Interim Results
Liberty PLC
28 March 2006
FOR IMMEDIATE RELEASE
28th March 2006
LIBERTY PLC
INTERIM RESULTS
FOR SIX MONTHS TO 31st DECEMBER 2005
HIGHLIGHTS
•First half store sales stable at £19.7m despite early difficult trading
environment
•Pre-Christmas trading recorded a record 5.4% sales increase with the last
full week before Christmas seeing a 20.4% sales uplift
•Pre-tax profits of £0.2m compared to losses of £2.3m for the comparable
period
•Losses per share have improved dramatically to 0.9p against 11.6p
•Autumn 2005 launch of Liberty of London luxury brand - enthusiastic
reception from both fashion media and customers
•Potential to become major global luxury brand
•Retailing activities refocused into Tudor House as Regent Street premises
now vacated.
'The first half of the year has, considering last Summer's difficult
circumstances, been pleasing and reflects the solid foundations which have been
laid for Liberty's future profitability. The success of our Liberty of London
luxury brand to date gives us confidence that, over the medium term, we can
create an important London retailing landmark capable of generating profits and
shareholder value, together with a globally distributed luxury brand,' Richard
Balfour-Lynn, Chairman
Contact: Liberty Plc Tel: 020 7734 1234
Iain Renwick, Chief Executive
Crispin Mardon, Chief Financial Officer
Baron Phillips Associates Tel: 020 7920 3161
Baron Phillips
CHAIRMAN'S STATEMENT AND BUSINESS REVIEW
for the six months ended 31st December 2005
The results for Liberty for the six months ended 31st December 2005 reflect a
period of two distinct and contrasting quarters. The first quarter was
dramatically affected by last July's tragic events in Central London resulting
in the inevitable downturn in trading but, despite the general retailing
malaise, we delivered a sales surge in the Autumn followed by an even stronger
performance in the run-up to Christmas.
In the six weeks of trading before Christmas Liberty recorded a 5.4% sales
increase at our West End emporium over the same period in the previous year,
while in the last week before Christmas the store enjoyed one of its best ever
performances with a 20.4% sales uplift.
Despite the difficulties experienced over the summer months referred to above,
total store sales for the six months ended 31st December 2005 were level at
£19.7m. Excluding concession sales, store turnover was broadly steady at £16.3m
compared to £16.6m for the same period last year. Across the whole of Liberty
there was a 6% decrease in sales to £22.4m from £23.7m, mainly reflecting lower
sales in the Liberty fabric wholesale business. We are addressing this trend in
wholesale and have already made improvements in this area of our business.
Liberty produced a pre-tax profit for the period of £0.2m against a loss of
£2.3m for the comparable six months to December 2004. This profit reflects the
full impact of last April's £66.5m property sales which enabled us to eradicate
Liberty's debt and, consequently, interest charges. Profitability was also
helped by the one-off sale of a minor trademark that was not part of our core
offering, contributing £1.7m. Excluding the sale of the trademark, underlying
losses were reduced by £0.7m to £1.6m for the half year in comparison to the six
months ended 31st December 2004.
One of the major events of the period was the Autumn launch of our first range
of Liberty of London luxury goods. I am pleased to report that this initial
range was met with enthusiasm by both fashion media and customers alike,
confirming our belief that Liberty has the potential to become a major global
luxury brand.
We regard the Autumn launch as a stepping stone to the creation of a long term
sustainable range of Liberty luxury products occupying the store's central
atrium. Over the course of this year we will be extending the initial range from
leather bags and small leather products into swimwear, lingerie, nightwear and
soft home furnishings. Our objective is to increase the level of Liberty of
London products sold through the store so that within three years the luxury
branded goods will account for between 15% - 20% of the total store merchandise.
Another important feature of the Liberty of London luxury brand is its impact on
customers' perception of the store. Liberty is attracting a different customer
base than has traditionally been the case. Increasingly our customers are design
and fashion conscious Londoners and we are now less dependent on overseas
tourists than ever before.
As I have commented in the past the Congestion Charge continues to be a
hindrance to trade and last year's increase to £8 a day is a further irritation.
I can also report that trading in the second half of the financial year has
continued strongly, with improved margins being achieved. As we stated in
September, we have been refocusing our retailing activities into Tudor House on
Great Marlborough Street as we have now vacated our Regent Street premises. This
has now been completed and while there may be an initial short-term decline in
sales, we believe overall profitability will be enhanced with the concentration
of our luxury goods brand offer in the iconic and historical building.
Finally, I would like to welcome Crispin Mardon to the Board as Finance
Director. Crispin takes over the role from Fraser Allan who leaves the Company
at the end of March.
The first half of the year has, considering last Summer's difficult
circumstances, been pleasing and reflects the solid foundations which have been
laid for Liberty's future profitability. The success of our Liberty of London
luxury brand to date gives us confidence that, over the medium term, we can
create an important London retailing landmark capable of generating profits and
shareholder value, together with a globally distributed luxury brand.
Richard Balfour-Lynn
Chairman
28th March 2006
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 31st December 2005
6 months Year
6 months ended ended
ended 31st December 30th June
31st December 2004 2005
Notes 2005 (Restated) (Restated)
£'000 £'000 £'000
----------------------------------------------------------------------------------------
Turnover 2 22,395 23,695 43,760
Cost of sales (12,196) (13,027) (24,754)
----------------------------------------------------------------------------------------
Gross profit 10,199 10,668 19,006
----------------------------------------------------------------------------------------
Selling and distribution costs (10,980) (11,494) (21,154)
Administrative expenses (1,124) (1,362) (2,576)
Exceptional operating income 3 1,720 - -
Other operating income (prior periods
inclusive of rents received) 336 1,719 2,710
----------------------------------------------------------------------------------------
Operating profit/(loss) on ordinary
activities before interest and
taxation 2 151 (469) (2,014)
Profit on disposal of investment and
operational properties - - 2,432
----------------------------------------------------------------------------------------
Profit / (loss) on ordinary activities
before interest and taxation 2 151 (469) 418
Net interest receivable / (payable)
and similar charges 7 (1,810) (3,039)
----------------------------------------------------------------------------------------
Profit / (loss) on ordinary activities
before taxation 158 (2,279) (2,621)
Taxation on loss on ordinary activities (233) (217) (651)
----------------------------------------------------------------------------------------
Loss on ordinary activities after taxation (75) (2,496) (3,272)
Equity minority interests (125) (131) (300)
----------------------------------------------------------------------------------------
Loss attributable to ordinary shareholders (200) (2,627) (3,572)
Undeclared preference dividends 4 (12) (11) (23)
========================================================================================
Retained loss for the period 8 (212) (2,638) (3,595)
Basic and diluted loss per share 5 (0.9p) (11.6p) (15.8p)
========================================================================================
All operations are continuing.
The results for comparative periods have been restated to take account of the
Accounting Standards that came into effect during the six months ended 31st
December 2005. These are referred to in more detail in note 1 to the accounts.
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 31st December 2005
6 months 6 months
6 months ended ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
Loss for the period (212) (2,638) (3,595)
Unrealised surplus on revaluation of property 890 4,154 5,513
Actuarial gain / (loss) on pension scheme (note 6) 259 (1,174) (1,205)
Currency translation differences on foreign
currency net investments (40) (29) (11)
======== -------- --------
Total recognised gains and losses for the period 897 313 702
Prior period adjustment - adoption of FRS17 (6,863)
--------
Total recognised gains and losses since
last Annual Report (5,966)
========
All recognised gains and losses are attributable to equity shareholders'
interests.
NOTE OF CONSOLIDATED STATEMENT OF HISTORICAL COST PROFITS AND LOSSES
for the six months ended 31st December 2005
-------------------------------------------------------------------------------
6 months Year
6 months ended ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
Reported profit / (loss) on ordinary
activities before taxation 158 (2,279) (2,621)
Realisation of property revaluation
surplus recorded in previous years - - 13,266
Reduction in depreciation charge for
the period based on historical cost of - 2 56
------- ------- -------
properties held at valuation
Historical cost profit/(loss) on ordinary
activities before taxation 158 (2,277) 10,701
======= ======= =======
Historical cost profit/(loss) retained
after taxation, minority interests and
dividends (212) (2,636) 9,727
======= ======= =======
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the six months ended 31st December 2005
-------------------------------------------------------------------------------------------------------------
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
-------------------------------------------------------------------------------------------------------------
Opening shareholders' funds as originally stated 46,760 44,879 44,879
Prior period adjustment - adoption of FRS17 (6,863) (5,707) (5,707)
---------- ---------- ----------
Opening shareholders' funds as restated 39,897 39,172 39,172
Loss for the financial period (200) (2,627) (3,572)
Undeclared preference dividends (12) (11) (23)
Net revaluation surplus on fixed assets 890 4,154 5,513
Actuarial gain (loss) on pension liability 259 (1,174) (1,205)
Currency translation differences on foreign currency
net investments (40) (29) (11)
Unpaid preference dividends 12 11 23
---------- ---------- ----------
Closing shareholders' funds 40,806 39,496 39,897
========== ========== ==========
CONSOLIDATED BALANCE SHEET
at 31st December 2005
-------------------------------------------------------------------------------------------------------------
31st December 30th June
31st December 2004 2005
Notes 2005 (Restated) (Restated)
£'000 £'000 £'000
-------------------------------------------------------------------------------------------------------------
Fixed assets
Intangible asset 18,200 18,200 18,200
Tangible assets 7 28,609 84,794 27,909
-------------------------------------------------------------------------------------------------------------
46,809 102,994 46,109
-------------------------------------------------------------------------------------------------------------
Current assets
Stocks 6,830 7,839 6,653
Debtors:
Amounts falling due within one year 4,931 6,107 6,091
Amounts falling due after more than one year 2,053 745 2,050
Cash 3,892 5,887 3,630
-------------------------------------------------------------------------------------------------------------
17,706 20,578 18,424
Creditors: amounts falling due within one year (13,656) (15,636) (13,580)
-------------------------------------------------------------------------------------------------------------
Net current assets 4,050 4,942 4,844
-------------------------------------------------------------------------------------------------------------
Total assets less current liabilities 50,859 107,936 50,953
Creditors: amounts falling due after more
than one year (1,746) (59,291) (1,745)
-------------------------------------------------------------------------------------------------------------
Net assets before pension deficit 49,113 48,645 49,208
Pension deficit 6 (6,590) (6,859) (6,863)
-------------------------------------------------------------------------------------------------------------
Net assets after pension deficit 42,523 41,786 42,345
=============================================================================================================
Capital and reserves
Called up share capital 6,036 6,036 6,036
Merger reserve 8 61,503 61,503 61,503
Revaluation reserve 8 5,418 16,489 4,528
Profit and loss account 8 (32,151) (44,532) (32,170)
-------------------------------------------------------------------------------------------------------------
Total equity shareholders' funds 40,806 39,496 39,897
Equity minority interests 1,717 2,290 2,448
-------------------------------------------------------------------------------------------------------------
42,523 41,786 42,345
=============================================================================================================
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 31st December 2005
-------------------------------------------------------------------------------------------------------------
6 months Year
6 months ended Ended
Notes ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
-------------------------------------------------------------------------------------------------------------
Net cash inflow from operating activities 9 1,858 391 (9,643)
Returns on investments and servicing of finance 10 (777) (1,763) (3,792)
Tax paid (211) (265) (635)
Capital expenditure (553) (921) 65,227
-------------------------------------------------------------------------------------------------------------
Net cash (outflow)/inflow before financing
and use of liquid resources 317 (2,558) 51,157
Management of liquid resources (2,940) (1,500) 500
Financing 11 - 4,000 (52,000)
-------------------------------------------------------------------------------------------------------------
Decrease in cash during the period 12 (2,623) (58) (343)
=============================================================================================================
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
for the six months ended 31st December 2005
-------------------------------------------------------------------------------------------------------------
6 months Year
6 months ended Ended
Notes ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
-------------------------------------------------------------------------------------------------------------
Decrease in cash during the period 12 (2,623) (58) (343)
Increase / (decrease) in liquid resources 12 2,940 1,500 (500)
Decrease / (increase) in loans during the period - (4,000) 52,000
-------------------------------------------------------------------------------------------------------------
Decrease/(increase) in net cash during the period 317 (2,558) 51,157
Foreign currency translation 12 (55) (45) (17)
-------------------------------------------------------------------------------------------------------------
Movement in net debt during the period 262 (2,603) 51,140
Opening net cash / (debt) 12 3,630 (47,510) (47,510)
-------------------------------------------------------------------------------------------------------------
Closing net cash / (debt ) 12 3,892 (50,113) 3,630
=============================================================================================================
NOTES TO THE ACCOUNTS
--------------------------------------------------------------------------------
1. ACCOUNTING POLICIES
--------------------------------------------------------------------------------
The interim accounts of the Group for the six months ended 31st December 2005
incorporate the results of Liberty Plc and its subsidiary undertakings for the
six months then ended. The results have been prepared on the basis of the
accounting policies adopted in the accounts of the Group for the year ended 30th
June 2005, consistently applied in all material respects, after taking account
of the new Accounting Standards that became effective during the period ended
31st December 2005.
Prior year restatement
For the year ended 30th June 2006, the Group has adopted for the first time FRS
17 'Retirement Benefits', which replaces SSAP 24 'Accounting for Pension Costs'.
In accordance with FRS 17, the Group includes the assets and liabilities of its
defined benefit pension schemes in the accounts. Current service costs,
curtailment and settlement gains and losses, and financial returns, are included
in the profit and loss account in the period to which they relate. Actuarial
gains and losses are recorded through the statement of total recognised gains
and losses.
A prior period adjustment of £6.8m is the cumulative prior period effect of this
change of pension accounting policy, which has been charged against reserves.
The comparatives for the 6 months ended 31st December 2004 and for the year
ended 30th June 2005 have accordingly been restated.
Adoption of new Accounting Standards
In addition to the adoption of FRS 17 the Group has also adopted the following
new standards in these interim accounts for the first time:
* FRS 21 'Events after the balance sheet date', which had no material
effect as there were no significant events after the balance sheet date that
would require disclosure to the interim accounts. No dividends were declared
after the balance sheet date that would require disclosure but not
recognition in the accounts.
* FRS 22 'Earnings per share', which had no material effect.
* FRS 25 'Financial instruments: presentation and disclosure', which had no
material effect.
* FRS 28 'Corresponding amounts', which had no material effect as it imposes
the same requirements for comparatives as were required hitherto by the
Companies Act 1985.
The corresponding amounts in these accounts have been restated in accordance
with the new policies.
--------------------------------------------------------------------------------
2. DIVISIONAL ANALYSIS
--------------------------------------------------------------------------------
Turnover represents the amounts charged to third party customers for goods and
services, less returns, and excluding value added tax. Sales by concession
departments are included in turnover on a commission only basis.
6 months Year
6 months ended Ended
ended 31st December 30th June
Turnover 31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
By class of business:
Retail 16,679 17,285 31,016
Wholesale 5,716 6,410 12,744
---------- ---------- ----------
22,395 23,695 43,760
========== ========== ==========
By geographical origin:
United Kingdom 20,346 21,517 38,875
Japan 2,049 2,178 4,885
---------- ---------- ----------
22,395 23,695 43,760
========== ========== ==========
By geographical destination:
United Kingdom 17,326 17,948 32,273
Japan 2,085 2,193 4,885
Other 2,984 3,554 6,602
---------- ---------- ----------
22,395 23,695 43,760
========== ========== ==========
By category:
Gross turnover 25,714 26,674 49,118
Less concession departments turnover net of commission (3,319) (2,979) (5,358)
---------- ---------- ----------
Net turnover 22,395 23,695 43,760
========== ========== ==========
--------------------------------------------------------------------------------
2. DIVISIONAL ANALYSIS (continued)
--------------------------------------------------------------------------------
6 months Year
6 months ended Ended
Operating profit/ (loss) on ordinary ended 31st December 30th June
activities before interest and taxation 31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
By class of business:
Retail (1,104) (1,844) (2,357)
Wholesale 1,255 1,375 2,775
---------- ---------- ----------
151 (469) 418
========== ========== ==========
By geographical origin:
United Kingdom (187) (862) (502)
Japan 338 393 920
---------- ---------- ----------
151 (469) 418
========== ========== ==========
The segmental analysis of operations reflects the structure of the Group. Retail
includes the UK retail operations at Regent Street and Heathrow. Wholesale
includes the results of the UK and Japanese fabric businesses.
The Retail loss on ordinary activities before interest and taxation includes net
rental income from properties, and is inclusive of exceptional operating income.
--------------------------------------------------------------------------------
3. EXCEPTIONAL OPERATING INCOME
--------------------------------------------------------------------------------
During the six months ended 31 December 2005 the Group received a payment of
£1,720,000, which related to the early buy-out of a licensing agreement. This
has been reflected in the profit and loss account as an exceptional item because
of its size. The proceeds received were used to reduce Group debt.
--------------------------------------------------------------------------------
4. DIVIDENDS
--------------------------------------------------------------------------------
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
Undeclared preference dividends 12 11 23
========== ========== ==========
Due to a deficiency of distributable reserves of the Company, the preference
shares are currently in arrears of dividend of 51/2 years. Payment of £128,000
will be made when this deficiency has been made good from future profits.
--------------------------------------------------------------------------------
5. LOSS PER SHARE
--------------------------------------------------------------------------------
The loss per share figures are calculated by dividing the loss after taxation
and minority interests for the period, by the weighted average number of shares
in issue during the period, as follows:
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
Loss on ordinary activities after taxation and minority interests (200) (2,627) (3,572)
========== ========== ==========
Number Number Number
'000 '000 '000
Weighted average number of ordinary shares
in issue during the period 22,603 22,603 22,603
---------- ---------- ----------
Basic and diluted loss per share (0.9p) (11.6p) (15.8p)
========== ========== ==========
The exercise price of the share options was less than the average share price
for the year and therefore no adjustment to the earnings is necessary in respect
of shares under option. The shares under option may in the future dilute the
basic earnings per share, but these are not included in the calculation of the
diluted loss per share as they were anti-dilutive for the periods above.
--------------------------------------------------------------------------------
6. PENSIONS
--------------------------------------------------------------------------------
The Group operates defined benefit schemes in the UK and Japan, and a defined
contribution pension scheme in the UK.
Defined benefit schemes
In the UK, for employees of the Group prior to February 2001, the Group operates
a pension scheme providing benefits based on final pensionable salary. In Japan,
the Group operates defined benefit schemes.
A full actuarial valuation of the UK scheme was carried out at 2nd June 2003 and
of the Japan schemes at 31st March 2003. Both valuations were updated to 31st
December 2005 by qualified independent actuaries. The major assumptions used by
the actuaries were:
31st December 31st December 30th June
2005 2004 2005
United Kingdom
Rate of increase in salaries 3.75% 4.00% 3.75%
Rate of increase to pensions in payment
accrued before 6 April 1997 3.00% 3.00% 3.00%
Rate of increase to pensions in payment
accrued after 5 April 1997 2.75% 3.00% 2.75%
Rate of increase of deferred pensions 2.75% 3.00% 2.75%
Discount rate 4.80% 5.30% 5.00%
Inflation assumption 2.75% 3.00% 2.75%
Japan
Rate of increase per annum in salaries 1.50% 1.50% 1.50%
Discount rate of scheme liabilities 2.00% 2.00% 2.00%
The Group contributions to the UK scheme during the six months ended 31st
December 2005 amounted to £183,000 (2004: £203,000). The agreed Company
contribution rate for the coming year is 23% of pensionable payroll plus
£183,000 of additional contributions to reduce the pension fund deficit.
The UK defined benefit scheme is closed to new entrants, so the average age of
the membership is expected to increase over time. Because the projected unit
method is used to calculate the current service cost, it is expected that the
current service cost will increase as the members of the scheme approach
retirement.
--------------------------------------------------------------------------------
6. PENSIONS (continued)
--------------------------------------------------------------------------------
The assets in the scheme and the expected rates of return were:
Long-term rate Long-term rate Long-term Value
of return Value at of return Value at rate of return at
expected at 31st December expected at 31st December expected at 30th June
31st December 2005 31st December 2004 30th June 2005
2005 £'000 2004 £'000 2005 £'000
United Kingdon
Equities 8.00% 10,239 8.50% 8,359 8.00% 8,945
Bonds 4.80% 4,951 5.80% 4,385 5.00% 4,695
Property 2.75% 15 3.00% 61 2.75% 31
---------- ---------- ----------
Total market value of assets 15,205 12,805 13,671
Present value of scheme
liabilities (21,757) (19,610) (20,493)
Deficit in the scheme
and net pension liability (6,552) (6,805) (6,822)
========== ========== ==========
Japan
Investments 1.50% 85 1.50% 86 1.50% 92
---------- ---------- ----------
Total market value of assets 85 86 92
Present value of scheme
liabilities (123) (140) (133)
---------- ---------- ----------
Deficit in the scheme
and net pension liability (38) (54) (41)
========== ========== ==========
Total pension liability (6,590) (6,859) (6,863)
========== ========== ==========
Analysis of the amount charged to operating profit
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
United Kingdom
Current service cost 136 146 269
========== ========== ==========
Japan
Current service cost 9 14 25
========== ========== ==========
--------------------------------------------------------------------------------
6. PENSIONS (continued)
--------------------------------------------------------------------------------
Analysis of the amount credited to other finance income
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
United Kingdom
Expected return on pension scheme assets 470 437 889
Interest on pension scheme liabilities (505) (495) (1,001)
---------- ---------- ----------
Net return (35) (58) (112)
========== ========== ==========
Japan
Expected return on pension scheme assets 1 1 1
Interest on pension scheme liabilities (2) (2) (3)
---------- ---------- ----------
Net return (1) (1) (2)
========== ========== ==========
Analysis of amount recognised in Statement of Total Recognised Gains and Losses ('STRGL')
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
United Kingdom
Actual return less expected return on pension scheme 1,112 648 1,094
Experience gains / (losses) arising on the scheme liabilities 1 3 (3)
Changes in assumptions underlying the present value
of the scheme liabilities (855) (1,826) (2,286)
---------- ---------- ----------
Actuarial gain / (loss) recognised in STRGL 258 (1,175) (1,195)
========== ========== ==========
Japan
Actual return less expected return on pension scheme - - (9)
Experience gains / (losses) arising on the scheme liabilities - - (1)
Changes in assumptions underlying the present value
of the scheme liabilities 1 1 -
---------- ---------- ----------
Actuarial gain / (loss) recognised in STRGL 1 1 (10)
========== ========== ==========
--------------------------------------------------------------------------------
6. PENSIONS (continued)
--------------------------------------------------------------------------------
Movement in surplus during the year
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
United Kingdom
Deficit in scheme at beginning of the period (6,822) (5,630) (5,630)
Movement in year:
Current service cost (136) (146) (269)
Contributions 183 204 384
Other net finance costs (35) (58) (112)
Actuarial gain / (loss) 258 (1,175) (1,195)
---------- ---------- ----------
Deficit in scheme at end of the period (6,552) (6,805) (6,822)
========== ========== ==========
Japan
Deficit in scheme at beginning of the period (41) (77) (77)
Movement in year:
Current service cost (9) (14) (25)
Contributions 12 37 73
Other net finance costs (1) (1) (2)
Actuarial gain / (loss) 1 1 (10)
---------- ---------- ----------
Deficit in scheme at end of the period (38) (54) (41)
========== ========== ==========
--------------------------------------------------------------------------------
7. TANGIBLE FIXED ASSETS
--------------------------------------------------------------------------------
Short Fixtures &
Freehold leasehold equipment Total
£'000 £'000 £'000 £'000
Cost or valuation
At 1st July 2005 24,608 - 8,516 33,124
Additions 39 - 514 553
Revaluation 709 - - 709
---------- ---------- ---------- ----------
At 31st December 2005 25,356 - 9,030 34,386
---------- ---------- ---------- ----------
Depreciation
At 1st July 2005 - - (5,215) (5,215)
Charge for the period (181) - (562) (743)
Revaluation 181 - - 181
---------- ---------- ---------- ----------
At 31st December 2005 - - (5,777) (5,777)
---------- ---------- ---------- ----------
Net book value
at 31st December 2005 25,356 - 3,253 28,609
========== ========== ========== ==========
Net book value
at 31st December 2004 36,506 44,922 3,366 84,794
========== ========== ========== ==========
Net book value
at 30th June 2005 24,608 - 3,301 27,909
========== ========== ========== ==========
The Group's freehold property was valued at 31st December 2005 by qualified
professional valuers working for the company of DTZ Debenham Tie Leung,
Chartered Surveyors, ('DTZ') acting in the capacity of External Valuers. All
such valuers are Chartered Surveyors, being members of the Royal Institution of
Chartered Surveyors. All properties were valued on the basis of Market Value and
in accordance with the RICS Appraisal and Valuation Standards 5th Edition ('the
Manual').
The valuation of the property at 31st December 2005 was £27.0m and the valuation
surplus reflected in the interim accounts was £2.5m.
--------------------------------------------------------------------------------
8. MOVEMENT ON RESERVES
--------------------------------------------------------------------------------
Profit
Merger Revaluation and loss
reserve reserve Account
£'000 £'000 £'000
Group
At 1st July 2005, as previously reported 61,503 4,528 (25,307)
Prior period adjustment - adoption of FRS17 - - (6,863)
At 1st July 2005 as restated 61,503 4,528 (32,170)
Loss retained for the period - - (212)
Surplus arising on revaluation of properties - 890 -
Actuarial gain on pension liability - - 259
Currency translation differences on foreign currency net investments - - (40)
Unpaid preference dividends - - 12
---------- ---------- ----------
At 31st December 2005 61,503 5,418 (32,151)
========== ========== ==========
All reserves of the Group are attributable to equity shareholders' interests.
--------------------------------------------------------------------------------
9. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
Operating profit/(loss) 151 (469) (2,014)
Depreciation 743 1,363 2,073
Loss on disposal of fixed assets - - 127
(Increase) in stock (177) (1,503) (312)
Decrease / (increase) in debtors 1,157 (95) (1,437)
Increase / (decrease) in creditors (16) 1,095 (8,080)
---------- ---------- ----------
Net cash inflow from operating activities 1,858 391 (9,643)
========== ========== ==========
--------------------------------------------------------------------------------
10. RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
--------------------------------------------------------------------------------
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
Equity dividend paid to minorities (791) (247) (246)
Non-equity dividend paid to minorities (29) (27) (53)
Interest paid (3) (1,525) (3,550)
Interest received 46 36 57
---------- ---------- ----------
Returns on investments and servicing of finance (777) (1,763) (3,792)
========== ========== ==========
--------------------------------------------------------------------------------
11. FINANCING
--------------------------------------------------------------------------------
6 months Year
6 months ended Ended
ended 31st December 30th June
31st December 2004 2005
2005 (Restated) (Restated)
£'000 £'000 £'000
Loans drawn down - 4,000 5,100
Loans repaid - - (57,100)
---------- ---------- ----------
Financing - 4,000 (52,000)
========== ========== ==========
--------------------------------------------------------------------------------
12. ANALYSIS OF NET CASH
--------------------------------------------------------------------------------
Movement Foreign 30th June
31st December during currency 2005
2005 period translation (Restated)
£'000 £'000 £'000 £'000
Available cash 952 (2,623) (55) 3,630
Short term investments 2,940 2,940 - -
---------- ---------- ---------- ----------
Net cash 3,892 317 (55) 3,630
========== ========== ========== ==========
--------------------------------------------------------------------------------
13. FINANCIAL INFORMATION
--------------------------------------------------------------------------------
The financial information set out in these interim accounts of the Group for the
six months ended 31st December 2005 includes information for the year ended 30th
June 2005. This information does not constitute the Company's statutory accounts
for the year ended 30th June 2005 but is derived from those accounts. Statutory
accounts for the year ended 30th June 2005 have been delivered to the Registrar
of Companies. The auditors have reported on those accounts; their report was
unqualified and did not contain statements under section 237(2) or (3) of the
Companies Act 1985.
--------------------------------------------------------------------------------
14. ACCOUNTS AND INTERIM ANNOUNCEMENT
--------------------------------------------------------------------------------
The interim accounts of the Company are expected to be sent to shareholders
during April 2006. The audited accounts of Liberty Plc for the year ended 30th
June 2005 and further copies of these interim accounts are available from the
Company Secretary, Filex Services Limited, 179 Great Portland Street, London W1W
5LS.
This information is provided by RNS
The company news service from the London Stock Exchange
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