REG - Leeds Group PLC - Half-year Report
23/01/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230123:nRSW4753Na&default-theme=true
RNS Number : 4753N Leeds Group PLC 23 January 2023
Issued on behalf of Leeds Group
plc
Embargoed: 7.00am
Date: 23 January 2023
Leeds Group plc
("Leeds Group" or "the Group" or "the Company'')
Unaudited Interim Results for the six months ended 30 November 2022
The unaudited interim results of Leeds Group for the six months ended 30
November 2022 are presented as follows:
This announcement contains inside information for the purposes of UK Market
Abuse Regulation and has been arranged for release
by Jan G Holmstrom, Chairman. The Directors of the Company accept
responsibility for the content of this announcement.
Enquiries:
Leeds Group
plc Cairn
Financial Advisers LLP
Dawn Henderson - 01937 547877 Sandy Jamieson / Liam Murray - 020
7213 0880
Chairman's Statement
The continuing activities of the Group are that of a textile wholesaler and
are conducted through its German trading subsidiary Hemmers-Itex Textil Import
Export GmbH ("Hemmers"). Stoff-Ideen-KMR GmbH ("KMR"), a subsidiary of
Hemmers, was placed into an insolvency process on 7 October 2022.
The Group's turnover in the first six months of the financial year is in line
with last year at £15,575,000 (2021: £15,592,000): The Group made a reduced
loss before tax of £224,000 (2021: loss of £487,000).
Hemmer's turnover increased slightly to £12,679,000 (2021: £12,668,000) and
the company made a loss of £164,000 (2021: loss of £192,000). Trading is
currently in line with forecast and the cost cutting measures taken last year
are providing a good platform on which to rebuild a profitable business.
KMR's turnover decreased to £2,896,000 (2021: £2,924,000) and the company
made a loss of £75,000 (2021: loss of £242,000). A property owned by KMR was
sold in the period realising £517,000 and resulted in a gain of £138,000.
Although in insolvency, KMR is still trading as it sells down the stock held
in its shops.
Group net bank debt, as analysed in note 5, was £6,131,000 as at 30 November
2022 (30 November 2021: £5,877,000; 31 May 2022: £6,381,000). Cash at bank
as at 30 November was £1,845,000, of which £1,677,000 related to KMR. This
will be used by the insolvency administrator to pay any outstanding KMR
liabilities including £863,000 of bank debt.
The Board and the Hemmers management are committed to returning Hemmers to
profitability and with the KMR insolvency, they can focus solely on achieving
this goal.
Jan G Holmstrom
Chairman
23 January 2023
Consolidated Statement of Comprehensive Income
for the six months ended 30 November 2022
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Continuing operations
Revenue 15,575 15,592 29,590
Cost of sales (12,666) (12,514) (24,121)
Gross profit 2,909 3,078 5,469
Distribution costs (1,363) (1,250) (2,483)
Impairment of assets - - (1,662)
Administrative costs (1,664) (2,188) (4,461)
Total administrative costs (1,664) (2,188) (6,123)
Other income 75 - 147
Total loss from operations (43) (360) (2,990)
Finance expense (181) (127) (255)
Loss before taxation (224) (487) (3,245)
Taxation 113 - (4)
Loss for the period/year attributable to the equity holders of the Parent
Company
(111) (487) (3,249)
Other comprehensive income/(loss) for the period/year
130 (101) (135)
Total comprehensive income/(loss) for the period/year attributable to the equity holders of the Company
19 (588) (3,384)
Loss per share for profit attributable to the equity holders of the Company
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 November 30 November 31 May
2022 2021 2022
Basic and diluted total loss
per share (pence) 0.4p 1.8p 11.9p
Consolidated Statement of Financial Position
at 30 November 2022
Unaudited Unaudited Audited
As at As at As at
30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Assets
Non-current assets
Property, plant and equipment 6,689 7,631 7,335
Right-of-use assets 173 2,175 170
Intangible assets 53 57 52
Total non-current assets 6,915 9,863 7,557
Current assets
Inventories 11,227 12,446 11,994
Trade and other receivables 3,472 3,755 2,864
Corporation tax recoverable - 61 13
Cash and cash equivalents 1,845 216 471
Total current assets 16,544 16,478 15,342
Total assets 23,459 26,341 22,899
Liabilities
Non-current liabilities
Loans and borrowings (697) (987) (836)
Lease liabilities (953) (1,006) (1,165)
Total non-current liabilities (1,650) (1,993) (2,001)
Current liabilities
Trade and other payables (2,699) (3,649) (3,065)
Loans and borrowings (7,279) (5,102) (5,671)
Lease liabilities (635) (1,524) (885)
Provisions - (100) (100)
Total current liabilities (10,613) (10,375) (9,721)
Total liabilities (12,263) (12,368) (11,722)
TOTAL NET ASSETS 11,196 13,973 11,177
Capital and reserves attributable to
equity holders of the Company
Share capital 3,279 3,279 3,279
Capital redemption reserve 1,113 1,113 1,113
Foreign exchange reserve 2,180 2,084 2,050
Retained earnings 4,624 7,497 4,735
TOTAL EQUITY 11,196 13,973 11,177
Consolidated Cash Flow Statement
for the six months ended 30 November 2022
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Cash flows from operating activities
Loss for the period/year (224) (487) (3,249)
Adjustments for:
Government assistance credit - - (119)
Depreciation of property, plant and equipment 399 334 735
Impairment of property, plant and equipment - - 42
Depreciation of right-of-use assets 56 461 827
Impairment of right-of-use assets - - 1,620
Amortisation of intangible assets - - 5
Finance expense - interest on bank loans 153 89 179
Finance expense - interest on lease liabilities 28 38 76
Gain on sale of property (138) - -
Taxation credit - - 4
Cash flows generated from operating activities before changes in working
capital and provisions
274 435 120
Decrease/(increase) in inventories 947 (2,254) (1,818)
(Increase) in trade and other receivables (1,169) (677) (43)
Increase in trade and other payables 499 1,386 722
Cash generated from/(used in) operating activities 551 (1,110) (1,019)
Taxation received 28 73 114
Net cash flows generated from/(used in) operating activities
579 (1,037) (905)
Investing activities
Purchase of property, plant and equipment (22) (283) (447)
Proceeds from sale of property 517 -
Net cash generated from/(used in) investing activities 495 (283) (447)
Financing activities
Bank borrowings drawn 1,515 2,272 2,835
Bank borrowings repaid (150) (564) (708)
Repayment of principal on lease liabilities (542) (519) (983)
Repayment of interest on lease liabilities (28) (38) (76)
Bank interest paid (153) (89) (179)
Government assistance received - - 119
Net cash generated from financing activities 642 1,062 1,008
Net increase/(decrease) in cash and cash equivalents 1,716 (258) (344)
Translation gain/(loss) on cash and cash equivalents 3 (2) (2)
Cash and cash equivalents at beginning of period/year 126 472 472
Cash and cash equivalents at end of period/year 1,845 212 126
Cash on demand or on short term deposit 1,845 216 471
Bank overdrafts - (4) (345)
Cash and cash equivalents at end of period/year 1,845 212 126
Consolidated Statement of Changes in Equity
for the six months ended 30 November 2022
Unaudited Share capital Capital redemption reserve Foreign exchange reserve Retained earnings Total equity
£000 £000
£000 £000 £000
At 1 June 2022 3,279 1,113 2,050 4,735 11,177
Loss for the period - - - (111) (111)
Other comprehensive income - - 130 - 130
At 30 November 2022 3,279 1,113 2,180 4,624 11,196
Unaudited Share capital Capital redemption reserve Foreign exchange reserve Retained earnings Total equity
£000 £000
£000 £000 £000
At 1 June 2021 3,279 1,113 2,185 7,984 14,561
Loss for the period - - - (487) (487)
Other comprehensive loss - - (101) - (101)
At 30 November 2021 3,279 1,113 2,084 7,497 13,973
Audited Share capital Capital redemption reserve Foreign exchange reserve Retained earnings Total equity
£000 £000
£000 £000 £000
At 1 June 2021 3,279 1,113 2,185 7,984 14,561
Loss for the year - - - (3,249) (3,249)
Other comprehensive loss - - (135) - (135)
At 31 May 2022 3,279 1,113 2,050 4,735 11,177
The following describes the nature and purpose of each reserve within equity:
Reserve Description and purpose
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 to the Interim Results
for the six months ended 30 November 2022
1. General information
Leeds Group plc is an AIM listed public company, limited by shares and
incorporated in England and Wales under the Companies Act and its number is
00067863. The address of the registered office is Craven House, 14-18 York
Road, Leeds, Wetherby, LS22 6SL.
The interim results for the six months ended 30 November 2022 and 30 November
2021 are unaudited. The interim financial statements have been prepared in
accordance with the recognition and measurement principles of International
Financial Reporting Standards as adopted in the United Kingdom ("UK adopted
IFRS") using the accounting policies that are expected to apply in the
preparation of the next annual financial statements. The Group has chosen not
to comply with IAS 34 'Interim Financial Statement' in these interim financial
statements.
The information presented for the year ended 31 May 2022 does not constitute
the Company's statutory accounts. The financial statements for the year ended
31 May 2022 have been filed with the Registrar of Companies and the
Independent Auditor's Report was unqualified however drew attention to a
material uncertainty regarding the going concern of the Group. The Independent
Auditor's Report did not refer to any matters in respect of s498(2) and (3) of
the Companies Act 2006.
The Group's financial statements for the year ended 31 May 2022 included a
post balance sheet event note explaining that KMR was placed into an
insolvency process, which was accepted by the German courts on 7 October 2022.
Under German law, there was an initial period of three months where KMR was
operated as a trading entity under the joint control of the KMR management and
the insolvency administrator. Following this period, the administrator has
assumed full responsibility for the operations of KMR and will look to realise
its assets and pay any liabilities due in accordance with German insolvency
law.
2. Accounting policies
Going Concern
When considering its opinion about the application of the going concern basis
of preparation of the financial statements, the Directors have given due
consideration to:
· The performance of the Group in the last financial year and the
robustness of forecasts for period to 31 May 2024, which return the Group to
profit.
· The impact of the ongoing Ukraine conflict on the business, its
suppliers and its customers.
· The financing facilities available to the Group and the
circumstances in which these could be limited or withdrawn.
Forecasts have been prepared for the period to May 2024 which indicate a
return to modest profit over that period due to cost reductions. These
forecasts have been prepared in the knowledge of current Ukraine conflict
conditions and the continuing impact on the German and global economies.
Considering the trading results in the first half of the current financial
year and the decision to put KMR into insolvency, the Directors consider there
will be sufficient headroom available on the Hemmers 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.
2. Loss per share
Ordinary shares of 12 pence each used in the calculation of earnings
per share:
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Number of shares (basic and diluted) 27,320,843 27,320,843 27,320,843
3. Segmental information
Group external revenue Unaudited Unaudited Audited
6 months to 6 months to Year to
30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Continuing operations
Hemmers 12,679 12,668 23,998
KMR 2,896 2,924 5,592
Group external revenue 15,575 15,592 29,590
Group loss before tax Unaudited Unaudited Audited
6 months to 6 months to Year to
30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Continuing operations
Hemmers (164) (192) (793)
Holding company 15 (53) (82)
KMR (75) (242) (2,370)
Group loss before tax (224) (487) (3,245)
Group net assets Unaudited Unaudited Audited
As at As at As at
30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Continuing operations
Hemmers 9,604 9,931 9,301
Holding company 2,770 2,750 2,720
KMR (1,178) 1,292 (844)
Group net assets 11,196 13,973 11,177
4. Analysis of net bank debt
Unaudited Unaudited Audited
As at As at As at
30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Cash on demand and on short term deposit 1,845 216 471
Bank overdrafts - (4) (345)
Current loans and borrowings (7,279) (5,102) (5,671)
Non - current loans and borrowings (697) (987) (836)
Net bank debt at end of period/year (6,131) (5,877) (6,381)
Current loans and borrowings
At 30 November 2022, current loans and borrowings of £7,279,000 (2021:
£5,102,000) comprise short term loans of £6,976,000 and instalments due on
long term loans detailed below of £303,000. The interest rate on the
short-term loans ranges from 1.5% to 3% (2021: 1.5% to 3%) and these loans are
secured on working capital of Hemmers and KMR. The short-term loans are
drawn down by Hemmers against short-term borrowing facilities of up to a
maximum of £9.9m (€11.5m) and by KMR against short-term borrowing
facilities of £0.9m (€1m).
Non-current loans and borrowings
The Group's non-current loans and borrowings are within the accounts of
Hemmers and are denominated in Euros as follows:
Fixed Repayment Final Unaudited Unaudited Audited
interest profile repayment As at As at As at
rate date 30 November 30 November 31 May
2022 2021 2022
£000 £000 £000
Loan 1 1.65% Equal September 2025 479 710 590
quarterly instalments
Loan 2 1.05% Equal March 2026 218 277 246
quarterly instalments
Non-current loans 697 987 836
5. Forward-Looking Statements
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR UUSARORUAUURRecent news on Leeds
See all newsREG - Leeds Group PLC - Completion of Disposal
AnnouncementREG - Leeds Group PLC - Further re Disposal, Loan Agreements and RPTs
AnnouncementREG - Leeds Group PLC - Half-year Report
AnnouncementREG - Leeds Group PLC - Further re Disposal of subsidiary
AnnouncementREG - Leeds Group PLC - Result of General Meeting
Announcement