Interim Results

Actif Group PLC 31 March 2004 31 March 2004 Actif Group plc Announcement of interim results for the six months ended 31 January 2004 Highlights • Group turnover up 18.3% to £14.1 million (2003: £11.9 million) • Gross margins up 0.1% at 50.5% (2003: 50.4%) • Operating profit increased by 99% to £318,000 (2003: £160,000) • Profit before tax increased by 209% to £275,000 (2003: £89,000) • Earnings per share increased by 209% to 0.42p (2003: 0.14p) • Declining sales trend in wholesale reversed • UK flagship Elle retail stores opened in Glasgow and Birmingham • One new Elle outlet store opened in Gunwharf Quays (Portsmouth) Mark Evans, Chief Executive, commented on the results: 'I am pleased to report on a solid start to the financial year with Group sales and profits in line with market expectations. The Elle brand retail and wholesale businesses are showing sustained growth in both UK and European markets, and the Group continues to generate cash for reinvestment.' Enquiries: ACTIF GROUP PLC HUDSON SANDLER Mark Evans, Chief Executive James Sumpster Tel: +44 (0)20 7462 8801 Tel: +44 (0)20 7796 4133 Julian Ghinn, Finance Director Tel: +44 (0)20 7462 8810 31 March 2004 Actif Group plc Interim results for the six months ended 31 January 2004 CHAIRMAN'S STATEMENT I am pleased to report the Group's interim results for the six-month period to 31 January 2004. Results In the six months to 31 January 2004, total Group turnover was 18.3% up on the previous year at £14.1 million (2003: £11.9 million). Gross margins have increased by 0.1% to 50.5% (2003: 50.4%). Operating profit has increased by 98.6% to £318,000 (2003: £160,000) with total profit before tax increasing by 209% to £275,000 (2003: £89,000) and basic earnings per share increasing by 209% to 0.42p (2003: 0.14p). Cash generated from operating activity in the period was £469,000 compared to £1.4 million in 2003, and net debt has risen by £232,000 to £1.3 million (2003: £1.0 million) following an investment of £587,000 in new stores. ELLE Retail Retail sales in the period increased by 8.9% to £8.6 million (2003: £7.9 million), accounting for 60% of total Group turnover (2003: 66%). Retail gross margins were level with the comparative period at 63.2% (2003: 63.2%). The growth in retail sales reflects the impact of additional retail space. In August we opened a new Elle store in Glasgow City Centre and followed this with a new store in the new Bullring Shopping Centre in Birmingham in September. In October, we closed a store in the Metro Centre, Gateshead, which was held on a short lease, continuing the process of realigning the early store network development to premium shopping centres in major cities. Two additional department store concessions were added and a further outlet centre at Gunwharf Quay, Portsmouth. Total retail selling space has increased by 3,500 square feet since July 2003 to just over 50,000 square feet at the end of the half year. Further controlled growth of the retail business is envisaged across all formats subject to the suitability and availability of targeted sites and host retailer development plans. In the 8 weeks to 27th March, total retail sales have been 5% ahead compared to the same period last year. In common with other retail fashion businesses we have found post-January trading to be unpredictable and against this background we remain cautious about the short term outlook for Elle retail. ELLE Wholesale Overall wholesale sales in the first half increased by 41% to £5.6m (2003: £4.0m), which is reflective of the investment made in improving the product fashionability, styling , quality and sales channel management. Elle branded sports and swimwear is leading this recovery through extended distribution in the UK and Europe, where the brand benefits from substantial international appeal. Early indicators for the Autumn / Winter 2004 collections are encouraging. Outlook Reflective of the Group's reliance upon UK retail sales and the developing strength of its wholesale activity, we remain cautiously optimistic for the outcome for the year. David Brock Chairman 30th March 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the 6 months to 31 January 2004 Unaudited Unaudited Audited Six months to Six months to Year to Notes 31 January 2004 1 February 2003 31 July 2003 £'000 £'000 £'000 STARTTurnover 14,096 11,923 25,575 Cost of Sales (6,982) (5,917) (14,102) __________ __________ __________ Gross Profit 7,114 6,006 11,473 Other Operating Expenses (6,796) (5,846) (11,001) __________ __________ __________ Operating profit 318 160 472 Interest payable and similar charges (43) (71) (139) __________ __________ __________ Retained profit for the period 275 89 333 __________ __________ __________ Earnings per share Basic earnings per share 2 0.42p 0.14p 0.51p __________ __________ __________ Diluted earnings per share 0.39p 0.14p 0.49p __________ __________ __________ CONSOLIDATED BALANCE SHEET As at 31 January 2004 Unaudited Unaudited Audited 31 January 2004 1 February 2003 31 July 2003 £'000 £'000 £'000 Fixed assets Intangible assets 43 46 44 Tangible assets 2,089 1,847 1,887 __________ __________ __________ 2,132 1,893 1,931 Current assets Stocks 3,962 2,655 3,385 Debtors 3,404 2,244 3,810 Cash at bank and in hand 87 4 5 __________ __________ __________ 7,453 4,903 7,200 Creditors: amounts falling due within one year (4,436) (2,538) (4,643) __________ __________ __________ Net current assets 3,017 2,365 2,557 __________ __________ __________ Total assets less current liabilities 5,149 4,258 4,488 Creditors: amounts falling due after more than one (670) (271) (285) year __________ __________ __________ Net assets 4,479 3,987 4,203 __________ __________ __________ Capital and reserves Called up share capital 657 657 657 Share premium account 4,322 4,322 4,322 Other reserves 89 89 89 Profit and loss account (589) (1,081) (865) __________ _________ __________ Shareholders' funds 4,479 3,987 4,203 __________ __________ __________ CONSOLIDATED CASH FLOW STATEMENT For the 6 months to 31 January 2004 Notes Unaudited Unaudited Audited 31 January 2004 1 February 2003 31 July 2003 £'000 £'000 £'000 Net cash inflow from operating activities 3(a) 469 1,392 1,818 Returns on investments and servicing of finance Interest paid (43) (71) (139) ________ ________ ________ Net cash outflow from servicing of finance (43) (71) (139) ________ ________ ________ Capital expenditure and financial investment Purchase of tangible fixed assets (587) (549) (981) ________ ________ ________ Net cash outflow from capital expenditure (587) (549) (981) ________ ________ ________ Net cash inflow/(outflow) before financing (161) 772 698 Repayment of secured loans (123) (371) (616) New secured loans 900 315 600 Capital element of finance lease payments (51) (105) (236) New finance leases 27 - - ________ ________ ________ Net cash inflow/(outflow) from financing 753 (161) (252) ________ ________ ________ Increase in cash in the period 3(b) 592 611 446 ________ ________ ________ NOTES TO THE INTERIM FINANCIAL STATEMENTS 1. Basis of preparation The consolidated interim financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. The accounting policies applied are consistent with those set out in the financial statements of Actif Group plc for the year ended 31 July 2003. The interim financial statements are unaudited and do not constitute accounts within the meaning of section 240 of the Companies Act 1985. The financial information for the year ended 31 July 2003 has been extracted from the Group's statutory accounts for the period, which have been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain any statement under section 237 of the Companies Act 1985. 2. Earnings per share Earnings per share and fully diluted earnings per share for the 6 months ended 31 January 2004, the year ended 31 July 2003 and the 6 months ended 1 February 2003 have been calculated on profit after tax and non-equity dividends and on the weighted average number of shares in issue and under option during the period, as set out below: 6 months ended 6 months ended Year ended 31 January 2004 1 February 2003 31 July 2003 Weighted average number of ordinary shares 65,344,571 65,344,571 65,344,571 ---------------------- ---------------------- ---------------------- Weighted average number of ordinary and potential 70,025,726 65,357,273 68,449,120 ordinary shares ---------------------- ---------------------- ---------------------- 3. Notes to the Consolidated Cash Flow Statement for the 6 months ended 31 January 2004 (a) Reconciliation of operating profit to operating cash flows Unaudited Unaudited Audited 31 January 2004 1 February 2003 31 July 2003 £'000 £'000 £'000 Operating profit 318 160 472 Depreciation charges 386 389 781 Amortisation of goodwill 1 1 3 Decrease/(increase) in stock (577) 771 40 Decrease/(increase) in debtors 406 1,444 (122) (Decrease)/increase in creditors (65) (1,373) 672 Foreign exchange loss relating to non operating activities - - (28) __________ __________ __________ Net cash inflow from operating activities 469 1,392 1,818 __________ __________ __________ (b) Reconciliation of cash flow to movement in net debt Unaudited Unaudited Audited 31 January 2004 1 February 2003 31 July 2003 £'000 £'000 £'000 Increase in cash in the period 592 611 446 Cash outflow from decrease in debt and lease financing 174 476 852 __________ __________ __________ Change in net debt resulting from cash flows 766 1,087 1,298 New secured loans (927) (315) (600) __________ __________ __________ Movement in net debt in the period (161) 772 698 Net debt at the beginning of the period (1,116) (1,814) (1,814) __________ __________ __________ Net debt at the end of the period (1,277) (1,042) (1,116) __________ __________ __________ 4. Copies of Interim Report The Interim Report will be sent by post to all registered shareholders. Copies of the Interim Report are available from the Company Secretary at the Registered Office of Actif Group plc, 20 Little Portland Street, London W1W 8AA. This information is provided by RNS The company news service from the London Stock Exchange

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