31st Oct 2007 07:01
Leo Insurance Services PLC31 October 2007 Leo Insurance Services plc (the "Company") 31 October 2007 Interim Results for the 6 months ending 31 July 2007 Leo Insurance Services plc today announces the Interim Results for the sixmonths to 31 July 2007. CHAIRMAN'S STATEMENT Dear Shareholders, I have the pleasure of advising you that the profit before tax for the sixmonths ended July 31 2007 amounted to £17,324. This compares to a loss in thecorresponding period for 2006 of £176,725. This loss was, however, post anexceptional item regarding share options in the sum of £169,912 which is notrepeated in the current figures. Accordingly, on a like for like basis, the sixmonths to July 2006 showed a loss of £6,813, compared to the profit of £17,324as stated above. This increase in operating profitability was possible despite a slight decreasein revenues to £140,747 from £150,789 in the six months to July 2006. The majordriver in the increase in operating profitability was a reduction of the cost ofsales in the period to July 2007 to £74,998 from £112,775 in the correspondingperiod for 2006. In September 2007 Safeland Plc with whom Leo has a long term contract announcedthat it had raised an additional £55m of equity to expand its Property Fund.This equity when matched with bank funding will enable further propertypurchases in excess of £200m to be made by the Fund. Under the long term contract referred to above all of these buildings will beinsured by Leo's subsidiary Grafton Insurance Services Ltd which therefore givesme confidence that profits will continue to rise. LG LipmanChairman Contacts: Leo Insurance Services plcPaul DavisTel: 020 8815 1600 Landsbanki Securities (UK) LimitedThilo HoffmannTel: 020 7426 9000 Leo Insurance Services PlcCONSOLIDATED INCOME STATEMENTfor the six months ended 31 July 2007 Notes Restated Restated 6 months 6 months 12 months ended ended ended 31 July 31 July 31 January 2007 2006 2007 (unaudited) (unaudited) (audited) £ £ £ TURNOVER Group and share of joint venture's 140,747 150,789 308,517 Cost of sales (74,998) (112,775) (226,287) GROSS PROFIT 65,749 38,014 82,230 Administrative expenses:- Exceptional - (169,912) (169,912)- Other (47,963) (46,829) (73,137) PROFIT/(LOSS) BEFORE INTEREST AND TAX 17,786 (178,727) (160,819) Finance Income 1,471 2,002 5,648 Finance Cost (1,933) - (4,167) PROFIT/(LOSS) BEFORE TAX 17,324 (176,725) (159,338) Taxation 856 - (15,651) PROFIT/(LOSS) FOR THE PERIOD 18,180 (176,725) (174,989) EARNINGS/(LOSS) PER ORDINARY SHAREBasic 4 0.25p (2.50p) (2.44p)Diluted 4 0.18p (2.50p) (2.44p) Leo Insurance Services PlcCONSOLIDATED BALANCE SHEET31 July 2007 Notes Restated Restated 31 July 31 July 31 January 2007 2006 2007 (unaudited) (unaudited) (audited) £ £ £CURRENT ASSETSTrade and other receivables 142,529 103,605 339,346Cash and cash equivalents 181,680 298,261 88,329 TOTAL CURRENT ASSETS 324,209 401,866 427,675 CURRENT LIABILITIES Trade and other payable (287,312) (321,422) (408,958) TOTAL CURRENT LIABILITIES (287,312) (321,422) (408,958) NET CURRENT ASSETS 36,897 80,444 18,717 NON-CURRENT LIABILITIES Trade and other payables - (65,000) - NET ASSETS/(LIABILITIES) 36,897 15,444 18,717 EQUITYCalled up share capital 72,160 70,624 72,160Share premium account 5,761 5,761 5,761Accumulated losses (550,757) (570,674) (568,937)Share based payment reserves 509,733 509,733 509,733 TOTAL EQUITY 36,897 15,444 18,717 Leo Insurance Services PlcCONSOLIDATED CASH FLOW STATEMENTfor the six months ended 31 July 2007 Notes Restated Restated 6 months 6 months 12 months ended ended ended 31 July 31 July 31 January 2007 2006 2007 (unaudited) (unaudited) (audited) £ £ £ OPERATING ACTIVITIESNet cash inflow/(outflow) from operating activities 93,813 188,538 (22,409) NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 93,813 188,538 (22,409) INVESTMENT ACTIVITIESInterest received 1,471 2,002 5,648 NET CASH INFLOW FROM INVESTING ACTIVITIES 1,471 2,002 5,648 FINANCING ACTIVITIESProceeds from issue of share capital - - 1,536Interest paid (1,933) - (4,167) NET CASH (OUTFLOW) FROM FINANCING ACTIVITIES (1,933) - (2,631) NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS 93,351 190,540 (19,392) Cash and equivalents at beginning of period 88,329 107,721 107,721 CASH AND CASH EQUIVALENTS AT END OF PERIOD 181,680 298,261 88,329 Leo Insurance Services PlcCONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the six months ended 31 July 2007 Notes Restated Restated 6 months 6 months 12 months ended ended ended 31 July 31 July 31 January 2007 2006 2007 (unaudited) (unaudited) (audited) £ £ £ OPENING EQUITY (as previously stated) 18,717 22,258 22,258Effect of adopting IFRS - - - OPENING EQUITY (as restated) 18,717 22,258 22,258 Shares issued during the period - - 1,536Share Option Charge - 169,911 169,912Loss for the period 18,180 (176,725) (174,989) CLOSING EQUITY 36,897 15,444 18,717 Leo Insurance Services PlcNOTES TO THE INTERIM FINANCIAL INFORMATIONfor the six months ended 31 July 2007 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 2007 have been extracted from theaudited statutory accounts. The interim results, which have not been audited orreviewed by the company's auditors, have been prepared in accordance withapplicable International Accounting Standards (IAS) and International FinancialReporting Standards (IFRS) issued by the International Accounting StandardsBoard (IASB). These standards are also collectively referred to as "IFRS". Statutory accounts for year ending 31 January 2007 (prepared in accordance withUK GAAP) were prepared and filed with the Registrar of Companies and received anunqualified audit report. The interim report was approved by the Board of Directors on 30 October 2007. 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 TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) All listed companies in the EU are required to present their consolidatedfinancial statements for accounting periods beginning on or after 1 January 2007in accordance with IFRS as adopted by the EU. Therefore, the group'sconsolidated financial statements for the year ending 31 January 2008 will bepresented on this basis with IFRS comparatives. These interim financialstatements have been prepared on the basis of the IFRS accounting policiesexpected to be adopted in the year end consolidated financial statements.Reconciliations have been provided to UK GAAP and these, together with anexplanation of the resulting changes in accounting policies, are set out innotes 6 and 7. Although there is a now a fairly stable platform, standards continue to evolveand those currently in issue and endorsed by the EU are subject tointerpretation by the International Financial Reporting InterpretationsCommittee (IFRIC) and further standards may be issued and endorsed by the EUbefore 31 January 2008. These uncertainties could result in the need to changethe basis of accounting or presentation of financial information from thatapplied in the preparation of this document. The group is required to apply its IFRS accounting policies retrospectively todetermine the opening IFRS balance sheet at the transition date of 1 February2006 and the comparative information for the year ended 31 January 2007. The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets andliabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Although these estimates arebased on management's best knowledge of the amount, event or actions, actualresults may ultimately differ from those estimates. 3 ACCOUNTING POLICY CHANGES An explanation of the changes in accounting policies as a result of adoptingIFRS, together with a full list of the revised accounting policies are shown innotes 6 and 7. 4 LOSS PER SHARE The loss per share for the period is calculated based upon the followinginformation: 12 months 6 months ended 6 months ended ended 31 July 31 July 31 January 2007 2006 2007 (unaudited) (unaudited) (audited) Weighted average number of shares in issue 7,215,956 7,062,381 7,177,247 during the period Weighted average number of dilutive share options in issue during the period 9,950,330 9,796,755 9,911,621 5 RECONCILIATION OF OPERATING TO NET CASH FLOW FROM OPERATING ACTIVITIES 6 months ended 6 months ended 12 months ended 31 July 31 July 31 January 2007 2006 2007 (unaudited) (unaudited) (audited) £ £ £ Company operating profit 17,786 (178,727) (160,819) (Increase)/decrease in debtors 196,817 (102,341) (338,082) (Decrease)/increase in creditors (120,790) 299,695 306,580 Share option charge - 169,911 169,912 Net cash flow from operating activities 93,813 188,538 (22,409) 6 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES UNDER IFRS Basis of accounting Prior to the introduction of IFRS, the group had prepared its financialstatements under United Kingdom accounting standards. As a result of adoptingIFRS it has been necessary to change some of the group's accounting policies andthese are detailed below. Basis of consolidation The consolidated financial statements incorporate the financial statements ofLeo plc, its subsidiaries and the group's interest in jointly controlledinterest accounted for on a basis of proportionate consolidation, up to 31 July2007. Joint ventures A joint venture is a contractual arrangement whereby the group and other partiesundertake an economic activity that is subject to joint control. Where a group company undertakes its activities under joint venture arrangementsdirectly, the group's share of jointly controlled assets and any liabilitiesincurred jointly with other ventures are recognised in the financial statementsof the group and classified according to their nature. Liabilities and expensesincurred directly in respect of interests in jointly controlled assets areaccounted for on an accrual basis. Joint venture arrangements which involve the establishment of a separate entityin which each venturer has an interest are referred to as jointly controlledentities. The group reports its interests in jointly controlled entities usingthe proportionate consolidation method of accounting. The group combines itsshare of the joint venture's individual income and expenses, assets andliabilities and cash flows on a line by line basis with similar items in thegroup's financial statements. 7 EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS This is the group's first interim report prepared in accordance with IFRS. Theonly effect of the transition to IFRS is the method of consolidation of theJoint Venture, which has proportionally consolidated the assets and liabilitiesand income and expenses of the Joint Venture rather than showing the grossassets and liabilities within non-current assets and the share of the JointVenture's operating profits. The reconciliations of balance sheets and equity at31 January 2007 (date of last UK GAAP financial statements) and 31 July 2006(date of last UK GAAP interim report) are set out overleaf. As there is noeffect on equity as a result of the transition, no reconciliation of the openingposition at 1 February 2006 (date of transition to IFRS) has been presented. Inaddition, there is a reconciliation of profit for the six month period to 31July 2006 and the year ended 31 July 2007. These reconciliations will enable comparison of the 2007 interim figures underIFRS with those published under UK GAAP in the 2006 interim report and theannual report for the year ended 31 January 2007. Reconciling UK GAAP items IFRS BALANCE SHEET AS AT 31 JULY 2006 Non-current assets 35,394 (35,394) - Current assets - Debtors 12,428 91,177 103,605 - Cash and cash equivalents 42,939 255,322 298,261 _______ _______ _______ 55,367 346,499 401,866 Current liabilities (10,317) (311,105) (321,422) _______ _______ _______ NET CURRENT ASSETS 45,050 35,394 80,444 Non-current liabilities (65,000) - (65,000) _______ _______ _______ NET ASSETS 15,444 - 15,444 _______ _______ _______ INCOME STATEMENT AS AT 31 JULY 2006 TURNOVER - 150,789 150,789 Cost of sales - (112,775) (112,775) _______ _______ _______ GROSS PROFIT - 38,014 38,014 Administrative expenses (212,939) (3,802) (216,741) Share of JV operating profit 34,212 (34,212) - _______ _______ _______ OPERATING LOSS (178,727) - (178,727) Interest receivable 2,002 - 2,002 _______ _______ _______ LOSS ON ORDINARY ACTIVITES BEFORE AND AFTER TAXATION (176,725) - (176,725) _______ _______ _______ Reconciling UK GAAP items IFRS BALANCE SHEET AS AT 31 JANUARY 2007 Non-current assets 65,520 (65,520) - Current assets - Debtors 16,111 323,235 339,346 - Cash and cash equivalents 18,476 69,853 88,329 _______ _______ _______ 34,587 393,088 427,675 Current liabilities (81,390) (327,568) (408,958) _______ _______ _______ NET CURRENT (LIABILITIES)/ASSETS (46,803) 65,520 18,717 Non-current liabilities - - - _______ _______ _______ NET ASSETS 18,717 - 18,717 _______ _______ _______ INCOME STATEMENT AS AT 31 JANUARY 2007 TURNOVER - 308,517 308,517 Cost of sales - (226,287) (226,287) _______ _______ _______ GROSS PROFIT - 82,230 82,230 Administrative expenses (237,685) (5,354) (243,039) Share of JV operating profit 76,866 (76,866) - _______ _______ _______ OPERATING LOSS (160,819) - (160,819) Interest receivable 1,481 - 1,481 _______ _______ _______ LOSS ON ORDINARY ACTIVITES BEFORE TAXATION (159,338) - (159,338) Taxation (15,651) (15,651) _______ _______ _______ LOSS ON ORDINARY ACTIVITES AFTER TAXATION (174,989) (174,989) _______ _______ _______ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Palace Capital