RNS Number:3516R
Blooms of Bressingham Holdings plc
27 October 2003
BLOOMS OF BRESSINGHAM HOLDINGS PLC
INTERIM REPORT FOR THE SIX MONTHS ENDED 27TH JULY 2003
Chairman's Statement
Highlights
Operating profits (before exceptional items) Up 30%
Pre-tax profit (before amortisation of goodwill and exceptional items) Up 44%
Like-for-like sales Up 8.2%
New 12-year banking facility in place
Over the last 12 months debt has been reduced by #1.6m
Commenting on these figures the Chairman, Charles Good said
"The management of Blooms has achieved a quiet but highly significant revolution
over the last eighteen months. Trading performance has been greatly improved,
with more improvements to come. The disposal of our remaining three smaller
non-core centres is proceeding and we have taken the opportunity to write down
the book cost of these in line with the likely sale proceeds. This write down
and the costs of the abortive approach we received in the first half are
reflected in the exceptional loss reported in these figures. With the losses
associated with the restructuring of our portfolio of centres now firmly behind
us we can look forward to a period of sustained growth, which our remaining
eight core sites will deliver.
Trading has continued to be good in the second half, with like-for-like sales
increasing at a rate of 13.6% in the 12 weeks to 19th October. Morale has
never been higher and we now have the base from which we can look forward to a
much brighter future."
CHAIRMAN'S STATEMENT
Trading Results
Turnover rose from #11.33 million to #11.54 million in the first half of 2003.
This reflects like-for-like sales growth of 8.2% offset by the fact that we sold
two centres at the beginning of the year. Operating profits, before exceptional
items rose from #1,053,000 to #1,373,000, an increase of 30% and pre-tax profit,
after interest, before goodwill amortisation and exceptional items, rose from
#802,000 at this time last year to #1,157,000 this year, an increase of 44%.
This year the weather has generally been good for our business, although it
should not be forgotten that May, our most important month, was very wet. Sales
during the very hot summer were good with garden furniture being particularly
strong. Plant sales however were slightly below expectations due to the dry
conditions.
As was widely reported on earlier this year, our company was the subject of a
number of unsolicited, opportunistic approaches during the depressed stock
market conditions in the lead up to and during the war in Iraq. This diverted a
huge amount of management time and undoubtedly had an adverse effect on trading
during this key period.
As a result of the sale of our centres at Betchworth and Clandon and our good
trading performance, net debt has decreased by #1.6m over the past 12 months.
Exceptional items
As already reported to the stock exchange, we are at an advanced stage of
negotiation for the sale of our remaining three smaller centres, which are not
core to our strategy. In order to reflect the likely sale proceeds we have
reduced the historic carrying value of these properties and have reported this
adjustment as an exceptional charge in the period under review. As a result of
the abortive discussions referred to earlier in the year, we have also incurred
exceptional costs of #200,000. Taken together with the exceptional profit on
sale of surplus land at Bressingham these give rise to a net exceptional loss of
#834,000.
We have also announced our intention to dispose of New Plant marketing. This
business owns and manages the intellectual property rights to a wide range of
plants, which we sub-license to other organisations to distribute and wholesale
throughout the UK and the United States. This is unrelated to our retail
activity. If completed as currently anticipated this disposal will give rise to
an exceptional profit, which will significantly offset the exceptional losses
reported in the first half of this year. Negotiations are continuing and we
will update shareholders in due course.
The Future
The management team has achieved a quiet but highly significant revolution in
operations over the last eighteen months, which we are now in a position to
build on. Trading, so far in the second half of the year has been very buoyant
helped by the consistent good weather through the summer and autumn.
Like-for-like sales are above expectations, increasing by 13.6% in the 12 weeks
to 19th October. There are a number of operational improvements planned for
next year. We continue to develop the product range and broaden the offer to
appeal to a wider range of customers.
With the losses associated with restructuring our portfolio of centres behind
us, we can now look forward to a period of growth which our eight flagship sites
will deliver, augmented by the substantial potential increase in trading square
footage, (most of which will be covered heated space) at three of our sites;
Rugby, a green-field site; Gloucester subject to planning permission, and
Bicester.
We are also pleased to announce the finalisation of a new 12-year banking
facility of #11,000,000 on more favourable terms.
The last eighteen months have not been easy, but morale has never been higher
and we now have the base from which we can look forward to a much brighter
future. Once again I would like to express the Board's gratitude to all members
of the Blooms team for their effort and determination to contribute to the
growth of the business.
Charles Good
Chairman
27th October 2003
CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT
6 Months 6 Months 12 Months to 26
to 27 July 2003 to 28 July 2002 Jan. 2003
Unaudited Unaudited Audited
Note #'000 #'000 #'000
Turnover 11,537 11,338 18,452
Cost of sales (6,114) (6,049) (9,947)
Gross profit 5,423 5,289 8,505
Administrative expenses
Exceptional 2 (834) - (88)
Amortisation of goodwill (117) (127) (255)
Other (4,249) (4,361) (8,558)
223 801 (396)
Other operating income 316 252 553
Operating profit 539 1,053 157
Interest receivable and similar income - 1 1
Interest payable and similar charges (333) (379) (754)
Profit / (loss) on ordinary activities before 206 675 (596)
taxation
Tax on profit / (loss) on ordinary activities - - 23
Profit / (loss) for the financial period 206 675 (573)
Earnings / (loss) per share (pence) 1 0.8p 2.9p (2.4)p
Earnings/ (loss) per share pre exceptional/
non-recurring items (pence) 1 4.2p 2.9p (2.0)p
Earnings / (loss) per share pre exceptional/
non-recurring items and amortisation of goodwill
(pence) 1 4.7p 3.5p (1.0)p
CONSOLIDATED SUMMARISED BALANCE SHEET
27 July 2003 28 July 2002 26 Jan. 2003
Unaudited Unaudited Audited
Note #'000 #'000 #'000
Fixed assets
Intangible assets 4,218 4,668 4,336
Tangible assets 20,966 22,549 22,497
25,184 27,217 26,833
Current assets
Stocks 2,634 2,245 2,401
Debtors 578 625 472
Cash at bank and in hand 15 28 15
3,227 2,898 2,888
Creditors: amounts falling due within one year 3 (6,203) (10,896) (7,059)
Net current liabilities (2,976) (7,998) (4,171)
Total assets less current liabilities 22,208 19,219 22,662
Creditors: amounts falling due after more than one
year
Convertible debt (1,000) (1,500) (1,500)
Other (6,675) (1,975) (6,835)
(7,675) (3,475) (8,335)
Provisions for liabilities & charges (90) (256) (90)
14,443 15,488 14,237
Capital and reserves
Called up share capital 12,314 12,314 12,314
Share premium account 7,383 7,388 7,383
Other reserves 1,783 1,782 1,783
Profit and loss account (7,037) (5,996) (7,243)
Shareholders' funds 14,443 15,488 14,237
CONSOLIDATED CASH FLOW STATEMENT
6 Months 6 Months 12 Months to
to 27 July to 28 July 26 Jan.
2003 2002 2003
Unaudited Unaudited Audited
Note #'000 #'000 #'000
Net cash inflow from operating activities 2,057 844 647
Returns on investments and servicing of finance
Interest received - 1 1
Interest paid (333) (379) (671)
(333) (378) (670)
Taxation - - (1)
Capital expenditure and financial investment
Purchase of tangible fixed assets (527) (727) (1,130)
Purchase of intangible fixed assets - (2) -
Sale of fixed assets 1,242 - -
715 (729) (1,130)
Financing
Issue of shares (net of costs) - 2,001 1,796
Receipts from bank borrowings 556 - 1,723
Repayment of bank borrowings (450) (275) (2,473)
Repayment of guaranteed loan notes (556) (200) -
Lease creditor (169) (230) (453)
(619) 1,296 593
Increase/(decrease) in cash 1,820 1,033 (561)
Reconciliation of operating cash flow
Operating profit 539 1,053 157
Depreciation and amortisation 461 504 1,030
Impairment write down of fixed assets 667 - 233
Profit/(loss) on disposal of assets (194) - 25
Increase in stocks (234) (95) (251)
Decrease / (increase) in debtors (106) 311 308
(Decrease) / increase in creditors 924 (706) (466)
(Decrease) / increase in provisions for liabilities &
charges
- (223) (389)
Net cash inflow from operating activities 2,057 844 647
Notes to the interim report
1. EARNINGS / (Loss) per share
The calculation of basic earnings/(loss) per share is based on the profit/(loss)
attributable to ordinary shareholders divided by 24,628,872 being the weighted
average number of shares in issue during the period. (July 2002 - 22,915,060)
There is no dilutive effect of share options on the basic earnings/(loss) per
share.
2. EXCEPTIONAL ITEMS
Exceptional administrative expenses related to the impairment of fixed assets,
in connection with the sale of three small sites due to be completed by November
2003, together with costs for the abortive approaches earlier this year, net of
an exceptional gain made on the sale of the surplus land at Bressingham.
3. CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR
#000's
Bank loans and overdrafts 1,309
Convertible loan notes 500
Other creditors and accruals 4,394
_____
6,203
_____
4. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out above does not constitute statutory accounts
within the meaning of Section 240 of the Companies Act 1985. The figures for
the period ended 26 January 2003 have been extracted from the statutory
financial statements, which have been filed with the Registrar of Companies.
The auditors' report on those financial statements was unqualified.
5. DISTRIBUTION
Copies of this document will be dispatched to shareholders and the AIM Team.
Copies will also be available to the public, for one month, at the company's
registered address, Blooms of Bressingham Holdings PLC, Bath Road, Haresfield,
Nr Stonehouse, Gloucester GL10 3DP
GRANT THORNTON
INDEPENDENT REVIEW report to BLOOMS OF BRESSINGHAM HOLDINGS PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 27 July 2003, which comprises the consolidated summarised
profit and loss account, the consolidated summarised balance sheet, the
consolidated summarised cash flow statement and notes 1 to 4. We have read the
other information contained in the interim report, which comprises only the
chairman's statement and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information. Our
responsibilities do not extend to any other information.
This report is made solely to the company, in accordance with guidance contained
in APB Bulletin 1999/4 "Review of Interim Financial Information". Our review
work has been undertaken so that we might state to the company those matters we
are required to state to it in a review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company, for our review work, for this report or for the
conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. They are
responsible for preparing the interim report and ensuring that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
"Review of Interim Financial Information" issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making
enquiries of management and applying analytical procedures to the financial
information and underlying financial data and, based thereon, assessing whether
the accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with United
Kingdom auditing standards and therefore provides a lower level of assurance
than an audit. Accordingly, we do not express an audit opinion on the financial
information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 27 July 2003.
GRANT THORNTON
CHARTERED ACCOUNTANTS
CHELTENHAM
27th October 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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