Homestyle Group PLC
28 July 2005
28 July 2005
HOMESTYLE GROUP PLC
UNAUDITED PRELIMINARY RESULTS FOR THE 52 WEEKS TO 30 APRIL 2005
Homestyle is a multi-site retailer operating across the UK and specialising in
furniture retailing through its Furniture Division (177 Harveys stores) and its
Beds Division (436 outlets across Bensons, Sleepmasters and Bed Shed Brands).
Financial Performance
• Turnover from continuing businesses up 20% at £453.6 million (2004 -
53 weeks: £379.5 million)
• Profit before interest, exceptional items and goodwill amortisation
of £15.6 million (2004 - 53 weeks: £18.3 million)
• Exceptional items of £38.8 million (2004: £110.0 million)
• Loss on ordinary activities before tax of £32.3 million (2004 - 53
weeks: loss of £107.8 million)
• Adjusted EPS* of 11.3p (2004: 12.4p)
• Bed Division continues to perform well
• Furniture Division stabilised with good medium term potential
• Trading performance has been severely constrained by re-financing
issues
Refinancing and benefits
• Group's primary focus to reduce indebtedness has been achieved in
June 2005 through a £100 million share placing underwritten by Steinhoff
Europe AG
• HM Customs and Excise claim satisfactorily resolved
• Strong financial position now gives Homestyle solid foundation to
achieve long term growth
• Commercial opportunities in product sourcing and innovation to be
developed through relationship with Steinhoff
Board Structure
• David Brock is standing down as Chairman following completion of the
refinancing
• Donald Macpherson, Senior Non-Executive Director, to act as Interim
Chairman - a new independent Non-Executive Chairman to be appointed
• Ian Topping appointed as Chief Executive
• Ron Spinney retires as Non-Executive Director and Rian du Plessis
appointed
• Markus Jooste and Jan van der Merwe appointed as Steinhoff
Non-Executive Directors
Commenting on the outlook for the Group, Donald Macpherson, Interim Chairman,
said :
'The recent refinancing has enabled us to keep the Group intact, eliminate debt,
improve our competitiveness, settle our outstanding dispute with HM Customs and
Excise and begin to realise commercial benefits from our strategic partnership
with Steinhoff International Holdings. The business now has a strong balance
sheet enabling management to focus on the development of our retail operations.
However, as has been recently widely publicised, trading in our home related
markets has been highly competitive and consumer confidence weak.'
*Adjusted for goodwill amortisation and exceptional items
ENQUIRIES:
Ian Topping, Chief Executive Andrew Hayes/James Hill
Tim Kowalski, Finance Director
Homestyle Group PLC Hudson Sandler
Tel: 020 7796 4133 on 28 July 2005 Tel: 020 7796 4133
Tel: 01925 647 200 thereafter
www.homestylegroup.com
www.harveys4furniture.co.uk
www.bensonsforbeds.co.uk
www.bensons4beds.co.uk
www.thebedshed.net
CHAIRMAN'S STATEMENT
Homestyle has undergone significant change and development this year against a
backdrop of an increasingly challenging trading environment. Whilst management
have implemented a number of initiatives to reinvigorate the Furniture Division
and build on the successful development of the Beds Division, the key focus for
the year was to reduce the Group's level of indebtedness. As a result of the
recent refinancing, the business now has a strong balance sheet enabling
management to focus on the development of our retail operations.
Refinancing and benefits
Reducing debt was a key priority this year. After exploring a number of options
to achieve this, including the possible sale of the Beds Division, the Board
considered the refinancing of the business to be the most attractive option and
shareholders overwhelmingly passed all resolutions associated with this at an
EGM on 17 June 2005. The refinancing was by way of an open offer and placing of
191 million shares at 55p which raised a net £100 million for the company. This
has enabled us to keep the Group intact, return the balance sheet to a net asset
position, eliminate debt, settle our outstanding dispute with HM Customs &
Excise and begin to realise commercial benefits from our strategic partnership
with Steinhoff International Holdings, one of the world's leading furniture and
household goods groups. Our dealings with Steinhoff are governed by an 'arms
length' relationship agreement and we are confident that their manufacturing,
sourcing and logistics expertise and capabilities will prove invaluable to our
development over the longer term.
Financials
Turnover on continuing businesses for the 52 weeks to 30 April 2005 increased by
20% to £453.6 million (2004: 53 weeks £379.5 million). Total sales for the prior
year were £588.7 million, which included a full year contribution from Rosebys
(the home textiles business disposed of in May 2004) of £201.5 million. In
comparison total sales from textiles this year was £11.4 million.
Operating profit before exceptional items and goodwill amortisation was £15.6
million (2004: £18.3 million). The net interest charge before exceptional
charges for the period including pension finance costs was £4.5 million (2004:
£6.6 million).
A number of exceptional items totalling £38.8 million (2004: £110.0 million)
were charged during the year, principally relating to a full repayment of the
outstanding VAT claim and settlement fees to HM Customs & Excise of £19.7
million, exceptional finance charges of £7.9 million (2004 £4.3 million) and a
further £7.6 million (2004: £4.7 million) being a provision for Harveys' onerous
property leases.
The loss before tax after these exceptional items and after goodwill
amortisation was £32.3 million (2004: £107.8 million) with the basic loss per
share at 44.0p (2004: 156.2p). Earnings per share adjusted for exceptional items
and goodwill amortisation were 11.3p (2004: 12.4p). The Board is not proposing
to pay a final dividend.
During the year there was an overall cash inflow of £16.5 million versus a cash
inflow last year of £20.7 million reducing net debt from £85.6m at 1st May 2004
to £70.2 million at 30th April 2005. Since the year-end there was a net cash
injection of a further £100 million from the refinancing and consequently the
Group is free of bank debt with a committed debt facility of £20.0 million from
Steinhoff Europe AG on a commercial basis. After adjusting the net liability
balance sheet position of £15.2 million at 30th April 2005 for the net proceeds
from the refinancing of £100 million in June 2005 the Group has proforma net
assets of £89.8 million (2004: May £13.2 million).
Review of continuing businesses
Furniture Division (Harveys)
The Furniture Division trades under the Harveys brand and operates from 177
locations across the UK. Now that the refinancing is complete, we are fully
committed and focussed on driving Harveys' performance by differentiating
further our in-store environment and product offer.
Total sales in the year were £253.5 million (2004: £223.6 million excluding
textile sales), despite a 12% reduction in space, following the transfer of beds
related space to the Beds Division. Operating profit before interest,
exceptional items, goodwill amortisation and tax was £1.0 million (2004: £2.0
million).
The newly strengthened management team implemented a number of trading
initiatives to improve the performance of the business. A renewed emphasis on
retail disciplines to enhance the presentation of the offer and improved
in-store marketing have established the foundations for long-term recovery.
However, the financial issues of the Group became a major distraction for
management from February 2005 onwards. This, coupled with a progressively more
challenging trading environment, led to the deferral of some key retail
initiatives to build on the recovery momentum established last year. In
consequence, performance in recent months has been poor. Positive momentum has
now been quickly re-established following the refinancing. The key element of
this is a cost effective store refurbishment programme that is being rolled out
across the estate. The refurbished stores will include a more subtle lifestyle
orientated point of sale, expanded room sets - particularly bedroom ranges -
simpler ranging, voiles to soften and better articulate the in-store
environment, as well as promotional 'feature' bays to excite customers and drive
aspirational purchases. The initial customer response has been positive and we
will be evaluating performance at selected trial stores to refine this new
approach before we re-invigorate the rest of the estate
Whilst we do not underestimate the task facing us, we believe we are now better
positioned to consolidate the turnaround of the business and leverage our
critical mass to establish Harveys as one of the leading out of town furniture
retailers.
Beds Division (Bensons Beds, Sleepmasters and Bed Shed)
The Beds Division operates from 436 outlets through three formats: Bensons for
Beds, Sleepmasters and The Bed Shed. It has achieved another strong performance
this year, building on its position as the UK's leading bed specialist. Total
sales increased by 33% at £200.1 million (2004: £150.3 million), with a large
part of the sales uplift attributable to the additional space transferred to the
business from Harveys. Operating profit for the year was £14.1 million (2004:
£13.5 million).
In terms of space the Beds Division has increased by 25% this year, and this has
resulted in an increase in overall costs, as well as having to open two new
warehouses in Thurrock and Gillingham, to support the increased volumes.
As stated at the interim results, our focus on product innovation and
re-engineering products continues to drive sales, as well as helping to offset
considerable rises in raw material costs. A great deal of emphasis continues to
be placed on customer service through a series of regular training seminars and
in addition, promotions were significantly keener this year, with sales being
extended and advertised extensively through local media.
Although the performance of the Division was encouraging during the year,
consumer spending on 'big ticket' household items has slowed and this has
impacted trading. Sales are broadly in line with last year but the cost base to
support these sales is at this point disproportionately greater and this is
being currently addressed.
As previously indicated, Bill Wolstenholme (Managing Director) and Bernard Kelly
(Chairman) are standing down from the Beds Division from the end of October 2005
to pursue other interests. I would like to take this opportunity to thank both
Bill and Bernard for their invaluable contribution over the last 8 years and I
wish them well in the future. The appointment of a new divisional Managing
Director is well underway.
Board
In the light of the new circumstances a number of changes have been made to the
Board. David Brock is standing down as Chairman. We thank him for the role he
has played in securing the refinancing of the company over the last year. A new
independent non-executive Chairman will be appointed over the next few months
and in the meantime, I will be acting as Chairman on an interim basis.
Ian Topping, currently Managing Director of Steinhoff's UK operation, and who
joined the Board recently as a non-executive Director, is appointed Chief
Executive with immediate effect.
Ian has spent the last 15 years running a variety of furniture and related
businesses and has been Managing Director of Steinhoff's UK operations since
Steinhoff's acquisition of Relyon Group plc in 2001, a business of which he was
Chief Executive at the time of acquisition.
Markus Jooste and Jan van der Merwe*, Chief Executive and Chief Financial
Officer of Steinhoff respectively have joined the Board as non-executive
Directors. We are sure their extensive knowledge of the global furniture
industry will prove of great value and I am delighted to welcome all of our new
appointees to the company.
Ron Spinney CBE, currently a Non-Executive Director and Chairman of Hammerson
plc, will be retiring with effect from 28 July 2005. We are most grateful to him
for his wise and supportive contribution over the last few years as a valued
Board member. Rian du Plessis has been appointed a non-executive Director with
immediate effect following Ron Spinney's departure. He is Chief Executive of
Comparex Holdings Limited.
On a final note, I would like to thank all my colleagues and the divisional
teams for their hard work and commitment in what has been a year of significant
change and tough challenges.
Outlook
As has been recently widely publicised, trading in our home related markets has
been highly competitive and consumer confidence weak. In this environment total
customer orders for the 12 weeks to 23rd July were down 13% reflecting both the
slower retail environment and the impact of the weak financial position the
Company was in until our successful refinancing. However, the current tough
trading conditions are also presenting opportunities to the Group in relation to
the consolidation trends that are prevalent in the markets we are serving.
Following the refinancing, we believe we have secured a brighter future for the
business. We now have a strong balance sheet which has enabled us to keep the
Group intact, eliminate debt, improve our competitiveness, settle our
outstanding dispute with HM Customs and Excise and begin to realise the
commercial benefits from our strategic partnership with the Steinhoff group. It
also allows us to focus fully on driving renewed momentum in the recovery of the
Furniture Division and continuing progress at the Beds Division.
Donald Macpherson
Interim Chairman
28 July 2005
* Jan van der Merwe and Willem de Plessis have nothing to declare in relation to
paragraphs 6.1.2 (b) to (g) of the Listing Rules
Notes to editors
Homestyle Group PLC
Homestyle, the Warrington based company, enjoys leading positions in each of the
home related markets, in which it operates. The Group consists of two divisions,
the Beds Division and the Furniture Division.
Furniture Division
Harveys is a leading home furniture retailer with 177 stores in out-of-town
retail formats offering the customer value-for-money contemporary products.
Beds Division
With 436 outlets, the Beds Division, incorporating Bensons for Beds,
Sleepmasters and The Bed Shed, is the largest specialist bed retailer in the UK
offering both branded and un-branded products to the mid-market and value
conscious customer.
Steinhoff International
The Steinhoff Group, based in Johannesburg, is one of the world's leading
furniture and household goods groups, consisting of the holding company, SIL,
and two main subsidiaries, Steinhoff Europe AG and Steinhoff Africa. It employs
over 40,000 people in 15 countries.
During the financial year ended 30 June 2004, the Steinhoff Group generated
revenues of £900 million and normalized earnings of £100 million. It is quoted
on the JSE with a market capitilisation of over £1.7 billion.
HOMESTYLE GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 52 weeks to 30 April 2005
Unaudited Audited
52 weeks 53 weeks
to to
30-Apr-05 01-May-04
Note £000 £000
TURNOVER
Continuing operations 453,573 379,501
Discontinued operations 11,395 209,232
--------- ---------
464,968 588,733
Cost of sales (234,291) (291,127)
--------- ---------
Gross profit
230,677 297,606
Operating costs (net) (248,099) (333,891)
---------
Operating (loss)/profit
Continuing operations (18,023) (32,165)
Discontinued operations 601 (4,120)
--------- ---------
Operating (loss)/profit (17,422) (36,285)
--------- ---------
|--------------| |--------------|
Operating profit before exceptional | | | |
items and goodwill amortisation | 15,628 | | 18,305 |
| | | |
Exceptional items | (28,314)| | (45,042)|
| | | |
Goodwill amortisation 1 | (4,736)| | (9,548)|
|--------------| |--------------|
Operating loss (17,422) (36,285)
Loss on sale or termination of
operations:
Provision for loss on operations to be
discontinued - (53,972)
Loss on sale of discontinued operations (55,984) (4,265)
Less release of provision made in 2004 53,722 -
2 (2,262) (58,237)
Loss on sale of properties of discontinued
operations - (2,371)
Loss on disposal of fixed asset
investment of discontinued operation (250) -
Finance Costs (net) (4,144) (6,046)
Pension finance cost (net) (333) (533)
Exceptional finance costs (7,929) (4,309)
--------- ---------
LOSS ON ORDINARY ACTIVITIES BEFORE TAX (32,340) (107,781)
TAX 3 3,599 6,232
--------- ---------
LOSS ON ORDINARY ACTITIVIES 4
AFTER TAX (28,741) (101,549)
DIVIDENDS 5 - -
--------- ---------
TRANSFER FROM RESERVES (28,741) (101,549)
--------- ---------
(Loss)/earnings per share 6
Basic (44.0) p (156.2) p
Fully diluted (44.0) p (156.2) p
Basic (loss)/earnings per share before
exceptional items, goodwill amortisation,
loss on sale of operations and loss on
sale of properties 11.3 p 12.4 p
--------- ---------
HOMESTYLE GROUP PLC CONSOLIDATED BALANCE SHEET
At 30 April 2005
30 April 1 May
2005 2004
£000 £000
Fixed assets
Intangible assets 85,918 90,654
Tangible assets 51,968 80,750
Investments 137 2,994
--------- ---------
138,023 174,398
--------- ---------
Current assets
Stocks 38,422 68,212
Debtors - due within one year 35,402 26,064
Cash and bank balances 2,032 11,290
--------- ---------
75,856 105,566
Less creditors
Amounts falling due within one year:
Bank borrowing (68,488) (41,052)
Finance lease obligations (1,017) (278)
Loan notes (2,050) (2,209)
Creditors and accruals (129,856) (147,076)
--------- ---------
Net current liabilities (125,555) (85,049)
--------- ---------
Total assets less current liabilities 12,468 89,349
Less creditors
Amounts falling due after more than one year:
Finance lease obligations (313) (441)
Bank borrowing - (52,477)
Loan notes (414) (454)
Creditors and accruals - (166)
Less provisions for liabilities and charges
Closure and relocation cost provisions (14,749) (11,373)
--------- ---------
NET (LIABILITIES)/ASSETS (excluding
pension fund liabilities) (3,008) 24,438
Pension fund liabilities (12,235) (11,276)
--------- ---------
NET (LIABILITIES)/ASSETS (15,243) 13,162
--------- ---------
Capital and reserves
Called up share capital - equity shares 17,037 16,751
Share premium account 79,229 78,330
Merger reserve 38,649 38,649
Capital redemption reserve 288 288
Other reserve 1,731 -
Reserve for treasury shares (5,150) (5,150)
Profit and loss account (147,027) (115,706)
--------- ---------
EQUITY SHAREHOLDERS' (DEFICIT)/FUNDS (15,243) 13,162
--------- --------
HOMESTYLE GROUP PLC
CONSOLIDATED CASH FLOW
For the 52 weeks to 30 April 2005
52 weeks to 53 weeks to
30 April 1 May
Note 2005 2004
£000 £000
Net cash (outflow)/inflow from
operating activities 7 (14,661) 51,143
Returns on investments and servicing
of finance (9,443) (10,355)
Tax 4,356 2,920
Capital expenditure and financial
investment 8 (6,313) (7,335)
Acquisitions/disposals 9 42,544 (10,929)
Equity dividends paid - (4,704)
---------- -----------
Cash inflow before financing 16,483 20,740
Financing and net debt changes 10 (15,209) (3,922)
--------- ---------
Increase in net funds in period 11 1,274 16,818
--------- ---------
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Loss for the year
Actuarial gain/(loss) on pensions
(net of deferred tax) (28,741) (101,549)
Total recognised gains and losses (2,580) 141
--------- ---------
(31,321) (101,408)
--------- ---------
RECONCILIATION OF EQUITY SHAREHOLDERS' FUNDS
Loss for the period
Actuarial pension (loss)/gain (net of
deferred tax) (28,741) (114,699)
New ordinary shares issued (2,580) 141
Share premium on warrants exercised
in period 286 -
Other reserve for unexercised share warrants 899 -
Net reduction to equity shareholders funds 1,731 -
-------- --------
6 (28,405) (114,558)
Equity shareholders' funds at beginning of period 13,162 127,720
-------- --------
Equity shareholders' (deficit)/funds at end
of period (15,243) 13,162
-------- --------
HOMESTYLE GROUP PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the 52 weeks to 30 April 2005
52 weeks to 53 weeks to
30 April 1 May
2005 2004
£000 £000
---- ----
1. Exceptional items
Within operating costs
Provision for impairment of Harveys goodwill - 36,566
Provisions for Harveys onerous leases 7,595 4,714
Directors' contracts termination costs - 1,000
Provision for impairment on Kitchen Studio fixed asssets - 2,396
Settlement of VAT dispute (including professional
fees) 19,729 366
Professional fees relating to refinancing 990 -
---------
28,314 45,042
Other exceptional items
Loss and provision for loss on sale of operations 2,262 58,237
Loss on sale of properties - 2,371
Loss on disposal of fixed asset investment 250 -
Exceptional finance costs 7,929 4,309
-------- -------
38,755 109,959
--------- --------
2. Loss on ordinary activities before tax is stated after charging/(crediting):
Depreciation and amounts written off tangible fixed assets
- owned 9,811 11,899
- held under finance leases and hire purchase
contracts 394 284
- impairment of tangible fixed assets - 4,587
Operating lease rentals
- plant, equipment and vehicles 2,793 4,174
- land and buildings 53,928 71,306
Auditors remuneration
- for audit services 317 383
- for non-audit services 1,398 669
Landlords inducements (1,782) (3,544)
Goodwill amortisation 4,736 9,548
Impairment of goodwill - 60,864
3. Loss on sale of operations
Loss on sale of operations 54,190 5,511
Provision (released)/made for loss on sale of
operations (53,722) 53,972
Provision made for costs relating to leases
vacated by sold operations 2,843 -
Pension curtailment gains related to sold
operations (1,049) (1,246)
--------- ---------
2,262 58,237
--------- ---------
4. Tax
UK corporation tax refundable -
Deferred tax (3,900)
Deferred tax on pension fund liabilities 695
----------
Current year credit (3,205)
Prior year corporation tax overprovision (394)
(3,599)
----------
(3,787)
(3,188)
743
(6,232)
-
(6,232)
----------
5. Dividend
The directors do not propose to declare a dividend (2004 - nil).
HOMESTYLE GROUP PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the 52 weeks to 30 April 2005
52 weeks to 53 weeks to
30 April 1 May
2005 2004
£000 £000
6. (Loss)/earnings per share
(Loss)/earnings per share are based on the following
(Loss)/earnings:
Basic and fully diluted loss in the period (28,741) (101,549)
Goodwill amortisation 4,736 9,548
Exceptional items (note 1) 38,755 109,959
Tax adjustments (7,379) (9,917)
--------- ---------
Basic earnings per share before exceptional items, goodwill amortisation, loss
on sale of operations and loss on sale of fixed assets
7,371 8,041
--------- ---------
No. No.
--- ---
Weighted average number of shares in issue:
For basic (loss)/earnings per share 65,355,690 65,007,857
Held in respect of long term incentive plan 1,825,936 1,994,354
--------- ---------
For fully diluted earnings per share 67,181,626 67,002,211
---------- ----------
7. Operating cash flow
Operating loss (17,422) (36,285)
Exceptional items - non cash items 16,500 3,396
Depreciation and fixed asset impairments 10,205 12,183
Goodwill amortisation 4,736 9,548
Goodwill written off within exceptional items - 36,566
Amortisation of investments 7 -
Cash effect of provisions utilised (4,569) (424)
Provision for Harveys' onerous leases within
exceptional items 7,595 4,714
Provision for dilapidations within operating
profit 244 -
Pension provision movements (1,600) (1,765)
Stock (increases)/decreases (7,255) 10,888
Debtor (increases)/decreases (13,015) 13,323
Creditor decreases (10,087) (1,001)
--------- ---------
Net cash (outflow)/inflow from operating
activities (14,661) 51,143
--------- ---------
8. Capital expenditure and financial investment
Purchase of tangible fixed assets 10,725 14,110
Sale of tangible fixed assets (1,812) (6,775)
Disposal of fixed asset investment (2,600) -
--------- ---------
6,313 7,335
--------- ---------
9. Acquisitions/disposals
Purchase of subsidiary undertakings - deferred
consideration - (357)
Net proceeds/(costs) of disposals 42,544 (10,572)
--------- ---------
42,544 (10,929)
--------- ---------
10. Cash flow - financing
Bank loans received 20,314 7,785
Bank loans repaid (34,823) (11,200)
Loan notes repaid (199) (266)
Issue of ordinary share capital 286 -
Finance lease capital repayments (787) (241)
--------- ---------
(15,209) (3,922)
--------- ---------
HOMESTYLE GROUP PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the 52 weeks to 30 April 2005
52 weeks to 53 weeks to
30 April 1 May
2005 2004
£000 £000
11. Reconciliation of net debt
Increase in net funds in period 1,274 16,818
Bank loan received (20,314) (7,785)
Bank loans repaid 34,823 11,200
Loan notes repaid 199 266
Finance lease capital repayments 787 241
--------- ---------
Change in net debt resulting from cash flows 16,769 20,740
New finance leases (1,398) (321)
--------- ---------
Movement in net debt in period 15,371 20,419
Net debt at beginning of period (85,621) (106,040)
--------- ---------
Net debt at end of period (70,250) (85,621)
--------- ---------
12. Segment information
Turnover:
Furniture retailing 253,495 223,590
Bed retailing 200,078 150,332
Kitchens retailing - 5,579
--------- ---------
Continuing operations 453,573 379,501
Home Textiles retailing 11,395 201,502
Distribution - 9,460
Inter segment - (1,730)
--------- ---------
464,968 588,733
--------- ---------
(Loss)/profit before tax:
Furniture retailing 947 2,005
Bed retailing 14,080 13,494
Kitchens retailing - (3,105)
--------- ---------
Continuing operations before exceptional items 15,027 12,394
Home Textiles retailing 601 4,641
Distribution - 1,270
Exceptional items (38,755) (109,959)
Goodwill amortisation (4,736) (9,548)
Interest (4,477) (6,579)
--------- ---------
(32,340) (107,781)
--------- ---------
Net assets:
Furniture retailing (2,104) (8,595)
Beds retailing 53,211 64,678
Kitchens retailing - (1,826)
--------- ---------
Continuing operations 51,107 54,257
Home textiles retailing - 41,779
Distribution - 2,747
Net debt (70,250) (85,621)
Deferred tax (included in debtors) 3,900 -
--------- ---------
(15,243) 13,162
--------- ---------
HOMESTYLE GROUP PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the 52 weeks to 30 April 2005
13. Basis of accounts
The preliminary announcement has been prepared under the historical cost
convention and in accordance with applicable United Kingdom accounting standards
using the policies set out in the report and accounts for the period ended 1 May
2004.
14. General information
The financial information set out above does not constitute full accounts within
the meaning of Section 240 of the Companies Act 1985. The amounts shown in
respect of the period ended 1 May 2004 have been extracted from the full
statutory accounts. The Auditors' report for the period ended 1 May 2004 was
unqualified, and did not contain any statement under section 237 of the
Companies Act 1985. The statutory accounts have been filed with the Registrar
of Companies.
Copies of this announcement will be posted to shareholders and are available to
members of the general public from the Company's registered office: Homestyle
Group PLC, 520 Europa Boulevard, Westbrook, Warrington WA5 7TP.
This information is provided by RNS
The company news service from the London Stock Exchange