Interim Results

RNS Number : 0711C

Lookers PLC

27 August 2008

 



27 August 2008

LOOKERS plc

UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008 

Lookers plc, a leading UK motor retail group, announces interim results for the six months ended 30 June 2008. 

Commenting on the results, Ken Surgenor, Chief Executive said:

'The more turbulent macroeconomic environment has resulted in challenging trading conditions across the UK new and used car markets particularly in May and June and this has impacted the performance of our new and used car businesses.'

'However, I am pleased to announce that against this tougher backdrop the Group has delivered a solid performance for the period. Our diversified business model gives us the flexibility to adapt to the current uncertainties within the UK and global economies and our used car supermarkets and independent parts businesses are showing significant year on year progress.'

Financials Highlights

Six months ended 30 June	2008	2007
Revenue	£1,039.2m	£878.9m
Operating profit	£23.7m	£25.0m
Adjusted* profit from operations	£26.0m	£24.9m
Adjusted* profit before tax	£15.5m	£18.1m
Adjusted* earnings per share	5.85p	7.16p
Basic earnings per share	4.86p	7.16p
Interim dividend per share	1.6p	1.6p

* Adjusted pre exceptional items and amortisation of intangible assets

An analysts' briefing will be held at the offices of Hudson Sandler at 29 Cloth Fair, London EC1A 7NN at 9.30 a.m. on 27 August 2008.

Enquiries:

Lookers	Telephone: [phone]
Ken Surgenor, Chief Executive	(on Wednesday 27 August 2008 only, and on 0161 291 0043 thereafter)
David Dyson, Finance Director
Hudson Sandler	Telephone: [phone]
Andrew Hayes/Nick Lyon/Kate Hough

High resolution photographs will be available to media at www.vismedia.co.uk from 12.30pm.

INTERIM MANAGEMENT REPORT

CAUTIONARY STATEMENT

This Interim Management Report ('IMR') has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other purpose.

The IMR contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

 INTRODUCTION

As has been widely reported, the more turbulent macroeconomic environment has resulted in challenging trading conditions across the UK new and used car markets particularly in May and June. Against this tougher trading environment I am pleased to report that Lookers has delivered a solid performance for the first six months of 2008.

Whilst our franchise network division has been impacted by industry declines in like for like sales against the prior year and the tougher trading conditions in Northern Ireland, our diversified business model gives us flexibility to adapt to the current uncertainties within the UK and global economies. 

Our independent aftermarket parts division which accounts for approximately 30% of Group operating profit has again had a successful six months in line with expectations and we continue to build on our product portfolio and leverage our national distribution network. The used car supermarket business has also made a good start to the year and has returned to profit despite the more challenging trading environment, following a rationalisation programme and a number of operational improvements made in 2007. 

FINANCIAL COMMENTARY AND DIVIDEND

Revenue for the first half increased by 18.2% to £1,039.2m (2007: £878.9m) reflecting the impact of the Dutton Forshaw acquisition. Adjusted profit from operations rose by 4.4% to £26.0m (2007:£24.9m) but after amortisation of intangible assets and exceptional items, profit from operations fell by 5.2% to £23.7m (2007: £25.0m).

Adjusted profit before tax at £15.5m compares with £18.1m announced last year. After amortisation of intangible assets, exceptional items and debt issue costs totalling £2.5m (2007 : £Nil) profit before tax for the period was £13.0m compared with £18.1m last year, generating adjusted earnings per share of 5.85p (2007 : 7.16p).

We continue to focus on the tight control of working capital, and this has enabled us to generate £44.4m of operating cash flow compared with £24.3m last year. Consequently we have reduced our gearing from 113% at the year end to 98%. There have been no material events, transactions or change in the financial position of the Group since the period end other than as outlined within this statement.

Dividend

The Board is declaring a maintained interim dividend at 1.60p which will be paid on 28 November 2008 to shareholders on the register at 19 September 2008. The Board remains committed to a progressive dividend policy, but consider that holding the interim dividend at this stage is prudent in the current uncertain trading environment.

OPERATING REVIEW

Franchise network

The national trading environment for new cars has been much more challenging than the reduction of 1.6% in UK new car registrations would suggest. Retail sales over the same period were down by 4.9%. In Northern Ireland, where there is much less scope for substituting retail for fleet sales, registrations were down by 9%. Our own new car sales on a like for like basis were down by 6.5%.

Whilst the market saw new car registrations fall by 1.6% in the first six months of the year, some of the franchises we represent have significantly underperformed this national average for the period. In particular in the volume brands, Renault, Citroen, Peugeot and Toyota were down 14.9%, 11.8%, 9.4% and 7.5% respectively. In the prestige brands, Lexus and Land Rover were down 20.1% and 11.3% respectively. 

Our used car retail sales were down 5% on a like for like basis in the period. We have continued our prudent policy of writing used vehicle stocks down each month to reflect trade values.

In the second quarter, following significant fuel price rises and uncertainty over future vehicle excise duties payable, the residual values of used cars have been under severe pressure, particularly at the end of the market where fuel consumption and CO2 emissions are high. 

This has impacted the profitability of both new and used cars and has seen a shift of buying patterns of consumers to smaller, more fuel efficient vehicles.

However, the flexibility of our business model means that we can adapt to the current tougher market conditions. During the period we have focussed on areas where we can improve the performance of our franchise outlets by:-

• removing the fixed costs of marginal satellite operations and redirecting the volume back to the main hub.

• reviewing dual franchising opportunities where the facilities are larger than the market opportunity for the existing franchise to share the fixed costs; and

• reducing the investment in working capital to reduce debt and interest costs.

These actions commenced in the first half of the year with the closure of four satellite operations. The subsequent benefits will begin to be seen in the second half, and will be more substantial in 2009.   The closure costs are reflected in exceptional items.

In October 2007 we announced the acquisition of the entire issued share capital of Dutton Forshaw Group, the motor retail division of Lloyds TSB Asset Finance Division. The acquisition has enabled us to build on our relationships with a number of our preferred manufacturer suppliers and the operational integration of these dealerships is complete. We are very pleased with this acquisition which has performed beyond our expectations in the first half.

The Group currently operates 139 franchise outlets across 31 brands. This broad base of manufacturing partners and wide geographic reach, supported by our decentralised dealer structure, ensures that we are well placed for longer term growth.

Used cars

Our Used Car Supermarkets have continued to benefit from the operational changes made last year including the closure of the Essex Trade Centre and improvements to the management structure. These businesses have traded profitably in the first six months of the year and despite the current market conditions, the performances are improving.

Independent aftermarket parts distribution

Our independent aftermarket parts division has had a solid first half and we continue to focus on leveraging our national infrastructure with additional product groups. 

FPS Distribution ('FPS') remains the only national parts distributor in the UK and has continued to perform extremely well. We continue to focus on ensuring that our product offering is market leading and currently provide over 78,000 products which can be delivered to our customers up to seven times a day using our fleet of over 250 delivery vans. The business is supported by excellent distribution facilities, operating from 20 outlets and supported by a purpose built 140,000 square foot National Distribution Centre in Sheffield which is capable of being further expanded to over 200,000 square foot as the business continues to grow.

In addition, we have outgrown our existing rented depot in Glasgow and decided to replace it with a purpose built freehold property which is better strategically positioned than our existing facility and which will have the capacity to stock the additional product lines we have recently introduced. This facility will come on stream by the end of the second quarter next year.  

Apec Limited, our braking parts specialist, has also performed well over the period and is ahead of expectations. Last year we introduced a complete range of hydraulic braking parts which have been fully catalogued and marketed to our existing customers. We are now seeing the benefits of that product launch in the current year.

BTN Turbo Charger Service Limited was acquired in May 2007 to expand our offer in the growing parts distribution aftermarket, notably in the fast growing sector of turbochargers. This business has performed particularly well as we continue to introduce the new product range across our customer base. 

RISKS AND UNCERTAINTIES

There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results.  The Board believes these risks and uncertainties to be consistent with those disclosed in our latest annual report, including general economic factors such as oil prices, interest rates, manufacturers' influence and stability.

OUTLOOK

Since the half year end, trading has continued to prove challenging and given the current market conditions we do not anticipate that trading will improve across the new and used car markets in the short term. However, our used car supermarkets and independent parts businesses are showing significant year on year progress.

As always, we continue to review the returns generated by each of our business units and will continue to take remedial action where necessary and appropriate.  

As a result the Board anticipates the full year results to be in line with the lower end of market expectations. 

Ken Surgenor

27 August 2008 

Responsibility Statement

WE CONFIRM THAT TO THE BEST OF OUR KNOWLEDGE

(a)    the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting'.

(b)    the Interim Management Report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

(c)    the Interim Management Report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and charges therein).

By order of the Board

Ken Surgenor	David Dyson
Chief Executive	Finance Director

Consolidated Income Statement 

Six months ended 30 June 2008  

		Six months ended 30 Jun	Six months ended 30 Jun	Year ended 31 Dec
	Note	2008	2007	2007
		£m	£m	£m
Continuing Operations Revenue	3	1,039.2	878.9	1,680.0
Cost of sales		(902.7)	(770.1)	(1,473.0)
Gross profit Distribution costs Administration expenses Other operating income		136.5 (83.5) (29.5) 0.2	108.8 (61.3) (22.6) 0.1	207.0 (125.8) (43.2) 0.3
Profit from operations		23.7	25.0	38.3
Profit from operations before amortisation  and exceptional items Amortisation of intangible assets  Exceptional items	5	26.0 (0.7) (1.6)	24.9 (0.4) 0.5	40.0 (0.8) (0.9)
Profit from operations		23.7	25.0	38.3
Interest payable	6	(11.1)	(7.0)	(16.9)
Interest receivable	6	0.6	0.2	1.9
Debt issue costs		(0.2)	(0.1)	(0.3)
Profit before tax, amortisation, exceptional items and debt issue costs Amortisation of intangible assets  Total exceptional items Debt issue costs		15.5 (0.7) (1.6) (0.2)	18.1 (0.4) 0.5 (0.1)	24.5 (0.8) (0.4) (0.3)
Profit on ordinary activities before taxation		13.0	18.1	23.0
Taxation	8	(4.2)	(5.2)	(6.6)
Profit for the period		8.8	12.9	16.4
Continuing operations
Earnings per share
Basic earnings per share	7	4.86p	7.16p	9.09p
Diluted earnings per share	7	4.78p	7.12p	9.05p
Adjusted earnings per share	7	5.85p	7.16p	9.81p

Consolidated Statement of Recognised Income & Expense

Six months ended 30 June 2008

		Six months ended 30 Jun	Six months ended 30 Jun	Year ended 31 Dec
		2008 £m	2007 £m	2007 £m
Actuarial (losses)/gains recognised in post retirement benefit scheme		(14.7)	5.8	(5.4)
Movement on deferred taxation on pension liability		4.1	(1.7)	1.5
Net (losses)/gains recognised directly in equity		(10.6)	4.1	(3.9)
Profit for the period		8.8	12.9	16.4
Total recognised income and expense for the period		(1.8)	17.0	12.5

Consolidated Balance Sheet 

30 June 2008

		30 Jun  2008	30 Jun  2007	31 Dec  2007
		£m	£m	£m
NON CURRENT ASSETS
Goodwill		44.9	28.8	43.0
Intangible assets		18.0	15.6	15.6
Property, plant & equipment		213.0	161.4	214.0
		275.9	205.8	272.6
CURRENT ASSETS
Inventories		330.9	264.4	317.5
Trade and other receivables		141.2	114.9	107.4
Cash and cash equivalents		23.1	8.4	14.8
		495.2	387.7	439.7
TOTAL ASSETS		771.1	593.5	712.3
CURRENT LIABILITIES
Financial liabilities - Bank loans and overdrafts - Hire purchase obligations		10.0 -	7.5 0.1	10.0 0.1
Trade and other payables		472.3	367.5	413.9
Current tax liabilities Short term provisions		14.1 0.7	12.6 0.3	8.6 0.4
		497.1	388.0	433.0
NET CURRENT (LIABILITIES)/ASSETS		(1.9)	(0.3)	6.7
NON CURRENT LIABILITIES
Financial liabilities - Bank loans - Hire purchase obligations		116.7 -	72.4 0.1	130.2 -
Trade and other payables		5.1	-	-
Retirement benefit obligations		37.5	4.3	23.8
Deferred tax liabilities Long term provisions		8.2 0.6	9.8 1.2	12.8 1.0
		168.1	87.8	167.8
TOTAL LIABILITIES		665.2	475.8	600.8
NET ASSETS		105.9	117.7	111.5
SHAREHOLDERS' EQUITY Ordinary share capital Share premium Capital redemption reserve Other reserve Retained earnings		9.1 6.2 14.6 0.5 75.5	9.0 4.7 14.6 0.3 89.1	9.1 5.6 14.6 0.4 81.8
TOTAL EQUITY		105.9	117.7	111.5
Gearing		98%	75%	113%

Consolidated Cash Flow Statement 

30 June 2008

		Six months  ended 30 Jun	Six months  ended 30 Jun	Year  ended  31 Dec
		2008	2007	2007
		£m	£m	£m
Cash flows from operating activities
Profit for the period		8.8	12.9	16.4
Adjustments for: Tax Depreciation		4.2 4.7	5.2 3.4	6.6 7.7
(Profit)/Loss on disposal of plant and equipment		-	-	0.1
Profit on disposal of properties		-	(2.1)	(1.9)
Other exceptional items		-	1.6	-
Curtailment gain		-	-	(0.4)
Amortisation of intangible assets		0.7	0.4	0.8
Interest income		(0.6)	(0.2)	(1.4)
Interest receivable on VAT refund		-	-	(0.5)
Interest payable		11.2	7.0	16.9
Debt issue costs		0.2	0.1	0.3
Share based payment charge		0.1	0.1	0.2
Changes in working capital (excluding effects of acquisitions and disposal of subsidiaries)
(Increase)/decrease in inventories		(11.1)	(4.2)	14.7
(Increase)/decrease in trade and other receivables		(29.8)	(28.0)	1.6
Increase in payables		57.2	29.5	1.8
Difference between pension charge and cash contributions		(1.1)	(1.4)	(2.8)
Movement in provisions		(0.1)	-	-
Cash generated from operations		44.4	24.3	60.1
Interest paid		(10.2)	(7.8)	(17.4)
Interest received		0.6	0.2	1.6
Tax (paid)/refunded		(1.2)	1.3	(0.7)
Net cash inflow from operating activities		33.6	18.0	43.6
Cash flows used by investing activities
Acquisition of subsidiaries (net of cash acquired)		(1.7)	(2.7)	(72.5)
Purchase of property, plant and equipment		(3.9)	(4.4)	(12.0)
Purchase of intangible fixed assets		(2.6)	-	-
Proceeds from sale of property, plant & equipment		0.3	2.8	2.8
Net cash used by investing activities		(7.9)	(4.3)	(81.7)
Cash flows from/(used by) financing activities
Repayment of loans		(13.5)	(3.8)	(2.6)
Net proceeds from issue of new bank loans		-	-	60.0
Debt issue costs		-	-	(1.0)
Principal payments under HP agreements		-	(0.1)	(0.1)
Dividends paid to Group shareholders		(3.9)	(3.5)	(5.5)
Net cash from/(used by) financing activities		(17.4)	(7.4)	50.8
Increase in cash and cash equivalents		8.3	6.3	12.7
Cash and cash equivalents at the beginning of the period		14.8	2.1	2.1
Cash and cash equivalents at the end of the period		23.1	8.4	14.8

Notes to the Set of Financial Information

Six months ended 30 June 2008 

1.    GENERAL INFORMATION

The information for the year ended 31 December 2007 does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was not qualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985.

2.    ACCOUNTING POLICIES

The annual financial statements of Lookers plc 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 has been prepared in accordance with International Accounting Standards 34 'Interim Financial Reporting', as adopted by the European Union.

The same accounting policies, presentation of methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements, except for:

Change in Accounting Policy

In the current financial year, the Group has adopted international Financial Reporting Standard 8 'Operating Segments' in advance of its effective date, with effect from 1 January 2008. IFRS 8 requires operating segments to be identified on the basis of internal reports and components of the Group that are regularly reviewed by the Chief Executive to allocate resources to the segments and to assess their performance. In contrast, the predecessor Standard (IAS 14 'Segment Reporting') required the Group to identify two sets of segments (business and geographical), using a risks and rewards approach, with the Group's system of internal financial reporting to key management personnel serving only as the starting point for the identification of such segments. As a result, the segmental information required by IAS 34 which is included in note 3 below is presented in accordance with IFRS 8. The comparatives have been restated accordingly.

3.    SEGMENTAL REPORTING

The following is an analysis of the Group's business reporting segment

Six months ended 30 June 2008		Motor Division £m	Parts Distribution £m	Unallocated £m	Group £m
Continuing operations
Revenue		973.1	66.1	-	1,039.2
Segmental result		21.6	4.4	-	26.0
Amortisation of intangible assets		(0.4)	(0.3)	-	(0.7)
Exceptional items		(1.6)	-	-	(1.6)
Interest expense				(11.1)	(11.1)
Interest income				0.6	0.6
Debt issue costs				(0.2)	(0.2)
Profit before taxation					13.0
Taxation					(4.2)
Profit for the financial period from  continuing operations attributable  to shareholders					8.8
Segmental assets		663.9	106.6	-	770.5
Unallocated assets   - Property, plant and equipment				0.6	0.6
Total assets					771.1
Segmental liabilities		508.2	44.6	-	552.8
Unallocated liabilities
- Corporate borrowings				112.4	112.4
Total liabilities					665.2

Six months ended 30 June 2007	Motor Division £m	Parts Distribution £m	Unallocated £m	Group £m
Continuing operations
Revenue	822.5	56.4	-	878.9
Segmental result	20.8	4.1	-	24.9
Amortisation of intangible assets	(0.1)	(0.3)	-	(0.4)
Exceptional items	0.5	-	-	0.5
Interest expense			(7.0)	(7.0)
Interest income			0.2	0.2
Debt issue costs			(0.1)	(0.1)
Profit before taxation				18.1
Taxation				(5.2)
Profit for the financial period from continuing operations attributable to shareholders				12.9

Segmental assets		495.3	97.1	-	592.4
Unallocated assets ­    - Property, plant and equipment				1.1	1.1
Total assets					593.5
Segmental liabilities		343.4	39.7	-	383.1
Unallocated liabilities
- Corporate borrowings				92.7	92.7
Total liabilities					475.8

Year ended 31 December 2007	Motor Division £m	Parts Distribution £m	Unallocated £m	Group £m
Continuing operations
Revenue	1,563.1	116.9	-	1,680.0
Segmental result	31.6	8.4	-	40.0
Amortisation of intangible assets	(0.2)	(0.6)	-	(0.8)
Exceptional items	(0.9)	-	-	(0.9)
Interest expense			(16.9)	(16.9)
Interest income			1.9	1.9
Debt issue costs			(0.3)	(0.3)
Profit before taxation				23.0
Taxation				(6.6)
Profit for the financial year from continuing operations attributable to shareholders				16.4

Year ended 31 December 2007		Motor Division £m	Parts Distribution £m	Unallocated £m	Group £m
Segmental assets		617.1	94.2	-	711.3
Unallocated assets ­    - Property, plant and equipment				1.0	1.0
Total assets					712.3
Segmental liabilities		432.5	36.6	-	469.1
Unallocated liabilities
- Corporate borrowings				131.7	131.7
Total liabilities					600.8

For the purposes of monitoring segment performance and allocating resources between segments, the Group's Chief Executive monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to reportable segments with the exception of other financial assets (except for trade and other receivables) and tax assets. Assets used jointly by reportable segments are allocated on the basis of the revenues earned by individual reportable segments.

4.    DIVIDENDS

The interim dividend proposed at the rate of 1.60p per share (2007 - 1.60p per share) is payable on 28 November 2008 to shareholders on the register at the close of business on 19 September 2008.

	Six months ended  30 Jun 2008	Six months ended 30 Jun 2007	Year  ended  31 Dec 2007
	p	p	p
Ordinary dividend per share - paid in period	2.42	2.20	1.60
- proposed	1.60	1.60	2.42

5.    EXCEPTIONAL ITEMS

	Six months ended  30 Jun 2008	Six months ended 30 Jun 2007	Year  ended  31 Dec 2007
	£m	£m	£m
Profit on disposal of properties	-	2.1	1.9
Loss on termination of businesses	(1.0)	-	(0.9)
Integration/other costs	(0.6)	(0.8)	(0.4)
Aborted acquisition costs	-	(0.8)	(1.2)
Strategic Review	-	-	(0.7)
VAT refund	-	-	0.4
	(1.6)	0.5	(0.9)

6.    INTEREST COSTS - NET

	Six months ended  30 Jun 2008	Six months ended 30 Jun 2007	Year  ended  31 Dec 2007
	£m	£m	£m
Bank interest payable	7.6	4.2	11.5
Bank interest receivable	(0.6)	-	(0.7)
Interest on consignment vehicles	3.4	2.8	5.3
Net interest on pension scheme	0.1	(0.2)	(0.3)
Other interest	-	-	(0.8)
	10.5	6.8	15.0

7.    EARNINGS PER SHARE

The calculation of earnings per ordinary share is based on profits on ordinary activities after taxation amounting to £8.8m (2007: £12.9m) and a weighted average of 181,186,038 ordinary shares in issue during the period (2007: 180,228,247).

The diluted earnings per share is based on the weighted average number of shares, after taking account of the dilutive impact of shares under option of 2,806,140 (2007: 902,068). The diluted earnings per share is 4.78p (2007: 7.12p).

Adjusted earnings per share is stated before amortisation of intangible assets, the profit on disposal of properties less other exceptional items (net) and is calculated on profits of £8.8m for the period (2007: £12.9m).

		Six months ended 30 June 2008			Six months ended 30 June 2007				Year ended 31 Dec 2007
		Earnings £m	Earnings per share p		Earnings £m		Earnings per share p		Earnings £m		Earnings per share p
Earnings attributable to ordinary shareholders		8.8	4.86		12.9		7.16		16.4		9.09
Amortisation of intangible assets		0.7	0.39		0.4		0.22		0.8		0.44
Exceptional items - net		1.6	0.88		(0.5)		(0.28)		0.4		0.22
Tax debit/(credit) exceptional items		(0.5)	(0.28)		0.1		0.06		0.1		0.06
Adjusted		10.6	5.85		12.9		7.16		17.7		9.81

8.    TAXATION

The tax charge for the period has been provided at the effective rate of 32.0% (2007: 29.0%)

In July 2008 legislation was enacted whereby Industrial Buildings Allowances will be phased out over a 3 year period. This will result in an exceptional deferred tax charge in the second half year, which  based on current information is likely to be in the order of approximately £5m.  There will be no material impact on tax payable.

9.    ACQUISITIONS

Following the EGM on 1 May 2008 the Group acquired the entire share capital of Bramall & Jones VW Limited and Bramall & Jones Leasing Limited, for a cash consideration of £1.7m.

A table detailing the assets acquired at fair value will be presented in the annual financial statements on 31 December 2008.

10.    PENSIONS

The defined benefit obligation as at 30 June 2008 is calculated on a year-to-date basis, using the latest actuarial valuation as at 31 December 2007. There have not been any significant fluctuations or one-time events since that time that would require adjustment to the actuarial assumptions made at 31 December 2007.

The defined benefit plan assets have been updated to reflect their market value as at the 30 June 2008. Differences between the expected return on assets and the actual return on assets have been recognised as an actuarial gain or loss in the Statement of Recognised Income and Expense in accordance with the Group's accounting policy.

11.    INTERIM STATEMENT

The interim announcement was approved by the Board and will be posted to shareholders on 29 August 2008. Copies will also be made available to the public at the registered office of the Company at 776 Chester Road, Stretford, Manchester M32 0QH.

 

END

 

 

IR BRGDICGDGGIL