Interim Results
Leo Insurance Services PLC
26 October 2006
Leo Insurance Services Plc
INTERIM REPORT for the six months ended 31 July 2006
CHAIRMAN'S STATEMENT
As shareholders will recall in January of this year Leo announced that it was
setting up a joint venture with a company called Arlington Insurance Services
Ltd whereby they and Leo would each own 50% of the share capital of Grafton
Insurance Services Ltd to focus on property insurance and at the same time
announced that new long term agreements with Safeland plc and Bizspace plc were
to be entered into.
As the nature of the relationship with Grafton is a joint venture and there are
no other subsidiaries or associated companies of Leo the results of Grafton are
not able to be consolidated.
The results of Leo for the period under review are that it made a loss of
£42,158 with a resultant loss per share of 0.60p. After taking into
consideration the profit of Grafton for the same period, the loss reduces to
£6,814 and the loss per share to 0.10p.
The long term contracts mentioned above are generating the expected business,
there have been a number of new introductions and the board have also been
actively seeking potential acquisitions.
This acquisition policy will continue in the future, as will the introduction of
potential clients, and I am therefore confident of a continued improvement in
the company's results.
LG Lipman
Chairman
26 October 2006
PROFIT AND LOSS ACCOUNT for the six months ended 31 July 2006
Notes Proforma Company Period Company Period
information from from
Company and share incorporation on incorporation on
of joint venture Company 14 January 2005 14 January 2005
6 months ended 6 months ended to to
31 July 31 July 31 July 31 January
2006 2006 2005 2006
(unaudited) (unaudited) (unaudited) (audited)
£ £ £ £
Administrative expenses (43,028) (43,028) (32,642) (54,766)
COMPANY OPERATING LOSS (43,028) (43,028) (32,642) (54,766)
Share of joint venture 34,212 - - -
operating profit
COMPANY AND SHARE OF JOINT (8,816) - - -
VENTURE OPERATING LOSS
Interest receivable 2,002 870 352 639
LOSS ON ORDINARY ACTIVITIES (6,814) (42,158) (32,290) (54,127)
BEFORE TAXATION
Taxation - - - -
LOSS ON ORDINARY ACTIVITIES (6,814) (42,158) (32,290) (54,127)
AFTER TAXATION
LOSS PER ORDINARY SHARE
Basic and diluted 3 (0.10p) (0.60p) (0.60p) (0.97p)
PROFORMA INFORMATION
The company and share of joint venture column is additional financial
information that has been disclosed for the reason explained in note 2.
BALANCE SHEET 31 July 2006
Notes Proforma
information
Company and share
of joint venture Company Company Company
31 July 31 July 31 July 31 January
2006 2006 2005 2006
(unaudited) (unaudited) (unaudited) (audited)
£ £ £ £
FIXED ASSETS
Investment in joint venture 6 - 50 - 50
Share of joint venture gross 6 346,499
assets
Share of joint venture gross 6 (311,105)
liabilities
35,394 50 - 50
CURRENT ASSETS
Debtors 12,428 12,428 - 1,314
Cash at bank and in hand 42,939 42,939 28,902 107,721
55,367 55,367 28,902 109,035
CREDITORS: amounts falling due (10,317) (10,317) (5,000) (21,827)
within one year
NET CURRENT ASSETS 45,050 45,050 23,902 87,208
TOTAL ASSETS LESS CURRENT 80,444 45,100 23,902 87,258
LIABILITIES
CREDITORS: amounts falling due (65,000) (65,000) - (65,000)
after more than one year
NET ASSETS/(LIABILITIES) 15,444 (19,900) 23,902 22,258
CAPITAL AND RESERVES
Called up share capital 70,624 70,624 56,192 70,624
Share premium account 5,761 5,761 - 5,761
Profit and loss account (60,941) (96,285) (32,290) (54,127)
EQUITY SHAREHOLDERS' FUNDS/ 4 15,444 (19,900) 23,902 22,258
(DEFICIT)
PROFORMA INFORMATION
The company and share of joint venture column is additional financial
information that has been disclosed for the reason explained in note 2.
CASH FLOW STATEMENT for the six months ended 31 July 2006
Notes Company Period from Company
Company incorporation on 14 Period from
6 months ended January 2005 to incorporation on 14
31 July 31 July January 2005 to
2006 2005 31 January
(unaudited) (unaudited) 2006
£ £ (audited)
£
Net cash outflow from operating activities 5 (65,652) (22,525) (29,303)
Returns on investments and servicing of 870 352 639
finance
CASH OUTFLOW BEFORE FINANCING (64,782) (22,173) (28,664)
Financing - 51,075 136,385
(DECREASE)/INCREASE IN CASH IN THE PERIOD (64,782) 28,902 107,721
RECONCILIATION OF NET CASH FLOW TO MOVEMENT
IN NET FUNDS
(Decrease)/increase in cash in the period (64,782) 28,902 107,721
OPENING NET FUNDS 107,721 - -
CLOSING NET FUNDS 42,939 28,902 107,721
NOTES TO THE INTERIM FINANCIAL INFORMATION for the six months ended 31 July 2006
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 2006 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 using accounting policies
consistent with those used in the preparation of the annual report and accounts
for the period ended 31 January 2006. Those accounts received an unqualified
auditors' report which did not contain a statement under section 237 (2) or (3)
Companies Act 1985.
The interim report was approved by the Board of Directors on 26 October 2006.
Copies of this statement are being sent to all shareholders and are available to
the public for collection at the company's Registered Office at 94-96 Great
North Road, London N2 0NL.
2 PROFORMA INFORMATION
The proforma column in the profit and loss account and balance sheet
incorporates the company's share of joint venture results and assets and
liabilities. This method of gross equity accounting is mandatory in the
preparation of consolidated financial information. Leo Insurance Services Plc
does not own any subsidiaries, so cannot prepare consolidated financial
information. The additional financial information has been presented as a
separate proforma column to reflect the combined financial performance and
position of the company and joint venture. Further details on the joint venture
are disclosed in note 6.
3 LOSS PER SHARE
The loss per share for the period is calculated based upon the following
information:
Period from Period from
incorporation on incorporation on
14 January 2005 14 January 2005
6 months ended to to
31 July 31 July 31 January
2006 2005 2006
(unaudited) (unaudited) (audited)
Weighted average number of shares in issue 7,062,381 5,353,574 5,579,152
during the period
Weighted average number of dilutive share
options in issue during the period - - -
4 RECONCILIATION OF MOVEMENT IN EQUITY Period from Period from
SHAREHOLDERS' (DEFICIT)/ FUNDS incorporation on 14 incorporation on 14
6 months ended January 2005 to January 2005 to
31 July 31 July 31 January
2006 2005 2006
(unaudited) (unaudited) (audited)
£ £ £
Retained loss for the period (42,158) (32,290) (54,127)
Issue of shares on incorporation - 51,192 -
Issue of shares in period - 5,000 76,385
Net change in equity shareholders' (deficit)/ (42,158) 23,902 22,258
funds
Opening equity shareholders' funds 22,258 - -
Closing equity shareholders' (deficit)/funds (19,900) 23,902 22,258
5 RECONCILIATION OF OPERATING LOSS TO NET CASH Period from Period from
FLOW FROM OPERATING ACTIVITIES incorporation on 14 incorporation on 14
6 months ended January 2005 to January 2005 to
31 July 31 July 31 January
2006 2005 2006
(unaudited) (unaudited) (audited)
£ £ £
Company operating loss (43,028) (32,642) (54,766)
Increase in debtors (11,114) - (1,314)
Increase in creditors (11,510) 5,000 21,777
Shares issued to settle expenses - 5,000 5,000
Write off share capital debtor - 117 -
Net cash flow from operating activities (65,652) (22,525) (29,303)
6 INVESTMENT IN JOINT VENTURE
on 5 January 2006, the company acquired 50% of the issued share capital of a
newly incorporated company called Grafton Insurance Services Limited at a cost
of £50.
Grafton Insurance Services Limited is a 50% owned joint venture and the
company's share of this joint venture is set out below.
COMPANY SHARE OF RESULTS 6 months ended 31
July 2006
(unaudited)
£
Turnover 150,789
Operating profit 34,212
Interest received 1,132
Profit before tax 35,344
Tax -
Profit after tax 35,344
COMPANY SHARE OF NET ASSETS 31 July 2006
(unaudited)
£
Current assets 346,499
Current liabilities (311,105)
Net assets 35,394
Contacts:
For further information:
Leo Insurance Services plc
Larry Lipman (Executive Chairman) 020 8815 1600
Paul Davis (Finance Director)
Teather & Greenwood 020 7426 9000
Robert Naylor
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