TIDMALLG
RNS Number : 0387M
All Leisure Group PLC
11 July 2014
11(th) July 2014
All Leisure group plc ("All Leisure", the "Company" or the
"Group")
Unaudited interim results for the six months ended 30 April
2014
Highlights
Revenue for the seasonally quieter first half was GBP49.1m. The
Group's result for the six months ended 30 April 2014 is a loss
after tax of GBP15.6m compared to a loss of GBP13.4m for the
equivalent six month period last year. This loss includes
unrealised losses on derivatives of GBP3.9m (six months ended 30
April 2013: loss of GBP1.0m). The loss before tax and derivatives
has improved to a loss of GBP11.5m (six months ended 30 April 2013:
loss of GBP12.6m) largely as a result of a reduction in
restructuring costs which were GBP0.3m in the period (six months
ended 30 April 2013: costs of GBP1.3m) following the successful
integration of the Tour
Operations business last year. Highlights of the period under review include:
-- Improved year on year Tour Operating performance despite a
significantly reduced Egyptian Nile programme that resulted from
geopolitical events.
-- Year on Year revenue growth within cruise with a slight
increase in losses due to longer planned winter programme.
-- Both tour operating and cruise performed in line with expectations.
-- The successful integration of the Tour Operating business
realising significant synergy savings to the Group.
-- The Group has fully hedged, to the end of the financial year
its foreign currency requirements (2013 - over 95%) as well as over
50% (2013 - 30%) of its projected cruise fuel requirement, for the
same period.
Outlook
The performance in the first half of the year has been in line
with expectations despite a continued tough trading environment. We
have currently sold 85% of budgeted escorted tour revenue and 91%
of budgeted cruise revenue for FY14. We advertised and sold very
well two Black Sea cruises in the second half of the year which
originally included ports of call in Ukraine and Crimea. Recent
political and civil unrest in this area has impacted on trading and
we have had to offer customers the opportunity to cancel which a
number have done, or transfer to alternative cruises. These two
cruises are currently being offered with revised itineraries and
the financial impact of these two cruises will not be known until
later in the year. Looking further forward, the successful
integration of the tour operating business and consequent
restructuring program have placed the Group in a stronger position
to maximise the benefits of the increase in year-on-year revenues
that we are seeing for 2015. We remain committed to our previously
announced plan to dispose of mv Discovery at the end of the current
financial year. Going forward, this will have a beneficial impact
on the financial performance of the Group.
Commenting Roger Allard, Executive Chairman of All Leisure group
plc said:
"I am extremely pleased to report that we are continuing to
enjoy the benefits of integrating the Tour Operating and Cruise
divisions into the Group with the Tour Operating division
complementing our existing products even after a sizeable reduction
in our Egyptian Nile tour programme and creating encouraging
cross-selling opportunities. The majority of the business has now
been relocated to our freehold premises in Market Harborough, after
the closure of our Swan office in Southampton at the end of the
calendar year. Furthermore, I am excited for the future of the
Group following the successful integration of Page & Moy where
full year synergy savings in excess of GBP1.5m have been achieved
and our decision to reduce the risk of the cruise division by our
proposed disposal of mv Discovery.
"The recent political and civil unrest in the Ukraine and Crimea
has regrettably led to cruises being rescheduled and has resulted
in a large number of cancellations. We are currently reselling the
cabins with two revised itineraries; these cruises are departing
August and October respectively.
"We believe that we have laid solid foundations for future
growth which can be enjoyed once the wider economic environment and
trading conditions improve."
For further information:
All Leisure group plc
Roger Allard, Executive Chairman 07836 382 767
Ian Smith, Chief Executive Officer 01858 588 396
Chris Gadsby, Group Finance Director 01858 588 216
Broker and Nominated Adviser
Panmure Gordon Andrew Godber/Charles Leigh-Pemberton 020 7886
2500
Financial Public Relations
Citigate Dewe Rogerson Ginny Pulbrook 020 7282 2945
Full year
Half year Half year to
to to 31 October
30 April 2014 30 April 2013 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 49,109 53,288 142,143
Loss before tax and unrealised
losses on derivative contracts. (11,523) (12,649) (9,359)
Operating loss before unrealised
losses on
derivative contracts (11,382) (12,267) (9,132)
Operating loss (15,243) (13,275) (13,409)
Loss before tax (15,384) (13,657) (13,636)
Loss for the financial period/year (15,567) (13,395) (13,410)
Loss per share - basic and diluted
(pence) (25.2)p (21.7)p (21.7)p
Unrestricted bank deposits and
cash and cash equivalents 5,083 9,640 10,685
Total equity 3,602 17,932 19,237
Unaudited Interim Condensed Financial Statements
Chairman's Statement
Overview
The first half of the 2014 financial year has again been
challenging. The Group continues to operate in a trading
environment characterised by adverse geo-political events and
challenging market conditions. Against this back-drop, the cruise
business has benefitted from a strategic decision to reduce the
risk of the business through the continued joint venture with
Cruise & Maritime Voyages Ltd. This has enabled us to improve
performance by more effectively deploying our ships throughout the
year.
The Group reports a loss after tax for the half year ended 30
April 2014 of GBP15.6m (half year ended 30 April 2013: loss of
GBP13.4m; full year ended 31 October 2013: loss of GBP13.4m). Loss
per share - basic and diluted - for the half year ended 30 April
2014 was 25.2 pence compared with 21.7 pence loss per share for the
comparative period (full year ended 31 October 2013: 21.7 pence
loss per share).
The Group's result before tax and losses on derivative contracts
for the half year ended 30 April 2014 was a loss of GBP11.5m (half
year ended 30 April 2013: loss of GBP12.6m; full year ended 31
October 2013: loss of GBP9.4m).
In terms of cash, half year gross cash balances at 30 April 2014
stood at GBP8.6m (unrestricted: GBP5.1m, restricted: GBP3.5m)
compared with GBP13.3m at 30 April 2013 (unrestricted: GBP9.6m,
restricted: GBP3.7m) and GBP14.3m at 31 October 2013 (unrestricted:
GBP10.7m, restricted: GBP3.6m).
Operational Review
Cruise
In the six months to April 2014 mv Minerva completed a full
winter itinerary sailing in South America and the Caribbean. Mv
Voyager also operated a full winter itinerary sailing around India
and Asia. In Spring mv Discovery entered its second year of charter
to Cruise and Maritime Voyages Limited under our arrangement with
them. Mv Hebridean Princess is operating its usual autumn and
spring season around West Scotland.
Tour Operating
Although volumes are lower in the tour operating division
compared to 2013, our gross margins for Travelsphere and Just You
brands improved year on year. This has more than mitigated the
impact of a significantly curtailed Discover Egypt Program.
Hedging
As was the case in the prior year, a significant element of the
Group's costs are in non-sterling denominations, especially US
dollars and Euros. The Group is actively engaged in managing the
impact of these currency headwinds, but unfortunately the nature
and deployment of the instruments used preclude the application of
hedge accounting.
Both currency and fuel hedging remain important tools for
managing the cost base. The Group has fully hedged its foreign
currency requirements for the current financial year, at or better
than budgeted rates. Looking forward, we have currently hedged 95%
of our 2015 currency requirements. For calendar year 2014, we have
hedged approximately 50% of our projected cruise fuel
requirement.
Future Outlook
Looking forward there are some positive signs for future
trading. Where previously the Group had experienced later bookings,
trading at this early stage of the financial year 2014/15 has
started well in both the Cruising and Tour Operating divisions.
Sales remain ahead of last year.
In summary, the UK cruise market continues to be challenging
with the continuing themes of political unrest and economic
uncertainty impacting trade. However, the Group continues to see
the benefits of the acquisition of Page & Moy with new
cross-selling initiatives and significant synergy savings
identified, especially since the closure of the Burgess Hill
office. The Group will benefit further next year from further
capacity reduction in the Cruise division through the previously
announced disposal of mv Discovery. We expect these factors to
provide the basis of a significant improvement in shareholder
returns.
Roger Allard
Chairman
Unaudited Interim Condensed Financial Statements
Consolidated Income Statement
For the six months ended 30 April 2014
Six month Six month
period ended period ended Year ended
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Revenue
Cruising 27,903 27,508 65,824
Tour operating 21,206 25,780 76,319
Total revenue 3 49,109 53,288 142,143
Costs, expenses and other
income
Operating
Cruising (29,984) (27,242) (51,002)
Tour operating (15,030) (18,994) (54,699)
Total operating (45,014) (46,236) (105,701)
Selling and administrative (12,781) (15,060) (29,363)
Depreciation (1,711) (2,291) (5,487)
Amortisation (637) (709) (1,344)
Exceptional items 4 (349) (1,261) (9,388)
Rental income 1 2 8
Total costs, expenses and
other income (60,491) (65,555) (151,275)
Operating loss before unrealised
losses on derivative contracts (11,382) (12,267) (9,132)
Unrealised losses on derivative
contracts (3,861) (1,008) (4,277)
Operating loss (15,243) (13,275) (13,409)
Investment revenues 40 58 160
Finance costs (181) (440) (387)
Loss before taxation (15,384) (13,657) (13,636)
Tax (charge)/credit 5 (183) 262 226
Loss for the financial period/year (15,567) (13,395) (13,410)
Loss per share (pence):
Basic and diluted 7 (25.2)p (21.7)p (21.7)p
All results derive from continuing operations and are
attributable to equity holders of the parent company.
Unaudited Interim Condensed Financial Statements
Consolidated Statement of Comprehensive Income
For the six months ended 30 April 2014
Six month Six month
period ended period ended Year ended
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss for the financial period/year (15,567) (13,395) (13,410)
Items that will not be reclassified
subsequently to profit or loss
Losses on property revaluation - - (24)
Actuarial (losses)/gains on defined
benefit pension schemes (85) (582) 1,258
Deferred tax on pensions 17 131 (365)
Total comprehensive loss for the
period/year (15,635) (13,846) (12,541)
Unaudited Interim Condensed Financial Statements
Consolidated Balance Sheet
At 30 April 2014
At At At
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 20,722 22,077 21,324
Property, ship, plant and
equipment 8 38,800 49,846 39,567
Deferred tax asset 1,512 2,416 1,739
Deposits 3,840 3,840 3,840
64,874 78,179 66,470
Current assets
Inventories 2,436 1,526 2,312
Trade and other receivables 9,792 8,094 9,400
Derivative financial instruments - 694 91
Asset held for sale - - 350
----------------------------------- ---- ---------- ---------- -----------
Restricted bank balances 3,471 3,727 3,594
Cash and cash equivalents 5,083 9,640 10,685
----------------------------------- ---- ---------- ---------- -----------
Total current bank balances
and cash in hand 8,554 13,367 14,279
Total current assets 20,782 23,681 26,432
Total assets 85,656 101,860 92,902
Current liabilities
Trade and other payables (62,283) (67,440) (57,321)
Current tax liabilities (8) (15) (5)
Derivative financial instruments (8,717) (2,280) (4,947)
Provisions (321) - (358)
Borrowings (580) (580) (580)
(71,909) (70,315) (63,211)
Non-current liabilities
Borrowings (4,622) (5,202) (4,622)
Deferred tax liabilities (2,238) (2,584) (2,299)
Long term provisions (1,319) (1,438) (1,432)
Retirement benefit obligations (1,966) (4,389) (2,101)
(10,145) (13,613) (10,454)
Total liabilities (82,054) (83,928) (73,665)
Net assets 3,602 17,932 19,237
Equity
Share capital 9 617 617 617
Share premium account 13,346 13,346 13,346
Revaluation reserve - 47 23
Currency translation reserve 12 12 12
Retained earnings (10,373) 3,910 5,239
Total equity 3,602 17,932 19,237
Unaudited Interim Condensed Financial Statements
Consolidated Statement of Changes in Equity
For the six months ended 30 April 2014
Six month Six month
period period Year
ended ended ended
30 April 30 April 31 October
Note 2014 2013 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Opening total equity 19,237 31,778 31,778
Loss for the financial period/year (15,567) (13,395) (13,410)
Revaluation of property - - (24)
Actuarial (losses)/gains on defined
benefit
pension schemes (85) (582) 1,258
Deferred tax on pensions 17 131 (365)
Total comprehensive loss for the
financial period/year (15,635) (13,846) (12,541)
Closing total equity 3,602 17,932 19,237
Unaudited Interim Condensed Financial Statements
Consolidated Cash Flow Statement
For the six months ended 30 April 2014
Six month Six month
period ended period ended Year ended
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Net cash outflow from operating
activities 11 (3,580) (2,838) (3,312)
Investing activities:
Interest received 40 58 152
Rental income 1 2 8
Purchases of property, plant and
equipment (977) (7,746) (8,348)
Proceeds on disposal of property,
plant and equipment - - 499
Proceeds on disposal of assets
held for sale 350 250 250
Movement in long-term restricted
cash held on deposit 123 1,839 1,972
Net cash used for investing activities (463) (5,597) (5,467)
Financing activities:
Repayment of borrowings - - (580)
Net cash used for financing activities - - (580)
Net decrease in cash and cash
equivalents (4,043) (8,435) (9,359)
Cash and cash equivalents at the
start of the period/year 10,685 18,242 18,242
Effect of foreign exchange rate
changes (1,559) (167) 1,802
Cash and cash equivalents at the
end of the period/year 5,083 9,640 10,685
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
1. Basis of presentation
The interim condensed unaudited financial statements of the
Group for the six months ended 30 April 2014 have been prepared in
accordance with the International Financial Reporting Standards
('IFRS') accounting policies adopted by the Group and set out in
the annual report and financial statements for the year ended 31
October 2013. IAS 19 (revised) and the related consequential
amendments have not impacted the accounting for the Group's defined
benefit schemes. The Group does not anticipate any changes in these
accounting policies for the year ended 31 October 2014. The
following standard has been adopted in the period:
-- IFRS 13 Fair Value Measurement: This standard applies to
IFRSs that require or permit fair value measurements or disclosures
and provides a single IFRS framework for measuring fair value and
requires disclosures about fair value measurement. The adoption of
this standard has had no impact on the measurement of fair value
for the Group's assets and liabilities and no retrospective changes
were required as a result of adopting this standard. Additional
disclosures required by this standard have been included within the
interim financial statements (note 10).
As permitted, this interim report has been prepared in
accordance with the AIM rules and not in accordance with IAS 34
"Interim financial reporting". While the financial figures included
in these interim condensed financial statements have been computed
in accordance with IFRSs applicable to interim periods, this
announcement does not contain sufficient information to constitute
an interim financial report as that term is defined in IFRSs.
The financial information contained in the interim report also
does not constitute statutory financial statements for the purposes
of s434 of the Companies Act 2006. The financial information for
the year ended 31 October 2013 is based on the statutory financial
statements for the year ended 31 October 2013. The auditor reported
on those financial statements. This report was unqualified, did not
draw attention to any matters by way of emphasis and did not
contain a statement under s498(2) or (3) Companies Act 2006.
Going concern
After conducting a further review of the Group's forecasts of
earnings and cash over the next twelve months and after making
appropriate enquiries as considered necessary, including exposure
to external risks as described in the Chairman's Statement, the
directors have a reasonable expectation that the Company and Group
have adequate resources to continue in operational existence for
the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the half yearly condensed
financial statements.
Operating loss
Operating loss is stated as loss before tax, investment income,
finance costs and other gains and losses.
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
2. Critical accounting judgements and key sources of estimation uncertainty
The directors are required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities at
each period end. The estimates and associated assumptions are based
on historical experience and other factors that are considered to
be relevant. Actual results may differ from these estimates.
The following are the critical accounting judgements and
estimates that the Directors have made in the process of applying
the Group's accounting policies and that have the most significant
effect on the amounts recognised in financial statements:
-- Residual value of cruise ships
-- Valuation of derivative financial instruments
-- Dry dock provisions
-- Retirement benefits
-- Impairment of Swan Hellenic assets
-- Impairment of goodwill
-- Impairment of ship values
-- Provision against a material counterparty
-- Recognition of deferred tax asset relating to carry-forward unused losses
The estimates and underlying assumptions are reviewed on an
ongoing basis. There has been no change to the application of
critical accounting judgements or key sources of estimation
uncertainty from those set out in the 31 October 2013 financial
statements.
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
3. Business segments
The Group has identified that each of its divisions is an
operating segment and that these operating segments meet the
criteria to be aggregated into the two reporting segments: Cruising
(including the Voyages of Discovery, Swan Hellenic and Hebridean
Island Cruises brands) and Tour Operating (including the
Travelsphere, Just You and Discover Egypt brands).
Cruising: This includes the cruise operating segments. Revenue
streams are principally from the UK but also from the USA and rest
of the world.
Tour operating: This segment represents the Group's escorted
tours operation, providing escorted tour holidays to a wide range
of overseas destinations. Revenue streams are from the UK.
The Group holds all its derivative contracts to maturity and for
this reason, coupled with being unable to hedge account under IAS
39, the information on these instruments is reported separately to
the chief operating decision maker. Furthermore, these movements
are not allocated to any one reporting segment in the management
accounts. As a consequence the information is presented below with
an adjustment that reconciles the operating profit on an IFRS
basis, which includes the mark-to-market impact of the Group's open
derivative financial instruments.
The following is an analysis of the Group's revenue and results
by reportable segments in 2014:
Six months ended Cruising Tour Operating Corporate Consolidated
30 April 2014 2014 2014 2014 2014
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External sales 27,903 21,206 - 49,109
Total revenue 27,903 21,206 - 49,109
Result
Underlying loss from operations (8,238) (2,072) (475) (10,785)
Separately disclosed items (201) (148) - (349)
Amortisation of business combination
intangibles - (248) - (248)
Operating loss before adjustment
for derivative financial instruments (8,439) (2,468) (475) (11,382)
Losses on derivative financial
instruments (3,861)
Operating loss (15,243)
Investment revenues 40
Finance costs (181)
Loss before tax (15,384)
Tax charge (183)
Loss for the financial period (15,567)
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
3. Business segments (continued)
Six months ended Cruising Tour Operating Corporate Consolidated
30 April 2013 2013 2013 2013 2013
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External sales 27,508 25,780 - 53,288
Total revenue 27,508 25,780 - 53,288
Result
Underlying loss from operations (7,614) (2,443) (447) (10,504)
Separately disclosed items (1,005) (208) (48) (1,261)
Amortisation of business combination
intangibles (253) (249) - (502)
Operating loss before adjustment
for derivative financial instruments (8,872) (2,900) (495) (12,267)
Losses on derivative financial
instruments (1,008)
Operating loss (13,275)
Investment revenues 58
Finance costs (440)
Loss before tax (13,657)
Tax charge 262
Loss for the financial period (13,395)
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial Statements
For the six months ended 30 April 2014
3. Business segments (continued)
Year ended Cruising Tour Operating Corporate Consolidated
31 October 2013 2013 2013 2013 2013
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External sales 65,824 76,319 - 142,143
Total revenue 65,824 76,319 - 142,143
Result
Underlying (loss)/profit from operations (1,944) 4,117 (1,420) 753
Separately disclosed items (8,556) (500) (332) (9,388)
Amortisation of business combination
intangibles - (497) - (497)
Operating (loss)/profit before
adjustments for
derivative financial instruments (10,500) 3,120 (1,752) (9,132)
Losses on derivative financial
instruments (4,277)
Operating loss (13,409)
Investment revenues 160
Finance costs (387)
Loss before tax (13,636)
Tax credit 226
Loss for the financial year (13,410)
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
4. Exceptional costs
Half year Half year Full year
to 30 April to 30 April to 31 October
2014 Unaudited 2013 Unaudited 2013 Audited
GBP'000 GBP'000 GBP'000
Onerous lease provision - - (139)
Restructuring costs (349) (1,261) (1,655)
Impairment of ship - - (6,700)
Cruise cancellation costs - - (563)
Software costs write off - - (263)
Loss on disposal of property - - (68)
Total exceptional costs (349) (1,261) (9,388)
The restructuring costs disclosed above relate to costs
associated with the closure of the Group's offices in Burgess Hill
and Southampton, and relocation of operations to Market
Harborough.
During the year ended 31 October 2013 the Group announced the
closure of its offices in Southampton. The onerous lease provision
arises as a result of the ongoing lease commitment for the
Southampton premises.
At 31 October 2013 an impairment review was undertaken in
respect of mv Discovery. This revealed a decline in the market
value of the ship and an impairment charge of GBP6,700k was
therefore incurred.
Costs of GBP563k were incurred during the year ended 31 October
2013 due to the cancellation of certain cruises following major
mechanical problems on-board mv Voyager.
Costs of GBP263k were written off during the year ended 31
October 2013 in relation to expenditure on software prior to the
integration of the businesses.
The Group disposed of Lynnem House, Burgess Hill during the year
ended 31 October 2013 and incurred a loss on disposal of
GBP68k.
5. Income taxes
The tax charge of GBP183,000 (six months ended 30 April 2013:
credit of GBP262,000; year ended 31 October 2013: credit of
GBP226,000) represents an effective rate of (1.2)% (six months
ended 30 April 2013: 1.9%; year ended 31 October 2013: 1.7%).
Certain of the Group subsidiary companies are subject to taxation
under the UK Tonnage Tax regime. Under this regime, a shipping
company may elect to have its taxable profits computed by reference
to the net tonnage of each of the qualifying ships it operates.
6. Dividends
It was announced on 27 July 2012 that the Group is not proposing
to pay dividends for the foreseeable future (please refer to the
Chairman's Statement in the 2013 Annual Report and Financial
Statements for further details on the Group's dividend policy).
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
7. Loss per share (pence)
Six month Six month
period ended period ended Year ended
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
pence pence pence
Loss per share (pence)
Basic and diluted (25.2) (21.7) (21.7)
The calculation of basic and diluted loss per share is based on
the following data:
Loss GBP'000 GBP'000 GBP'000
Loss for the purposes of basic and diluted
earnings per share being net loss attributable
to shareholders of the parent (15,567) (13,395) (13,410)
Number Number Number
Number of shares
Weighted average number of ordinary shares
for the purposes of basic and diluted
loss per share 61,744,777 61,744,777 61,744,777
8. Property, plant and equipment
During the period, the Group spent GBP977,000 on capital
expenditure. The majority of this was in relation to the annual dry
dock of MV Hebridean Princess.
9. Share capital
At At At
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Issued and fully paid:
61,744,777 ordinary shares of 1p each 617 617 617
The Company has one class of ordinary shares which carry no
rights to fixed income.
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
10. Financial Instruments fair value disclosures
The only assets and liabilities of the Group in the current
period and proceeding period and year which have been measured at
fair value through profit and loss are its derivative financial
instruments. The fair values of these are derived from those inputs
other than quoted prices that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices) and they therefore are categorised within
level 2 of the fair value hierarchy set out in IFRS 7. Accordingly,
no table presenting an analysis of financial instruments that are
measured subsequent to initial recognition at fair value by Levels
1 - 3 is presented.
For the derivative financial instruments (both currency and
fuel), the fair value has been calculated by discounting the future
estimated cash flows based on the applicable yield curve derived
from quoted interest rates. The derivatives are carried at fair
value and accordingly, the book value and fair value are the
same.
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
11. Notes to the consolidated cash flow statement
Six month Six month
period ended period ended Year ended
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss for the financial period/year (15,567) (13,395) (13,410)
Adjustments for:
Investment revenues (40) (58) (160)
Rental income (1) (2) (8)
Finance costs 181 440 387
Other gains and losses - - 232
Income tax 183 (262) (226)
Depreciation and amortisation 2,348 3,000 6,831
Impairment losses - - 6,700
Foreign exchange movements 1,559 167 (1,802)
Movement in fair value of derivatives 3,861 1,008 4,277
(Decrease)/increase in provisions (150) (146) 206
Adjustment for pension funding (220) (220) (440)
Operating cash (outflows)/inflows
before movements in (7,846) (9,468) 2,587
working capital
(Increase)/decrease in inventories (124) 103 (683)
(Increase)/decrease in receivables (392) 2,643 1,422
Increase/(decrease) in payables 4,779 3,884 (6,630)
Cash outflow generated from operations (3,583) (2,838) (3,304)
Income taxes refunded/(paid) 3 - (8)
Net cash outflow from operating
activities (3,580) (2,838) (3,312)
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
12. Related party transactions
Trading transactions
During the period/year, Group companies entered into the
following transactions with related parties who are not members of
the Group:
Purchase of services
Six month Six month
period period
ended ended Year ended
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
GBP GBP GBP
Roger Allard Limited 91,872 105,140 179,061
PB Consultancy Services Limited 7,200 26,239 38,413
Amounts owed to related parties
At At At
30 April 30 April 31 October
2014 2013 2013
Unaudited Unaudited Audited
GBP GBP GBP
Roger Allard Limited 15,887 18,838 53,851
PB Consultancy Services Limited 2,378 5,140 1,623
Roger Allard Limited is a company owned and controlled by Mr R J
Allard, a director of the Company and majority shareholder of the
Group, and the payments made are for consultancy services.
PB Consultancy services is owned and controlled by Mr P E
Buckley, the Company Secretary of the Group, and the payments are
for consultancy, accounting and Company Secretarial services.
In addition to the above transactions, the Group sold a property
to Mr R J Allard for GBP350,000 during the period ended 30 April
2014. This transaction was made on an arms-length basis based on an
independent valuation.
Unaudited Interim Condensed Financial Statements
Notes to the Unaudited Interim Condensed Financial
Statements
For the six months ended 30 April 2014
12. Related party transactions (continued)
Trading transactions (continued)
On 15 May 2012, All Leisure Group PLC acquired 100% of the
issued share capital of Page & Moy Travel Group Limited
("PMTGL"), on a debt free basis, for a consideration of GBP3.3m.
The consideration was funded with a GBP5.8m loan from a consortium
of individual investors, some of whom were related parties. The
lenders who meet the definition of related parties, and the amounts
loaned to the Group are as follows:
Loan amount Accrued interest
30 April 31 October 30 April 30 April 31 October
2014 30 April 2013 2014 2013 2013
Unaudited 2013 Unaudited Audited Unaudited Unaudited Audited
GBP GBP GBP GBP GBP GBP
R J Allard and interests 4,010,000 4,400,000 4,010,000 269,164 295,342 437,968
N J Jenkins 225,000 250,000 225,000 15,103 16,781 24,972
D A Wiles and interests 360,000 400,000 360,000 24,164 26,849 39,668
N J Jenkins is a director and shareholder in All Leisure group
plc. D A Wiles is a director of All Leisure Holidays Limited, a
subsidiary of All Leisure group plc.
13. Ultimate Controlling Party
By virtue of his majority shareholding, the ultimate controlling
party is Mr R J Allard.
Unaudited Interim Condensed Financial Statements
Independent Review Report to All Leisure group plc
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 April 2014 which comprises the Consolidated
Income Statement, the Consolidated Statement of Comprehensive
Income, the Consolidated Balance Sheet, the Consolidated Statement
of Changes in Equity, the Consolidated Cash Flow Statement and
related notes 1 to 13. We have read the other information contained
in the half-yearly financial report and considered whether it
contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with the
International Standard on Review Engagements (UK and Ireland) 2410
"Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Auditing Practices
Board. Our work has been undertaken so that we might state to the
Company those matters we are required to state to it in an
independent 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 half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the AIM Rules of the London Stock Exchange.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report have been prepared in
accordance with the accounting policies the Group intends to use in
preparing its next annual financial statements.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of Review
We conducted our review in accordance with the International
Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
April 2014 is not prepared, in all material respects, in accordance
with the AIM Rules of the London Stock Exchange.
Deloitte LLP
Chartered Accountants and Statutory Auditor
Nottingham, United Kingdom
11 July 2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
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