Print   



LEES FOODS PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2009

	Six months to 30 June 2009 Unaudited	Six months to 30 June 2008 Unaudited & Restated
Revenue	£8.9m	£7.8m
Profit before tax from continuing operations	£393,831	£208,093
Basic earnings per share from continuing operations	11.8p	6.3p

Group Sales for the first six months of 2009 exceeded last year's figures by £1,052,929, increasing from £7,798,838 to £8,851,767.  Profit before tax for the six-month period of this year was £393,831 against last year's figure of £208,093.

David Simson, Group Finance Director commented:

'We are pleased to report a 14 per cent increase in our sales for the first six months of 2009. The increase has been achieved through record sales at Lees of Scotland and The Waverley Bakery.'

'Both companies have successfully introduced new products to the market and we have continued to grow our business with existing customers and in addition developed new customers across the UK.'

'Pre-tax profits improved due to higher sales and an improvement in our margins. We endeavour to source materials at the most economic levels, however, the euro exchange rate has adversely affected costs of some ingredients. This has been partially offset by lower energy costs and improved production efficiencies.'

'As previously reported, Patisserie UK was placed in administration in March 2009, and all revenues and costs associated with this business have now been transferred to discontinuing operations on the Income Statement. We continue to progress a claim against the Vendors under the warranties contained within the acquisition agreement.'

'Both our continuing operations expect to maintain trading at levels in line with forecasts for the remainder of the year with underlying profits for the full year anticipated to be better than originally forecasted. Nadia Millar will continue to head The Waverley Bakery and Clive Miquel will continue to manage Lees of Scotland.'

'The Directors are focussed on continuing to grow the sales and profit of Lees Foods and we believe that there are exciting opportunities, especially through new product developments, to achieve our growth targets. We will also consider acquisition opportunities that are complementary to our business if and when, these arise.'

'The dividend of 6.7p which was proposed at the AGM was paid to shareholders on 26 June 2009.'

'Following the departure of Raymond Miquel on 11 September 2009 as the Company's Chairman and Chief Executive, there is a new Board Structure and this will be announced shortly.'

Enquiries

Lees Foods Plc	01236 441600
David Simson - Finance Director
Shore Capital and Corporate - Nomad and Broker	0207 408 4090
Guy Peters
3x1 Public Relations	0141 221 0707 / 07771 960326
Cameron Grant

  

LEES FOODS PLC

CONSOLIDATED INCOME STATEMENT TO 30TH JUNE 2009

	Notes	2009 Ended 30th June £'000 (Unaudited)		2008 Ended 30th June £'000 (Unaudited & restated)		2008 Ended 31st December £'000 (Audited & restated)
		£		£		£
Continuing operations
Revenue		8,852		7,799		16,116
Cost of Sales		(6,063)		(5,435)		(11,060)
		──────		──────		──────
Gross Profit		2,789		2,364		5,056
Selling and distribution costs		(1,210)		(1,025)		(2,351)
Administrative expenses		(1,179)		(1,101)		(2,286)
Other operating income		14		9		65
		──────		──────		──────
		(2,375)		(2,117)		(4,572)
Profit from operations		414		247		484
Interest receivable		10		15		53
Finance costs		(30)		(54)		(111)
		──────		──────		──────
Profit before Taxation		394		208		426
Taxation	3	(110)		(58)		(123)
		──────		──────		──────
Profit for the year from continuing operations		284		150		303
Discontinued operations
(Loss)/profit from discontinued operations	4	(251)		10		(1,844)
		──────		──────		──────
Profit/(loss) for the year		33		160		(1,541)
		══════		══════		══════
Earnings per share
From continuing and discontinued operations
Basic (Pence per share)	5	1.4		6.7		(64.23)
Diluted (Pence per share)	5	1.4		6.6		(63.53)
From continuing operations
Basic (Pence per share)	5	11.8		6.3		12.65
Diluted (Pence per share)	5	11.7		6.2		12.52

  

LEES FOODS PLC

CONSOLIDATED BALANCE SHEET AT 30th JUNE 2009

	Notes	2009 Ended 30th June (Unaudited) £'000		2008 Ended 30th June (Unaudited & restated) £'000		2008 Ended 31st December (Audited)  £'000
Non-current assets
Intangible assets		1,803		3,822		1,803
Property, plant and equipment		2,382		2,599		2,505
		────────		────────		────────
Total non-current assets		4,185		6,421		4,308
		────────		────────		────────
Current Assets
Inventories		1,186		1,220		1,439
Trade and other receivables		4,380		3,811		2,701
Cash and cash equivalents		894		1,030		1,295
		────────		────────		────────
Total current assets		6,460		6,061		5,435
		────────		────────		────────
Current Liabilities
Financial liabilities - borrowings		(1,675)		(1,335)		(1,501)
Trade and other payables		(4,149)		(4,075)		(3,489)
Current tax liabilities		(110)		(244)		(123)
		────────		────────		────────
Total current liabilities		(5,934)		(5,654)		(5,113)
		────────		────────		────────
Net Current Assets		526		407		322
Non-current liabilities
Financial liabilities - borrowings		(462)		(700)		(250)
Accruals & deferred income		(122)		(139)		(130)
Deferred tax liabilities		(294)		(347)		(296)
		────────		────────		────────
Total non-current liabilities		(878)		(1,186)		(676)
		────────		────────		────────
Net assets		3,833		5,642		3,954
		════════		════════		════════
EQUITY
Called up share capital		2,405		2,395		2,405
Employee Share Ownership Trust		(183)		(183)		(183)
Share premium account		884		884		884
Share-based payment reserve		59		56		58
Merger reserve		580		580		580
Retained earnings		88		1,910		210
		────────		────────		────────
Total Equity Shareholders' Funds		3,833		5,642		3,954
		════════		════════		════════

  LEES FOODS PLC

CONSOLIDATED CASH FLOW STATEMENT for the six months ended 30 June 2009

		Six months  ended 30 June 2009 (Unaudited)		Six months ended 30 June 2008 (Unaudited & restated)		Year ended 31 December 2008 (Audited & restated)
		£'000		£'000		£'000
Cash flows from operating activities
Profit from operations		414		247		484
(Loss)/profit from discontinued operations		(251)		10		(1,844)
Adjustments for:
Impairment of goodwill		-		-		1,818
Depreciation charge - continuing operations		179		223		424
Depreciation charge - discontinued operations		6		18		53
Share Transactions		1		1		4
Development Grants released		(8)		(9)		(17)
Release of deferred tax - discontinued operations		(2)		-		-
Fixed asset write off - discontinued operations		174		-		-
(Profit)/Loss on F.A. Disposals		-		-		(5)
		───────		───────		───────
Operating Activities before working capital changes		513		490		917
		───────		───────		───────
Decrease/(increase) in Stock		253		(78)		(297)
Increase in trade and other receivables		(1,679)		(1,311)		(202)
Increase in trade payables		660		1,057		471
		───────		───────		───────
Cash (absorbed by)/generated from operations		(253)		158		889
		───────		───────		───────
Interest paid		(30)		(54)		(111)
Income Taxes paid		(123)		(86)		(322)
		───────		───────		───────
Net Cash from operating activities		(406)		18		456
		───────		───────		───────
Cash Flows from Investing Activities
Purchase of assets		(238)		(54)		(201)
Proceeds from sale of assets		2		3		13
Interest Received		10		15		53
		───────		───────		───────
Net Cash used in investing activities		(226)		(36)		(135)
		───────		───────		───────
Cash Flows from Financing Activities
Proceeds from issuance of share capital		-		-		10
Inception/(payment) of finance lease liabilities		240		(52)		(60)
Dividends paid		(155)		(154)		(154)
Payment of loans		(125)		(125)		(250)
		───────		───────		───────
Net Cash used in financing activities		(40)		(331)		(454)
		───────		───────		───────
Net decrease in cash and cash equivalents		(672)		(349)		(133)
Cash and cash equivalents at start of period		44		177		177
		───────		───────		───────
Cash and cash equivalents at end of period		(628)		(172)		44
		══════		═══════		═══════

  LEES FOODS PLC

NOTES TO THE FINANCIAL INFORMATION for the six months ended 30 June 2009

1.    Accounting Policies

    

Basis of preparation

The condensed financial statements have been prepared using accounting policies consistent with  International Financial Reporting Standards (IFRSs) and in accordance with International Accounting Standard (IAS) 34: Interim Financial Reporting.

Significant accounting policies

The condensed financial statements have been prepared under the historical cost convention.

The same accounting policies, presentation and methods of computation are followed in these condensed financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2008. The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 31 December 2009.

 The figures for the year ended 31 December 2008 have been extracted from the audited accounts of Lees Foods Plc. The accounts for the year ended 31 December 2008 received an unqualified audit report and are filed with the Registrar of Companies.

 The financial information for the 6 months ended 30 June 2009 and 30 June 2008 are unaudited and do not constitute statutory accounts.

    The 6 months results have been approved by the board.

Basis of consolidation

The condensed financial statements incorporate the financial statements of the company and all principal subsidiaries for the period ended 30 June 2009.  

          All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

2.    Segment information

The directors have considered the revenue streams of the business, in line with IAS 14 'Segment reporting', and conclude that the business has one main business segment, the manufacture and supply of bakery related products. In reaching this conclusion the directors have considered, the nature of the products, the nature of the production processes, the type of customers for the products, and the methods used to distribute the products.

Geographical information

The Group's production facilities are based in the UK.

3.    Taxation

    Taxation has been provided at the expected annual tax rate.

4.    Discontinued operations

    Patisserie UK Limited discontinued its operations and was placed into administration in March 2009. As a result, the consolidated income statements to 30 June 2008 and to 31 December 2008 have been restated to transfer the trading results of the company to (loss)/profit from discontinued operations. 

    The trading results of Patisserie UK Limited are analysed as follows:

	2009 30th June £'000		2008 30th June £'000		2008 31st December £'000
Revenue	285		1,090		2,176
Costs	(319)		(1,076)		(2,200)
Provision	(217)		-		(1,818)
Taxation	-		(4)		(2)
	──────		──────		──────
(Loss)/profit	(251)		10		(1,844)
	═════		══════		══════

5.    Earnings per Share

    Basic earnings per share is calculated on the basis of profit for the period after tax divided by the weighted average of shares in issue.

    Diluted earnings per share is calculated on the basis of profit after tax for the period divided by the weighted average of shares in issue, adjusted for the number of shares under option.

6.    Dividend

    The final dividend for the year ended 31 December 2008 of 6.7p (2007: 6.7p) was paid on 26 June 2009.

7.     Property, plant and equipment

    During the period, the Group spent approximately £238,000 on additions to property, plant and equipment. 

It also disposed of certain of its property, plant and equipment with a carrying amount of approximately £2,000 for proceeds of £2,200. 

8.    Related party transactions

    There were no material related party transactions in the period ended 30 June 2009.

9.    Statement of Changes in Shareholders' Equity

    

Statement of Changes in Shareholders' Equity	2009 30th June £'000		2008 30th June £'000		2008 31st December £'000
Opening shareholders' funds	3,954		5,635		5,635
Profit/(loss) for six months/year	33		160		(1,541)
Share-based payment	1		1		4
Dividend paid	(155)		(154)		(154)
Share capital issued	-		-		10
	──────		──────		──────
Closing shareholders' funds	3,833		5,642		3,954
	═════		══════		══════

10.    Approval of interim financial statements

    The interim financial statements were approved by the board of directors on 29 September 2009.

ENDIR CKCKQBBKDFCB