Interim Results

RNS Number : 8864G

Leo Insurance Services PLC

29 October 2008

 



Leo Insurance Services Plc

CHAIRMAN'S STATEMENT

In the half year to July 31 2008 the Group made a consolidated loss of £15,078 (2007: profit of £18,180).

Leo's single investment is a 50% share in Grafton Insurance Services Limited a brokerage specialising in property insurance and whilst there has been a small amount of organic growth 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

29 October 2008

Leo Insurance Services Plc

CONSOLIDATED INCOME STATEMENT

for the six months ended 31 July 2008

	Notes		6 months ended 31 July 2008 (unaudited)       £	6 months ended 31 July 2007 restated (unaudited) £	12 months ended 31 January  2008 (audited) £
Revenue			-	-	-
Cost of sales			-	-	-
GROSS PROFIT			-	-	-
Administrative expenses			(45,831)	(41,802)	(100,496)
OPERATING LOSS			(45,831)	(41,802)	(100,496)
Share of results of joint venture - post tax			33,206	61,657	73,021
(LOSS)/PROFIT BEFORE INTEREST			(12,625)	19,855	(27,475)
Finance Income			462	258	709
Finance Costs			(2,915)	(1,933)	(4,033)
(LOSS)/PROFIT BEFORE TAX			(15,078)	18,180	(30,799)
Taxation			-	-	-
(LOSS)/PROFIT FOR THE PERIOD			(15,078)	18,180	(30,799)
(LOSS)/EARNINGS PER ORDINARY SHARE
Basic	2		(0.21p)	0.25p	(0.43p)
Diluted	2		(0.21p)	0.18p	(0.43p)
All results in the current and preceding financial year derive from continuing operations.

Leo Insurance Services Plc

CONSOLIDATED BALANCE SHEET

31 July 2008

			31 July 2008 (unaudited) £	31 July 2007 (unaudited) restated £	31 January  2008 (audited) £
		Notes
NON CURRENT ASSETS
Interest in joint ventures		4	49,247	69,677	16,041
CURRENT ASSETS
Trade and other receivables			20,239	21,989	3,759
Cash and cash equivalents			2,384	27,285	69,543
TOTAL CURRENT ASSETS			22,623	49,274	73,302
TOTAL ASSETS			71,870	118,951	89,343
CURRENT LIABILITIES
Redeemable preference shares			(65,000)	(65,000)	(65,000)
Trade and other payable			(34,030)	(17,054)	(36,425)
TOTAL CURRENT LIABILITIES			(99,030)	(82,054)	(101,425)
NET (LIABILITIES)/ASSETS			(27,160)	36,897	(12,082)
EQUITY
Share capital			72,160	72,160	72,160
Share premium account			5,761	5,761	5,761
Retained losses			(105,081)	(41,024)	(90,003)
TOTAL EQUITY			(27,160)	36,897	(12,082)

Leo Insurance Services Plc

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 31 July 2008

	Notes	6 months ended  31 July  2008 (unaudited) £	6 months ended 31 July 2007 restated (unaudited) £	12 months ended 31 January  2008 (audited) £
OPERATING ACTIVITIES
Net cash out flow from operations	3	(67,621)	(48,949)	(72,142)
Interest paid		-	-	-
NET CASH OUTFLOW FROM OPERATING ACTIVITIES		(67,621)	(48,949)	(72,142)
INVESTING ACTIVITIES
Interest received		462	258	709
Dividends received from joint venture undertaking		-	57,500	122,500
NET CASH INFLOW FROM INVESTING ACTIVITIES		462	57,758	123,209
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS		(67,159)	8,809	51,067
Cash and equivalents at beginning of period		69,543	18,476	18,476
CASH AND CASH EQUIVALENTS AT END OF PERIOD		2,384	27,285	69,543

Leo Insurance Services Plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 31 July 2008

	Share Capital  £	Share Premium £	Retained Losses £	Total £
As at 31 January 2007	72,160	5,761	(59,204)	18,717
Profit for the period	-	-	18,180	18,180
As at 31 July 2007	72,160	5,761	(41,024)	36,897
Loss for the period	-	-	(48,979)	(48,979)
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)

• 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 2008 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 2008 and are expected to be used in the Group Annual Report for the year ended 31 January 2009.

The interim results for the six months ended 31 July 2007 have been restated to be consistent with the accounting policy for joint ventures adopted in the 2008 statutory accounts. This change in presentation had no impact on profit for the period or net assets as at 31 July 2007.

Statutory accounts for the year ended 31 January 2008 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 28 October 2008.

As at 31 July 2008, the group had net current liabilities of £76,407. Included within current liabilities are redeemable preference shares of £65,000 and accrued dividends on those shares of £11,115. 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.

2             (LOSS)/EARNINGS per share

The (loss)/earnings per share for the period is calculated based upon the following information:

		6 months ended  31 July  2008 (unaudited)	6 months ended 31 July 2007 (unaudited)	12 months ended 31 January  2008 (audited)
	Weighted average number of shares for basic (loss)/earnings per share	7,215,956	7,215,956	7,215,956
	Weighted average number of shares for diluted (loss)/earnings per share	7,215,956	9,950,330	7,215,956
	(Loss)/profit for the period	(15,078)	18,180	(30,799)

3		Reconciliation of operating (LOSS)/PROFIT to net cash flow from operating activities		6 months ended  31 July  2008 (unaudited) £		6 months ended 31 July 2007 restated (unaudited) £		12 months ended 31 January  2008 (audited) £
		(Loss)/profit for the period		(15,078)		18,180		(30,799)
		Adjustments for:
		Finance income		(462)		(258)		(709)
		Finance costs		2,915		1,933		4,033
		Share of results of joint venture - post tax		(33,206)		(61,657)		(73,021)
		Operating cash flow before movements in working capital		(45,831)		(41,802)		(100,496)
		(Increase)/decrease in debtors		(16,480)		(7,811)		8,319
		(Decrease)/increase in creditors		(5,310)		664		20,035
		Net cash flow from operating activities		(67,621)		(48,949)		(72,142)

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  2008 (unaudited)   £				6 months ended 31 July 2007 restated (unaudited) £				12 months ended 31 January  2008 (audited) £
	Revenue	100,667				140,747				197,029
	Operating profit	40,751				59,588				88,350
	Finance Income	1,276				1,213				2,478
	Profit before tax	42,027				60,801				90,828
	Tax	(8,821)				856				(17,807)
	Profit after tax	33,206				61,657				73,021
	Interest in joint venture at 1 February 2008	16,041				65,520				65,520
	Share of profit for the year	33,206				61,657				73,021
	Dividends	-				(57,500)				(122,500)
	Interest in joint venture at 31 July 2008	49,247				69,677				16,041

 

END

 

 

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