not been
able to meet these requirements and therefore, the Company's shares were
suspended from trading on the AIM market on 30 September 2024. Once
suspended, the Company's shares cannot be traded. The Company's shares will be
automatically cancelled from admission to the AIM market six months from the
date of suspension, should the reason for the suspension not have been
rectified.
The Directors have considered other trading platforms to the AIM market
including the AQSE Growth Market. However, an AQSE admission condition was
that the Company had a market capitalisation of a minimum of £2m.
Unfortunately, the Company has a current market capitalisation of £1.7m and,
therefore, the Company is not eligible to apply to the AQSE Growth Market at
present. However, the Directors are considering alternative options so that
shareholders will be able to trade their shares in the future.
The Directors will continue to work to secure the best outcome for all
shareholders and maximise the share value for shareholders.
Finance and Operating Review
Business review
Group Highlights
The Group sold its main trading subsidiary, Hemmers on 26 March 2024. Hemmers
is an international textile business engaged in designing, importing,
warehousing and wholesaling of fabrics from its base in Germany. The company
had struggled as a standalone business in the last few years and the Directors
believed that the sale was in both the Group and Company's best interests.
The cash consideration of £501,000 was based on the net book value of the
assets of Hemmers, excluding its three properties, less an agreed discount.
The Group retained the three properties, through its subsidiary company LG
Nordhorn, and secured an agreement with Hemmers to lease all three the
properties effective 30 November 2024. However, as Hemmers has recently
given notice to vacate one of the properties, the property is now being
marketed from rental.
The effect of the sale was as follows:
£000
Sale proceeds 501
Costs associated with the sale (685)
Net book value of net assets (2,634)
Loss on sale (2,818)
Included within the costs associated with the sale are costs associated with
the transfer of the properties to LG Nordhorn of £397,000.
Fixed Assets
The net book amount of tangible fixed assets is £5,045,000 which relates to
the freehold warehouse and office buildings in Nordhorn, Germany retained by
the Group following the sale of Hemmers. The properties are leased back to
its former subsidiary, Hemmers and are regarded as investment properties in
these financial statements.
Working Capital and Cash Flow
The Group has loans of £1,704,000 with KSK Bank which are secured on the
properties. The long-term loan of £1,022,000 is secured on the properties and
is payable in monthly equal instalments commencing 15 December 2024 until 15
August 2028. The short-term loan of £682,000 is also secured on the
properties. This is repayable by 25 February 2025; the loan may be repaid
earlier depending on whether the Company receives the proceeds of the German
withholding tax refund of £548,000 or monies expected from the KMR insolvency
of £660,000. The expected distribution from the KMR insolvency still needs to
be confirmed by a German Insolvency Court.
The Group monitors its working capital requirements to ensure it operates
within its current banking facilities. During the year, the two major
shareholders (through companies controlled by them) provided bridge financing
loans amounting to €2m to assist with funding costs associated with the sale
of Hemmers. The loans were substantially repaid (€1.9m) by the year end
through securing loans from KSK Bank.
Net Asset Value
Net assets decreased in the year by £6,091,000 as follows:
Net assets Per share
£000 pence
At 31 May 2023 10,439 38.2
Loss after tax (3,942) (14.4)
Foreign currency reserve (2,149) (7.9)
At 31 May 2024 4,348 15.9
Principal risks and uncertainties
The Board has identified the main categories of business risk in relation to
the Group's strategic aims and objectives, and has considered reasonable steps
to prevent, mitigate and manage these risks. The principal risk identified
is as follows:
Funding risk
The Group has a combination of a short-term loan and long-term loan both
secured on the Group's freehold premises. The Group remains dependent upon the
support of the funder of these loans. The Group has close working
relationships with their current funder but believes alternative banking
funders could be secured if required.
The Directors consider that there will be sufficient headroom available within
its working capital facility and, therefore, the Directors are of the opinion
that it is appropriate to apply the going concern basis of preparation to the
financial statements.
However, the Directors do recognise that there is a material uncertainty that
may cast significant doubt on the Company's ability to continue as a going
concern, as referred to in Note 1.
Section 172 Report
Leeds Group is committed to acting ethically and with integrity throughout all
its business dealings and relationships. It is important to the Company and
its subsidiaries that trusted business relationships are established and
maintained with key stakeholders, customers and suppliers and that it invests
in and supports all its employees equally.
The Directors have always acted in accordance with their lawful duties, which
includes their duty to act in good faith to promote the success of the Group
for the benefits of its shareholders, having regard to its stakeholders and
matters set out in Section 172 (1) of the Companies Act 2006.
The Directors have regard (among other matters) to the following:
(a) the likely consequences of any decision in the long term;
(b) the interests of the company's employees;
(c) the need to foster the company's business relationships with
suppliers, customers and others;
(d) the impact of the company's operations on the community and the
environment;
(e) the desirability of the company maintaining a reputation for high
standards of business conduct; and
(f) the need to act fairly as between members of the company.
Section 172 considerations are embedded throughout the decision making of the
Board. Issues, factors and risks which the Directors have considered when
discharging their duty under section 172 (1) are further detailed in the
Chairman's Statement, Directors' Report and Corporate Governance Report
contained within these report and accounts.
The two major shareholders are represented as non-executive members on the
Board. The Board recognises the importance of effective and transparent
dialogue with shareholders and ensuring that non-management shareholders
understand and support the Group's strategy and objectives. The Board meet
quarterly on as formal basis, and ad hoc, as necessary, throughout the year.
The Board is more than happy to engage with shareholders at any time and
answer questions they may have. The AGM is a formal meeting at which to have
this dialogue.
The Board looks to ensure the systems, processes and controls established to
manage its businesses to the highest standards. The properties owned by LG
Nordhorn, are managed by Langer ProjektPlus GmbH, an external property
management company. Regular dialogue is maintained with the management
company. Staff employed by Leeds Group are encouraged to discuss any concerns
or issues they may have with their line manager who are always available to
meet staff if necessary.
The strategic report was approved by the Board of Directors on 21 October 2024
and signed on its behalf by:
Jan G Holmstrom
Non-Executive Chairman
Consolidated Statement of Comprehensive Income
for the year ended 31 May 2024
Year ended 31 May 2024 Year ended 31 May 2023
Discontinued Continuing Discontinued Continuing
operations operations Total operations operations Total
£000 £000 £000 £000 £000 £000
Revenue 16,752 76 16,828 27,817 - 27,817
Cost of sales (12,739) - (12,739) (22,383) - (22,383)
Gross profit 4,013 76 4,089 5,434 - 5,434
Distribution costs (1,127) - (1,127) (2,203) - (2,203)
(Loss)/gain on discontinued operations
Administrative costs
(2,818) - (2,818) 138 - 138
(3,073) (448) (3,521) (3,820) (229) (4,049)
Total administrative costs (5,891) (448) (6,339) (3,682) (229) (3,911)
Other income - - - 171 - 171
Loss from operations (3,005) (372) (3,377) (280) (229) (509)
Finance expense (386) (41) (427) (384) - (384)
Loss before tax (3,391) (413) (3,804) (664) (229) (893)
Tax (charge)/credit (138) - (138) 53 - 53
Loss for the year attributable to the equity holders of the Parent Company
(3,529) (413) (3,942) (611) (229) (840)
Other comprehensive (loss)/profit
Translation differences on foreign operations
(19) 3 (16) 102 - 102
Total comprehensive loss for the year attributable to the equity holders of
the Parent Company
(3,548) (410) (3,958) (509) (229) (738)
There is no tax effect relating to other comprehensive income/(loss) for the
year. Amounts included in other comprehensive income/(loss) may be
reclassified subsequently as profit or loss.
Loss per share attributable to the equity holders of the Company
Year ended Year ended
31 May 2024 31 May 2023
Basic and diluted total loss per share (pence) 14.4p 3.1p
Consolidated Statement of Financial Position
at 31 May 2024
31 May 2024 31 May 2023
£000 £000
Assets
Non-current assets
Investment property 5,045 -
Property, plant, and equipment - 6,487
Right-of-use assets - 207
Intangible assets - 46
Total non-current assets 5,045 6,740
Current assets
Inventories - 8,218
Trade and other receivables 710 3,199
Other receivables 548 -
Cash on demand and on short term deposit 44 234
Total current assets 1,302 11,651
Total assets 6,347 18,391
Liabilities
Non-current liabilities
Loans and borrowings (883) (544)
Lease liabilities - (112)
Total non-current liabilities (883) (656)
Current liabilities
Trade and other payables (295) (1,353)
Loans and borrowings (821) (5,502)
Lease liabilities - (97)
Provisions - (344)
Total current liabilities (1,116) (7,296)
Total liabilities (1,999) (7,952)
TOTAL NET ASSETS 4,348 10,439
Capital and reserves attributable to
equity holders of the Company
Share capital 3,279 3,279
Capital redemption reserve 1,113 1,113
Foreign exchange reserve 3 2,152
Retained earnings (47) 3,895
TOTAL EQUITY 4,348 10,439
The financial statements were approved and authorised for issue by the Board
of Directors on 21 October 2024 and were signed on behalf of the Board by:-
Jan G Holmstrom
Non-Executive Chairman
Consolidated Cash Flow Statement
for the year ended 31 May 2024
Year ended Year ended
31 May 2024 31 May 2023
£000 £000
Cash flows from operating activities
Loss for the year (3,942) (840)
Adjustments for:
Government assistance credit - (59)
Depreciation of investment property 96 -
Depreciation of property, plant and equipment 402 608
Depreciation of right-of-use assets 92 103
Amortisation of intangible assets 5 6
Finance expense - interest on other loans 36 -
Finance expense - interest on bank loans 385 347
Finance expense - interest lease liabilities 6 37
Gain on sale of property, plant and equipment - (142)
Loss on sale of right-of-use assets - 3
Loss/(gain) on discontinued operations 2,818 (138)
Tax charge/(credit) 138 (53)
Cash from/(used in) operating activities before changes in working capital and
provisions
36 (128)
Decrease in inventories 265 2,744
Decrease/(increase) in trade and other receivables 121 (404)
Increase/(decrease) in trade and other payables 157 (101)
Cash generated from operating activities 579 2,111
Tax paid (686) (32)
Net cash flows (used in)/generated from operating activities (107) 2,079
Investing activities
Purchase of property, plant and equipment (22) (51)
Proceeds from the sale of fixed assets 86 521
Net costs from disposal of subsidiary (844) -
Net cash (used in)/generated from investing activities (780) 470
Financing activities
Bank borrowings drawn 1,720 -
Bank borrowing disposed of 5,535 868
Bank borrowings repaid (6,032) (539)
Repayment of principal on lease liabilities (92) (661)
Repayment of interest on lease liabilities (6) (37)
Other interest paid (36) -
Bank interest paid (385) (347)
Government assistance received - 59
Net cash generated from/(used in) financing activities 704 (657)
Net (decrease)/increase in cash and cash equivalents (183) 1,892
Translation loss on cash and cash equivalents - (3)
Cash and cash equivalents at the beginning of the year 234 126
Cash and cash equivalents disposed of (7) (1,781)
Cash and cash equivalents at the end of the year 44 234
Consolidated Statement of Changes in Equity
for the year ended 31 May 2024
Share capital Capital redemption reserve Foreign exchange reserve Retained earnings Total
£000 £000 equity
£000 £000
£000
At 31 May 2022 3,279 1,113 2,050 4,735 11,177
(Loss) for the year - - - (840) (840)
Other comprehensive income - - 102 - 102
Total comprehensive income/(loss) - - 102 (840) (738)
At 31 May 2023 3,279 1,113 2,152 3,895 10,439
(Loss) for the year - - - (3,942) (3,942)
Realisation on disposal of subsidiary - - (2,133) - (2,133)
Other comprehensive (loss) - - (16) - (16)
Total comprehensive (loss) - - (2,149) (3,942) (6,091)
At 31 May 2024 3,279 1,113 3 (47) 4,348
The following describes the nature and purpose of each reserve within equity:
Reserve Description and purpose
Share capital The nominal value of issued ordinary shares in the Company.
Capital redemption reserve Amounts transferred from share capital on redemption of issued shares.
Treasury share reserve Cost of own shares held in treasury.
Foreign exchange reserve Gains/(losses) arising on retranslation of the net assets of overseas
operations into sterling.
Retained earnings Cumulative net gains/(losses) recognised in the consolidated statement of
comprehensive income after deducting the cost of cancelled treasury shares.
Notes
1. Basis of preparation
The Group financial statements have been properly prepared in accordance with
UK adopted International Financial Reporting Standards (UK adopted IFRS) and
in accordance with the Companies Act 2006.
Going Concern
When considering its opinion about the application of the going concern basis
of preparation of the financial statements to 31 May 2024, the Directors have
given due consideration to:
· The future plans of the Group and the robustness of forecasts
for the next 12 months from the approval of these financial statements, which
return the Group to a modest profit.
· The financing facilities available to the Group and the
circumstances in which these could be limited or withdrawn.
Future plans and forecasts
The Group's principal activity is owning and managing a portfolio of
investment properties in Germany through its subsidiary. In making the going
concern assessment, the Board has considered the Group's current financial
position, its ability to meet future rental income targets, and expected
operational expenses, including property maintenance, taxes, and
administrative costs.
Forecasts have been prepared for the next 12 months from the approval of these
financial statements which indicate a return to modest profit over that
period. The key assumptions include continued payment of rental income in
accordance with the lease agreements, estimated future costs and the continued
support of lenders. The rental income is deemed to be sufficient to cover the
forecast costs of the Group and the rental agreements are in place until
November 2028. The forecasts also take into account reasonably possible
changes in trading performance and external market factors, including an
assessment of potential risks related to rental income fluctuations, occupancy
rates, and any material changes in property values.
Financing facilities
The Parent Company, which has no bank borrowing facilities, is located in the
UK. The property rental business, LG Nordhorn located in Germany has two
loans as follows, repayment terms are set out in note 7:
· A short-term loan of €0.8m (£0.7m) secured on the properties at
Nordhorn.
· A long-term loan of €1.2m (£1.0m) secured on the properties at
Nordhorn.
The Directors consider there will be sufficient operational cash flow
generated within the business and, therefore, the Directors believe that the
Group will continue to operate as a going concern for the next 12 months and
beyond from the approval of these financial statements. The financial
statements have, therefore, been prepared on a going concern basis. However,
the Directors acknowledge that a material uncertainty exists which may cast
significant doubt on the Group's ability to continue as a going concern. This
is in relation to the recoverability of two receivables included in the Group
accounts, the refund of the German withholding tax paid and monies expected
from the KMR insolvency. Should these receivables be received later than
expected, additional financial support from the bank or major shareholder may
be required to facilitate the repayment of debt due within the next 12 months.
2. Dividends
The Directors do not recommend the payment of a dividend in 2024 (2023:
£nil).
3. Loss per share
Year ended 31 May 2024
Loss per share Discontinued Continuing
operations operations Total
Numerator
Total loss for the year £3,529,000 £413,000 £3,942,000
Denominator
Weighted average number of shares 27,320,843 27,320,843 27,320,843
Basic and diluted loss per share 12.9p 1.5p 14.4p
Year ended 31 May 2023
Loss per share Discontinued Continuing
operations operations
Total
Numerator
Total loss for the year £611,000 £229,000 £840,000
Denominator
Weighted average number of shares 27,320,843 27,320,843 27,320,843
Basic and diluted loss per share 2.2p 0.8p 3.1p
Since there are no outstanding share options, there is no difference between
basic and diluted earnings per share.
4. Discontinued operations
Year ended 31 March 2024
On 26 March 2024, the sale of Hemmers was completed. The effect of the sale is
as follows:
Hemmers balance sheet at completion date Sale IFRS Total
£000 costs adj
£000 £000 £000
Sale proceeds - 501 - 501
Costs associated with the sale - (1,345) - (1,345)
Fixed assets (873) - (115) (988)
Current assets less current liabilities (9,424) 660 - (8,764)
Finance lease liability - - 117 117
Foreign currency reserve 2,133 - - 2,133
(8,164) (685) 2 (8,847)
Cash (7) - - (7)
Loan 5,535 - - 5,535
Net cash effect 5,528 - - 5,528
(Loss)/profit on sale (2,636) (184) 2 (2,818)
There are no contingent warranties that need to be included in these financial
statements.
As part of the sale, the properties held by Hemmers at Nordhorn in Germany
were transferred to LG Nordhorn and retained within the Group as an investment
property. Hemmers have entered into lease agreements to lease back the
properties.
Year ended 31 March 2023
On 7 October 2022, the German Courts accepted Hemmers' management decision to
place its subsidiary KMR into an insolvency process. The insolvency process
is ongoing although full control passed to the insolvency administrator on 1
January 2023 and at that point KMR ceased to be a subsidiary within the Group.
The gain has arisen due to the assets being transferred to the insolvency
administrator and any IFRS adjustments reversed. There was no tax impact on
the gain which arose on transfer.
KMR balance sheet at insolvency date IFRS adj Total
£000
£000 £000
Fixed assets (136) 133 (3)
Current assets less current liabilities 254 (213) 41
Finance lease liability - 1,360 1,360
Provision - (347) (347)
118 933 1,051
Cash (1,781) - (1,781)
Loan 868 - 868
Net cash effect (913) - (913)
(Loss)/gain on transfer (795) 933 138
Cash flows (used in)/generated from discontinued operations
Year ended Year ended
31 May 2024 31 May 2023
£000 £000
Net cash generated from operating activities 32 2,090
Net cash (used in)/generated from investing activities (780) 470
Net cash generated from/(used in) financing activities 745 (657)
Net cash flows for the year (3) 1,903
5. Segmental information
The discontinued operations relate to the previous textile trading segment and
the continuing operations relate to the investment rental operation. The
following tables set out a segmental analysis of the Group's operations.
Year ended 31 May 2024 Discontinued Continuing
operations operations Total
£000 £000 £000
External revenue 16,752 76 16,828
Cost of sales (12,739) - (12,739)
Gross profit 4,013 76 4,089
Distribution costs (1,127) - (1,127)
Admin expenses (5,891) (448) (6,339)
Operating loss (3,005) (372) (3,377)
Finance expense (386) (41) (427)
Loss before tax (3,391) (413) (3,804)
At 31 May 2024 Discontinued Continuing
operations operations Total
£000 £000 £000
Total assets - 6,347 6,347
Total liabilities - (1,999) (1,999)
Total net assets - 4,348 4,348
Year ended 31 May 2023 Discontinued Continuing
operations operations Total
£000 £000 £000
External revenue 27,817 - 27,817
Cost of sales (22,383) - (22,383)
Gross profit 5,434 - 5,434
Distribution costs (2,203) - (2,203)
Admin expenses (3,682) (229) (3,911)
Other income 171 - 171
Operating loss (280) (229) (509)
Finance expense (384) - (384)
Loss before tax (664) (229) (893)
At 31 May 2023 Discontinued operations Continuing
operations Total
£000 £000 £000
Total assets 12,860 5,531 18,391
Total liabilities (7,852) (100) (7,952)
Total net assets 5,008 5,431 10,439
6. Other receivables
31 May 2024 31 May 2023
£000 £000
Other receivables 548 -
Other receivables 548 -
Other receivables comprise the expected German withholding tax refund of
£548,000.
7. Loans and borrowings
The book value of loans and borrowings are as follows:
31 May 2024 31 May 2023
£000 £000
Current
Secured bank loans 821 5,502
Non - current
Secured bank loans 883 544
Total loans and borrowings 1,704 6,046
The carrying values are considered to be a reasonable approximation of fair
value.
Current loans and borrowings
At 31 May 2024 current loans and borrowings of £821,000 (2023: £5,502,000)
comprise short term loans of £682,000 (2023: £5,201,000) and instalments due
on long term loans of £139,000 (2023: £301,000). The interest rate on the
short-term loan is 5.93% (2023: £1.5% to 3%) and the loan is secured on
properties at Nordhorn, Germany as are the long-term loans. The short-term
loan is repayable by 28 February 2025.
Non-current loans and borrowings
The Group's loans and borrowings are denominated in Euros, and their principal
terms were as follows:
Fixed Repayment Final repayment date 31 May 2024 31 May 2023
Interest rate profile £000 £000
Loan 1 1.65% Equal quarterly instalments September 2025 - 358
Loan 2 1.05% Equal quarterly instalments March 2026 - 186
Loan 3 4.10% Equal quarterly instalments from 15 December 2025 August 2028 883 -
Non-current loans 883 544
8. Other information
The financial information in this financial results announcement has been
prepared by the Directors using the recognition and measurement principles of
United Kingdom adopted International Financial Reporting Standards ("UK
adopted IFRS"). The financial information for the year ended 31 May 2024 does
not constitute the statutory accounts of the Company for 2023 and 2024 but are
extracted from the audited accounts.
The statutory accounts for the year ended 31 May 2024 and 31 May 2023 have
been reported on by MHA, Statutory Auditor. The Independent Auditor's Report
on the Annual Report and Financial Statements for both 2024 and 2023 was
qualified and did not draw attention to any matters by way of emphasis. Both
the Financial Statements for 2024 and 2023 did not contain a statement under
498(2) or 498(3) of the Companies Act 2006.
· The Independent Auditor's Report on the Annual Report and
Financial Statements for the year ended 31 May 2024 was qualified on the basis
that they were unable to obtain sufficient appropriate audit evidence to
verify the recoverability of the monies expected from the KMR insolvency of
£660,000 included in trade receivables in the balance sheet.
· The Independent Auditor's Report on the Annual Report and
Financial Statements for the year ended 31 May 2023 was qualified on the basis
that they were unable to obtain sufficient audit evidence in respect of the
subsidiary KMR and its performance, as stated within the Consolidated
Statement of Comprehensive Income under discontinued operations.
In auditing the financial statements for the year ended 31 May 2024, the Group
Auditors have concluded that the Directors' use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
However, the Independent Auditor's Report draws attention to note 2 in the
Group financial statements (note 1 above) which states that the Group and
Parent Company's operational existence is dependent on the recovery of German
withholding tax and monies due back from the KMR insolvency. The impact of
this together with other matters indicate that a material uncertainty exists
that may cast significant doubt on the Group's ability to continue as a going
concern. The auditor's opinion not modified in respect of this matter. An
extract from the Independent Auditor's Report is set out below:
We draw your attention to Note 2 in the financial statements which indicates
that the Group and Parent Company's operational existence is dependent on the
recovery of German withholding tax and monies due back from the KMR
liquidator. Should these receivables become overdue or be received late,
additional financial support may be required to facilitate the repayment of
debt due within the next 12 months. The impact of this together with other
matters set out in the note, indicate that a material uncertainty exists that
may cast significant doubt on the Group's ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the Directors'
use of the going concern basis of accounting in the preparation of the
financial statements is appropriate. Our evaluation of the Directors'
assessment of the Group and Parent Company's ability to continue to adopt the
going concern basis of accounting included:
Our evaluation of the Directors' assessment of the Group's and the Parent
Company's ability to continue to adopt the going concern basis of accounting
included:
· The consideration of inherent risks to both the Group's and the
Parent Company's operations and specifically their business model.
· The evaluation of how those risks might impact on the Group's
available financial resources.
· Review of the mathematical accuracy of the cashflow forecast
model prepared by management and corroboration of key inputs and assumptions
to supporting documentation for consistency of assumptions used with our
knowledge obtained during the audit.
· Challenging management for reasonableness of assumptions in
respect of the timing and quantum of cash receipts and payments included in
the cash flow model.
· Holding discussions with management regarding future financing
plans, corroborating these where necessary and assessing the impact on the
cash flow forecast.
· Review of the Group's external debt exposure to determine if
any future repayments have been included within the Group's cash flow
projections.
· Holding discussions with management and completing reviews of
any events after the reporting period to identify if these may impact on the
Group's ability to continue as a going concern.
The statutory accounts for the year ended 31 May 2023 have been filed with the
Registrar of Companies. The statutory accounts for the year ended 31 May 2024
will be delivered to the Registrar of Companies following the Annual General
Meeting. The Annual Report and Financial Statements giving notice of the 2024
Annual General Meeting, have been today published on the Group's website at
www.leedsgroup.plc.uk (http://www.leedsgroup.plc.uk) and have been sent to
those shareholders who have elected to receive a hard copy of the Annual
Report and Financial Statements by the post.
The Annual General Meeting will be held at
11.30am on 20 November 2024 at the Radisson Blu Hotel, Chicago Avenue,
Manchester Airport, M30 3RA.
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and has been arranged for release by Jan G Holmstrom,
Non-Executive Chairman. The Directors of the Company are responsible for the
release of this announcement.
Enquiries:
Leeds Group plc Tel: 01937 547877
Dawn Henderson
Cairn Financial Advisers LLP Tel: 020 7213 0880
Nominated Adviser
Sandy Jamieson / Liam Murray / James Western
Note:
Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not a guarantee of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders and
prospective security holders not to place undue reliance on these
forward-looking statements, which reflect the view of the Company only as of
the date of this announcement. The forward-looking statements made in this
announcement relate only to events as of the date on which the statements are
made. The Company will not undertake any obligation to release publicly any
revisions or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of this
announcement except as required by law or by any appropriate regulatory
authority.
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