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Issued by Golley Slater Public Relations, Birmingham

Date: Thursday, 26 March 2009

Embargoed: 7.00 am

Slimma plc

Final Results

For the period ended 3 October 2008

STATEMENT BY THE NON-EXECUTIVE CHAIRMAN, CAROLYN SIMONS

Trading conditions have become increasingly challenging during the financial year as the growing uncertainties regarding the economy continued to negatively affect the buying behaviour of both customers and consumers. As a result of the current trading environment, sales decreased by 14.1% to £13.49 million, compared to £15.70 million last year.  

Export sales were 26.2% of sales compared with 26.3% last year. In spite of rising input costs, the Company's margin driven initiatives, which included a re-organisation resulting in the Company no longer making certain low margin concession sales, successfully recovered margins to 35.9% this year, compared with 32.6% last year.

Operating loss for the period excluding exceptional costs of £173,000, as a direct result of the re-organisation to cut expenses, was reduced to £436,000 compared with £884,000 last year, a reduction of 50.6%.

In my interim results statement, I outlined that the Board's main challenge was to reposition overheads in line with the current sales environment and that this could be achieved by cutting expenses by £1.5 million. I am pleased to report that the Company has achieved this objective, although, with the economy forecast to deteriorate further, the Board continue to search for and implement additional savings to those already made.  

Although the Company is experiencing a period of great uncertainty, with no sign of imminent economic recovery, the Directors remain resolute in their intention to ensure that the necessary defences are in place to withstand these unusual conditions. The Board are well aware that pressure from financial institutions on customers' buying budgets, combined with the very adverse publicity and speculation about the state of the economy in the press has created a fear which is ultimately having a negative effect on the Company's business.

Going forward the acquisition of appropriate brands remains an important part of the Board's growth strategy and the Directors continue to believe that appropriate brand acquisitions will help negate any potential further sales losses as a result of the current environment. In December 2008, the Company completed the acquisition of 'Michel Ambers' and 'Claudia Stevens', two strong brands which the Board believe have an exceptional fit into the Company structure. The Board continue to actively seek equally appropriate acquisition opportunities in the future.

In view of the Company's current trading performance and the unpredictable economic outlook, the Board have decided not to declare a final dividend. We will review the position regarding future dividend payments when the Company has returned to profitability.

Although results have been disappointing, management and staff have worked extremely hard to ensure a solid foundation is in place on which we can build for future recovery. Despite the current market conditions and challenging outlook, the Board believe the necessary infrastructure has now been established to undertake further improvements in the Company's next financial year.

  

Availability of the Financial Statements 

The full Report and Financial Statements will be dispatched to all shareholders on or before 31 March 2009 and will be available to the public free of charge from the Company's Registered Office at: Slimma plc, Slimma House, PO Box 30, Barngate Street, Leek, Staffordshire, ST13 8AR. They will also appear on the Company website, www.slimma.com.

Enquiries:

Stephen Thwaite, Chief Executive	Katie Dale, Head of Financial PR & Investor Relations	Daniel Bate, Nominated Adviser
Slimma plc	Golley Slater Public Relations	W H Ireland
Tel: 01538 399141	Tel: 0121 384 9743	Tel: 0161 832 2174
www.slimma.com	Mobile: 07918 716754

Slimma plc

INCOME STATEMENT

For the 53 week period ended 3 October 2008

		Before Exceptional Items £000	Exceptional Items £000	53 weeks ended 3 October 2008 £000	52 weeks ended 28 September 2007 £000
REVENUE - continuing operations		13,494	-	13,494	15,702
Operating expenses		(13,930)	(173)	(14,103)	(16,586)
OPERATING LOSS - continuing operations		(436)	(173)	(609)	(884)
Finance income		16	-	16	12
Finance costs		(237)	-	(237)	(164)
LOSS BEFORE INCOME TAX		(657)	(173)	(830)	(1,036)
Income tax credit		-	-	216	277
LOSS FOR THE PERIOD				(614)	(759)
LOSS ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY				(614)	(759)
EARNINGS PER ORDINARY SHARE (basic and diluted)				(6.54p)	(8.09p)

STATEMENT OF RECOGNISED INCOME AND EXPENSE

For the 53 week period ended 3 October 2008

	53 weeks ended 3 October 2008	52 weeks ended 28 September 2007
	£000	£000
Loss for the period	(614)	(759)
Actuarial gain on defined benefit pension scheme	4	221
Related deferred tax on actuarial gain	(1)	(81)
TOTAL RECOGNISED INCOME AND EXPENSE	(611)	(619)
ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY	(611)	(619)

Slimma plc

BALANCE SHEET

At 3 October 2008

		3 October    2008		28 September     2007
ASSETS			£000		£000
NON-CURRENT ASSETS
Property, plant and equipment			498		584
Intangible assets			529		629
Deferred tax assets			462		234
Pension scheme surplus			383		336
			1,872		1,783
CURRENT ASSETS
Inventories			2,151		2,441
Trade and other receivables			4,149		4,029
Financial assets			15		-
Cash and cash equivalents			61		40
TOTAL CURRENT ASSETS			6,376		6,510
TOTAL ASSETS			8,248		8,293
CURRENT LIABILITIES
Financial liabilities			3,219		2,678
Trade and other payables			1,592		1,580
TOTAL CURRENT LIABILITIES			4,811		4,258
NON-CURRENT LIABILITIES
Deferred tax liability			107		94
			107		94
TOTAL LIABILITIES			4,918		4,352
TOTAL NET ASSETS			3,330		3,941
EQUITY
Share capital			521		521
Share premium			3,024		3,024
Capital redemption reserve			285		285
Treasury shares			(600)		(600)
Retained earnings			100		711
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE COMPANY			3,330		3,941

  

Slimma plc

STATEMENT OF CHANGES IN EQUITY

For the 53 week period ended 3 October 2008

	Share Capital	Share Premium	Capital Redemption Reserve	Treasury Shares	Retained Earnings	Total  Equity
	£000	£000	£000	£000	£000	£000
At 29 September 2006	521	3,024	285	(600)	1,611	4,841
Loss for the period to 28 September 2007	-	-	-	-	(759)	(759)
Dividends	-	-	-	-	(281)	(281)
Actuarial gain on pension scheme net of tax	-	-	-	-	140	140
At 28 September 2007	521	3,024	285	(600)	711	3,941
Loss for the period to 3 October 2008	-	-	-	-	(614)	(614)
Dividends	-	-	-	-	-	-
Actuarial gain on pension scheme net of tax	-	-	-	-	3	3
At 3 October 2008	521	3,024	285	(600)	100	3,330

  Slimma plc

CASH FLOW STATEMENT

For the 53 week period ended 3 October 2008

			53 weeks ended 3     October 2008			52 weeks ended 28     September 2007
			£000			£000
OPERATING ACTIVITIES
Loss before income tax			(830)			(1,036)
Finance income			(16)			(12)
Finance costs			237			164
Impact of defined benefit pension scheme			(42)			(191)
Depreciation charge			117			148
Amortisation of designs, patents and trademarks			69			69
Amortisation of development costs			404			411
			(61)			(447)
CHANGES IN WORKING CAPITAL
Inventories			290			(377)
Trade and other receivables			(121)			697
Financial assets			(15)			31
Financial liabilities			(72)			27
Trade and other payables			12			(447)
			94			(69)
CASH FROM OPERATING ACTIVITIES			33			(516)
Net financing cost			(221)			(162)
Taxation repaid			-			75
NET CASH USED IN OPERATING ACTIVITIES			(188)			(603)
INVESTING ACTIVITIES
Capital expenditure			(31)			(59)
Capitalisation of expenditure on design asset			(373)			(404)
NET CASH USED IN INVESTING ACTIVITIES			(404)			(463)
FINANCING ACTIVITIES
Financing treasury shares			-			(600)
Equity dividends paid			-			(281)
NET CASH USED IN FINANCING ACTIVITIES			-			(881)
NET REDUCTION IN CASH AND CASH EQUIVALENTS			(592)			(1,947)
Cash and cash equivalents at beginning of the period			(2,566)			(619)
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD			(3,158)			(2,566)

Slimma plc

NOTES

1     PREPARATION OF THE FINANCIAL STATEMENTS 

The results for the period ended 28 September 2007 and period ended 3 October 2008 are an abridged version of the Company's full financial statements for those periods. The full financial statements for the period ended 28 September 2007 have been filed with the Registrar of Companies. The full financial statements for the period ended 3 October 2008 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. 

2     SEGMENTAL REPORT 

For management purposes, the Company's primary segments are analysed by geographical markets in which the business operates. The Company's risks and rates of return are affected predominantly by the countries in which it operates. As a result the Company's primary reporting format is geographical segments. The Company's revenue, profit before taxation and net assets were all derived from its principal activities.

PRIMARY REPORT FORMAT - Geographical segments

    

53 week period ended 3 October 2008	UK	Other European	North America	Unallocated	Consolidation
	£000	£000	£000	£000	£000
Revenue	9,955	2,692	440	407	13,494
RESULT
Operating (loss)	(449)	(122)	(20)	(18)	(609)
Finance income					16
Finance costs					(237)
Loss before tax					(830)
Income tax expenses					216
Loss after tax					(614)
Capital additions (property, plant and equipment)	31	-	-	-	31
Capital additions (intangible assets)	373	-	-	-	373
Depreciation	117	-	-	-	117
Amortisation	473	-	-	-	473
Assets	6,377	927	944	-	8,248
Liabilities	(3,953)	(822)	(143)	-	(4,918)

  

PRIMARY REPORT FORMAT - Geographical segments - continued

52 week period ended 28 September 2007	UK	Other European	North America	Unallocated	Consolidation
	£000	£000	£000	£000	£000
Revenue	11,568	3,432	578	124	15,702
RESULT
Operating loss	(617)	(222)	(37)	(8)	(884)
Unallocated corporation expenses
Finance income					12
Finance costs					(164)
Loss before tax					(1,036)
Income tax expenses					277
Loss after tax					(759)
Capital additions (property, plant and equipment)	59	-	-	-	59
Capital additions (intangible assets)	404	-	-	-	404
Depreciation	148	-	-	-	148
Amortisation	480	-	-	-	480
Assets	6,538	947	808	-	8,293
Liabilities	(3,482)	(812)	(41)	(17)	(4,352)

SECONDARY REPORTING FORMAT - Business segment

The revenue and results are all derived from one business segment which is its principal activity.

3     DIVIDENDS

	53 weeks ended 3 October 2008	52 weeks ended 28 September 2007
	£000	£000
Ordinary:
Interim paid	-	117
Final - 2006 paid	-	164
	-	281

4     EARNINGS PER ORDINARY SHARE 

The calculations of earnings per Share are based on the following profits and number of Shares.

	Basic 53 weeks  ended 3 October 2008	Basic  adjusted 53 weeks  ended 3 October 2008	Diluted 53 weeks  ended 3 October 2008	Basic 52 weeks  ended 28 September 2007	Basic  adjusted 52 weeks  ended 28 September 2007	Diluted 52 weeks  ended 28 September 2007
	£000	£000	£000	£000	£000	£000
Loss for the financial period	(614)	(614)	(614)	(759)	(759)	(759)
Exceptional items	-	173	-	-	-	-
Tax effect	-	(48)	-	-	-	-
Adjusted loss for the financial period	(614)	(489)	(614)	(759)	(759)	(759)

Weighted average number of Shares					53 weeks ended 3 October 2008	52 weeks ended 28 September 2007
					Number	Number
For basic, diluted and basic adjusted earnings per Share *					9,382,442	9,382,442

The Company's earnings per Share are as follows:		2008	2007
- Basic		(6.54p)	(8.09p)
- Diluted		(6.54p)	(8.09p)
- Basic adjusted		(5.21p)	(8.09p)

* Excludes treasury Shares

5     Approval of the Financial Statements 

The Financial Statements were approved by the Board of Directors on 25 March 2008. 

6     Annual General Meeting 

The Annual General Meeting will be held at Slimma plc, Slimma House, Barngate Street, Leek, Staffordshire, ST13 8AR at 10.00am on Thursday 23 April 2009. 

  

7    Availability of the Financial Statements 

The full Report and Financial Statements will be dispatched to all shareholders on or before 31 March 2009 and will be available to the public free of charge from the Company's Registered Office at: Slimma plc, Slimma House, Barngate Street, Leek, Staffordshire, ST13 8AR. They will also appear on the Company website, www.slimma.com in due course.

ENDFR SEMFAISUSEED