Interim Results - six months

RNS Number : 2542B

Leo Insurance Services PLC

23 October 2009

 



23 October 2009

Leo Insurance Services Plc

("Leo", the "Company" or the "Group")

Interim results for the six months ended 31 July 2009

CHAIRMAN'S STATEMENT

In the half year to 31 July 2009 the Group made a consolidated loss of £26,330 (2008: loss of £15,078).

Leo's single investment is a 50 per cent. share in Grafton Insurance Services Limited a brokerage specialising in property insurance where the main asset continues to be its long term contract with Safeland Plc.

The Board continues to search for growth both organically and via acquisitions.

LG Lipman

Chairman

22 October 2009

CONSOLIDATED INCOME STATEMENT

for the six months ended 31 July 2009

	Notes		6 months ended 31 July 2009 (unaudited)                       £	6 months ended 31 July 2008 (unaudited) £	12 months ended 31 January  2009 (audited) £
Revenue			-	-	-
Cost of sales			-	-	-
GROSS PROFIT			-	-	-
Administrative expenses			(38,569)	(45,831)	(85,837)
OPERATING LOSS			(38,569)	(45,831)	(85,837)
Share of results of joint venture - post tax			15,133	33,206	58,135
LOSS BEFORE INTEREST			(23,436)	(12,625)	(27,702)
Finance Income			-	462	506
Finance Costs			(2,894)	(2,915)	(5,850)
LOSS BEFORE TAX			(26,330)	(15,078)	(33,046)
Taxation			-	-	-
LOSS FOR THE PERIOD			(26,330)	(15,078)	(33,046)
LOSS PER ORDINARY SHARE
Basic	2		(0.36p)	(0.21p)	(0.46p)
Diluted	2		(0.36p)	(0.21p)	(0.46p)
All results in the current and preceding financial year derive from continuing operations.

CONSOLIDATED BALANCE SHEET

31 July 2009

			31 July 2009 (unaudited) £	31 July 2008 (unaudited) £	31 January  2009 (audited) £
		Notes
NON CURRENT ASSETS
Interest in joint ventures		4	34,309	49,247	19,176
CURRENT ASSETS
Trade and other receivables			17,828	20,239	3,391
Cash and cash equivalents			3,041	2,384	55,428
TOTAL CURRENT ASSETS			20,869	22,623	58,819
TOTAL ASSETS			55,178	71,870	77,995
CURRENT LIABILITIES
Redeemable preference shares			(65,000)	(65,000)	(65,000)
Trade and other payable			(61,636)	(34,030)	(58,123)
TOTAL CURRENT LIABILITIES			(126,636)	(99,030)	(123,123)
NET LIABILITIES			(71,458)	(27,160)	(45,128)
EQUITY
Share capital			72,160	72,160	72,160
Share premium account			5,761	5,761	5,761
Retained losses			(149,379)	(105,081)	(123,049)
TOTAL EQUITY			(71,458)	(27,160)	(45,128)

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 31 July 2009

	Notes	6 months ended  31 July  2009 (unaudited) £	6 months ended 31 July 2008 (unaudited) £	12 months ended 31 January  2009 (audited) £
OPERATING ACTIVITIES
Net cash out flow from operations	3	(52,387)	(67,621)	(69,621)
Interest paid		-	-	-
NET CASH OUTFLOW FROM OPERATING ACTIVITIES		(52,387)	(67,621)	(69,621)
INVESTING ACTIVITIES
Interest received		-	462	506
Dividends received from joint venture undertaking		-	-	55,000
NET CASH INFLOW FROM INVESTING ACTIVITIES		-	462	55,506
NET DECREASE IN CASH AND CASH EQUIVALENTS		(52,387)	(67,159)	(14,115)
Cash and equivalents at beginning of period		55,428	69,543	69,543
CASH AND CASH EQUIVALENTS AT END OF PERIOD		3,041	2,384	55,428

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 31 July 2009

	Share Capital  £	Share Premium £	Retained Losses £	Total £
As at 31 January 2008	72,160	5,761	(90,003)	(12,082)
Loss for the period	-	-	(15,078)	(15,078)
As at 31 July 2008	72,160	5,761	(105,081)	(27,160)
Loss for the period	-	-	(17,968)	(17,968)
As at 31 January 2009	72,160	5,761	(123,049)	(45,128)
Loss for the period	-	-	(26,330)	(26,330)
As at 31 July 2009	72,160	5,761	(149,379)	(71,458)

NOTES TO THE INTERIM FINANCIAL INFORMATION

for the six months ended 31 July 2009

1.  BASIS OF PREPARATION 

The financial information contained in this interim report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The figures for the period ended 31 January 2009 have been extracted from the audited statutory accounts. The interim results, which have not been audited or reviewed by the company's auditors, have been prepared in accordance with applicable International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). These standards are also collectively referred to as "IFRS".

The accounting policies and methods of computations used are consistent with those used in the Group Annual Report for the year ended 31 January 2009 and are expected to be used in the Group Annual Report for the year ended 31 January 2010.

Statutory accounts for the year ended 31 January 2009 were prepared and filed with the Registrar of Companies and received an unqualified audit report. 

The interim report was approved by the Board of Directors on 22 October 2009.

As at 31 July 2009, the Group had net current liabilities of £105,767. Included within current liabilities are redeemable preference shares of £65,000 and accrued dividends on those shares of £16,944. These amounts are all due to Safeland plc, a related party, who has given an undertaking to the group that these amounts will only be payable when there are adequate cash resources within the group so that the group can continue to meet its liabilities as they fall due for the foreseeable future. On the basis of this commitment, and after considering the group's cash flow forecasts, the directors have prepared these interim results on the going concern basis.

Copies of this statement are available to the public for collection at the company's Registered Office at 94-96 Great North Road, London N2 0NL and on the Company's website, www.leoinsurance.co.uk

2.  LOSS per share

The loss per share for the period is calculated based upon the following information:

		6 months ended  31 July  2009 (unaudited)	6 months ended 31 July 2008 (unaudited)	12 months ended 31 January  2009 (audited)
	Weighted average number of shares for basic loss per share	7,215,956	7,215,956	7,215,956
	Weighted average number of shares for diluted loss per share	7,215,956	7,215,956	7,215,956
	Loss for the period	(26,330)	(15,078)	(33,046)

3.  Reconciliation of operating LOSS to net cash flow from operating activities

		6 months ended  31 July  2009 (unaudited) £	6 months ended 31 July 2008 (unaudited) £	12 months ended 31 January  2009 (audited) £
	Loss for the period	(26,330)	(15,078)	(33,046)
	Adjustments for:
	Finance income	-	(462)	(506)
	Finance costs	2,894	2,915	5,850
	Share of results of joint venture - post tax	(15,133)	(33,206)	(58,135)
	Operating cash flow before movements in working capital	(38,569)	(45,831)	(85,837)
	(Increase)/decrease in debtors	(14,437)	(16,480)	368
	Increase/(decrease) in creditors	619	(5,310)	15,848
	Net cash flow from operating activities	(52,387)	(67,621)	(69,621)

4.  INTERESTS IN JOINT VENTURE
The Group holds a 50 per cent. investment in Grafton Insurance Services Limited, a joint venture via the ownership of 100% of the "B" ordinary shares. The principal activity of the joint venture is that of a property insurance broker. The Group's share of the joint venture's results and net assets are set out below.
		6 months ended  31 July  2009  (unaudited)                     £				6 months ended 31 July 2008 (unaudited) £				12 months ended 31 January  2009 (audited)                      £
	Revenue	64,477				100,667				161,464
	Operating profit	18,900				40,751				72,554
	Finance Income	16				1,276				874
	Profit before tax	18,916				42,027				73,428
	Tax	(3,783)				(8,821)				(15,293)
	Profit after tax	15,133				33,206				58,135
	Interest in joint venture at 1 February 2009	19,176				16,401				16,401
	Share of profit for the year	15,133				33,206				58,135
	Dividends	-				-				(55,000)
	Interest in joint venture at 31 July 2009	34,309				49,247				19,176

 

END

 

 

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