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Embargoed until 0700    31 March 2009

CLINTON CARDS PLC

('Clinton' or 'the Company' or 'the Group')

 

INTERIM REPORT FOR THE 26 WEEKS ENDED 1 FEBRUARY 2009

HIGHLIGHTS

• Group banking facilities extended to January 2012

• Net debt reduced to £31.2m (January 2008: £37.5m)

• Product margins maintained

• Inventories reduced to £50m (January 2008: £57.6m)

• Continuation of divestment programme

  • 31 loss making stores disposed of from the Group (surrendered or to good covenants)

• Group L4L sales flat in the 7 weeks to 22 March

FINANCIAL SUMMARY		26 weeks ended 1 February 2009		26 weeks ended 27 January 2008		53 weeks ended 3 August  2008
Revenue (ex VAT)		£'000		£'000		£'000
Clintons		187,256		198,407		357,450
Birthdays		56,019		58,475		107,579
Group revenue		243,275		256,882		465,029
Operating profit/(loss)
Clintons		16,753		24,353		25,359
Birthdays		(2,658)		1,132		(35,016)
Group operating profit/(loss)		14,095		25,485		(9,657)
Adjusted operating profit/(loss)*
Clintons		17,850		25,025		27,040
Birthdays		(2,666)		1,080		(4,458)
Group adjusted operating profit		15,184		26,105		22,582
Net profit/(loss) before tax		12,568		23,272		(13,141)
Adjusted net profit before tax*		13,778		24,376		19,493
Basic and diluted earnings/(loss) per share		4.22p		7.90p		(8.14p)
Adjusted basic earnings per share		4.66p		8.28p		7.33p

*The adjusted operating profit/(loss) and adjusted net profit/loss are defined in Note 2.

Chairman's comments:

The certainty afforded to us by the successful renewal of our banking facilities underlines the support we enjoy from our lending banks, despite the demanding conditions on the high street. However, as a result of the general economic climate, consumer confidence remains gloomy and trading conditions continue to be challenging.

Against this backdrop, visibility for the second half of the year remains uncertain and we will continue to manage the Group accordingly.

Enquiries:

Clinton Cards PLC    

Don Lewin, OBE, Chairman                                                020 8502 3711

Paul Salador, Group Finance Director

Barry Hartog, Group Commercial Director

Weber Shandwick Financial                                         020 7067 0700

Terry Garrett/James White/Katie Matthews

  

CLINTON CARDS PLC

('Clinton' or 'the Company' or 'the Group')

Interim Report for the 26 weeks ended 1 February 2009

Chairman's Statement

Trading

Total Group revenue for the 26 weeks ended 1 February 2009 was £243.3m compared with £256.9m for the 26 weeks ended 27 January 2008. This reduction was the result of trading from 70 fewer stores combined with the prevailing conditions on the high street and resultant lower footfall. However, the Group  refrained from implementing any unplanned promotional activity and as a result product margin levels were maintained at levels broadly similar to those achieved for the full year to 3 August 2008.

In response to the downturn, last autumn the Group implemented cost saving measures which in the current financial year to July 2009 are anticipated to achieve total savings of at least £2m. These measures include more efficient staffing in store and at Head Office, lower I.T. running costs and direct store costs.

The average number of stores in the Clinton brand during the period was 699, 34 fewer than in the comparable period last year and total revenue was £11.2m lower at £187.3m. The average number of stores in the Birthdays brand was 344, 36 fewer than last time and total revenue was £2.5m lower at £56.0m.

Group like for like sales declined 5.2% from a total of 904 stores trading throughout both periods. Stores trading for only part of either period, closed for any refurbishment in either period or where a store has been resized are excluded from the like for like comparison.  The effects of the wider economic downturn and subsequent drop in consumer confidence have resulted in lower high street footfall with a particularly poor period last November.

Like for like sales in the Clinton stores for the 26 weeks to 1 February 2009 declined by 5.8% for the reasons above although the mix of sales remained the same, 61% cards, 10% gift dressing and 29% gifts.

Like for like sales in the Birthdays stores for the period declined by 3.0%. The mix of sales was 52% cards, 9% gift dressing and 39% gifts, just a small shift of 1% from cards to gifts.

Financial Summary

Note:    In the context of the figures below, adjusted measures are defined as statutory values before crediting or charging profits/losses on the sale of property, plant and equipment, impairment of goodwill, amortisation of other intangible assets, exceptional restructuring costs and the change in the fair value of financial instruments.

A summary of the financial results for the 26 weeks to 1 February is set out below. Adjusted operating profit for the Group decreased to £15.2m (2008: £26.1m) and adjusted net profit decreased to £13.8m (2008: £24.4m).  The adjusted operating profit for the Clinton brand decreased to £17.9 (2008: £25.0m). It is disappointing to report that Birthdays, having made an adjusted operating profit in the comparative period last year of £1.1m, made an adjusted operating loss in this period of £2.7m.

The adjusted operating profit margin for the Clinton brand decreased from 12.6% to 9.5% which together with the small Birthdays' loss resulted in a Group adjusted operating profit margin of 6.2% compared to 10.2% for the comparable period.

Summary of results

		26 weeks ended 1 February 2009		26 weeks ended 27 January 2008		53 weeks ended 3 August 2008
Revenue (ex VAT)		£'000		£'000		£'000
Clintons		187,256		198,407		357,450
Birthdays		56,019		58,475		107,579
Group revenue		243,275		256,882		465,029
Operating profit/(loss)
Clintons		16,753		24,353		25,359
Birthdays		(2,658)		1,132		(35,016)
Group operating profit/(loss)		14,095		25,485		(9,657)
Adjusted operating profit/(loss)
Clintons		17,850		25,025		27,040
Birthdays		(2,666)		1,080		(4,458)
Group adjusted operating profit		15,184		26,105		22,582
Net profit/(loss) before tax		12,568		23,272		(13,141)
Adjusted net profit before tax		13,778		24,376		19,493
Reconciliation of statutory profit to adjusted  profit for the Group
For adjusted operating profit add back:
Loss on sale of property, plant and equipment		847		378		1,755
Amortisation of intangible assets		242		242		484
Impairment of goodwill		-		-		30,000
Adjustment to operating profit		1,089		620		32,239
For adjusted net profit add back change in     fair value of financial instruments		121		484		395
Adjustment to net profit		1,210		1,104		32,634

Capital investment

In the 26 weeks to 1 February 2009 the Group invested £5.8m (2008: £8.5m) in the business.  £5.2m was invested in new stores and modernisation of existing stores, £0.2m on the motor vehicle fleet and £0.4m in new information technology systems.

Investment by brand:

		Clinton Cards		Birthdays		Group
		£'000		£'000		£'000
New and future stores		289		193		482
Modernisation of existing stores		2,759		2,010		4,769
		3,048		2,203		5,251
I.T. and other						578
						5,829

The Group loss for the 26 week period in respect of the sale of property, plant and equipment was £0.8m (2008: £0.4m).

  

Cash flow, interest and borrowings

During the 26 weeks to 1 February 2009 net debt reduced from £58.5m to £31.2m (2008: £37.5m). Cash generated from operations was £38.5m compared with £42.7m in the corresponding period last year. 

Working capital improved by £17.8m in the period (2008: £11.9m).

Net interest paid in the period amounted to £1.4m compared with £2.2m last time mainly as a result of lower debt levels.  The Board took the decision in early 2008 not to replace the 4 year hedging agreement which expired in December 2008 in anticipation of falling interest rates. The Board now intends to take out a new hedging instrument for its extended facilities to protect against any rising interest rates in the future.

Corporation tax paid in the period amounted to £1.2m compared with £3.9m paid in the corresponding period last year. Net expenditure on property, plant and equipment was £6.6m (2008: £8.9m) and dividends paid amounted to £2.1m (2008: £3.5m). The net increase in cash after all of the above was £27.3m (2008: £24.4m) resulting in the net debt at 1 February 2009 of £31.2m (2008: £37.5m).

Bank facilities

I am pleased to report that following recent discussions with our banks, the Group's bank facilities have been extended to January 2012, underlining the strong level of support we enjoy from our lending banks.

The level of our revolving credit facilities remains unchanged at £72m. The £60m working capital tranche will continue. The last scheduled repayment of the £12m tranche due to be repaid in November 2009 will now be repaid over an extended period with £1m in December 2009, £3m in December 2010 and £8m in December 2011.

Both Barclays and Royal Bank of Scotland, have recognised the challenges facing retailers at this time and have been supportive and helpful in meeting the requirements of the Group going forward. However, as a result of the changes in the financial markets the annualised amortisation of the fees and charges will be about £0.8m. As expected, the margin on the new facility is higher than the previous facility also higher and even though LIBOR is much lower, the same level of borrowings experienced during the last financial year will result in an increase in interest paid under the new facility of about 15%.

Taxation

The tax charge for the Group was £3.8m, an effective rate of 30.6% which is the rate estimated for the full year. The tax rate for the 53 weeks to 3 August 2008 was 28.1%.

Earnings per share and dividend

Basic earnings per share for the 26 weeks to 1 February 2009 were 4.22p compared with 7.90p for the 26 weeks to 27 January 2008. The adjusted earnings per share were 4.66p (2008: 8.28p).

In view of current trading and the uncertainties surrounding trading on the high street the Board, being mindful to conserve cash, has resolved not to pay an interim dividend.

Store development

During the period under review we opened eight and closed a further 16 Clinton stores.  12 new Birthdays stores were opened during the period while 25 stores were closed. At the end of the period the Group was trading from 1,030 stores comprising 695 Clinton stores and 335 Birthdays stores. At the time of our preliminary results in October 2008, we stated that we were continuing with our divestment programme and endeavouring to dispose of non-contributing stores and consolidating businesses where possible. Over the last few years we have had a reasonably successful disposal and consolidation programme. There is still more to do but it is clearly very challenging in the current economic environment.

Outlook

The certainty afforded to us by the successful renewal of our banking facilities underlines the support we enjoy from our lending banks, despite the demanding conditions on the high street. However, as a result of the general economic climate, consumer confidence remains gloomy and trading conditions continue to be challenging.

Against this backdrop, visibility for the second half of the year remains uncertain and we will continue to manage the Group accordingly. The cost saving measures implemented last autumn are anticipated to achieve total savings of at least £2m in the financial year to July 2009 and the Group remains focused on managing working capital and cash generation throughout the coming months.

Don Lewin, OBE

Chairman

31 March 2009

  

Unaudited consolidated income statement

    

	Note	26 weeks ended 1 February 2009		26 weeks ended 27 January  2008		53 weeks ended 3 August 2008
		£'000		£'000		£'000
Revenue (including VAT)		282,776		301,388		545,716
Revenue (excluding VAT)		243,275		256,882		465,029
Cost of sales		(221,162)		(223,903)		(428,873)
Gross profit		22,113		32,979		36,156
Other operating income		58		42		90
Administrative expenses:
Loss on sale of property, plant and equipment		(847)		(378)		(1,755)
Amortisation of intangible assets		(242)		(242)		(484)
Impairment of goodwill		-		-		(30,000)
Other administrative expenses		(6,987)		(6,916)		(13,664)
		(8,076)		(7,536)		(45,903)
Operating profit/(loss)		14,095		25,485		(9,657)
Finance income		315		274		652
Finance costs		(1,665)		(1,872)		(3,488)
Change in fair value of financial instruments		(121)		(484)		(395)
Unwinding of property provision discount		(56)		(131)		(253)
Profit/(loss) before taxation		12,568		23,272		(13,141)
Taxation		(3,843)		(6,926)		(3,693)
Profit/(loss) attributable to equity shareholders		8,725		16,346		(16,834)
Earnings per share
Basic and diluted earnings per share	7	4.22p		7.90p		(8.14p)

                        

        

  

Unaudited consolidated balance sheet

	Note	As at 1 February 2009		As at 27 January  2008		As at 3 August 2008
		£'000		£'000		£'000
Assets
Non current assets
Goodwill		31,330		61,330		31,330
Other intangible assets	8	21,476		21,960		21,718
Property, plant and equipment	9	77,054		76,879		77,778
		129,860		160,169		130,826
Current assets
Inventories		49,952		57,611		49,105
Trade and other receivables	10	24,852		24,661		25,172
Derivative financial instruments		-		33		121
Cash and cash equivalents	13	1,287		2,950		5,023
		76,091		85,255		79,421
Total assets		205,951		245,424		210,247
Liabilities
Current liabilities
Financial liabilities:
Borrowings	13	(32,460)		(40,441)		(63,483)
Trade and other payables	11	(81,664)		(82,845)		(66,122)
Current tax liabilities		(4,307)		(6,958)		(1,660)
Provisions for liabilities and charges	12	(209)		(1,555)		(554)
		(118,640)		(131,799)		(131,819)
Net current liabilities		(42,549)		(46,544)		(52,398)
Non current liabilities
Deferred tax liabilities		(371)		(1,159)		(371)
Other non current liabilities		(11,714)		(8,180)		(9,880)
Provisions for liabilities and charges	12	(2,052)		(3,074)		(1,819)
		(14,137)		(12,413)		(12,070)
Total liabilities		(132,777)		(144,212)		(143,889)
Net assets		73,174		101,212		66,358
Shareholders' equity
Called up share capital		20,693		20,688		20,693
Share premium account		5,873		5,857		5,873
Capital redemption reserve		50		50		50
Translation reserve		489		78		329
Retained earnings		46,069		74,539		39,413
Total equity		73,174		101,212		66,358

    

  

Unaudited consolidated statement of recognised income and expenses

		26 weeks ended 1 February 2009		26 weeks ended 27 January  2008		53 weeks ended 3 August 2008
		£'000		£'000		£'000
Profit/(loss) attributable to equity shareholders		8,725		16,346		(16,834)
Currency translation differences		160		146		397
Total recognised income and expenses for the period		8,885		16,492		(16,437)

Unaudited consolidated statement of changes in equity

	Called up share capital		Share premium account		Capital redemption reserve		Translation reserves		Profit and loss account		Total equity
	£'000		£'000		£'000		£'000		£'000		£'000
At 29 July 2007	20,685		5,846		50		(68)		61,709		88,222
Recognised income and      expense for the period	-		-		-		146		16,346		16,492
Dividends paid	-		-		-		-		(3,516)		(3,516)
Issue of options	3		11		-		-		-		14
At 27 January 2008	20,688		5,857		50		78		74,539		101,212
Recognised income and      expense for the period	-		-		-		251		(33,180)		(32,929)
Dividends paid	-		-		-		-		(1,946)		(1,946)
Issue of shares	5		16		-		-		-		21
At 3 August 2008	20,693		5,873		50		329		39,413		66,358
Recognised income and      expense for the period	-		-		-		160		8,725		8,885
Dividends paid	-		-		-		-		(2,069)		(2,069)
At 1 February 2009	20,693		5,873		50		489		46,069		73,174

  

Unaudited consolidated cash flow statement

	Note	26 weeks ended 1 February 2009		26 weeks ended 27 January  2008		53 weeks ended 3 August 2008
		£'000		£'000		£'000
Cash flows from operating activities
Profit/(loss) before taxation		12,568		23,272		(13,141)
Adjustments for:
Finance costs (net)		1,350		1,598		2,836
Depreciation		5,649		5,230		10,882
Impairment of goodwill		-		-		30,000
Amortisation of intangibles		242		242		484
Net impairment recognised in the period		-		-		1,454
Loss on sale of operating fixed assets		847		378		1,755
Operating cash flows before movements in working capital		20,656		30,720		34,270
(Increase)/decrease in inventories		(847)		(4,646)		3,860
Decrease/(increase) in trade and other receivables		329		(1,553)		(2,063)
Increase in trade and other payables		18,325		18,114		2,948
Other movements		9		24		(2,321)
Cash generated from operations		38,472		42,659		36,694
Interest received		306		274		652
Interest paid		(1,706)		(2,520)		(4,093)
Net taxation paid		(1,196)		(3,890)		(6,758)
Net cash generated from operating activities		35,876		36,523		26,495
Cash flows from investing activities
Net proceeds from sale of property, plant and equipment		55		279		(431)
Purchase of property, plant and equipment		(6,575)		(8,931)		(17,238)
Net cash used in investing activities		(6,520)		(8,652)		(17,669)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital		-		14		35
Dividends paid to group shareholders		(2,069)		(3,517)		(5,462)
Net cash used in financing activities		(2,069)		(3,503)		(5,427)
Net increase in cash and cash equivalents		27,287		24,368		3,399
Net debt at beginning of period	13	(58,460)		(61,859)		(61,859)
Net debt at close of period		(31,173)		(37,491)		(58,460)

        

  

Notes to the condensed half-yearly financial statements

26 weeks ended 1 February 2009

1.    General information        

These interim financial statements and the comparative figures for the 26 weeks ended 27 January 2008 do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. Statutory accounts for the 53 weeks ended 3 August 2008 were approved by the Board of Directors on 24 October 2008 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter and did not contain statements under Section 237(2) or (3) of the Companies Act 1985.

    The interim results are unaudited and were approved by the Board of Directors on 26 March 2009.

2.    Basis of preparation

The interim financial report for the 26 weeks ended 1 February 2009 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS34 'Interim Financial Reporting' as adopted by the European Union. The interim financial report should be read in conjunction with the annual financial statements for the 53 weeks ended 3 August 2008 which were prepared in accordance with IFRS as adopted by the European Union.

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 sale of operating fixed assets, impairment of goodwill, amortisation and write off of intangible fixed assets, exceptional restructuring costs and the movement in the fair value of financial instruments.

3.    Accounting policies

The accounting policies adopted are consistent with those of the annual financial statements for the 53 weeks ended 3 August 2008 as described in those financial statements.

The following new standards, amendments to standards or interpretations are mandatory for the first time for the financial year ending 2 August 2009 but have no material impact on the Group.

• 'Financial instruments: Recognition and measurement', and IFRS 7, 'Financial instruments: Disclosures', on the 'Reclassification of financial assets' (effective 1 July 2008)
  

• Amendment to IFRIC 9 and IAS 39 regarding embedded derivatives (effective 1 July 2008)
  

• IFRIC 12,'Service concession arrangements' (effective 1 January 2008) 
  

  

4.    Store Information 

	Clinton Cards		Birthdays		Group
	No.		No.		No.
Store numbers
Stores at 27 January 2008	716		356		1,072
Stores at 3 August 2008	703		348		1,051
Additions (10 intra group)	8		12		20
Disposals (10 intra group)	(16)		(25)		(41)
Stores at 1 February 2009	695		335		1,030
	'000		'000		'000
Square feet
Trading area at 27 January 2008	1,333		519		1,852
Trading area at 3 August 2008	1,319		516		1,835
Additions	20		27		47
Disposals	(22)		(33)		(55)
Resizing/relocations	4		(1)		3
Trading area at 1 February 2009	1,321		509		1,830
	Sq ft		Sq ft		Sq ft
Average store size
At 27January 2008	1,862		1,457		1,728
At 3 August 2008	1,876		1,483		1,746
At 1 February 2009	1,901		1,521		1,776

  

5.    Segmental information 

Income statement	Clinton Cards		Birthdays		Group
	£'000		£'000		£'000
26 weeks ended 1 February 2009
Revenue (excluding VAT)	187,256		56,019		243,275
Operating profit/(loss) as reported	16,753		(2,658)		14,095
Net finance costs					(1,527)
Profit before tax					12,568
Taxation					(3,843)
Profit after tax for the period					8,725
Operating profit/(loss) as reported	16,753		(2,658)		14,095
Loss/(profit) on sale of property, plant and equipment	1,097		(250)		847
Amortisation of intangible assets	-		242		242
Adjusted operating profit/(loss)	17,850		(2,666)		15,184
Net finance costs less fair value of financial instruments					(1,406)
Adjusted net profit					13,778
26 weeks ended 27January 2008
Revenue (excluding VAT)	198,407		58,475		256,882
Operating profit as reported	24,353		1,132		25,485
Net finance costs					(2,213)
Profit before tax					23,272
Taxation					(6,926)
Profit after tax for the period					16,346
Operating profit as reported	24,353		1,132		25,485
Loss/(profit) on sale of property, plant and equipment	672		(294)		378
Amortisation of intangible assets	-		242		242
Adjusted operating profit	25,025		1,080		26,105
Net finance costs less fair value of financial instruments					(1,729)
Adjusted net profit					24,376
53 weeks ended 3 August 2008
Revenue (excluding VAT)	357,450		107,579		465,029
Operating profit/(loss) as reported	25,359		(35,016)		(9,657)
Net finance costs					(3,484)
Loss before tax					(13,141)
Taxation					(3,693)
Loss after tax for the period					(16,834)
Operating profit/(loss) as reported	25,359		(35,016)		(9,657)
Loss on sale of property, plant and equipment	1,681		74		1,755
Amortisation of intangible assets	-		484		484
Impairment of goodwill	-		30,000		30,000
Adjusted operating profit/(loss)	27,040		(4,458)		22,582
Net finance costs less fair value of financial instruments					(3,089)
Adjusted net profit					19,493

  

6.    Taxation

The tax charge is based on the expected effective tax rate of 30.6% for the 52 weeks to 2 August 2009 (2008 : 28.1%).

7.    Earnings per share

    The basic earnings per share is based on the weighted average number of shares in issue during the period. The diluted earnings per share is adjusted for unexercised share options in issue during the period.  In addition, the adjusted basic earnings per share shown below is calculated after excluding the profit or loss on sale of operating fixed assets, amortisation and write off of intangibles, other exceptional restructuring costs and the movement in the fair value of financial instruments, as disclosed on the face of the income statement and the related taxation effect. 

		26 weeks to 1 February 2009		26 weeks to 27 January  2008		53 weeks to 3 August 2008
Basic and diluted earnings per share		4.22p		7.90p		(8.14p)
Adjusted basic earnings per share		4.66p		8.28p		7.33p

8.    Intangible assets

		26 weeks to 1 February 2009		26 weeks to 27 January  2008		53 weeks to 3 August 2008
		£'000		£'000		£'000
Cost
At start of period		23,570		24,949		24,949
Disposals		-		(896)		(1,379)
At end of period		23,570		24,053		23,570
Amortisation
At start of period		1,852		2,747		2,747
Charge for the period		242		242		484
Disposals		-		(896)		(1,379)
At end of period		2,094		2,093		1,852
Net book value		21,476		21,960		21,718

9.    Property, plant and equipment

		26 weeks to 1 February 2009		26 weeks to 27 January  2008		53 weeks to 3 August 2008
		£'000		£'000		£'000
Cost
At start of period		159,103		148,850		148,850
Additions at cost		5,829		8,461		17,132
Disposals		(4,584)		(2,994)		(6,879)
At end of period		160,348		154,317		159,103
Depreciation
At start of period		81,325		74,544		74,544
Charge for the period		5,649		5,231		12,336
Disposals		(3,680)		(2,337)		(5,555)
At end of period		83,294		77,438		81,325
Net book value		77,054		76,879		77,778

  

10.    Trade and other receivables

		26 weeks to 1 February 2009		26 weeks to 27 January  2008		53 weeks to 3 August 2008
		£'000		£'000		£'000
Other receivables		1,208		540		1,681
Prepayments		23,644		24,121		23,491
		24,852		24,661		25,172

11.    Trade and other payables            

		26 weeks to 1 February 2009		26 weeks to 27 January  2008		53 weeks to 3 August 2008
		£'000		£'000		£'000
Trade payables		45,184		47,429		34,852
Other taxation and social security		10,338		12,117		6,193
Other payables		8,489		9,747		9,462
Deferred income		1,359		1,174		663
Accruals		16,294		12,378		14,952
		81,664		82,845		66,122

12.    Provisions

		26 weeks to 1 February 2009		26 weeks to  27 January 2008		53 weeks to 3 August 2008
		£'000		£'000		£'000
Onerous leases		2,109		4,483		2,221
Employee benefits		152		146		152
		2,261		4,629		2,373

13.    Analysis of changes in net debt

		As at 1 February 2009		As at  27 January 2008		As at 3 August 2008
		£'000		£'000		£'000
Cash		1,287		2,950		5,023
Bank borrowings		(32,460)		(40,441)		(63,483)
Net debt		(31,173)		(37,491)		(58,460)

Bank borrowings comprise a secured sterling revolving credit facility until January 2012 with any amounts drawn down repayable within six months. The bank facility contains covenants and is guaranteed by companies within the Group. It is subject to interest based on LIBOR plus the lenders' margin.  The original facility arranged in December 2004 for £110m has reduced to £72m and there are three further scheduled reductions of £1m in December 2009, £3m in December 2010 and £8m in December 2011. This will leave a balance of £60m as the Group's working capital facility.

   

  

14.    Dividends paid in period

		26 weeks to 1 February 2009		26 weeks to 27 January  2008		53 weeks to 3 August 2008
		£'000		£'000		£'000
Final paid		2,069		3,517		3,517
Interim paid		-		-		1,945
		2,069		3,517		5,462

The Board have decided not to pay an interim dividend.

15.    Remuneration of key management

The directors of the Group are the key management of the Group. Key management compensation includes salaries, pension costs and other employment benefits such as company and private medical insurance.

	26 weeks to 1 February 2009		26 weeks to 27 January  2008		53 weeks to 3 August 2008
	£'000		£'000		£'000
Salaries and short term employee benefits	1,361		1,352		2,762
Payments to money purchase pension schemes	46		46		94
	1,407		1,398		2,856

16.    Risks and uncertainties

The Board and senior management are responsible for identifying and managing potential risks and uncertainties which could have an impact on the performance of the Group. These are set out in the Annual Report and Financial Statements 2008 and the Board considers that these remain the principal risks which could affect the Group in respect of the current financial year.

17.    Forward looking statements

To the extent that any statement in this interim report can be considered forward looking, the Board can give no assurance that these statements will prove to be correct. Because any such statement involves risk and uncertainty, actual results may differ materially from any expressed or implied by these forward looking statements.

The Board undertakes no obligation to update any forward looking statement whether as a result of new information, future events or otherwise.

  

Statement of directors' responsibilities

The directors confirm, to the best of their knowledge and belief, that this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union and that the interim report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.

The directors of Clinton Cards PLC are listed in the Clinton Cards PLC Annual Report and Financial Statements 2008 and on the company website at www.clintoncards.co.uk. 

By order of the Board

_________________________		_______________________
D J Lewin, OBE		P Salador, FCCA
Chairman		Finance Director

31 March 2009

ENDFR CKKKNOBKDANN