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Date: Wednesday 3rd June 2009

Embargoed: 7.00am

Slimma plc

('Slimma' or 'the Company')

Interim Results

for the 26 weeks ended 3 April 2009

STATEMENT BY THE NON-EXECUTIVE CHAIRMAN, CAROLYN SIMONS

Slimma's results for the 26 weeks ended 3 April 2009 reflect the continuing challenges of the current economic downturn. Despite these conditions, the Board are continuing the Company's strategy of moving towards the design, marketing and wholesale of high value, high margin branded products.  

Sales for the period were £6.99 million, down 14% against sales of £8.13 million last year. Operating profit was £62,000 compared to £177,000 last year, and pre tax profit was £2,000 compared to £44,000 last year.

In the statement issued at the April 2009 annual general meeting of the Company (the '2009 AGM Statement'), I stated that in order to ensure Slimma's long term position with the market and as a further strategic move in the progress towards the wholesale of high value, high margin branded product, the Company's contract design and manufacturing business, which services mail order and high street customers, would be closed. Sales in this division have been in decline for a number of years and as a result, the Board believe it is commercially unviable for the Company to continue operating this part of its business. Exceptional costs relating to redundancies associated with the closure will be met within the current financial year. Going forward as part of the Company's restructuring program, this will not only reduce future bank borrowings, but will also allow management to focus on the support of Slimma's key brands.  

Shareholders attention is drawn to the comments in the 2009 AGM Statement relating to the next six months, which the board still believe will represent the most challenging period for the Company and the sector's retailing in general.

Despite the continuing economic difficulties, Slimma is making good progress towards its ultimate goal but the Board recognise that there are further testing times ahead for all retailers.

C Simons

Chairman

3rd June 2009

Enquiries:
Stephen Thwaite, Chief Executive	David Youngman	Katie Dale, Head of Financial PR/IR
Slimma plc	WH Ireland Limited	Golley Slater
Tel: 01538 399 141	Tel: 0161 832 2174	Tel: 0121 384 9743
www.slimma.com		Mobile: 07918 716 754

  Interim Income Statement

For the 26 weeks ended 3 April 2009

	Interim	Interim	Final
	26 weeks	26 weeks	52 weeks
	ended	ended	ended
	3 April	28 March	3 October
	2009	2008	2008
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Revenue	6,992	8,130	13,494
Operating expenses	(6,930)	(7,953)	(14,103)
Operating profit/(loss)	62	177	(609)
Finance income	20	0	16
Finance costs	(80)	(113)	(237)
Profit/loss before income tax	2	64	(830)
Income tax (expense)/credit	0	(20)	216
Profit/(loss) for the period	2	44	(614)
Profit/loss attributable to equity holders of the Company	2	44	(614)
Earnings per ordinary share (basic and diluted)	0.02p	0.47p	(6.54p)

Statement of recognised income and expense

	Interim	Interim	Final
	26 weeks	26 weeks	52 weeks
	ended	ended	ended
	3 April	28 March	3 October
	2009	2008	2008
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Profit/(loss) for the period	2	44	(614)
Actuarial gain on defined benefit pension scheme	0	0	4
Related deferred tax on actuarial gain	0	0	(1)
Total recognised income and expense	2	44	(611)
Attributable to equity holders of the Company	2	44	(611)

  Balance Sheet

As at 3 April 2009

	3 April	28 March	3 October
	2009	2008	2008
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
ASSETS
Non-current assets
Property, plant & equipment	469	181	498
Intangible assets	524	584	529
Deferred income tax assets	462	187	462
Pension scheme surplus	383	242	383
	1,838	1,194	1,872
Current assets
Inventories	2,360	2,177	2,151
Trade and other receivables	5,265	5,826	4,149
Financial assets	0	3	15
Cash and cash equivalents	63	20	61
Total current assets	7,688	8,026	6,376
Total assets	9,526	9,220	8,248
Non-current assets held for sale	0	371	0
LIABILITIES
Non-current assets
Pension scheme deficit	0	0	0
	0	0	0
Current liabilities
Financial liabilities	3,936	3,301	3,219
Trade and other payables	2,151	2,305	1,592
Total current liabilities	6,087	5,606	4,811
Deferred tax liability	107	0	107
Total Liabilities	6,194	5,606	4,918
Total net assets	3,332	3,985	3,330
Equity
Share capital	521	521	521
Share premium	3,024	3,024	3,024
Capital redemption reserve	285	285	285
Treasury shares	(600)	(600)	(600)
Retained earnings	102	755	100
Total equity attributable to the equity holders of the Company	3,332	3,985	3,330

  Cash Flow Statement

For the 26 weeks ended 3 April 2009

	26 weeks	26 weeks	52 weeks
	ended	ended	ended
	3 April	28 March	3 October
	2009	2008	2008
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Operating activities
Profit/(loss) before income tax	2	64	(830)
Finance income	(20)	0	(16)
Finance costs	80	113	237
Impact of defined benefit pension scheme	0	0	(42)
Depreciation charge	40	59	117
Amortisation of intellectual property assets	34	34	69
Amortisation of design assets	187	208	404
	323	478	(61)
Changes in working capital
Inventories	(209)	264	290
Trade and other receivables	(1,116)	(1,787)	(121)
Financial assets	15	(3)	(15)
Financial liabilities	0	0	(72)
Trade and other payables	559	742	12
	(751)	(784)	94
Cash from other operating activities	(428)	(306)	33
Net financing cost	(60)	(113)	(221)
Net cash from operating activities	(488)	(419)	(188)
Investing activities
Capital expenditure less disposals	(56)	(27)	(31)
Capitalisation of expenditure on design asset	(171)	(197)	(373)
Net cash used in investing activities	(227)	(224)	(404)
Financing activities
Increase in overdraft	(715)	(643)	(592)
Net cash used in financing activities	(715)	(643)	(592)
Net (decrease in) cash and cash equivalents	(715)	(643)	(592)
Cash and cash equivalents at beginning of the period	(3,158)	(2,638)	(2,566)
Cash and cash equivalents at the end of the period	(3,873)	(3,281)	(3,158)

  Statement of Changes in Equity

	Share capital	Share premium	Capital redemption reserve	Treasury shares	Retained earnings	Total equity
	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	£'000	£'000	£'000	£'000	£'000	£'000
As at 28 September 2007	521	3,024	285	(600)	711	3,941
Profit for the period to 28 March 2008	0	0	0	0	44	44
Loss for the period to 3 October 2008	0	0	0	0	(658)	(658)
Dividends	0	0	0	0	0	0
Actuarial Gain on Pension Scheme Net Assets	0	0	0	0	3	3
At 3 October 2008	521	3,024	285	(600)	100	3,330
Profit for the period to 3 April 2009	0	0	0	0	2	2
At 3 April 2009	521	3,024	285	(600)	102	3,332

  Notes to the Interim Announcement

For the 26 weeks ended 3 April 2009

 

1. Basis of preparation

These interim financial statements have been prepared in accordance with the accounting policies set out below. The Company has not adopted the reporting requirements of IAS 34 'Interim Financial Reporting'.  

The financial statements for the 52 weeks ended 3 October 2008 were fully prepared in accordance with the International Accounting Standards (IAS) and IFRS published by the International Accounting Standards Board (IASB) that were in issue.

The information relating to the 26 weeks ended 3 April 2009 and 28 March 2008 is unaudited and does not constitute statutory accounts. The comparative figures for the 52 weeks to 3 October 2008 are the Company's statutory accounts for that financial year. The statutory accounts for the 52 weeks ended 3 October 2008, prepared under IFRS, have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The interim financial statements are unaudited and have not been reviewed by the auditors.

 

2. Accounting policies

The interim financial statements have been prepared on the basis of the accounting policies set out in the Company's 3 October 2008 Annual Report 

 

3. IAS 19 Employee Benefits

The year ended 3 October 2008 retirement benefit obligations under IAS 19 were provided by the Actuary for the Scheme. The 26 weeks to 3 April 2009 and 28 March 2008 have assumed no movement on the prior September year end surplus.

 

4. Tax on profit on ordinary activities

Tax for the 26 weeks ended 3 April 2009 has been provided at 30% of profits, which is the anticipated effective rate for the 52 weeks ending 2 October 2009.

 

5. Dividends

No dividend is proposed.

 

6. Earnings per share

Earnings per share for 2009 have been calculated on the number of shares in issue, excluding shares held in treasury, throughout the period of 9,382,442 (2008: 9,382,442) and on the profits after taxation for each period. There was no dilutive impact on the earnings per share for the reported periods.  

 

7. Approval of the Interim Announcement

The Interim Announcement was approved by the Board of Directors on 3 June 2009.

 

8. Availability of the Interim Announcement

The Interim Announcement will be made available to all shareholders our web site www.slimma.com, where more information on our brands and products can be found, and will be available from the Company's Registered Office at:

Slimma plc

Slimma House

PO Box 30

Barngate Street

Leek

Staffordshire

ST13 8AR

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