25th Sep 2007 07:03
Liberty PLC25 September 2007 FOR IMMEDIATE RELEASE25th September 2007 LIBERTY PLC: INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2007 • New Chief Executive joined 1 July 2007 and additional appointments to executive management team: o New Human Resources and Change Director appointed from Maybourne Group o Director of Internet, Supply Chain and Retail Merchandising joins from Harrods • Further advance in total Group revenue to £20.5m - up from £20.0m in comparable period • Flagship store sales advanced 1.9% to £16.5m o Menswear increased sales by 28% to £2.1m o Accessories sales rose by 7% to £3.5m o Liberty of London luxury brand sales up 23% to £1.2m • Further strengthening of Liberty balance sheet through upward valuation of Great Marlborough Street store to £37m from £35m • Pre-tax losses of £2.2m, against £1.6m, reflecting increased brand investment of £1.6m • Independent Liberty of London shop leased in Sloane Street - anticipated Spring 2008 opening "We believe Liberty is entering a new era where it is re-capturing the ethos anddesire to provide cutting edge design in a luxury retail environment for whichthe Company was once synonymous. Our objective over the next 12 months is tofirmly establish this framework enabling Liberty, which will be led by theLiberty of London brand, to become a byword for luxury retailing. "I passionately believe we are establishing a great team and an increasinglyrecognised luxury brand with enormous potential. Therefore, I am confident thatwe can continue to build on our established foundations and move to the nextstage in our growth strategy. With that in mind I believe the future isexciting," Richard Balfour-Lynn, Chairman. Contact Details: Richard Balfour-Lynn, Chairman , Liberty Plc 020 7706 2121Geoffroy de la Bourdonnaye, Chief Executive, Liberty Plc 020 7734 1234Baron Phillips, Baron Phillips Associates 020 7920 3161Nicola Marrin , Seymour Pierce 020 7107 8000 CHAIRMAN'S STATEMENT AND BUSINESS REVIEWfor the six months ended 30th June 2007 I am pleased to report further progress at Liberty as we continue our strategyof re-positioning the business into a highly focused luxury goods retailer. Over the six months to 30 June 2007 sales have continued to grow, especiallywithin our Liberty of London luxury brand, and we have made great strides inrestructuring the management team that will help us meet our key objective ofmaking Liberty a global brand. The increased success of our Liberty of London label, which saw its total saleswithin the flagship store rise by 23% to £1.2m, is extremely encouraging and isbeginning to define how we believe Liberty will look and feel in the future. Aspart of this process we are examining every aspect of the flagship store so thatall products sold will reflect the luxury goods approach that we are achievingwith the Liberty of London brand. This improving product mix should be anotherdriver to our successful transformation of the business. To help achieve this we have made, and continue to make, significant managementappointments. The first has been the appointment of Geoffroy de la Bourdonnayeas Chief Executive who joined us in July from Christian Lacroix where he wasinstrumental in reviving and developing that established brand. Geoffroy bringsa wealth of brand management and development experience to Liberty. He isalready having a significant impact and is beginning to restructure Liberty'ssenior management to enable the business to deliver its objective of becoming aglobally recognised luxury goods retailer. Earlier this month, we announced the appointment of Sara Edwards as HumanResources and Change Director. Sara is a highly regarded Senior HR Executivewithin the hospitality industry and understands how to refocus a team to deliverservice within a luxury goods environment. This will involve major change acrossthe whole Liberty Group to drive improved service delivery, managementperformance and overall financial results. We have also recently announced theappointment of Guy Hipwell as Director of Internet, Supply Chain and RetailMerchandising. Guy will develop Liberty's e-commerce offer to reflect thegrowing international awareness of the Liberty of London luxury brand,streamlining the supply chain and leading the merchandising function. Guy joinedLiberty from Harrods where he had contributed significantly to the developmentof its merchandising and e-commerce offer. Retailing continues to reflect the polarisation that we have seen over the pastcouple of years. Successful retailers are those who focus on specific areas ofthe market. At Liberty we are aiming firmly at the luxury goods market and thisis attracting those consumers seeking quality and good design in a retaildestination environment. We continue to invest heavily in our luxury brand, Liberty of London, as we lookto capitalise on the global demand for well-designed and high value products.Apart from continuing to expand the label's range of products, we are alsobeginning to introduce Liberty of London to a wider, more internationalaudience. We have shown our Liberty of London menswear range at the Milanfashion week earlier in the year and later this month we are taking our Libertyof London womens' accessories and swimwear range to Paris. As a result the labelwill start being seen in the world's luxury stores enabling us to build a farwider platform of brand recognition and awareness. In the UK we have already taken two key steps in the development of the brand.First, we have created Liberty of London's own dedicated space within theflagship store. With specifically trained and recruited staff, this area,located in the central atrium, is already proving very popular among customers. Secondly, and perhaps more importantly, we have leased a shop in the primeKnightsbridge end of Sloane Street for no premium and at advantageous rentallevel to ourselves. This is planned to open in Spring 2008 and will be astand-alone Liberty of London retail unit enabling us to showcase our productrange in a prime shopping environment. It will also help us to establish abenchmark not only for how Liberty of London retail units will look and operate,but also help us establish the design and feel we believe necessary to bring theflagship store up to a similar level. Our fabrics business is also enjoying a new lease of life. As referred to in myprevious statements, our 50:50 Japanese joint venture is coming to an end andtherefore in the future we will be able to incorporate all of these results intoa new wholly owned subsidiary. The remaining business will continue to bemanaged from the UK, where we are already identifying new markets for our fabricas well as diversifying into new base cloths and special designs. At the sametime we are re-introducing our range of Liberty silks, for which the Company wasonce noted, and we see important growth potential in this area of our business. Revenue from our fabrics division improved by 4% to £6.6m, despite the impact ofa weak Yen against Sterling, and contributed an operating profit of £1.5m forthe period. As the changes we have implemented begin to take effect, weanticipate this division will grow markedly over the medium term, contributingan increasing level of pre-tax profits to the group. Overall total net sales at the flagship store including concessions improved to£16.5m for the six months to 30 June 2007 from £16.2m this time last year. Someof our key drivers over the period included menswear which recorded a 28%increase in sales to almost £2.1m, while accessories' sales rose by almost 7% to£3.5m. However ladieswear endured tougher trading conditions and sales dipped 4%to £3.9m while our Home department delivered sales of £4.2m, down 3% against thecorresponding period ended 30th June 2006. Across the entire Liberty business, revenue for the six months to 30th June 2007increased slightly to £20.5m, against £20.0m for the same period last year,while gross profits were £9.5m against £9.1m last time. Pre-tax losses for thehalf-year were £2.2m compared to a loss of £1.6m a year ago, reflecting anincreased investment in the brand of £1.6m, up from £1.1m in the comparableperiod a year ago. As a result, the loss per share was 11.7p against 9.0p lasttime. Liberty's balance sheet has been further strengthened by an increase in the RedBook value of our flagship store in Great Marlborough Street. This has risen toa gross property value of £39.2m, which after assumed purchaser's costs of£2.2m, translates into a value for accounts purposes of £37m, up from £35m at31st December 2006. As a result, Liberty's net assets are now £51.2m against£43.1m a year ago. We believe Liberty is entering a new era where it is re-capturing the ethos anddesire to provide cutting edge design in a luxury retail environment for whichthe Company was once synonymous. Our objective over the next 12 months is tofirmly establish this framework enabling Liberty, which will be led by theLiberty of London brand, to become a byword for luxury retailing. This will bereflected in not only the products we sell, but also how we present and sellthem, together with the service our customers receive, whether in the store orour on-line shop. In the current market it is hard to be completely certain of the future, but Ipassionately believe we are establishing a great team and an increasinglyrecognised luxury brand with enormous potential. We are intent on achieving ourgoals and attracting new talent to the business. Contrary to certain pressopinion, I would also like to confirm that we have held no discussionsconcerning the sale of the business during the period and none are currently inprogress. We are committed to taking Liberty into the next stage of itsdevelopment and creating a truly global luxury brand. I am confident that we can continue to build on our established foundations andto move to the next stage in our growth strategy. With that in mind I believethe future for Liberty is exciting. Richard Balfour-LynnChairmanLiberty Plc25th September 2007 LIBERTY PLC OPERATING REVIEWfor the six months ended 30th June 2007 During the six months ended 30th June 2007, Liberty Plc has continued itstransformation into a dynamic retail destination, underpinned by a strong andexpanding retail brand. The historical trading and balance sheet performance ofLiberty Plc are summarised below:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006Financial performance £'000 £'000 £'000 Total revenue 20,531 19,976 44,012EBITDA before brand expenditure 295 202 1,311Operating loss before brand expenditure (591) (539) (180)Brand expenditure (1,554) (1,085) (1,971)Recognised income and expense -------- -------- -------- 204 617 8,955 -------- -------- -------- 30th June 30th June 31st December 2007 2006 2006Balance sheet composition £'000 £'000 £'000 Intangible asset - brand 18,200 18,200 18,200Property, plant and equipment 38,811 30,082 36,587Net debt (7,270) (882) (1,191)Net assets 51,223 43,113 51,141Equity shareholders' funds per share -------- -------- -------- 219p 183p 219p -------- -------- -------- CONSOLIDATED INCOME STATEMENT (unaudited)for the six months ended 30th June 2007 Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 Notes £'000 £'000 £'000----------------------------------------------------------------------------------Revenue 2 20,531 19,976 44,012 Cost of sales (11,052) (10,922) (24,000)----------------------------------------------------------------------------------Gross profit 9,479 9,054 20,012 Selling and distribution (10,600) (9,506) (19,952)Administrative expenses (1,304) (1,454) (2,784)Other operating income 280 282 573----------------------------------------------------------------------------------Operating loss (2,145) (1,624) (2,151) Finance income 33 15 33Finance expense (133) - (192)----------------------------------------------------------------------------------Loss before taxation (2,245) (1,609) (2,310) Taxation 3 (192) (238) (437)----------------------------------------------------------------------------------Loss for the period 2 (2,437) (1,847) (2,747)================================================================================== Attributable to:Equity shareholders of the (2,655) (2,043) (3,115)CompanyMinority interests 218 196 368----------------------------------------------------------------------------------Loss for the period (2,437) (1,847) (2,747)================================================================================== Loss per share (basic and diluted) 4 (11.7p) (9.0p) (13.8p)================================================================================== All results relate to continuing operations. The notes on pages 11 to 33 formpart of these accounts. Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000-----------------------------------------------------------------------------------Unrealised gains on property revaluations 1,490 1,012 7,183net of tax Actuarial gain on defined benefit pension 1,255 1,500 4,714 schemes net of tax Effective portion of changes in fair value (46) - - of derivative financial hedges Net foreign exchange translation (58) (48) (195) differences----------------------------------------------------------------------------------- Income and expense recognised directly to 2,641 2,464 11,702 equity Loss for the period (2,437) (1,847) (2,747)----------------------------------------------------------------------------------- Total recognised income and expense for 204 617 8,955 the period =================================================================================== Attributable to: Equity shareholders of the Company (14) 421 8,587 Minority interests 218 196 368----------------------------------------------------------------------------------- Total recognised income and expense for 204 617 8,955 the period =================================================================================== Total recognised income and expense 0.0p 1.9p 38.0p attributable to shareholders of Liberty Plc in pence per share (note 4) =================================================================================== CONSOLIDATED BALANCE SHEET (unaudited)at 30th June 2007 30th June 30th June 31st December 2007 2006 2006 Notes £'000 £'000 £'000-----------------------------------------------------------------------------------Non-current assetsIntangible asset 18,200 18,200 18,200Property, plant and equipment 6 38,811 30,082 36,587----------------------------------------------------------------------------------- 57,011 48,282 54,787-----------------------------------------------------------------------------------Current assetsInventories 7,232 7,073 7,489Trade and other receivables 6,696 6,928 5,997Cash and cash equivalents 1,171 - 1,020----------------------------------------------------------------------------------- 15,099 14,001 14,506-----------------------------------------------------------------------------------Total assets 72,110 62,283 69,293-----------------------------------------------------------------------------------Current liabilitiesTrade and other payables 8 (10,439) (11,298) (12,562)Tax payable 9 (184) (356) (135)Overdrafts 10 (8,441) (882) (2,211)Derivative financial instruments (46) - ------------------------------------------------------------------------------------ (19,110) (12,536) (14,908)-----------------------------------------------------------------------------------Non-current liabilitiesEmployee benefits 5 (97) (4,938) (1,548)Other provisions 11 (1,680) (1,696) (1,696)----------------------------------------------------------------------------------- (1,777) (6,634) (3,244)-----------------------------------------------------------------------------------Total liabilities (20,877) (19,170) (18,152)================================================================================== Net assets 51,223 43,113 51,141================================================================================== EquityCalled up share capital 6,036 6,036 6,036Revaluation reserve 12 14,090 6,430 12,600Hedging reserve 12 (46) - -Translation reserve 12 (96) 90 (38)Merger reserve 12 61,503 61,503 61,503Retained earnings 12 (31,939) (32,783) (30,601)-----------------------------------------------------------------------------------Equity attributable to 49,548 41,276 49,500shareholdersof the CompanyMinority interests 1,675 1,837 1,641-----------------------------------------------------------------------------------Total equity 51,223 43,113 51,141================================================================================== The notes on pages 11 to 33 form part of these accounts. CONSOLIDATED CASH FLOW STATEMENT (unaudited)for the six months ended 30th June 2007 Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000-----------------------------------------------------------------------------------Loss for the period (2,437) (1,847) (2,747)Adjustments for non-cash itemsTaxation 192 238 437Finance cost 133 - 192Finance income (33) (15) (33)Depreciation and amortisation 939 741 1,491Currency translation differences (73) (88) (172)-----------------------------------------------------------------------------------Cash flows from operations before changes in (1,279) (971) (832)working capitalChange in inventories 258 (241) (653)Change in trade and other receivables 193 56 999Change in trade and other payables (3,299) (2,553) (1,680)Change in provisions and employee benefits 62 49 104-----------------------------------------------------------------------------------Cash generated from operations (4,065) (3,660) (2,062)Interest paid (277) - (195)Tax paid (143) 49 (370)-----------------------------------------------------------------------------------Net cash from operating activities (4,485) (3,611) (2,627)-----------------------------------------------------------------------------------Cash flows from investing activitiesInterest received 174 39 33Purchase of property, plant and equipment (1,673) (1,202) (2,287)-----------------------------------------------------------------------------------Net cash from investing activities (1,499) (1,163) (2,254)-----------------------------------------------------------------------------------Cash flows from financing activitiesPayments to minority interests (95) - (202)-----------------------------------------------------------------------------------Net cash used in financing activities (95) - (202)-----------------------------------------------------------------------------------Net decrease in cash and cash equivalents (6,079) (4,774) (5,083)Opening cash and cash equivalents (1,191) 3,892 3,892-----------------------------------------------------------------------------------Closing cash and cash equivalents (7,270) (882) (1,191)================================================================================= 1. ACCOUNTING POLICIES Basis of preparation The Group accounts for the six months ended 30th June 2007 have been preparedand approved by the Directors in accordance with International FinancialReporting Standards as adopted by the EU ("Adopted IFRS"). These are the firstset of audited consolidated accounts of Liberty Plc to be presented underAdopted IFRS. The accounting policies set out below have, unless otherwise stated, beenapplied consistently to all periods presented in these Group accounts and inpreparing an opening IFRS balance sheet at 1st July 2005 for the purposes of thetransition to Adopted IFRS. The adoption of IFRS has no effect on the underlying operations of the Group,its strategy and management, nor on the cash flows derived from the Group'sbusiness operations. These standards do, however, affect the way in which suchactivities are presented in the Group accounts. IFRIC 8: Scope of IFRS 2 Share-based Payment. This standard addresses theaccounting for share-based payment transactions in which some or all of goods orservices received cannot be specifically identified. For the six months ended30th June 2007 there is no material impact on the Group accounts. The most significant impact on the Liberty Group accounts have been set out indetail in note 14 to the accounts. The accounts are prepared on the historical cost basis except that the followingassets and liabilities are stated at their fair value: • Investment and operational properties; • Derivative financial instruments. The comparative figures for the financial year ended 31 December 2006 are notthe company's statutory accounts for that financial year. Those accounts, whichwere prepared under UK GAAP, have been reported on by the company's auditors anddelivered to the registrar of companies. The report of the auditors was (i)unqualified, (ii) did not include a reference to any matters to which theauditors drew attention by way of emphasis without qualifying their report, and(iii) did not contain a statement under section 237(2) or (3) of the CompaniesAct 1985. Transition to Adopted IFRS An explanation of how the transition to Adopted IFRS has affected the reportedfinancial performance, positions and cash flows of the Group is set out indetail in note 14 to the accounts. The Group is preparing its accounts inaccordance with Adopted IFRS for the first time in the accounts for the sixmonths ended 30th June 2007 and has applied IFRS 1 - "First Time Adoption ofInternational Financial Reporting Standards". In accordance with IFRS 1, theGroup has taken advantage of the following exemptions at 1st July 2005, the dateof transition to IFRS: • Business combinations occurring prior to transition have not been restated; • Share options granted before 7th November 2002 or vested prior to 1st January 2005 have not been recognised in accordance with IFRS 2; • Cumulative translation differences for all foreign operations have been set to zero at 1st July 2005. The Group has applied IAS 32 and 39 retrospectively to the comparativeinformation in the accounts, refer to note 14 for further details. Where necessary, adjustments are made to the information included in theaccounts of subsidiaries to bring their accounting policies in line with thoseused by the Group and so reflect that information on a consistent basis with therest of the Group. Use of estimates and judgements The preparation of accounts requires management to make judgements, estimatesand assumptions that affect the application of accounting policies and thereported amounts of assets, liabilities, income and expenses. Actual results maydiffer from these estimates. Estimates and underlying assumptions are reviewedon an ongoing basis. Revisions to accounting estimates are recognised in theperiod in which the estimate is revised and in any future periods affected. In particular, information about significant areas of estimation, uncertaintyand critical judgements in applying accounting policies that have the mostsignificant effect on the amount recognised in the financial statements aredescribed in the following notes: • Note 5 - pensions• Note 6 - property, plant and equipment Basis of consolidation Subsidiaries are entities controlled by the Group. Control exists when the Grouphas the power, directly or indirectly, to govern the financial and operatingpolicies of an entity so as to obtain benefits from its activities. In assessingcontrol, potential voting rights that are currently exercisable or convertibleare taken into account. The accounts of subsidiaries are included in theconsolidated accounts from the date that control commences until the date thatcontrol ceases. Minority interests Dilution gains and losses on increases in minority interest, where no change ofcontrol results, are recognised directly in equity. Brands In accordance with IFRS 3, brands acquired by the Group are initially includedin the accounts at their fair value. The Directors consider that the Group'sbrands have indefinite lives due to the durability of their underlyingbusinesses which has been demonstrated over many years. Accordingly, the brandshave not been amortised but have instead been subject to an impairmentassessment conducted at each financial year end. Where this reveals a surplus,the value of the brand is retained, where it reveals a deficit, the brand iswritten down and the deficit is charged to the income statement. Subsequentexpenditure on brands is recognised in the income statement when incurred. UnderIFRS, from December 2007 the Group's brand will be valued and held at amortisedcost. Property, plant and equipment Land and buildings held for use in the production or supply of goods orservices, or for administrative purposes, are stated in the balance sheet attheir revalued amounts, being the fair value, determined from market-basedevidence and appraisals undertaken by professional valuers at the balance sheetdate. Any revaluation increase arising on the revaluation of such land and buildingsis credited to the revaluation reserve within equity, except to the extent thatit reverses a revaluation decrease for the same asset previously recognised asan expense, in which case the increase is credited to the income statement tothe extent of the decrease previously charged. A decrease in carrying amountarising on the revaluation of such land and buildings is charged as an expensein the income statement to the extent that it exceeds the balance, if any, heldin the revaluation reserve relating to previous revaluations of that asset. Depreciation on revalued buildings is charged as an operating expense to theincome statement. On a subsequent sale or retirement of a revalued property, theattributable revaluation surplus remaining in the revaluation reserve istransferred directly to accumulated profits. Leasehold improvements relating to operating leases are carried at cost, lessany recognised impairment loss. Cost includes professional fees and, forqualifying assets, borrowing costs capitalised in accordance with the Group'saccounting policy. Depreciation of properties in the course of construction isprovided on the same basis as other property assets, in that it commences whenthe assets are ready for their intended use. Depreciation is charged so as to write off the cost or valuation of property,plant and equipment, other than land and property under construction, over theirestimated useful lives, using the straight line method, over the followingperiods:- Freehold operational property 100 years Air conditioning and lifts or plant forming part of 5 to 10 yearsthe property Fixtures and equipment 5 to 10 years IT equipment 3 to 7 years The gain or loss on the disposal or retirement of a property, plant andequipment is determined as the difference between the sales proceeds and thecarrying amount of the asset at the date of disposal or retirement, and isrecognised in income. Impairment The carrying amounts of the Group's assets other than inventories and deferredtax assets are reviewed at each balance sheet date to determine whether there isany indication of impairment. Specifically, an impairment test is undertaken onthe Group's intangible asset, its brand which has an indefinite useful life. Ifany such indication exists, the asset's recoverable amount is estimated. For goodwill, assets that have an indefinite useful life, and intangible assetsthat are not yet available for use, the recoverable amount is estimated at eachbalance sheet date. An impairment loss is recognised whenever the carrying amount of an asset or itscash-generating unit exceeds its recoverable amount. Impairment losses arerecognised in the income statement. Impairment losses recognised in respect of cash-generating units are allocatedfirst to reduce the carrying amount of any goodwill allocated to cash-generatingunits and then to reduce the carrying amount of other assets in the unit on apro-rata basis. A cash-generating unit is the smallest identifiable group ofassets that generates cash inflows that are largely independent of the cashinflows from other assets or groups of assets. Leases Operating leases are not recognised in the Group balance sheet, except that rentals payable and incentive fees received under operating leases are charged/amortised to income on a straight-line basis over the entire term of therelevant lease. Investment in subsidiary companies The Company is a holding company, which holds shares in its subsidiaries at costless any impairment. The subsidiary undertakings of the Company are all engagedin retail activities, wholesaling activities, property and related activities,or act as intermediary holding companies for such operations. Inventories Inventories are stated at the lower of cost and net realisable value. Costcomprises direct materials and, where applicable, direct labour costs and thoseoverheads that have been incurred in bringing inventories to their presentlocation and condition. Net realisable value represents the estimated sellingprice less all estimated costs of completion and costs to be incurred inmarketing, selling and distribution. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits. Bankoverdrafts that are repayable on demand and form an integral part of the Group'scash management are included as a component of cash and cash equivalents for thepurpose only of the statement of cash flows. Debt and financial instruments Financial assets and financial liabilities are recognised on the Group's balancesheet when the Group becomes a party to the contractual provisions of theinstrument. Under IFRS, our policy with regard to subsequent measurement of our financialinstruments is that they will be valued and held at amortised cost. Trade receivables Trade receivables do not carry any interest and are stated at their fair valueas reduced by appropriate allowances for estimated irrecoverable amounts. Trade payables Trade payables do not carry any interest and are stated at their fair value. Derivative financial instruments and hedge accounting The Group's activities expose it primarily to the financial risk of changes inexchange rates. The Group uses derivative financial instruments in order tohedge these exposures. These instruments provide an enhanced foreign exchangerate and allow participation in favourable movements in the US dollar and theEuro exchange rates. However, the Group is obligated to purchase currency at alower rate should rates rise above a predetermined upper barrier. The Group doesnot use derivative instruments for speculative purposes. Changes in the fair values of derivative financial instruments that aredesignated and effective as hedges of future cash flows are recognised directlyin equity and the ineffective portion is recognised immediately in the incomestatement. If the cash flow hedge of a firm commitment or a forecast transactionresults in the recognition of an asset or a liability, then, at the time theasset or liability is recognised, the associated gains or losses on thederivative that had previously been recognised in equity are included in theinitial measurement of the asset or liability. For hedges that do not result inthe recognition of an asset or a liability, amounts deferred in equity arerecognised in the income statement in the same period in which the hedged itemaffects net income. Changes in the fair value of derivative financial instruments that do notqualify for hedge accounting are recognised in the income statement as theyarise. Hedge accounting is discontinued when the hedging instrument expires or is sold,terminated, exercised or no longer qualifies for hedge accounting. At that time,any cumulative gain or loss on the hedging instrument recognised in equity isretained in equity until the forecasted transaction occurs. If a hedgedtransaction is no longer expected to occur, the net cumulative gain or lossrecognised in equity is transferred to net profit or loss for the period. Provisions A provision is recognised in the balance sheet when the Group has a presentlegal or constructive obligation as a result of a past event, and it is probablethat an outflow of economic benefits will be required to settle the obligation.If the effect is material, provisions are determined by discounting the expectedfuture cash flows at a pre-tax rate that reflects current market assessments ofthe time value of money and, where appropriate, the risks specific to theliability. Foreign currency Transactions in foreign currencies are translated at the foreign exchange rateruling at the date of the transaction. Monetary assets and liabilitiesdenominated in foreign currencies at the balance sheet date are translated atthe foreign exchange rate ruling at that date. Foreign exchange differencesarising on transactions are recognised in the income statement. Non-monetaryassets and liabilities that are measured in terms of historical cost in aforeign currency are translated using the exchange rate at the date of thetransaction. Non-monetary assets and liabilities denominated in foreigncurrencies that are stated at fair value are translated at a foreign exchangerates ruling at the dates the fair value was determined. The assets and liabilities of foreign operations, including goodwill and fairvalue adjustments arising on consolidation, are translated at foreign exchangerates ruling at the balance sheet date. The revenues and expenses of foreignoperations are translated at an average rate for the period where this rateapproximates to the foreign exchange rates ruling at the dates of thetransactions. Exchange differences arising from the translation of foreign operations, and ofrelated qualifying hedges, are taken directly to the translation reserve. Theyare released into the income statement upon disposal. Revenue Revenue is measured at the fair value of the consideration received orreceivable and represents, the amounts charged to customers for goods andservices provided by the Group, net of discounts and VAT. Interest income is accrued on a time basis by reference to the principaloutstanding and at the effective interest rate applicable. Retirement benefit costs Payments to defined contribution retirement benefit schemes are charged as anexpense as they fall due. For defined benefit retirement benefit schemes, the cost of providing benefitsis determined using the Projected Unit Credit Method, with actuarial valuationsconducted every three years. Actuarial gains and losses are recognised in fullin the period in which they occur. They are recognised outside the incomestatement and presented in the statement of recognised income and expense. The retirement benefit obligation recognised in the balance sheet represents thepresent value of the defined benefit obligation as adjusted for unrecognisedpast service cost, and as reduced by the fair value of scheme assets. Any assetresulting from this calculation is limited to past service cost, plus thepresent value of available refunds and reductions in future contributions to theplan. Share-based payment transactions The Company's share option programme allows certain employees to acquire sharesin the Company. The fair value of options granted is recognised as an employeeexpense with a corresponding increase in equity. The fair value is measured atgrant date and spread over the period during which the employees becomeunconditionally entitled to the options. The fair value of the options grantedis measured using an option valuation model, taking into account the terms andconditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number ofshare options that vest except where forfeiture is due only to share prices notachieving the threshold for vesting Corporation tax and deferred taxation The tax expense represents the sum of the tax currently payable and deferredtax. The tax currently payable is based on taxable profit for the period. Taxableprofit differs from net profit as reported in the income statement because itexcludes items of income and expense that are taxable in other years and itfurther excludes items that are never taxable or deductible. The Group'sliability for current tax is calculated using tax rates that have been enactedor substantively enacted by the balance sheet date. Deferred tax is the tax that is expected to be payable or recoverable ondifferences between the carrying amount of assets and liabilities in theaccounts and the corresponding tax bases used in the computation of taxableprofit, and is accounted for using the balance sheet liability method. Deferredtax liabilities are generally recognised for all taxable temporary differencesand deferred tax assets are recognised to the extent that it is probable thattaxable profits will be available against which deductible temporary differencescan be utilised. Such assets and liabilities are not recognised if the temporarydifference arises from goodwill or from the initial recognition of other assetsand liabilities in a transaction that affects neither the tax profit nor theaccounting profit. Corporation tax and deferred taxation (continued) Deferred tax liabilities are recognised for temporary differences arising oninvestments in subsidiaries, except where the Group is able to control thereversal of the temporary difference and it is probable that the temporarydifference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheetdate and reduced to the extent that it is no longer probable that sufficienttaxable profits will be available to allow all or part of the asset to berecovered. The amount of deferred tax provided is based on the expected manner ofrealisation or settlement of the carrying amount of assets and liabilities,using tax rates enacted at the balance sheet date. Deferred tax is charged orcredited in the income statement, except when it relates to items charged orcredited directly to equity, in which case the deferred tax is also dealt within equity. Dividends Dividends that have been approved by shareholders at previous Annual GeneralMeetings are included within liabilities. Dividends proposed at the balancesheet date that are subject to approval by shareholders at the annual generalmeeting are not included as a liability in the current period's accounts. New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are notyet effective for the six months to 30th June 2007, and have not been applied inpreparing these consolidated accounts. The principal standards that may effectthe future presentation of these accounts are as follows:- IFRS 7: Financial Instruments: Disclosures and the Amendment to IAS 1Presentation of Financial Statements: Capital Disclosures. This standardrequires disclosures about the significance of financial instruments for anentity's financial position and performance, and qualitative and quantitativedisclosures on the nature and extent of risks. IFRS 7 and amended IAS 1, whichbecome mandatory for the Group's accounts for the year ended 31st December 2007,will require additional disclosures with respect to Group's financialinstruments and share capital. The Board has not yet determined the full effectof the interpretation of this standard but it does not expect it to result inany material adjustment. IFRIC 11: Scope of IFRS 2 Group and Treasury Share transactions. This standardprovides guidance on applying IFRS 2 in three circumstances: when share-basedpayments involve an entity's own equity instruments, where a parent grantsrights to its equity instruments or where a subsidiary grants rights to equityinstruments of its parent to employees. The board does not consider applicationof this standard to have a material impact on these accounts. The standard willbe implemented in the accounts for the year ended 31st December 2008. 2. SEGMENTAL REPORTING - BUSINESS DIVISIONS Segmental information is presented in respect of the Group's businesses andgeographical segments. The primary format is based on the Group's management andinternal reporting structure. Segment results, assets and liabilities include items directly attributable to asegment as well as those that can be allocated on a reasonable basis.Inter-segment pricing is determined on an arm's length basis. Unallocated itemscomprise mainly central loans and borrowings and related expenses, corporateassets (primarily the Company's head office operations) and tax assets andliabilities. Segment capital expenditure is the total cost incurred during the period toacquire property, plant and equipment. The segmental analysis of operations reflects the structure of the Group. Retailincludes the UK retail operations at Regent Street and Heathrow but does notinclude Liberty of London branded product which is detailed separately. Fabricincludes the results of the UK and Japanese fabric businesses. Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006Total external revenue £'000 £'000 £'000---------------------------------------------------------------------------------By class of business:Retail 13,870 13,606 32,025Fabric 6,649 6,370 11,974Brand 12 - 13--------------------------------------------------------------------------------- 20,531 19,976 44,012=================================================================================By geographical origin:United Kingdom 17,925 16,905 39,036Japan 2,606 3,071 4,976--------------------------------------------------------------------------------- 20,531 19,976 44,012================================================================================= By geographical destination:United Kingdom 14,307 14,164 33,367Japan 2,735 3,077 4,976Other 3,489 2,735 5,669--------------------------------------------------------------------------------- 20,531 19,976 44,012================================================================================= Loss for the period---------------------------------------------------------------------------------By class of business:Retail (1,914) (1,991) (2,884)Fabric 1,477 1,452 2,704Brand (1,708) (1,085) (1,971)---------------------------------------------------------------------------------Operating loss (2,145) (1,624) (2,151)Net finance costs (100) 15 (159)Income tax expense (192) (238) (437)--------------------------------------------------------------------------------- (2,437) (1,847) (2,747)================================================================================= By geographical origin:United Kingdom (2,718) (2,321) (3,228)Japan 573 697 1,077---------------------------------------------------------------------------------Operating loss (2,145) (1,624) (2,151)Net finance costs (100) 15 (159)Income tax expense (192) (238) (437)--------------------------------------------------------------------------------- (2,437) (1,847) (2,747)================================================================================= 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000Net assets---------------------------------------------------------------------------------By class of business:Retail 42,792 34,936 42,494Fabric 9,601 8,177 8,647Brand (1,170) - ---------------------------------------------------------------------------------- 51,223 43,113 51,141=================================================================================By geographical origin:United Kingdom 49,002 40,542 48,973Japan 2,221 2,571 2,168--------------------------------------------------------------------------------- 51,223 43,113 51,141================================================================================= Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000Capital expenditureBy class of business:Retail 924 1,202 2,227Fabric 719 - 60Brand 30 - ---------------------------------------------------------------------------------- 1,673 1,202 2,287================================================================================= Depreciation and amortisation---------------------------------------------------------------------------------By class of business:Retail (883) (737) (1,525)Fabric (3) (4) 34Brand (53) - ---------------------------------------------------------------------------------- (939) (741) (1,491)================================================================================= Cash balances and bank loans are allocated to Retail as this division utilisesthe cash balances and buildings against which debt is secured. Concession revenue Sales from concession departments are shown on a commission only basis. Grossrevenue of concession departments was as follows: Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000 Gross revenue of concession departments 3,371 3,569 7,589--------------------------------------------------------------------------------- 3. TAXATION Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------The current taxation for the period aroseas follows:-UK Corporation taxAdjustment in respect of prior periods - - -following agreement of tax liabilities Foreign taxWithholding tax written off - (13) (36)Adjustment in respect of prior year - - (51)periodsJapanese tax on Japanese profits (192) (225) (350)---------------------------------------------------------------------------------Taxation (192) (238) (437)=============================================================================== No deferred tax was required to be recognised in the Consolidated IncomeStatement during the six months ended 30th June 2007. The taxation has been reduced from the amount that would arise from applying theprevailing corporation tax rate to the profit/(loss) before taxation in theconsolidated income statement as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------UK corporation tax credit at 30% for each 674 483 693period on the loss before taxation inconsolidated income statementExcess of capital allowances claimed over (282) (222) (447)depreciation chargedExpenditure permanently disallowed for (564) (470) (570)taxation purposes and unrelieved tax lossesTaxation on overseas earnings at higher (20) (16) (26)rate than UK corporation tax---------------------------------------------------------------------------------Total corporation tax and similar taxes (192) (225) (350)charge for the periodWithholding tax written off - (13) (36)Adjustment in respect of prior periods - - (51)following agreement of tax liabilities---------------------------------------------------------------------------------Taxation (192) (238) (437)================================================================================ After deducting all deferred tax liabilities, the Group had unrelieved capitalexpenditure and interest payments from current and prior periods ofapproximately £28m at 30th June 2007. At the same date, it had net tradinglosses carried forward in certain parts of the Group of approximately £34m. 4. LOSS PER SHARE AND RECOGNISED INCOME AND EXPENSE PER SHARE Loss per share The loss per share figures are calculated by dividing the loss attributable toequity shareholders of the Company for the period, by the weighted averagenumber of ordinary shares in issue during the period, as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------Loss for the period attributable to (2,655) (2,043) (3,115)equity shareholders of the Company £'000Weighted average number of ordinary 22,603 22,603 22,603shares in issue during the period '000Loss per share (basic and diluted) Pence (11.7p) (9.0p) (13.8p) Recognised income and expense per share The figures for recognised income and expense attributable to shareholders ofthe Company in pence per share are calculated by dividing the recognised incomeand expense attributable to equity shareholders of the Company for the period,by the weighted average number of shares in issue during the period, asfollows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------Recognised income and expense for (14) 421 8,587the period attributable to equityshareholders of the Company £'000Weighted average number of ordinary 22,603 22,603 22,603shares in issue during the period '000Recognised income and expense attributable to equity Shareholdersof the Company, in pence per share Pence 0.0p 1.9p 38.0p 5. PENSIONS Overall summary Liberty operates a defined contribution pension scheme and two defined benefitpension schemes. One of the defined benefit schemes is for certain UK employeesof its wholly owned subsidiary Liberty Retail Plc. This scheme has been closedto new entrants since February 2001 and was closed to future benefit accrualwith effect from 1st January 2007. The other scheme is a minor pensionarrangement for the Japanese subsidiary of Liberty Retail Plc. The assets of all pension schemes of the Group are held in separate trustadministered funds. The total pension charge of the Group for the six monthsended 30th June 2007 was £68,000. At 30th June 2007, £30,000 was due by theGroup to the UK pension scheme, which was paid shortly after the period end. Defined benefit pension schemes The contribution rate to the defined benefit schemes is determined by anindependent qualified actuary, using the projected unit method, on the basis oftriennial valuations. A full actuarial valuation was carried out at 2nd June2006 by the scheme's actuary. For the UK defined benefit scheme, which is closed to new entrants, the currentservice cost is expected to increase as members of the scheme approachretirement. As the scheme is closed to future benefit accrual, there is noexpected contribution rate for future years calculated by reference tocontribution earnings of participating earnings. The contribution for futureyears for the UK Scheme, payable by Liberty Plc, is expected to be approximately£360,000 per annum. Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000 ---------------------------------------------------------------------------------SummaryCumulative net (liability) of UK Scheme (124) (4,993) (1,593)Cumulative net asset/(liability) of Japanese Scheme 27 55 45---------------------------------------------------------------------------------Total present value of employee benefits (97) (4,938) (1,548)================================================================================ 6. PROPERTY, PLANT AND EQUIPMENT Freehold Property Fixtures & equipment Total £'000 £'000 £'000---------------------------------------------------------------------------------Cost or valuationAt 1st January 2007 32,148 11,345 43,493Additions - 1,673 1,673Revaluation 1,309 - 1,309---------------------------------------------------------------------------------At 30th June 2007 33,457 13,018 46,475================================================================================ DepreciationAt 1st January 2006 - (6,906) (6,906)Charge for period (181) (758) (939)Revaluation 181 - 181---------------------------------------------------------------------------------At 30th June 2007 - (7,664) (7,664)---------------------------------------------------------------------------------Net Book Valueat 30th June 2007 33,457 5,354 38,811================================================================================ Freehold Property Fixtures & equipment Total £'000 £'000 £'000--------------------------------------------------------------------------------- Cost or valuation At 1st January 2006 25,356 9,030 34,386 Additions 172 1,030 1,202 Revaluation 832 - 832--------------------------------------------------------------------------------- At 30th June 2006 26,360 10,060 36,420================================================================================= Depreciation At 1st January 2006 - (5,777) (5,777) Charge for period (180) (561) (741) Revaluation 180 - 180--------------------------------------------------------------------------------- At 30th June 2006 - (6,338) (6,338)--------------------------------------------------------------------------------- Net book value at 30th June 2006 26,360 3,722 30,082================================================================================= Freehold Property Fixtures & equipment Total £'000 £'000 £'000---------------------------------------------------------------------------------Cost or valuationAt 1st July 2005 24,608 8,516 33,124Additions 11 2,829 2,840Revaluation 7,529 - 7,529---------------------------------------------------------------------------------At 31st December 2006 32,148 11,345 43,493================================================================================DepreciationAt 1st July 2005 - (5,215) (5,215)Charge for the period (543) (1,691) (2,234)Revaluation 543 - 543---------------------------------------------------------------------------------At 31st December 2006 - (6,906) (6,906)================================================================================Net book value at 31st December 2006 32,148 4,439 36,587================================================================================ Valuation The Group's property, plant and equipment is all located in the United Kingdom.The Group's Operational property was valued at 30th June 2007 by qualifiedprofessional valuers working for the company of DTZ Debenham Tie Leung,Chartered Surveyors, ("DTZ"), acting in the capacity of External Valuers. Allsuch valuers are Chartered Surveyors, being members of the Royal Institution ofChartered Surveyors ("RICS"). The valuation was carried out in accordance with the RICS Appraisal andValuation Standards 5th Edition ("the Manual") and the property was valued onthe basis of Market Value of the Properties. Market Value is defined in theManual as the estimated amount for which a property should exchange on the dateof valuation between a willing buyer and a willing seller in an arm's lengthtransaction after proper marketing, where the parties had each actedknowledgeably, prudently and without compulsion. The DTZ valuation is notqualified by any reference to existing or alternative use and implies the valueto which a property will derive, having regard to its most valuable use. The valuation includes the land and buildings; the trade fixtures, fittings,furniture, furnishings and equipment; the market's perception of the tradingpotential excluding personal goodwill; and an assumed ability to renew existinglicences, consents, certificates and permits. The value excludes consumables andstock in trade. The valuation excludes any goodwill associated with themanagement by the Company or its subsidiaries. The valuation of the property totalled £37m. This includes fixtures andequipment with a net book value of £3.5m at 30th June 2007 which are carried atthe lower of cost and realisable value in the table above. 7. DEFERRED TAXATION The deferred taxation liabilities/(assets) at 30th June 2007 and at the previousperiod ends arose as follows:- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------ProvidedShort term timing differences 62 62 62Accelerated capital allowances (62) (62) (62)---------------------------------------------------------------------------------Deferred tax liability provided at period end - - ---------------------------------------------------------------------------------- UnprovidedShort term timing differences - - -Accelerated capital allowances (6,630) (6,803) (6,653)Trading tax losses (10,057) (8,165) (10,728)Potential tax on property surplus 330 - ----------------------------------------------------------------------------------Deferred tax liability unprovided at period end (16,357) (14,968) (17,381)=============================================================================== After deducting all deferred tax liabilities, the Group had unrelieved capitalexpenditure from current and prior periods of approximately £21m at 30 June2007. At the same date, it had net trading losses carried forwards ofapproximately £34m. These gross tax assets totalling £55m are reflected at thecurrent rate of 30% in the deferred tax asset of £16m referred to above. Due tothe uncertainty as to the timing and use of these net tax assets, they have notbeen recognised as an asset in the consolidated balance sheet at 30 June 2007 or31 December 2006. No charges or credits were made in the Consolidated IncomeStatement in respect of deferred taxation during the periods referred to above. 8. TRADE AND OTHER PAYABLES 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------Trade payables 6,609 6,360 7,851Amounts due to related parties 140 145 -Other payables 391 503 981Accruals 2,569 3,483 2,539PAYE, NIC and VAT 620 752 1,109Non-equity dividend payable 110 55 82--------------------------------------------------------------------------------- 10,439 11,298 12,562================================================================================= The amounts due to related parties are transactions between the Group and itsimmediate parent, MWB Retail Stores Shareholder Limited, which owns 68.3% of theGroup's issued ordinary share capital. 9. TAX PAYABLE 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------Corporation tax 184 356 135================================================================================ 10. CURRENT LIABILITIES - OVERDRAFT 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------Bank overdraft 8,441 882 2,211================================================================================ 11. NON - CURRENT LIABILITIES 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000---------------------------------------------------------------------------------Other provisions 1,680 1,696 1,696================================================================================ 12. MOVEMENT ON RESERVES Revaluation Hedging Translation Merger Retained reserve reserve reserve reserve earnings £'000 £'000 £'000 £'000 £'000 At 1st January 2007 12,600 - (38) 61,503 (30,601)Movements during period:Retained loss for the - - - - (2,655)periodWrite back of option cost - - - - 62through equityRevaluation surplus 1,490 - - - -Actuarial gain on defined - - - - 1,255benefit pension schemeChange in fair value of - (46) - - -financial derivativesCurrency translation and other differences - - (58) - ---------------------------------------------------------------------------------At 30th June 2007 14,090 (46) (96) 61,503 (31,939)================================================================================ There was no movement in the merger reserve during the six months ended 30thJune 2007. 13. EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF LIBERTY PLC IN PENCE PER SHARE The Equity attributable to shareholders of Liberty Plc in pence per share iscalculated by dividing the Equity attributable to shareholders of Liberty Plc ateach period end by the number of ordinary shares in issue at such period end.The relevant figures are as follows:- 30th June 30th June 31st December 2007 2006 2006Equity attributable to shareholders ofLiberty Plc per consolidated balancesheet on page 9 of the accounts £'000 49,548 41,276 49,500 Number of ordinary shares in issue at '000 22,603 22,603 22,603period end Equity attributable to shareholders ofLiberty Plc in pence per share Pence 219p 183p 219p 14. EXPLANATION OF TRANSITION TO IFRS As stated in Note 1, these accounts are the first consolidated accounts of theGroup that have been presented under Adopted IFRS. The accounting policies in Note 1 have been applied consistently in preparingthe consolidated accounts for the six months ended 30th June 2007, together withthe comparative information for the six months ended 30th June 2006 and yearended 31st December 2006 which are set out in this document. The same policieshave also been applied in the preparation of an opening IFRS balance sheet at1st July 2005, the Group's date of transition. In preparing the opening IFRS balance sheet and the comparative information forthe year ended 31st December 2006, the Board has adjusted amounts reportedpreviously in its accounts for the periods then ended which had been prepared inaccordance with UK GAAP. An explanation of how the transition from previous UK GAAP to IFRS has affectedthe Group's reported financial position and its reported financial performanceis set out in the following tables and the notes that accompany these tables. (i) IAS 39 - Financial Instruments. This Standard requires exchange rate hedgesto be recorded at fair value in the accounts. This is in contrast to UK GAAPwhich generally only required these items to be recorded at cost, with the fairvalue disclosed by way of note. Under IFRS, to the extent that such derivativesare effective hedges, changes in fair value are recognised through equityreserves. To the extent that such derivatives are ineffective hedges, changes infair value are recognised in the income statement. The adoption increaseretained earnings and reduced hedging reserve by £46,000, £nil, and £nil at 30thJune 2007, 30th June 2006, and 31st December 2006 respectively. There is noimpact on total equity at any of these dates. (ii) IFRS 2 - Share Based Payments. This Standard requires the fair value ofshare options at the date of grant to be charged over the vesting period of thegrant; this affects the recording of options. Implementation of this Standardresulted in a charge of £62,000, £49,000, and £104,000 at 30th June 2007, 30thJune 2006, and 31st December 2006 respectively. There is no impact on equity atany of these dates. (iii) IAS 39 - Employee Benefits. Under UK GAAP, the Group measured pensioncommitments and other related benefits in accordance with FRS 17 - RetirementBenefits. Under IFRS, the Group measures pension commitments in accordance withthe amended IAS 19. IAS 19 is similar to FRS 17 in that it adopts a balancesheet approach, bringing the surplus/deficit of the pension scheme onto thebalance sheet. However, FRS 17 dictates that all actuarial gains and losses areto be recognised directly in reserves, whereas IAS 19 includes an alternativeoption allowing actuarial against and losses to be held on the balance sheet andreleased to the income statement over a period of time. Liberty plc has electednot to adopt this alternative option. As there is no impact on equity only reconciliations of consolidated incomestatements have been given in this note. Reconciliation of consolidated income Previously IFRS 2 Restatedstatement for the year ended 31st reported Share based under IFRS December 2006 (unaudited) under payments UK GAAP £'000 £'000 £'000------------------------------------------------------------------------------------Revenue 44,012 - 44,012Cost of sales (24,000) - (24,000)Gross profit 20,012 - 20,012Selling and Distribution costs (19,952) - (19,952)Administration expenses (2,680) (104) (2,784)Other operating income 573 - 573Operating loss (2,047) (104) (2,151)Finance income 33 - 33Finance expense (192) - (192)Loss before tax (2,206) (104) (2,310)Taxation (437) - (437)------------------------------------------------------------------------------------Loss for the year (2,643) (104) (2,747)==================================================================================== Attributable to:Equity shareholders of the Company (3,011) (104) (3,115)Minority interests 368 - 368Loss for the year (2,643) (104) (2,747)Basic and diluted loss per share - pence (13.3p) (0.5p) (13.8p) Reconciliation of consolidated income Previously IFRS 2 Restatedstatement for the six months ended 30th reported Share based under IFRS June 2006 (unaudited) under payments UK GAAP £'000 £'000 £'000------------------------------------------------------------------------------------Revenue 19,976 - 19,976Cost of sales (10,922) - (10,922)Gross profit 9,054 - 9,054Selling and Distribution costs (9,506) - (9,506)Administration expenses (1,405) (49) (1,454)Other operating income 282 - 282Operating loss (1,575) (49) (1,624)Finance income 15 - 15Finance expense - - -Loss before tax (1,560) (49) (1,609)Taxation (238) - (238)------------------------------------------------------------------------------------Loss for the period (1,798) (49) (1,847)==================================================================================== Attributable to: Equity shareholders of the Company (1,994) (49) (2,043)Minority interests 196 - 196Loss for the period (1,798) (49) (1,847)Basic and diluted loss per share - pence (8.8p) (0.2p) (9.0p) 15. ACCOUNTS AND INTERIM REPORT These unaudited interim accounts of Liberty PLC for the six months ended 30thJune 2007, the unaudited interim accounts of the Group for the six months ended30th June 2006, and the audited accounts of the Group for the eighteen monthsended 31st December 2006, are available from the Company Secretary, FilexServices Limited at the Company's registered office of 179 Great PortlandStreet, London W1W 5LS. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
LBE.L