Interim Results
John David Group (The) PLC
26 September 2007
26 September 2007
THE JOHN DAVID GROUP PLC
INTERIM RESULTS
FOR THE TWENTY SIX WEEKS TO 28 JULY 2007
The John David Group Plc (the 'Group'), the leading retailer of sport and
athletic inspired fashion apparel and footwear, today announces its Interim
Results for the 26 weeks ended 28 July 2007 (comparative figures are shown for
the 26 week period ended 29 July 2006):
HIGHLIGHTS
H1 2007 H1 2006 % Change
£000 £000
Revenue 250,495 235,932 +6.2%
Gross profit % 48.0% 47.4% +0.6%
Operating profit (before net financing costs
and exceptional items) 8,459 4,378 +93.2%
Profit before tax and exceptional items 8,074 3,130 +158.0%
Exceptional items (2,746) 99
Operating profit 5,713 4,477 +27.6%
Profit before tax 5,328 3,229 +65.0%
Basic earnings per ordinary share 7.29p 4.45p +63.8%
Adjusted basic earnings per ordinary share
(see note 6) 8.63p 6.21p +39.0%
Interim dividend payable per ordinary share 2.50p 2.40p +4.2%
Net cash/(debt) at end of period (see note 7) 7,122 (24,866)
• Total Group revenue increased by 6.2% in the period and by 9.4% on a
like for like basis.
• Gross margin improved from 47.4% to 48.0%, reflecting the continuing
benefits of better stock management and efforts to improve bought in margin
as well as increasing own brand share.
• Group profit before tax and exceptional items increased to £8.1 million
(2006: £3.1 million).
• Total Group like for like sales cumulatively to 22 September 2007 now up
11.8% (12.3% Sports Fascias; 3.3% Fashion Fascias).
Peter Cowgill, Executive Chairman, said:
'Trading since the period end has been highly satisfactory with year to date
like for like sales to 22 September 2007 in the Sports Fascias now up by 12.3%
cumulatively. The Fashion Fascias like for like sales for the same period are
now up by 3.3%. Overall the Board expects the results to continue to be
satisfactory with trading for the year to date running moderately ahead of
current market expectations. As always, the final result remains heavily
dependent upon sales performance during the key Christmas trading period.'
Enquiries:
The John David Group Plc Tel: 0870 873 0333
Peter Cowgill, Executive Chairman
Barry Bown, Chief Executive
Brian Small, Finance Director
Hogarth Partnership Limited Tel: 020 7357 9477
Andrew Jaques
Barnaby Fry
Sarah Richardson
EXECUTIVE CHAIRMAN'S STATEMENT
INTRODUCTION
The 26 week period to 28 July 2007 has been one of sustained like for like sales
improvement in our core Sports Fascias which has continued in the ensuing period
to date in spite of our expectation of tightening in the economy. This has
driven a substantial enhancement in Group performance and continued very
positive cashflow trends. This has enabled us to embark on an accelerated store
refurbishment programme as well as continuing to tackle the disposal of the
remaining underperforming stores. The results of the Fashion Fascias are
stronger, aided by improvements in the store portfolio, although it may take
until 2009 for profitability to be achieved.
Our continued progress has resulted in an improved profit before tax and
exceptional items of £8.1 million (2006: £3.1 million).
Profit before tax in the period was £5.3 million (2006: £3.2 million) after a
net exceptional charge of £2.8 million (2006: exceptional credit £0.1 million).
The charge relates to property portfolio rationalisation costs, which remains a
major priority for the balance of this year. Further such action will result in
an exceptional charge in the second half of the current year. However, the
programme is now nearing completion.
Profit for the period after taxation was £3.5 million (2006: £2.1 million).
SPORTS FASCIAS
The Sports Fascias have continued to trade very positively. This performance is
the result of continuous fine tuning of our major brand and own brand product
offer to maintain levels of exclusivity and fashionability combined with our
strategy of improving our store portfolio. We are now seeing the benefits of
rationalising the acquired store portfolios and have also embarked on an
accelerated programme of store refurbishments after trialling a number of new
storefit types. Last year most store refurbishment activity was concentrated on
the Allsports stores, which we acquired in October 2005, although this year we
anticipate refurbishing 28 stores from the rest of the portfolio. This programme
will continue next year. We also expect to open at least 10 new stores in the
current year. Consequently, gross capital investment will exceed the
depreciation charge in the current year.
Another major initiative during the current year is the development of a more
sophisticated approach to merchandising involving new systems, the first part of
which will go live in the second half of this year. This has necessitated a
considerable investment in people and training. It is expected that this will
allow us to sustain the improvement in the freshness of retail stock achieved in
the recent past and to ensure that localised stock service is much enhanced,
therefore also reducing the need for very high levels of internal stock
movements.
FASHION FASCIAS
We have consistently stated that the Fashion Fascias would only provide profit
to the business if some of the larger rented and over rented stores could be
disposed. Good progress has been made in this portfolio rationalisation with the
disposal of five further underperforming stores including Glasgow Open in
September. Nevertheless it could still take until 2009 to completely eliminate
underperforming stores and losses in these Fascias. Of the original JD Fashion
stores, only two have not now been converted to Scotts.
Stocks and overheads have been well controlled and operating margins have been
improved, principally as a result of the continuing move to a more efficiently
structured property portfolio.
Whilst progress has been made in the Fashion Fascias, which represented less
than 6% of turnover in the first half, these stores will still make a
substantial though reduced loss in the current year. Nevertheless, the outlook
for these Fascias is improving slowly.
GROUP PERFORMANCE
Revenue, gross margin and overheads
Total Group revenue increased by 6.2% in the period to £250.5 million (2006:
£235.9 million) and by 9.4% on a like for like basis.
Revenue increased by 9.9% on a like for like basis in the Sports Fascias. The
Fashion Fascias like for like sales performance was up 2.1% cumulatively in the
half year period.
Group gross margin increased in the period from 47.4% to 48.0% reflecting the
benefits of better stock management, continuing efforts to improve bought in
margin and increased own brand sales in the Sports Fascias.
Overheads (excluding exceptional items) net of other operating income, which
include some Allsports integration costs, improved to 44.7% of sales (2006:
45.5%), as a result of increased turnover and improving property cost ratios.
There have been planned increases in marketing and merchandising overheads in
excess of sales growth to achieve the improvement in results.
Operating profits and results
Group operating profit (before net financing costs and exceptional items)
increased to £8.5 million (2006: £4.4 million). The Group operating profit
margin (before net financing costs and exceptional items) for the first half of
the year has therefore increased from 1.9% to 3.4%.
As a result of an exceptional charge of £2.8 million (2006: credit of £0.1
million), operating profit after exceptional items but before net financing
costs was £5.7 million (2006: £4.5 million). The exceptional items comprise:
£m
Impairment of store fixed assets 0.9
Lease variation costs 1.0
Net release of onerous lease provisions (1.0)
Loss on disposal of non-current assets 1.9
--------
Total 2.8
--------
The net release of onerous lease costs comprises a £2.7 million release related
almost entirely to one trading store after a lease variation gave us the option
to dispose of it, offset by a net charge to the provision for vacant stores.
This charge is principally as a result of the relocation of three stores in
Middlesborough, Wigan and Warrington and a failed ex First Sport store
assignment in Maidstone.
Profit before tax in the period was £5.3 million (2006: £3.2 million).
Debt reduction and working capital
Net debt was eliminated at 28 July 2007 and replaced by net cash of £7.1 million
(2006: net debt £24.9 million). The Group continues to draw on its working
capital facilities at the seasonal peaks for its working capital requirements.
Inventories have reduced to £56.2 million at 28 July 2007 from £62.2 million at
29 July 2006. Trade creditors continue to be paid to terms to maximise
settlement discounts.
STORE PORTFOLIO
Group store numbers reduced in the period from 406 to 392 and the total retail
square footage decreased from 1,215,000 sq ft to 1,199,000 sq ft. The split
between the Sport and Fashion Fascias is as follows:
Sport
No. of Retail
stores ('000 sq ft)
At 28 January 2007 362 1,098
New stores 4 16
Disposals (14) (26)
--------- ---------
At 28 July 2007 352 1,088
--------- ---------
Fashion
No. of Retail
stores ('000 sq ft)
At 28 January 2007 44 117
Disposals (4) (6)
--------- ---------
At 28 July 2007 40 111
--------- ---------
DIVIDENDS AND EARNINGS PER ORDINARY SHARE
The Board has, in the light of the improved first half trading performance,
decided to propose an increased interim dividend of 2.50p per ordinary share
(2006: 2.40p). The dividend will be paid on 11 January 2008 to shareholders on
the register as at close of business on 7 December 2007. The Board wishes to
retain funding flexibility in the business to allow it to make strategic
acquisitions if such opportunities arise and to continue the store investment
programme.
The adjusted basic earnings per ordinary share before exceptional items are
8.63p (2006: 6.21p).
The basic earnings per ordinary share are 7.29p (2006: 4.45p).
CURRENT TRADING AND OUTLOOK
Trading since the period end has been highly satisfactory with year to date like
for like sales to 22 September 2007 in the Sports Fascias now up by 12.3%
cumulatively. The Fashion Fascias like for like sales for the same period are
now up by 3.3%. Overall the Board expects the results to continue to be
satisfactory with trading for the year to date running moderately ahead of
current market expectations. As always, the final result remains heavily
dependent upon sales performance during the key Christmas trading period.
EMPLOYEES
This year has so far seen considerable progress in performance again and we
believe that this is down to the contribution of all our employees, assisted by
increasing investment in training and communications. Nevertheless, this
progress would not have happened without the considerable commitment of all our
staff and management. The Board extends its thanks to all involved.
Peter Cowgill
Executive Chairman
26 September 2007
CONSOLIDATED INCOME STATEMENT
FOR THE 26 WEEKS ENDED 28 JULY 2007
Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
28 July 29 July 27 January
2007 2006 2007
Note £000 £000 £000
REVENUE 2 250,495 235,932 530,581
Cost of sales (130,179) (124,057) (278,331)
------------------------ ----- --------- ---------- ----------
GROSS PROFIT 120,316 111,875 252,250
Selling and distribution expenses (103,551) (101,035) (209,270)
- normal
Selling and distribution expenses 3 (2,746) 99 (3,799)
- exceptional --------- ---------- ----------
Selling and distribution expenses (106,297) (100,936) (213,069)
--------- ---------- ----------
Administrative expenses - normal (8,784) (7,362) (17,409)
Administrative expenses - 3 - - (4,000)
exceptional --------- ---------- ----------
Administrative expenses (8,784) (7,362) (21,409)
--------- ---------- ----------
Other operating income 478 900 1,730
------------------------ ----- --------- ---------- ----------
OPERATING PROFIT 5,713 4,477 19,502
------------------------ ----- --------- ---------- ----------
Before exceptional items 8,459 4,378 27,301
Exceptional items 3 (2,746) 99 (7,799)
------------------------ ----- --------- ---------- ----------
OPERATING PROFIT 5,713 4,477 19,502
Financial income 118 70 177
Financial expenses (503) (1,318) (2,412)
------------------------ ----- --------- ---------- ----------
PROFIT BEFORE TAX 5,328 3,229 17,267
Income tax expense 4 (1,812) (1,083) (6,879)
------------------------ ----- --------- ---------- ----------
PROFIT FOR THE PERIOD 3,516 2,146 10,388
ATTRIBUTABLE TO EQUITY HOLDERS OF
THE PARENT
------------------------ ----- --------- ---------- ----------
Basic and diluted earnings per 6 7.29p 4.45p 21.52p
ordinary share
------------------------ ----- --------- ---------- ----------
GROUP STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE 26 WEEKS ENDED 28 JULY 2007
The Group has no material recognised gains or losses during the current or
previous period other than the results reported above.
CONSOLIDATED BALANCE SHEET
AS AT 28 JULY 2007
Note Unaudited Unaudited
As at As at As at 27
28 July 29 July January
2007 2006 2007
£000 £000 £000
ASSETS
Intangible assets 20,562 25,316 20,562
Property, plant and equipment 43,294 47,548 41,919
Other receivables 2,710 2,747 2,753
--------------------- ------ --------- --------- ---------
TOTAL NON-CURRENT ASSETS 66,566 75,611 65,234
--------------------- ------ --------- --------- ---------
Inventories 56,169 62,180 51,469
Income tax receivable - 899 -
Trade and other receivables 13,986 12,672 13,012
Cash and cash equivalents 7 7,374 4,450 11,230
--------------------- ------ --------- --------- ---------
TOTAL CURRENT ASSETS 77,529 80,201 75,711
--------------------- ------ --------- --------- ---------
TOTAL ASSETS 144,095 155,812 140,945
--------------------- ------ --------- --------- ---------
LIABILITIES
Interest-bearing loans and borrowings (85) (29,029) (106)
Trade and other payables (63,871) (54,254) (58,849)
Provisions (1,590) (2,439) (2,130)
Income tax liabilities (1,884) - (3,477)
--------------------- ------ --------- --------- ---------
TOTAL CURRENT LIABILITIES (67,430) (85,722) (64,562)
--------------------- ------ --------- --------- ---------
Interest-bearing loans and borrowings (167) (287) (192)
Other payables (8,454) (8,207) (8,189)
Provisions (3,487) (5,427) (4,829)
Deferred tax liabilities (1,756) (1,651) (1,571)
--------------------- ------ --------- --------- ---------
TOTAL NON-CURRENT LIABILITIES (13,864) (15,572) (14,781)
--------------------- ------ --------- --------- ---------
TOTAL LIABILITIES (81,294) (101,294) (79,343)
--------------------- ------ --------- --------- ---------
TOTAL ASSETS LESS TOTAL 62,801 54,518 61,602
LIABILITIES
--------------------- ------ --------- --------- ---------
CAPITAL AND RESERVES
Issued ordinary share capital 8 2,413 2,413 2,413
Share premium 8 10,823 10,823 10,823
Retained earnings 8 49,565 41,282 48,366
--------------------- ------ --------- --------- ---------
TOTAL EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE PARENT 62,801 54,518 61,602
--------------------- ------ --------- --------- ---------
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 26 WEEKS ENDED 28 JULY 2007
Note Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
28 July 29 July 27 January
2007 2006 2007
£000 £000 £000
CASH FLOWS FROM OPERATING
ACTIVITIES
Profit for the period 3,516 2,146 10,388
Income tax expense 4 1,812 1,083 6,879
Financial expenses 503 1,318 2,412
Financial income (118) (70) (177)
Depreciation and 5,348 5,395 11,888
amortisation of
non-current assets
Impairment of non-current 908 - 5,482
assets
Loss/(profit) on disposal 3 1,892 (1,315) (1,491)
of non-current assets
(Increase)/decrease in (4,700) (5,412) 5,299
inventories
Increase in trade and (974) (633) (475)
other receivables
Increase/(decrease) in 1,141 (4,363) 1,488
trade and other
payables and provisions
Interest paid (503) (1,318) (2,412)
Income taxes paid (3,220) (258) (1,712)
------------------------ --- ---- ---------- --- ---------- --- ---------
NET CASH FROM/(USED IN) 5,605 (3,427) 37,569
OPERATING ACTIVITIES
------------------------ --- ---- ---------- --- ---------- --- ---------
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest received 118 70 177
Proceeds from sale of 1,231 3,972 11,099
non-current assets
Disposal costs of (1,695) (340) (2,188)
non-current assets
Acquisition of (9,069) (6,896) (14,099)
non-current assets
Cash consideration of - (4,998) (5,000)
acquisitions
------------------------ --- ---- ---------- --- ---------- --- ---------
NET CASH USED IN (9,415) (8,192) (10,011)
INVESTING ACTIVITIES
------------------------ --- ---- ---------- --- ---------- --- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES
(Repayment)/drawdown of (37) 7,000 (22,000)
interest-bearing loans
and borrowings
Payment of finance lease (9) (267) (285)
and similar hire
purchase contracts
Dividends paid - - (3,379)
------------------------ --- ---- ---------- --- ---------- --- ---------
NET CASH (USED IN)/FROM (46) 6,733 (25,664)
FINANCING ACTIVITIE
------------------------ --- ---- ---------- --- ---------- --- ---------
NET (DECREASE)/INCREASE 7 (3,856) (4,886) 1,894
IN CASH AND CASH
EQUIVALENTS
------------------------ --- ---- ---------- --- ---------- --- ---------
1. BASIS OF PREPARATION
The John David Group plc (the 'Company') is a company incorporated and domiciled
in the United Kingdom. The consolidated half-year financial report for the
period ended 28 July 2007 represents that of the Company and its subsidiaries
(together referred to as the 'Group').
The half-year financial report was authorised for issue by the Board of
Directors on 26 September 2007.
As required by the Disclosure and Transparency Rules of the UK's Financial
Services Authority, the half-year financial report has been prepared by
applying the accounting policies and presentation that were applied in the
preparation of the Company's published consolidated financial statements for
the financial year ended 27 January 2007, which were prepared in accordance
with International Financial Reporting Standards as adopted by the EU.
In the current financial year, the Group will adopt IFRS 7 'Financial
Instruments: Disclosures'. As this is a disclosure standard, there is no impact
on the half-year financial report.
The half-year financial report is prepared in accordance with the EU endorsed
standard IAS 34 'Interim Financial Reporting'. The comparative figures for the
financial year ended 27 January 2007 are not the Group's statutory accounts for
that financial year. Those accounts have been reported on by the Group's Auditor
and delivered to the Registrar of Companies. The Report of the Auditor was (i)
unqualified, (ii) did not include a reference to any matters to which the
Auditor drew attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 237(2) or (3) of the Companies
Act 1985.
The information contained in the half-year financial report for the 26-week
period ended 28 July 2007 and 29 July 2006 is unaudited.
2. SEGMENTAL ANALYSIS
The Group manages its business activities through two divisions - Sport and
Fashion. Revenue and costs are readily identifiable for each segment.
The divisional results for the 26 weeks to 28 July 2007 are as follows:
Unaudited Unaudited Unaudited
Sport Fashion Total
£000 £000 £000
Revenue 236,172 14,323 250,495
-------------------------- ---------- ---------- ---------
Operating profit/(loss) before financing 10,638 (2,179) 8,459
and exceptional items
Exceptional items (3,512) 766 (2,746)
-------------------------- ---------- ---------- ---------
Operating profit/(loss) 7,126 (1,413) 5,713
Financial income 118
Financial expenses (503)
-------------------------- ---------- ---------- ---------
Profit before tax 5,328
Income tax expense (1,812)
-------------------------- ---------- ---------- ---------
Profit for the period 3,516
-------------------------- ---------- ---------- ---------
The Board consider that net funding costs and income tax are cross divisional in
nature and cannot be allocated between the divisions on a meaningful basis.
The comparative divisional results for the 26 weeks to 29 July 2006 are as follows:
Unaudited Unaudited Unaudited
Sport Fashion Total
£000 £000 £000
Revenue 219,556 16,376 235,932
-------------------------- ---------- ---------- ---------
Operating profit/(loss) before financing 7,390 (3,012) 4,378
and exceptional items
Exceptional items (1,728) 1,827 99
-------------------------- ---------- ---------- ---------
Operating profit/(loss) 5,662 (1,185) 4,477
Financial income 70
Financial expenses (1,318)
-------------------------- ---------- ---------- ---------
Profit before tax 3,229
Income tax expense (1,083)
-------------------------- ---------- ---------- ---------
Profit for the period 2,146
-------------------------- ---------- ---------- ---------
The Board consider that net funding costs and income tax are cross divisional in
nature and cannot be allocated between the divisions on a meaningful basis.
3. EXCEPTIONAL ITEMS
Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
28 July 29 July 27 January
2007 2006 2007
£000 £000 £000
Loss/(profit) on disposal of non-current 1,892 (1,315) (1,491)
assets
Provision for rentals on onerous property (1,092) 1,216 1,558
leases
Impairment of property, plant and equipment 832 - 1,482
Impairment of non-current other receivables 76 - -
Lease variation costs (i) 1,038 - 2,250
-------------------------- ---------- ---------- ---------
Selling and distribution expenses - 2,746 (99) 3,799
exceptional
-------------------------- ---------- ---------- ---------
Impairments of intangible assets - - 4,000
-------------------------- ---------- ---------- ---------
Administrative expenses - exceptional - - 4,000
-------------------------- ---------- ---------- ---------
Exceptional expense/(credit) 2,746 (99) 7,799
-------------------------- ---------- ---------- ---------
(i) Lease variation costs represent the cost of varying an onerous lease to
create a break option.
4. INCOME TAX EXPENSE
Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
28 July 29 July 27 January
2007 2006 2007
£000 £000 £000
Current tax
UK corporation tax at 30% (2006: 30%) 1,627 1,096 6,637
Adjustment relating to prior periods - - 288
-------------------------- ---------- ---------- ---------
Total current tax charge 1,627 1,096 6,925
-------------------------- ---------- ---------- ---------
Deferred tax
Deferred tax (origination and reversal of 185 (13) 641
temporary differences)
Adjustments relating to prior periods - - (687)
-------------------------- ---------- ---------- ---------
Total deferred tax charge/(credit) 185 (13) (46)
-------------------------- ---------- ---------- ---------
Income tax expense 1,812 1,083 6,879
-------------------------- ---------- ---------- ---------
5. DIVIDENDS
After the balance sheet date the following dividends were proposed by the
Directors. The dividends were not provided for at the balance sheet date.
Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
28 July 29 July 27 January
2007 2006 2007
£000 £000 £000
2.50p per ordinary share (29 July 2006: 1,207 1,158 2,317
2.40p, 27 January 2007: 4.80p)
-------------------------- ---------- ---------- ---------
DIVIDENDS ON ISSUED ORDINARY SHARE CAPITAL
Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
28 July 29 July 27 January
2007 2006 2007
£000 £000 £000
Final dividend of 4.80p (2006: 4.60p) per
qualifying ordinary share approved in
respect of prior period, but not recognised
as a liability in that period 2,317 2,221 2,221
Interim dividend of 2.40p per qualifying
ordinary share paid in respect of 52 week
period ended
27 January 2007 - - 1,158
-------------------------- ---------- ---------- ---------
2,317 2,221 3,379
-------------------------- ---------- ---------- ---------
6. EARNINGS PER ORDINARY SHARE
BASIC AND DILUTED EARNINGS PER ORDINARY SHARE
The calculation of basic and diluted earnings per ordinary share at 28 July 2007
is based on the profit for the period attributable to equity holders of the
parent of £3,516,000 (29 July 2006: £2,146,000, 27 January 2007: £10,388,000)
and a weighted average number of ordinary shares outstanding during the 26 weeks
ended 28 July 2007 of 48,263,434 (29 July 2006 and 27 January 2007: 48,263,434),
calculated as follows:
Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
28 July 29 July 27 January
2007 2006 2007
£000 £000 £000
Issued ordinary shares at beginning of 48,263,434 48,263,434 48,263,434
period
Effect of shares issued during the period - - -
-------------------------- ---------- ---------- ---------
Weighted average number of ordinary shares
during the period - basic and diluted 48,263,434 48,263,434 48,263,434
-------------------------- ---------- ---------- ---------
ADJUSTED BASIC EARNINGS PER ORDINARY SHARE
Adjusted basic earnings per ordinary share has been based on the profit for the
period attributable to equity holders of the parent for each financial period
but excluding the post tax effect of certain exceptional items. The Directors
consider that this gives a more meaningful measure of the underlying performance
of the Group.
Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
28 July 29 July 27 January
2007 2006 2007
£000 £000 £000
Profit for the period attributable to equity
holders of the parent 3,516 2,146 10,388
Exceptional items excluding profit on disposal
of non-current assets 854 1,216 9,290
Tax relating to relevant exceptional items (207) (365) (2,107)
-------------------------- ---------- --------- ---------
Profit for the period attributable to equity
holders of the parent excluding
exceptional items 4,163 2,997 17,571
-------------------------- ---------- --------- ---------
Adjusted basic earnings per ordinary share 8.63p 6.21p 36.41p
-------------------------- ---------- --------- ---------
7. ANALYSIS OF NET DEBT
Unaudited
At 27 January Unaudited At 28 July
2007 Cashflow 2007
£000 £000 £000
Bank balances and cash floats 11,230 (3,856) 7,374
-------------------------- ---------- --------- ---------
Cash and cash equivalents 11,230 (3,856) 7,374
Interest-bearing loans and borrowings:
Loan notes (287) 37 (250)
Finance leases and similar hire
purchase contracts (11) 9 (2)
-------------------------- ---------- --------- ---------
10,932 (3,810) 7,122
-------------------------- ---------- --------- ---------
8. CAPITAL AND RESERVES
RECONCILIATION OF MOVEMENT IN CAPITAL AND RESERVES
UNAUDITED Ordinary
Share Share Retained Total
Capital Premium Earnings Equity
£000 £000 £000 £000
Balance at 27 January 2007 2,413 10,823 48,366 61,602
Total recognised income and expense - - 3,516 3,516
Dividends to shareholders (see note 5) - - (2,317) (2,317)
--------------------- -------- --------- --------- ---------
Balance at 28 July 2007 2,413 10,823 49,565 62,801
--------------------- -------- --------- --------- ---------
UNAUDITED Ordinary
Share Share Retained Total
Capital Premium Earnings Equity
£000 £000 £000 £000
Balance at 28 January 2006 2,413 10,823 41,357 54,593
Total recognised income and expense - - 2,146 2,146
Dividends to shareholders (see note 5) - - (2,221) (2,221)
--------------------- -------- --------- --------- ---------
Balance at 29 July 2006 2,413 10,823 41,282 54,518
--------------------- -------- --------- --------- ---------
9. RELATED PARTY TRANSACTIONS AND BALANCES
RELATED PARTY - PENTLAND GROUP PLC
Pentland Group Plc owns 57% of the issued ordinary share capital of The John
David Group Plc.
Unaudited Unaudited
Value of Value of
transactions Unaudited transactions Unaudited
26 weeks to Payable at 26 weeks to Payable at
28 July 2007 28 July 2007 29 July 2006 29 July 2006
£000 £000 £000 £000
Concession fee income (147) - (271) -
Purchase of inventory for retail (13,005) (2,857) (13,447) (3,015)
Other income 44 - 22 -
Payments (gross including VAT) (14,400) - (14,598) -
Receipts (gross including VAT) 52 - 26 -
10. HALF-YEAR REPORT
The half-year report will be posted to all shareholders in mid October.
Additional copies are available on application to the Company Secretary, The
John David Group Plc, Hollinsbrook Way, Pilsworth, Bury, Lancashire, BL9 8RR, or
can be downloaded from our website: www.thejohndavidgroup.com.
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
• The condensed set of financial statements has been prepared in
accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU;
• The interim management report includes a fair review of the information
required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events during the first six months of the
financial year and their impact on the condensed set of financial
statements; and a description of principal risks and uncertainties for
the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first six months of
the current financial year and that have materially affected the
financial position or performance of the entity during that period;
and any changes in the related party transactions described in the
last annual report that could do so.
By order of the Board
Brian Small
Secretary
INDEPENDENT REVIEW REPORT TO THE JOHN DAVID GROUP PLC
INTRODUCTION
We have been engaged by the Company to review the condensed set of financial
statements in the half-year financial report for the 26 week period ended 28
July 2007 which comprises the Consolidated Income Statement, Consolidated
Balance Sheet, Consolidated Cash Flow Statement and the related explanatory
notes. We have read the other information contained in the half-year 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 terms of our
engagement to assist the Company in meeting the requirements of the Disclosure
and Transparency Rules ('the DTR') of the UK's Financial Services Authority
('the UK FSA'). Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this 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 reached.
DIRECTORS' RESPONSIBILITIES
The half-year financial report is the responsibility of, and has been approved
by, the Directors. The Directors are responsible for preparing the half-year
financial report in accordance with the DTR of the UK FSA.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half-year financial report has been
prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by
the EU.
OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-year financial report based on our
review.
SCOPE OF REVIEW
We conducted our review in accordance with 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 UK. A review of interim financial information
consists of making enquiries, 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-year financial report
for the 26-week period ended 28 July 2007 is not prepared, in all material
respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK
FSA.
KPMG Audit Plc
Chartered Accountants
Preston
26 September 2007
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