11th Feb 2008 16:42
Albemarle & Bond Holdings PLC11 February 2008 ALBEMARLE & BOND HOLDINGS PLC ANNOUNCES INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2007 Enquiries: Charles NicolsonChairman Albemarle & Bond Holdings plc 0117 933 3213 Greville NichollsChief Executive Albemarle & Bond Holdings plc 0118 955 8100 David PattinsonFinance Director Albemarle & Bond Holdings plc 0118 955 8100 Susan WallaceCompany Secretary David Venus & Company LLP 01372 465330 Josceline Grove Public Relations Consultant 0117 933 3213 Nick Reeve Smith & Williamson Corporate Finance Limited 0117 933 3213 Date of issue: Monday 11 February 2008 PAGE 1 Dear Shareholder I am delighted to report that the profit before tax and amortisation ofintangible assets increased 39% to £5.474m from £3.928m for the same period last year. Earnings per share before amortisation of intangible assets increased by 20%. These figures include for the first time Herbert Brown & Son Ltd, which weacquired on 17 July 2007. Herbert Brown is the third largest pawnbroker in theUK with 26 branches. In accordance with the AIM Rules for Companies, this is the first period whenthe company adopts International Financial Reporting Standards ("IFRS") ratherthan UK Generally Accepted Accounting Principles ("UK GAAP") as the basis forreporting its financial results. This transition will lead to some differencesbetween reported numbers under IFRS and UK GAAP that are simply a result of theaccounting framework change and not a reflection of a change in businessperformance. For Albemarle & Bond the main business driver has been the growth in pawnlending and the pawn loan book has increased by 24% since this time last year.The retail climate has been challenging and overall sales were about the same as last year. Third party cheque cashing has become increasingly competitive and income is down 9%. Pay Day Advances has suffered from increased bad debts and is down 7%, whilst Speedloan which has benefited from increased marketing effort in the last year is up 20%. In the current economic climate we are very happy with the increased proportionof the business which is being generated by pawnbroking, where the loans aresecured against gold jewellery and diamonds. Herbert Brown has continued to make good progress since our acquisition. Our aim was to increase the amount of income generated by financial services; we have started this process and are happy with the results achieved to date. In recognition of the continuing strong performance your board believes it isappropriate to increase the interim dividend by 14% to 2.00p per share (2007:1.75p). This will be paid on 27 May to shareholders on the register at 25 April2008. Unaudited results of your company for the half year ended 31 December 2007 areset out overleaf together with corresponding figures for the previous year. Yours faithfully Charles NicolsonChairman PAGE 2 ALBEMARLE & BOND HOLDINGS PLCCONSOLIDATED INCOME STATEMENT (UNDER IFRS) Six months Six months Year ended ended ended 30.06.07 31.12.07 31.12.06 (restated) (unaudited) (unaudited £000 £000 and restated) £000Revenue 24,917 17,237 32,923Cost of sales (6,928) (4,866) (8,282) -------- -------- --------Gross profit 17,989 12,371 24,641Operating costs excluding amortisation (11,260) (7,907) (16,488) -------- -------- --------Adjusted operating profit 6,729 4,464 8,153Amortisation of intangible assets (276) 0 0 -------- -------- --------Operating profit 6,453 4,464 8,153Finance costs (1,255) (536) (1,134) -------- -------- --------Profit before tax 5,198 3,928 7,019Taxation (1,642) (1,164) (1,837) -------- -------- --------Profit for the period 3,556 2,764 5,182 ======== ======== ======== Earnings per shareBasic 6.65 5.97 11.16Basic excluding amortisation of intangible assets 7.16 5.97 11.16Diluted 6.54 5.83 10.78Diluted excluding amortisation ofintangible assets 7.04 5.83 10.78 PAGE 3 ALBEMARLE & BOND HOLDINGS PLCCONSOLIDATED BALANCE SHEET (UNDER IFRS) 31.12.07 31.12.06 30.06.07 (unaudited) (unaudited (restated) £000 and £000 restated) £000Non current assetsIntangible assets 23,706 2,996 6,361Plant, property and equipment 6,476 5,013 5,701 -------- -------- --------Total non current assets 30,182 8,009 12,062 -------- -------- -------- Current assetsInventories 14,920 9,144 9,353Trade and other receivables 41,253 26,118 30,165Cash and cash equivalent 3,835 2,192 1,964 -------- -------- --------Total current assets 60,008 37,454 41,482 -------- -------- --------Total assets 90,190 45,463 53,554 ======== ======== ======== Non current liabilitiesBorrowings 38,100 17,133 24,264Finance leases and hire purchase 94 91 94Finance liability (gold hedge) 2,197 104 70Deferred tax liabilities 271 174 311 -------- -------- --------Total non current liabilities 40,662 17,502 24,739 -------- -------- -------- Current liabilitiesBank overdraft and loans 1,200 250 837Trade and other payables 3,264 1,104 1,754Current tax liabilities 2,458 1,192 790Dividend payable 1,913 1,495 0 -------- -------- --------Total current liabilities 8,835 4,041 3,381 -------- -------- -------- Capital and reservesShare capital 2,187 1,870 1,884Share premium account 19,602 3,939 4,101Shares to be issued reserve 316 270 226Capital redemption reserve 1,018 1,018 1,018Other reserve (543) (116) (185)Cash flow hedge reserve (2,197) (104) (70)Retained earnings 20,310 17,043 18,450 -------- -------- --------Total capital and reserves 40,693 23,920 25,424 -------- -------- --------Total capital, reserves andliabilities 90,190 45,463 53,544 ======== ======== ======== PAGE 4 ALBEMARLE & BOND HOLDINGS PLCCONSOLIDATED CASH FLOW STATEMENT Six months Six months Year ended ended ended 30.06.07 31.12.07 31.12.06 (restated) (unaudited) (unaudited and £000 £000 restated) £000Cash generated by operations 2,307 1,781 3,223Taxes paid (1,634) (933) (2,060) -------- -------- --------Net cash from operating activities 673 848 1,163 -------- -------- -------- Investing activitiesAcquisition of subsidiaries (net ofcash acquired) (18,959) (363) (4,419)Purchase of property, plant andequipment (1,177) (767) (1,856)Proceeds from sale of plant andequipment 0 0 12 -------- -------- --------Cash used in investing activities (20,136) (1,130) (6,263) -------- -------- -------- Finance activitiesInterest paid (1,255) (479) (1,111)Dividends paid to company 0 0 (2,318)shareholdersExercise of share options less EBTacquisition of shares (231) 101 (18)Increase in/(repayment of) borrowings 13,836 1,241 8,639Repayment of obligations underfinances leases (55) (52) (108)Net proceeds from issue of shares 8,676 0 0 -------- -------- --------Net cash flow from/(used in)financing activities 20,971 811 5,084 -------- -------- --------Net increase/(decrease) in cash andcash equivalents 1,508 529 (16) ======== ======== ======== PAGE 5 NOTES: 1. The figures for the six months ended 31 December 2007 and 31 December 2006 are unaudited and do not constitute statutory accounts. 2. From 1 July 2007 Albemarle & Bond will be reporting its results in accordance with International Financial Reporting Standards (IFRS). The Group's first published Financial Statements under IFRS will be for the year ending 30 June 2008. Accordingly these interim results have been prepared for the first time in accordance with IFRS. A full explanation of the accounting policies adopted and an explanation of the effect of transition to IFRS will be announced in due course. 3. The figures for the year ended 30 June 2007 and six months ended 31 December 2006 have been restated in accordance with International Financial Reporting Standards. Audited accounts for the year ended 30 June 2007 prepared under UK Generally Accepted Accounting Principles, on which the company's auditors Smith & Williamson Solomon Hare Audit LLP gave an unqualified opinion, were approved by shareholders on 28 September 2007 and lodged at Companies House. 4. A copy of this announcement is being sent to shareholders and is available at the company's registered office. 5. Earnings per share have been calculated based on the profit after tax and the weighted average number of shares in issue during the half year ended 31 December 2007 of 53,503,358 (31 December 2006 - 46,263,639; 30 June 2007 - 46,431,253). The diluted earnings per share also include weighted average unexercised share options at 31 December 2007 of 898,174 (31 December 2006 - 1,178,262; 30 June 2007 - 1,653,479). 6. Taxation is based on the unaudited results and provision has been estimated at the rate applicable to the company at the time of this statement. 7. Dividends approved on 2 November 2007 were paid on 29 January 2008. Interim dividends of 2.00p per share (2006: 1.75p per share) will be paid on 27 May 2008 to members on the register at 25 April 2008. This dividend has not been included within the results for the six months to 31 December 2007. END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ABM.L