Angela Flowers Gallery plc
Interim Statement and Results for the
six months ended 30th June 2008
CHAIRMAN'S STATEMENT
The first half of 2008 has seen a great deal of change. We moved a large number
of works into our new storage facility in North London, finally vacating our
Richmond Road premises as they came to the end of a 20-year lease. We signed a
new 15-year lease at Cork Street after a lengthy negotiation. We also said
goodbye to a number of staff, both short and long term, who have moved on to
other opportunities. I must especially recognise the excellent contribution of
Sam Chatterton Dickson, who served the Gallery with great enthusiasm,
initiative and support for 16 years, the last six as a director of the company.
He has moved on to another leading gallery with our best wishes for the future.
Market conditions have grown much tougher. Our results have echoed this
unwelcome change, falling short of budget. Gross profit of £1.12 million on
£2.3 million of sales for the half-year was down from £1.34 million on £2.8
million of turnover in 2007. Operating costs have been well controlled.
Consequently the net loss of £87,809, compared to £19,182 last time, is better
than might be expected in view of the £500,000 drop in sales.
However, we are nearing the completion of our Cork Street renovation, which had
an inevitable impact on sales. The premises should emerge from closure in good
shape to increase sales from October onwards. The much-improved galleries will
have substantial additional exhibition space. We will be opening with a show of
new paintings by Derek Boshier, followed by photographs of Versailles by Robert
Polidori.
Flowers East continues to stage major exhibitions. Highlights include a superb
retrospective of Jack Smith in July, followed by a wonderful exhibition of
kinetic art titled "Domestic Appliance", curated by Ellie Harrison Read, which
got excellent press coverage. We have recently opened a Patrick Hughes
exhibition of stunning new reverse perspective paintings to coincide with the
publication of a new book on his writings "Left to Write".
I am expecting further tough months ahead, but the strength of the loyal
artists with whom we work promises a very positive long-term future. Much
thanks goes to our hard working staff and supportive directors and
shareholders.
Angela Flowers
Chairman
29th September 2008
Consolidated Profit and Loss Account for the
six months ended 30th June 2008
Unaudited Unaudited Audited
Six months Six months year
ended ended ended
30.06.08 30.06.07 31.12.07
£ £ £
Turnover 2338341 2803219 5899318
Cost of Sales (1217168) (1459625) (3176070)
Gross Profit 1121173 1343594 2723248
Operating Costs 1162872 (1307514) (2497837)
Operating Profit (Loss) (41699) 36080 225411
Dividend from associated - - 4000
company
Interest receivable 15700 702 899
Interest payable (70835) (55964) (122943)
Profit (Loss) before taxation (96834) (19182) 107367
Taxation 9025 - (48522)
Profit (Loss) after taxation (87809) (19182) 58845
Retained Profit brought forward 769729 710884 710884
Retained Profit carried forward 681920 691702 769729
Earnings per share (1.26p) (0.35)p 0.85p
Note to the Interim Financial Results for the
six months ended 30th June 2008
The interim financial information set out herein does not constitute full
financial statements within the meaning of Section 240 of the Companies Act
1985. The financial statements comprise the unaudited results for the six
months ended 30 June 2008 and extracts from the audited results for the year
ended 31 December 2007. The unaudited Group results have been prepared under
the historical cost convention, in accordance with the Companies Act 1985 and
applicable accounting standards in the United Kingdom, and on the basis of the
accounting policies set out in the Annual Report for the year ended 31 December
2007.
The results for the 6 months ended 30 June 2008 have not been audited. The
financial information for the year ended 31 December 2007 is an abridged
version of the Group's Annual Report and Accounts for that year, which has been
delivered to the Registrar of Companies. The independent auditors' report in
the Annual Report 2007 was unqualified and did not contain a statement under
Section 237(2) or 237(3) of the Companies Act 1985 (as amended).
INDEPENDENT REVIEW
Report to Angela Flowers Gallery plc
INTRODUCTION
We have been instructed by the Company to review the financial information for
the six months ended 30th June 2008 on page 2. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
This report is made solely to the Company in accordance with the terms of our
engagement. Our work has been undertaken so that we might state to the Company
those matters we are required to state 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 interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors
are responsible for preparing the interim report in accordance with the Rules
of Plus.
REVIEW WORK PERFORMED
We conducted our review in accordance with guidance contained in Bulletin 1999/
4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group 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 test of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an
audit performed in accordance with 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 30th June 2008.
Daniel Auerbach & Company LLP
Chartered Certified Accountants
London
Date 29h September 2008
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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