Interim Results

RNS Number : 2309P

All Leisure group PLC

13 July 2010

 

 

All Leisure group PLC  

Unaudited Interim Condensed Financial Statements

 

Financial Highlights

 

Unaudited interim results for the six months ended 30 April 2010

Highlights

·; First half operating performance (before ash-related costs) is in line with management expectations.

·; Half year cash (including restricted cash) at 30 April 2010 of £18.4m (30 April 2009: £32.0m; 31 October 2009: £31.2m) following successful acquisition of mv Alexander von Humboldt ("AvH").

·; Successful post period end deployment of mv Alexander von Humboldt ("AvH").

·; Unrestricted cash of £15.2m (at 30 April 2009: £28.7m; 31st October 2009: £28.2m).

·; Impact of recent travel disruption estimated to be up to £1.4m (Being £0.8m of additional costs and £0.6m of lost contribution from passengers who had booked but did not travel).

·; Interim dividend increased by 7% to 0.64p per share (2009: 0.60p).

·; Management actions have eliminated Group debt, enhanced the asset register and reduce the Group's dollar currency risk in anticipation of an improved future trading environment.

 

Outlook

·; Summer ocean cruise capacity 84% sold, (2009: 79%) excluding AvH.

·; Group anticipated fuel costs for the current financial year 50% hedged.

·; Group currency requirements for the current financial year over 95% hedged.

 

Commenting Roger Allard, Executive Chairman of All Leisure group PLC said:

"It has been a another challenging six months for the Group, with the positive news of the purchase of mv Alexander von Humboldt balanced by the significant cost of the travel disruption caused by the recent volcanic eruption. Most pleasingly, the Group's core businesses have continued to trade in line with management's expectations and we feel sufficiently confident to propose a modest increase in the interim dividend to 0.64p per share (2009: 0.60p)"

 

For further information:

 

All Leisure group PLC

Roger Allard, Chairman 01444 462103

Rob Bryant, Chief Executive Officer

Guy Marchant, Group Finance Director

Ross Jobber, Group Chief Operating Officer

 

Broker and Nominated Adviser

Panmure Gordon Andrew Godber/Callum Stewart 020 7459 3600

 

Financial Public Relations

Citigate Dewe Rogerson Ginny Pulbrook 020 7282 2945

 

 

 

	Half year to 30 April 2010 Unaudited £'000	Half year to 30 April 2009 Unaudited £'000	Full year to 31 October 2009 Audited £'000
Revenue	32,383	34,610	73,594
Operating (loss)/ profit	(4,660)	(1,844)	2,577
(Loss)/profit before tax	(4,477)	(1,134)	2,642
(Loss)/profit for the financial period	(4,476)	(1,162)	2,707
(Loss)/earnings per share - Basic and diluted (pence)	(7.2p)	(1.9p)	4.4p
(Loss)/profit before tax and certain derivative adjustments - *	(5,449)	1,694	4,494
Dividend per share (pence)	0.64p	0.60p	1.82p
Unrestricted bank balances and cash in hand	15,207	28,716	28,248
Total equity	25,619	27,820	31,235

 

* - Derivative adjustments are calculated as described in note 3 to the Unaudited Condensed Interim Financial Statements

 

 

 

Chairman's Statement

 

Overview

I am pleased to announce that the Group has delivered underlying operating results in line with budget, excluding the impact of the Ash Cloud, despite challenging market conditions and continued adverse exchange rates. Group revenues were down 6% at £32.4m (Half year ended 30th April 2009: £34.6m; full year ended 31st October 2009: £73.6m). The first half of the year included a scheduled 17 day dry dock for mv Discovery (a revenue impact of c.£1.2m), as well as reductions in revenues (c.£1.4m) due to the disruption and cancellation of cruises caused by the volcanic eruption and the subsequent closure of a significant proportion of European airspace. The total impact of the travel disruption, resulting from the volcanic eruption, to the Group's Consolidated Income Statement is in the region of £1.4m (being £0.8m of additional costs and £0.6m of lost net contribution).

The Group reports a loss after tax for the six months ended 30th April 2010 of £4.5m (Half year ended 30th April 2009: loss of £1.2m, full year ended 31st October 2009: profit of £2.7m). Excluding the £3.4m credit associated with the acquisition of Hebridean Princess in April 2009, operating losses for the six months ended 30th April 2010 and for the six months ended 30th April 2009 were (£4.7m) and (£5.2m) respectively. (Loss)/earnings per share - basic and diluted for the six months ended 30th April 2010 was a loss per share of 7.2 pence compared with a loss per share for the comparative period of 1.9 pence per share (full year ended 31st October 2009: profit of 4.4 pence per share).

In line with the presentation of the results for the year ended 31st October 2009, the Group is also presenting results before the impact of certain derivative financial instruments (see note 3 to the attached unaudited condensed interim financial statements for details). These show a loss before certain derivative adjustments for the financial period ended 30th April 2010 of £5.4m compared with a profit of £1.7m (including a £3.4m profit in connection with the Hebridean Princess acquisition) for the same period last year (full year ended 31st October 2009: profit before certain derivative adjustments: £4.6m). The small Group tax credit (period ended 30th April 2009: 2.4% credit; full year ended 31st October 2009: 2.4% charge) reflects the half year loss and the fact that the ocean vessels mv Discovery, Minerva and Hebridean Princess still operate under the UK tonnage tax regime. The interim dividend of 0.64p per share will be paid on 12th November 2010 to shareholders on the register on 15th October 2010. The ex-dividend date will be 13th October 2010.

The purchase, technical upgrade and refurbishment of mv Alexander von Humboldt (AvH) during the period has had, as anticipated, a significant impact on the Group net cash positions. Half year gross cash balances at 30th April 2010 stood at £18.4m (£15.2m unrestricted, £3.2m restricted) compared with £32.0m at 30th April 2009 (unrestricted: £28.7m, restricted £3.3m) and £31.2m at 31st October 2009 (unrestricted: £28.2m, restricted £3.0m). After debt of £3.1m (excluding derivative instrument liabilities) (30th April 2009: £6.7m, 31st October 2009: £3.3m) net cash stands at £15.3m as at 30th April 2010 (at 30th April 2009: £25.3m; at 31st October 2008: £27.9m).

 

Operational Review

Ocean Cruises

At the half year, mv Discovery, Minerva and Hebridean Princess had completed successful winter itineraries. Discovery sailed in the Far East, Minerva in the southern hemisphere and Hebridean Princess the Scottish Islands. Group Available Lower Berth Nights ("ALBN") rose 10% to 170,000 across the ocean fleet. The absence of a capacity-restricted deep Antarctic itinerary on mv Discovery this winter compensated for the loss of bed nights from the 17 day dry dock in November 2009. This led to a broadly unchanged mv Discovery H1 ALBN year-on year. A change to last year's Antarctic itinerary for mv Minerva led to a 37% rise in Swan Hellenic ALBN in the first half (including a 67 day charter to Phoenix Reisen), while mv Hebridean Princess operated a longer 79 day winter itinerary in H1 2010 versus a mere 7 day post acquisition contribution in H1 2009. Overall across all three ships occupancy levels in H1 2009/10 were 76% (2009: 72%).

Customer satisfaction scores were particularly pleasing. On mv Discovery, 92% of passengers responding to on-board surveys intend to sail with us again (2009: 92%). On mv Minerva, 99% of responding passengers rated their overall experience as "Good" or "Excellent" (2009: 95%). On mv Hebridean Princess the proportion of passengers rating their cruise as "Good" or "Excellent" was 97%.

In April 2009 the Group increased its fleet with the acquisition of mv Hebridean Princess and other assets from the administrators of Hebridean International Cruises Limited. A management reorganisation that brought the operation under the control of Colin Stone, Managing Director in charge of Swan Hellenic, recently completed the integration of this operation into the group.

The announcement of the acquisition of the AvH in November 2009 for a forecast total cost (including technical work) of approximately $20 million was another important step in the Group's evolution. Whilst in dry dock, the opportunity was taken to expand the schedule of works, resulting in a total cost of acquisition around $26m (including upgrades). I am pleased to announce that the post acquisition technical work and refit (which has led to a significant improvement in speed and fuel efficiency) was completed satisfactorily. Despite the increased cost, the board still believes that this is an exceptional acquisition which gives the Group significant development potential for the future as well as creating an asset that is expected to be valued in excess of the total cost of acquisition. As previously announced, for Summer 2010 the ship has been leased to Phoenix Reisen GmbH. We have subsequently been contacted by a number of parties wishing to charter the ship for next year but no decision has yet been made as to how the ship will be deployed.

River Cruises

Discover Egypt had a successful Winter 2009/10 season, carrying 4,505 passengers, (2009: 5,596) a planned reduction of 19.5% on the previous year. Reduced passenger numbers were compensated for by higher average spend per head, up 14%, as the trend for the brand to sell more bespoke holiday packages of higher value continued. As a result Discover Egypt is trading ahead of budget.

The Swan European river cruise programme only operates from May to October each year.

Hedging

A significant element of the Group's costs are in non sterling denominations, especially US dollars and Euros. In recent years currency markets have conspired to drive up relentlessly the Group's sterling costs, with the pound weakening against the dollar by c.27% since the Group listed on the AIM market on 1st October 2007. Over the same period the pound has also weakened against the Euro by c.17% despite recent Euro weakness.

The Group is actively engaged in managing the impact of these currency headwinds, but unfortunately the nature and deployment of the instruments used preclude the application of hedge accounting. Management are active in reducing dollar costs as well as increasing dollar revenue and thus reducing, on a like-for-like basis, its overall hedging requirements.

Both currency and fuel hedging remain important tools for managing the cost base. The Group has hedged over 95% of its foreign currency requirements for the current financial year as well as 50% of its projected fuel requirement. Total dollar fuel cost in the half year rose by 40% due to the inclusion of the mv Alexander von Humboldt, a longer winter season for mv Hebridean Princess and rising fuel prices generally. This rise was partly offset by the less expensive fuel available to mv Discovery as its winter itinerary changed from Antarctica to the Far East.

Travel Disruption

The Group announced on 22nd April that all four of its destination-led brands had been affected by the travel disruption that resulted from the closure of much of Northern Europe's airspace. At £1.4m, the final cost is slightly higher than the estimated £1.25m announced in April. This final figure includes both lost contribution from passengers who had booked but did not travel, as well as the additional costs associated with accommodating and repatriating passengers.

During the problems caused by the ash-related travel disruption, an opportunity arose to effect some repairs on mv Minerva. This decision will affect Swan Hellenic results for the current financial year but we are optimistic that affected passengers will continue to take advantage of the incentives offered to rebook.

Outlook

For Summer 2010 the Available (Ocean) Lower Berth Nights (excluding AvH) will be similar to Summer 2009 at c.200,000. Currently this capacity is 84% sold (2009: 79%) at slightly higher prices and I remain confident that Summer 2010 achieved load factors will exceed those of Summer 2009. The mv Alexander von Humboldt has been chartered to Phoenix Reisen GmbH for the summer.

Our Swan river cruise programme for Summer 2010 includes the Rhine for the first time. At the time of contracting the programme, sterling was weaker than it stands today and therefore the decision was taken to contract only 50% of the Summer 2009 capacity this year, which I am pleased to announce is currently sold out.

For winter 2010/11 the mv Discovery will be sailing around South America and the mv Minerva will be in the Far East. Discovery sales are marginally ahead and Swan Hellenic sales are significantly ahead of this time last year. For Summer 2011 we have created a larger UK-to-UK ocean cruise programme which incorporates a number of departures from the planned new cruise terminal at Portsmouth.

In addition to the current recession and continued low UK interest rates, the last six months has also seen no alleviation of the adverse cost environment that the Group is operating in - a situation primarily caused by the weakness of sterling. The board has taken a number of steps to address this: firstly it has been taking the opportunity of uncertain market conditions to buy assets at attractive prices; secondly it has been paying down debt which since May now leaves the Group debt free and owning three ships (namely mv Discovery, mv Alexander von Humboldt and mv Hebridean Princess); thirdly it has been reducing its dollar costs where possible and investing in its US operations in order to stimulate dollar revenues and thus reduce its overall dollar hedging requirements. Despite the difficult cost environment, it is encouraging that booking levels have remained strong, and for this reason I am confident that shareholders will see a significant improvement in returns once the adverse economic and exchange rate environment finally abates. 

 

 

 

Roger Allard

Chairman

 

 

 

Consolidated Income Statement

For the six months ended 30 April 2010

 

	Note		Six month period ended 30 April 2010 Unaudited £'000	Six month period ended 30 April 2009 Unaudited £'000	Year ended 31 October 2009 Audited £'000
Revenue			32,383	34,610	73,594
Cost of sales			(30,683)	(30,888)	(65,032)
Gross profit			1,700	3,722	8,562
Administrative expenses			(6,367)	(8,959)	(9,390)
Excess of acquirer's interest in the net fair value of the acquiree's identifiable assets and liabilities over the cost of acquisition			-	3,380	3,376
Rental income			7	13	29
Operating (loss)/profit			(4,660)	(1,844)	2,577
Investment revenues			265	819	1,438
Finance costs			(82)	(109)	(1,373)
(Loss)/profit before taxation	3		(4,477)	(1,134)	2,642
Tax credit / (charge)	4		1	(28)	65
(Loss)/profit for the financial period/year			(4,476)	(1,162)	2,707

 

(Loss)/earnings per share (pence):
Basic and diluted	6		(7.2p)	(1.9p)	4.4p

 

All results derive from continuing operations and are attributable to equity holders of the parent company.

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 30 April 2010

 

			Six month period ended 30 April 2010 Unaudited £'000	Six month period ended 30 April 2009 Unaudited £'000	Year ended 31 October 2009 Audited £'000
(Loss)/profit for the financial period/year			(4,476)	(1,162)	2,707
Gains on property revaluation			-	-	36
Exchange differences on translation of foreign operations			(17)	300	(241)
Total comprehensive (loss)/income for the period/year			(4,493)	(862)	2,502

 

 

Consolidated Balance Sheet

For the six months ended 30 April 2010

 

	Note	At 30 April 2010 Unaudited £'000	At 30 April 2009 Unaudited £'000	At 31 October 2009 Audited £'000
Non-current assets
Intangible assets		5,885	6,428	6,143
Property, ship, plant and equipment		33,981	17,105	15,389
Investment property		266	270	268
Restricted bank balances		2,678	2,765	2,487
		42,810	26,568	24,287
Current assets
Inventories		1,554	1,100	1,307
Trade and other receivables		3,157	4,163	4,860
Current tax asset		-	14	-
Derivative financial instruments		3,480	967	2,506
Interest bearing bank deposits		1,885	26,084	12,732
Restricted bank balances		490	506	455
Cash and cash equivalents		13,322	2,632	15,516
Total current bank balances and cash in hand		15,697	29,222	28,703
Total current assets		23,888	35,466	37,376
Total assets		66,698	62,034	61,663
Current liabilities
Trade and other payables		(35,739)	(24,289)	(25,456)
Current tax liabilities		(13)	-	(13)
Borrowings		(3,124)	(3,582)	(3,251)
Derivative financial instruments		-	(602)	-
Provisions		(513)	(1,129)	-
		(39,389)	(29,602)	(28,720)
Non-current liabilities
Borrowings		-	(3,103)	-
Deferred tax liabilities		(54)	(54)	(54)
Provisions		(1,636)	(1,455)	(1,654)
		(1,690)	(4,612)	(1,708)
Total liabilities		(41,079)	(34,214)	(30,428)
Net assets		25,619	27,820	31,235
Equity
Share capital	7	617	617	617
Share premium account		13,346	13,346	13,346
Revaluation reserve		47	11	47
Currency translation reserve		(4)	768	224
Retained earnings		11,613	13,078	17,001
Total equity		25,619	27,820	31,235

 

 

Consolidated Statement of Changes in Equity

For the six months ended 30 April 2010

 

	Note	6 month period  ended 30 April 2010	6 month period ended 30 April 2009	12 month  ended 31 October 2009
		Unaudited	Unaudited	Audited
		£'000	£'000	£'000
Opening total equity		31,235	30,358	30,358
(Loss)/profit for the financial period/year		(4,476)	(1,162)	2,707
Total (loss)/income for the financial period/year		(4,476)	(1,162)	2,707
Issue of share capital		-	575	575
Dividends paid	5	(1,123)	(2,251)	(2,251)
Share options credit		-	-	51
Revaluation of properties		-	-	36
Exchange (loss)/gain on translation of subsidiary entities		(17)	300	(241)
Closing total equity		25,619	27,820	31,235

 

 

Consolidated Cash Flow Statement

For the six months ended 30 April 2010

 

	Note		Six month period ended 30 April 2010 Unaudited £'000	Six month period ended 30 April 2009 Unaudited[1] £'000	Year ended 31 October 2009  Audited £'000
Net cash (outflow)/inflow from operating activities	8		(47)	(608)	2,255
Investing activities:
Interest received			695	567	1,334
Acquisition of trade and assets			-	(1,315)	(1,315)
Rental income			7	13	29
Purchases of property, plant and equipment			(12,120)	(300)	(720)
Movement in short-term interest bearing cash deposits			10,847	1,109	13,913
Net cash (used in)/generated from investing activities			(571)	74	13,241
Financing activities:
Dividends paid			(1,123)	(1,677)	(1,677)
Repayment of loans			(465)	(1,015)	(1,820)
New loans raised			-	2,165	-
Management of liquid resources - bank deposits			(35)	108	102
Net cash used in financing activities			(1,623)	(419)	(3,395)
Net (decrease) / increase in cash and cash equivalents			(2,241)	(953)	12,101
Cash and cash equivalents at the start of the period/year			15,516	3,264	3,264
Effect of foreign exchange rate changes			47	321	151
Cash and cash equivalents at the end of the period/year			13,322	2,632	15,516

 

[1] These cash flows have been reclassified to be consistent with the audited classification at 31 October 2009. Specifically £45,000 of purchases have been reclassified from the acquisition of trade and assets to the purchase of property, plant and equipment.

 

 

 

Notes to the Unaudited Interim Condensed Financial Statements

For the six months ended 30 April 2010

 

1. Basis of presentation

 

The interim condensed financial statements of the Group for the six months ended 30 April 2010, which are unaudited, have been prepared in accordance with the International Financial Reporting Standards ('IFRS') accounting policies adopted by the Group and set out in the annual report and accounts for the year ended 31 October 2009. The Group does not anticipate any change in these accounting policies for the year to 31 October 2010. As permitted, this interim report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 "Interim financial reporting". While the financial figures included in these interim condensed financial statements have been computed in accordance with IFRSs applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as that term is defined in IFRSs.

The financial information contained in the interim report also does not constitute statutory accounts for the purposes of section 434 of the Companies Act 2006. The financial information for the year ended 31 October 2009 is based on the statutory accounts for the year ended 31 October 2009. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or (3) Companies Act 2006.

After conducting a further review of the Group's forecasts of earnings and cash over the next twelve months and after making appropriate enquiries as considered necessary, the directors have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the half yearly condensed financial statements.

 

2. Critical accounting judgements and key sources of estimation uncertainty

 

The directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities at each period end. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. There has been no change to the application of critical accounting judgements or key sources of estimation uncertainty from those set out in the 31 October 2009 financial statements other than set out below.

Ash cloud disruption

The full costs associated with the April closure of UK air space have been accrued as at 30 April 2010. Additional costs of £0.8m were incurred to ensure passengers were suitably accommodated and catered for during the disruption. In addition, whilst savings were made wherever possible, the business estimates lost contribution to have cost £0.6m.

 

3. (Loss)/profit before taxation and details of derivative pro-forma adjustments

The Group has in place various derivative financial instruments comprising fuel and currency contracts. These contracts do not qualify for hedge accounting under IAS 39, and accordingly are revalued through the income statement at each balance sheet date, resulting in a net income statement gain or loss reported in cost of sales and finance costs.

These contracts are used to minimise the Group's future exposure to commodity and currency fluctuations. Accordingly, while they are included in the current year income statement in arriving at gross profit, they relate to items that may eventually be cash flows in future periods. The Group believes it is beneficial for users of the financial statements to present the impact on the consolidated income statement of these derivative financial instruments in determining the Group's commercial underlying trading performance. Accordingly the directors have presented a pro-forma pre-derivative result.

 

	Six month period ended 30 April 2010 Unaudited £'000	Six month period ended 30 April 2009 Unaudited £'000	Year ended 31 October 2009 Audited £'000
Reversal of prior period/year end unrealised revaluation	(2,506)	(3,193)	(3,193)
Recognition of current period/year end unrealised revaluation on currency contracts	2,162	630	1,097
Recognition of current period/ year end unrealised revaluation on fuel contracts	1,316	(265)	1,409
Gain / (loss) reported in cost of sales	972	(2,828)	(687)
Foreign currency contract premium payable included in finance costs*	-	-	(1,165)
Total gain / (loss)	972	(2,828)	(1,852)

 

* The Group paid a premium to secure more favourable terms for a 2010 US dollar currency derivative contract

 

The Group presents pro-forma results determined as follows:

 

	Six month  period ended 30 April 2010 Unaudited £'000	Six month  period ended 30 April 2009 Unaudited £'000	Year ended 31 October  2009 Audited £'000
(Loss)/profit before tax	(4,477)	(1,134)	2,642
Adjustment for certain derivative items	(972)	2,828	1,852
(Loss)/profit before certain derivative items	(5,449)	1,694	4,494
Tax credit / (charge)	1	(28)	65
Adjusted (loss)/profit after taxation	(5,448)	1,666	4,559

 

4. Income taxes

The tax credit of £1,000 (six months ended 30 April 2009: charge of £28,000, year ended 31 October 2009: credit of £65,000) represents an effective rate of 0% (six months ended 30 April 2008: 2.4%; year ended 31 October 2009: -2.4%). Certain of the Group subsidiary companies are subject to taxation under the UK Tonnage Tax regime. Under this regime, a shipping company may elect to have its taxable profits computed by reference to the net tonnage of each of the qualifying ships it operates.

As a result of the majority of the Group's operations and profits being taxable under the UK Tonnage Tax regime, the directors anticipate that the Group will continue to have a low effective tax rate compared with the current corporation tax rate of 28%.

 

5. Dividends

			Six month period ended 30 April 2010 Unaudited £'000	Six month period ended 30 April 2009 Unaudited £'000	Year ended 31 October 2009  Audited £'000
Interim dividend for the year ended 31 October 2009 of 0.6p (2008: 2.44p) per share			370	1,498	1,498
Final dividend for the prior year recognised in the period of 1.22p (2008: 1.22p) per share			753	753	753
Total			1,123	2,251	2,251

 

The interim dividend for 2009 of £370,000 was payable to shareholders on the register on 16 October 2009 and was paid on 12 November 2009. Interim dividends only become binding liabilities on the Company when declared as paid and accordingly, the interim dividend in respect of financial year ended 31 October 2009 has been recorded in the current period.

The proposed final dividend for the year ended 31 October 2009 of £753,000 was approved by the shareholders at the Annual General Meeting on 16 March 2010 and was paid on 1 April 2010 to shareholders on the register on 5 March 2010.

An interim dividend of 0.64p per share has been proposed in respect of the six month period ended 30 April 2010, amounting in total to £395,000. In accordance with IAS37, this dividend has not been provided for as a liability in these unaudited interim condensed financial statements.

 

6. (Loss)/earnings per share (pence)

			Six month period ended 30 April 2010 Unaudited pence	Six month period ended 30 April 2009 Unaudited pence	Year ended 31 October 2009 Audited pence
(Loss)/earnings per share (pence)
Basic and diluted			(7.2)	(1.9)	4.4
The calculation of basic and diluted (loss)/earnings per share is based on the following data:
			£'000	£'000	£'000
(Loss)/earnings
(Loss)/earnings for the purposes of basic and diluted earnings per share being net (loss)/profit attributable to shareholders of the parent			(4,476)	(1,162)	2,707
			Number	Number	Number
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share			61,744,777	61,722,354	61,734,584
Effect of potential dilutive ordinary shares: Options			-	-	-
Weighted average number of ordinary shares for the purposes of diluted earnings per share			61,744,777	61,722,354	61,734,584

 

 

7. Share capital

	At 30 April 2010 Unaudited £'000	At 30 April 2009 Unaudited £'000	At 31 October 2009 Audited £'000
Issued and fully paid:
61,744,777 ordinary shares of 1p each	617	617	617

 

The Company has one class of ordinary shares which carry no rights to fixed income. 

The Company has in issue 1,641,870 (31 October 2009: 1,641,870 and 30 April 2009: 1,074,615) outstanding options over ordinary 1p shares in the Company.

 

8. Notes to the cash flow statement

				Six month period ended 30 April 2010 Unaudited £'000	Six month period ended 30 April 2009 Unaudited £'000	Year ended 31 October 2009 Audited £'000
(Loss)/profit for the financial period/year				(4,476)	(1,162)	2,707
Adjustments for:
Investment revenues				(265)	(819)	(1,438)
Rental income				(7)	(13)	(29)
Finance costs				82	109	1,373
Income tax				(1)	28	(65)
Depreciation of property, plant and equipment				1,361	460	1,290
Depreciation of investment property				2	2	4
Impairment of property, ship, plant and equipment				-	-	96
Amortisation of intangible assets				258	82	363
Excess of acquirer's interest in fair value of identifiable net assets acquired over cost of acquisition				-	(3,380)	(3,376)
Foreign exchange movements				104	(1,112)	(103)
Share option scheme				-	-	52
Movement in fair value of derivatives				(974)	2,828	687
Increase in provisions				378	1,129	135
Operating cash (outflows)/inflows before movements in working capital				(3,538)	(1,848)	1,696
Decrease in receivables				1,286	1,164	202
(Increase)/decrease in inventories				(247)	385	251
Increase/(decrease) in payables				2,452	(309)	81
Cash (outflow)/inflow generated from operations				(47)	(608)	2,230
Income taxes paid				-	-	25
Net cash (outflow)/inflow from operating activities				(47)	(608)	2,255

 

9. Related party transactions

Trading transactions

During the year, Group companies entered into the following transactions with related parties who are not members of the Group:

	Purchase of services
		Six month Period ended 30 April 2010 Unaudited £	Six month Period ended 30 April 2009 Unaudited £	Year ended 31 October 2009 Audited £
Roger Allard Limited		79,722	79,722	174,276
PB Consultancy Services Limited		36,863	36,863	54,155

 

	Amounts owed to related parties
		At 2010 Unaudited £	At 2009 Unaudited £	Year ended 31 October 2009  Audited £
Roger Allard Limited		21,345	19,023	29,261
PB Consultancy Services Limited		4,115	7,299	3,776

 

Roger Allard Limited is a company owned and controlled by Mr R J Allard a director of the Company and majority shareholder of the Group and the payments made are for consultancy services.

PB Consultancy services is owned and controlled by Mr P E Buckley the Company Secretary of the Group and the payments are for consultancy, accounting and Company Secretarial services.

 

During the period to 30 April 2009 Mr R J Allard, Director and Executive Chairman, lent the Group a short term interest free loan of £2,165,000. The loan was fully repaid on 18 May 2009.

 

10. Ultimate Controlling Party

By virtue of his majority shareholding, the ultimate controlling party is Mr R J Allard.

 

 

 

Independent Review Report to All Leisure group PLC

 

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 April 2010 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated Cash Flow Statement and related notes 1 to 10. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report have been prepared in accordance with the accounting policies the Group intends to use in preparing its next annual financial statements.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 April 2010 is not prepared, in all material respects, in accordance with the AIM Rules of the London Stock Exchange.

 

 

 

Deloitte LLP

Chartered Accountants and Statutory Auditors

Crawley, United Kingdom

 

12th July 2010

This information is provided by RNS

The company news service from the London Stock Exchange