26th Oct 2006 11:59
Leo Insurance Services PLC26 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 wassetting up a joint venture with a company called Arlington Insurance ServicesLtd whereby they and Leo would each own 50% of the share capital of GraftonInsurance Services Ltd to focus on property insurance and at the same timeannounced that new long term agreements with Safeland plc and Bizspace plc wereto be entered into. As the nature of the relationship with Grafton is a joint venture and there areno other subsidiaries or associated companies of Leo the results of Grafton arenot 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 intoconsideration 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 beenactively seeking potential acquisitions. This acquisition policy will continue in the future, as will the introduction ofpotential clients, and I am therefore confident of a continued improvement inthe company's results. LG LipmanChairman 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 SHAREBasic and diluted 3 (0.10p) (0.60p) (0.60p) (0.97p) PROFORMA INFORMATION The company and share of joint venture column is additional financialinformation 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 ASSETSInvestment in joint venture 6 - 50 - 50Share of joint venture gross 6 346,499assetsShare of joint venture gross 6 (311,105)liabilities 35,394 50 - 50 CURRENT ASSETSDebtors 12,428 12,428 - 1,314Cash 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 87,258LIABILITIES 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 RESERVESCalled up share capital 70,624 70,624 56,192 70,624Share premium account 5,761 5,761 - 5,761Profit 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 financialinformation 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 639finance 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 MOVEMENTIN 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 constitutestatutory 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 theaudited statutory accounts. The interim results, which have not been audited orreviewed by the company's auditors, have been prepared using accounting policiesconsistent with those used in the preparation of the annual report and accountsfor the period ended 31 January 2006. Those accounts received an unqualifiedauditors' 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 tothe public for collection at the company's Registered Office at 94-96 GreatNorth Road, London N2 0NL. 2 PROFORMA INFORMATION The proforma column in the profit and loss account and balance sheetincorporates the company's share of joint venture results and assets andliabilities. This method of gross equity accounting is mandatory in thepreparation of consolidated financial information. Leo Insurance Services Plcdoes not own any subsidiaries, so cannot prepare consolidated financialinformation. The additional financial information has been presented as aseparate proforma column to reflect the combined financial performance andposition of the company and joint venture. Further details on the joint ventureare disclosed in note 6. 3 LOSS PER SHARE The loss per share for the period is calculated based upon the followinginformation: 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 anewly incorporated company called Grafton Insurance Services Limited at a costof £50. Grafton Insurance Services Limited is a 50% owned joint venture and thecompany'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 34,212Interest received 1,132 Profit before tax 35,344Tax - Profit after tax 35,344 COMPANY SHARE OF NET ASSETS 31 July 2006 (unaudited) £ Current assets 346,499Current liabilities (311,105) Net assets 35,394 Contacts: For further information: Leo Insurance Services plcLarry Lipman (Executive Chairman) 020 8815 1600Paul Davis (Finance Director) Teather & Greenwood 020 7426 9000Robert Naylor This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Palace Capital