TIDMLDSG
RNS Number : 3011P
Leeds Group PLC
18 October 2021
Issued on behalf of Leeds Group plc Embargoed: 7.00am
Date: 18 October 2021
Leeds Group plc
("Leeds Group" or "the Group")
Final Results for the year ended 31 May 2021
Leeds Group reports the final results of the Group for the year
to 31 May 2021.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and has been arranged for release
by Jan G Holmstrom, Non-Executive Chairman. The Directors of the
Company are responsible for the release of this announcement.
Enquiries:
Leeds Group plc Cairn Financial Advisers LLP
Dawn Henderson - 01937 547877 Liam Murray/Sandy Jamieson - 020
7213 0880
Chairman's Statement
As a result of the ongoing global pandemic, it has been another
challenging year for the Group. In our interim report we announced
that sales for Hemmers and KMR in the first six months of the
financial year had been higher than expected. In subsequent trading
updates on 17 February 2021 and 18 May 2021, we explained that
since the half year end, there had been further countrywide
restrictions imposed by the German government which had adversely
affected trading activity in the second half of the financial
year.
Both Hemmers-Itex Textil Import Export GmbH ('Hemmers') and
Stoff-Ideen-KMR GmbH ('KMR') businesses have been affected by the
countrywide lockdowns imposed by the German government in response
to the Covid-19 pandemic and further government-imposed
restrictions placed on retail shops thereafter. Hemmer's wholesale
business was also affected by lockdowns in its export markets
though trading continued on a reduced basis. However, all KMR's
retail shops were fully closed during the country-wide lockdowns
which lasted until early March 2021 with some shops remaining
closed until the end of May 2021 due to localised lockdowns. The
effect of the KMR shop closures were partly mitigated by actions
taken by management and by government financial aid. The Group
operating result showed a reduced loss of GBP280,000 compared to
the previous year loss of GBP1,756,000.
Even though the lockdown has now been lifted, the Covid-19
pandemic is still having an impact in the global marketplace, with
sales levels for both Hemmers and KMR in the first quarter of the
new financial year lower than previous years but in line with
expectations. The impact of Covid-19 on the Group is detailed
further in the Finance and Operating Review. The Directors are
confident that both businesses are prepared to mitigate the risk of
a further wave of the pandemic and should restrictions be imposed
again, the companies would take the necessary actions and also
apply for any available government financial support.
Following the prior year sales and cost reviews, the Directors
believe that the Group is structured to align its costs with sales
activity and has a stronger management team with a competitive
sales strategy. This strategy will potentially return the Group to
acceptable levels of profit in future years, assuming a return to a
normal trading environment.
On behalf of shareholders, I want to thank the management and
staff of Hemmers and KMR who have all continued with their best
efforts to work through difficult and challenging times in the face
of the global pandemic.
Jan G Holmstrom
Non-Executive Chairman
15 October 2021
Finance and Operating Review
Group result
Group revenue for the continuing operations in the year was
GBP33,013,000 (2020: GBP35,067,000). The ongoing effects of the
Covid-19 pandemic affected both Hemmers and KMR. Although the
German government provided financial support to the Group amounting
to GBP966,000, the reduced sales figures did not generate enough
contribution to cover the fixed overheads and, therefore, both
Hemmers and KMR made a loss after interest. The Group's operating
loss from continuing activities was GBP280,000 (2020: loss
GBP1,756,000) and the Group's loss before tax from continuing
activities was GBP508,000 (2020: loss GBP2,016,000).
The tax credit in the year was GBP42,000 (2020: charge
GBP6,000). The total loss per share was 1.7p (2020: loss per share
8.6p).
Hemmers-Itex
Hemmers is a global business engaged in designing, importing,
warehousing and wholesaling of fabrics from Germany. The market in
Germany has been affected by the Covid-19 pandemic, however Hemmers
have positioned themselves well in the marketplace and have managed
to secure business from competitors. The strategic sales review
coupled with the comprehensive cost review undertaken last year has
ensured the cost base for Hemmers is aligned to the current sales
levels and market conditions. Sales for the year were slightly
higher than last year at GBP27,669,000 (2020: GBP27,060,000) due to
exchange translation as sales volumes were in line with previous
years but lower than expectations. The gross contribution
percentage decreased slightly to 30% (2020: 31%) due to the
pressure on pricing through competition however, with the increased
level of sales, the gross contribution has increased to
GBP4,580,000 (2020: GBP4,155,000). Due to the reduction in fixed
overheads resulting from the prior year cost review and government
financial assistance of GBP274,000, Hemmers achieved a profit
before interest of GBP330,000 (2020: loss GBP1,298,000).
Hemmers is completely focused on growing its business
domestically and internationally in its wholesale markets with a
more customer focused sales strategy. We are confident that Hemmers
will continue to compete in the global marketplace regaining
further market share thus returning to profitability after
interest.
Hemmers bank debt, net of cash, increased in the year to
GBP3,558,000 (2020: GBP3,184,000). The bank debt is secured on the
assets of Hemmers.
KMR
KMR is a retail trading business in Germany. KMR has been
severely affected by the Covid-19 pandemic resulting in the closure
of all its retail shops during countrywide lockdowns. Also
following the lifting of the second government-imposed lockdown,
local lockdowns were imposed due to the level of Covid-19
infections in certain areas. This affected certain KMR retail shops
for a further eleven weeks in this financial year. Sales were,
therefore, significantly lower than last year at GBP5,344,000
(2020: GBP8,007,000). The gross contribution percentage increased
slightly to 56% (2020: 53%) due to price increases. This lower
level of trading, despite financial support from the German
government amounting to GBP692,000, has resulted in a loss before
interest for the year of GBP211,000 (2020: loss GBP218,000).
Improved working efficiencies have been implemented during the year
including the introduction of new working patterns resulting in a
reduced cost base. This is expected to eliminate the losses going
forward and provide a better foundation for improved results in the
coming years.
KMR bank debt, net of cash, decreased in the year to GBP749,000
(2020: GBP979,000). The bank debt is secured on the assets of
KMR.
Fixed Assets
The net book amount of tangible fixed assets is GBP7,750,000
(2020: GBP8,183,000). Capital additions in the year amounted to
GBP562,000 (2020: GBP560,000).
The net book value of right-to-use assets is GBP2,453,000 (2020:
GBP2,374,000). There were GBP750,000 of additional right-of-use
leases included as assets in the year although they relate to
leases which were regarded as short-term leases in 2020 (2020:
GBP258,000). An impairment charge of GBP333,000 has been recognised
in the accounts in relation to these assets.
Working Capital and Cash Flow
Net debt increased from GBP3,517,000 to GBP3,952,000 in the
year. Net cash used in the year at average exchange rates was
GBP610,000 (2020: generated GBP34,000). Working capital, which
comprises inventories, trade and other receivables and trade and
other payables, increased in the year by GBP452,000 (2020:
decreased GBP2,738,000). Debtor and Trade Creditor levels were
lower at 31 May 2021 due to the reduced trading in March to May as
a result of the effects of the Covid-19 pandemic on trading. Loan
repayments of GBP771,000 (2020: GBP2,378,000) have been made this
year. Last year the repayments were partly due to the sale of
properties which generated GBP1,317,000 with the corresponding debt
being repaid. New loans taken out in the year GBP787,000 relating
to short term debt. Lease liability repayments (including interest)
of GBP1,059,000 (2020: GBP926,000) have been made in the year.
The Group continues to carefully monitor its working capital
requirements to ensure it operates within its current banking
facilities.
Net Asset Value
Net assets decreased in the year by GBP1,022,000 as follows:
Net assets Per share
GBP000 pence
At 31 May 2020 15,583 57.0
Loss after tax (466) (1.7)
Translation differences (556) (2.0)
At 31 May 2021 14,561 53.3
========================== ================== ===========
Debt Profile
The funding policy of the Group continues to be to match its
funding requirement in trading subsidiaries in a cost-effective
fashion with an appropriate combination of short and longer-term
debt. Property investments have been financed partly by long term
loans at fixed interest rates between 1.05% and 4.07%. Working
capital finance, when required, is via short term loans of three
months currently attracting interest at rates of between 1.25% and
3%. Bank debt in the subsidiaries is secured by charges on
inventories, receivables and property and is without recourse to
the Parent Company.
Share Capital
During the year, the Company cancelled 4,279,157 ordinary shares
that had been held in treasury following previous purchases of the
shares by the Company.
Impairment reviews
A cash generating unit is defined by IAS36 as the smallest
identifiable group of assets that generates cash flows that are
largely independent of the cash inflows from other assets, or group
of assets. As such, each store in KMR represents its own cash
generating unit. Following the implementation of IFRS16, the
right-of-use assets relating to KMR's retail shops are now
considered part of the cash generating units. Other immaterial
assets are allocated to each store to consider the wider asset
portfolio of each store, where right-of-use assets remain the only
material in scope assets to consider in impairment testing.
Although annual impairment reviews are not required on tangible
assets, management have performed an impairment review on these
assets due to historic trading losses and the effects of the
Covid-19 pandemic. Impairment tests have been performed by
assessing relevant cash flows of each cash generating unit and
assessing this against the value of assets relating to that
specific cash generating unit to consider recoverable amounts.
Following this review, an impairment charge of GBP333,000 has been
recognised during this financial year.
Principal risks and uncertainties
The Board has identified the main categories of business risk in
relation to the Group's strategic aims and objectives, and has
considered reasonable steps to prevent, mitigate and manage these
risks. The principal risks identified are as follows:
Funding risk
The Group has a combination of short-term borrowing facilities
and longer-term loan agreements secured on Group assets. The Group
remains dependent upon the support of these funders and there is a
risk that failure in a company to meet banking covenants could have
implications for the Group. Borrowing facilities are monitored
regularly and the facilities agreed are more than needed for the
Group's requirements. The Group has close working relationships
with their current funders but believe alternative banking funders
could be secured if required.
Hemmers has a maximum working capital facility of EUR11m,
restricted to the borrowing base which is calculated as 70% of
eligible inventory and 80% of eligible debtors. In the financial
year 2021, this resulted in average availability of EUR7.7m (2020:
EUR8.8m) with a range of EUR6.9m to EUR8.3m (2020: EUR8.0m to
EUR9.0m) and minimum headroom of EUR4.5m (2020: EUR4.7m) in the
year. In the forecast period to 31 May 2023, the estimated
availability range is EUR6.9m to EUR8.8m and the minimum headroom
EUR3.4m. The only covenant on this facility is an equity ratio
which must exceed 30% of gross assets at the financial year end. At
31 May 2021, the ratio was higher than 60% (2020: 61%). The
facility is uncommitted, but the bank is obliged to give reasonable
notice of any change.
KMR has a fixed working capital loan facility of EUR1m which was
fully drawn at the year end and a EUR0.5m bank overdraft facility
secured on working capital, of which EUR0.2m was utilised as at 31
May 2021. The covenants on these facilities are (i) an equity ratio
which must exceed 35% of gross assets at the financial year end and
(ii) the ratio of working capital/bank facility should be a minimum
1.5x. At 31 May 2021, these ratios were 55.5% (2020: 39.5%) and
1.54 (2020: 1.58). The facilities are uncommitted, but the bank is
obliged to give reasonable notice of any change.
Considering the trading results in the first quarter of the
current financial year, the likely ongoing impact of the Covid-19
pandemic and the headroom available on the Hemmers working capital
facility, the Directors are of the opinion that it is appropriate
to apply the going concern basis of preparation to the financial
statements.
Market risk
There is always the ongoing threat of reduced market demand.
This has been seen this year and the Group continues to strive to
combat the reduced demand by looking at other markets both
domestically and internationally and looking at expanding its
product ranges. The commercial risks of operating in the highly
competitive European fabric market are limited by the fact that
Hemmers has a wide range of suppliers, and no customer accounts for
more than 5% of revenues.
Foreign exchange risk
Most fabric purchased by Hemmers is paid for in US dollars,
while the Euro is the principal currency in which Hemmers sells its
product. The Euro/dollar rate is of greater significance to Leeds
Group than the strength of Sterling. The Hemmers management
continue to manage this transactional currency risk by a
combination of forward exchange contracts with reputable banks and
sales price increases where necessary.
Covid-19
During the year, the global Covid-19 pandemic which resulted in
lockdowns across the world, has affected both businesses. This
affected the last six weeks of the last financial year, late March
2020 to early May 2020 and twelve weeks of this financial year from
mid December 2020 to early March 2021. KMR, whose main business is
retail shops, was required to close all its shops during the two
government-imposed lockdowns and, then some of its shops were
required to close due to further local lockdowns. The financial
impact on all businesses was partly mitigated by financial support
from the German government. Financial support was provided to cover
the wages of staff unable to work due to the country wide lockdown.
Additional support was provided based on reduced turnover of the
combined Hemmers and KMR group and additional compensation for
certain seasonal goods sold at a loss. There is a risk that if
infections of Covid-19 are not controlled that a further country
wide or local lockdown will be required. It is expected that in
this event, Government support would again be provided, and
management have looked at further measures to mitigate the risk
having experienced this in the first and second waves of the
pandemic.
The ongoing effects of the Covid-19 pandemic are still being
experienced globally with markets not fully recovered and supply
chain issues. Although the Group is affected by these issues, we
are currently managing delays in deliveries effectively through
good stock management and any increased costs associated with
container shipments from the Far East are being recovered through
an increase in sales prices.
Brexit
Following the UK's departure from the European Union ("EU") on
31 December 2020, the Group has seen little impact of this
departure and the Directors do not expect this impact to change.
The business of Leeds Group is conducted entirely by subsidiaries
incorporated in Germany, and their exports to the UK account for
approximately 4% only of Group revenue.
Jan G Holmstrom
Non-Executive Chairman
15 October 2021
Consolidated Statement of Comprehensive Income
for the year ended 31 May 2021
Year ended Year ended
31 May 2021 31 May 2020
GBP000 GBP000
------------------------------------------- -------------- --------------
Continuing operations
Revenue 33,013 35,067
Cost of sales (26,700) (29,039)
------------------------------------------- -------------- --------------
Gross profit 6,313 6,028
Distribution costs (2,647) (2,876)
Administrative costs (4,912) (4,908)
Other income 966 -
------------------------------------------- -------------- --------------
Loss from operations (280) (1,756)
Finance expense (228) (260)
Loss before tax (508) (2,016)
Tax credit/(charge) 42 (6)
------------------------------------------- -------------- --------------
Loss from continuing operations (466) (2,022)
------------------------------------------- -------------- --------------
Discontinued operations
Loss from discontinued operations - (332)
------------------------------------------- -------------- --------------
Loss for the year attributable to
the equity holders of the Parent
Company (466) (2,354)
------------------------------------------- -------------- --------------
Other comprehensive (loss)/income
Translation differences on foreign
operations (556) 196
------------------------------------------- -------------- --------------
Total comprehensive loss for the
year attributable to the equity holders
of the Parent Company (1,022) (2,158)
=========================================== ============== ==============
There is no tax effect relating to other comprehensive income
for the year. Amounts included in other comprehensive income may be
reclassified subsequently as profit or loss.
Loss per share attributable to the equity holders of the
Company
Year ended Year ended
31 May 2021 31 May 2020
------------------------------- -------------- --------------
Basic and diluted total loss
per share (pence) 1.7p 8.6p
=============================== ============== ==============
Consolidated Statement of Financial Position
at 31 May 2021
31 May 2021 31 May 2020
Company number 00067863 GBP000 GBP000
----------------------------------- -------------- --------------
Assets
Non-current assets
Property, plant and equipment 7,750 8,183
Right-of-use assets 2,453 2,374
Intangible assets 58 67
Total non-current assets 10,261 10,624
----------------------------------- -------------- --------------
Current assets
Inventories 10,287 10,188
Trade and other receivables 2,867 3,464
Tax recoverable 136 206
Cash on demand and on short term
deposit 670 1,104
Total current assets 13,960 14,962
----------------------------------- -------------- --------------
Total assets 24,221 25,586
=================================== ============== ==============
Liabilities
Non-current liabilities
Loans and borrowings (1,498) (1,950)
Lease liabilities (1,856) (1,478)
Total non-current liabilities (3,354) (3,428)
----------------------------------- -------------- --------------
Current liabilities
Trade and other payables (2,265) (2,877)
Loans and borrowings (2,926) (2,671)
Lease liabilities (1,015) (927)
Provisions (100) (100)
Total current liabilities (6,306) (6,575)
----------------------------------- -------------- --------------
Total liabilities (9,660) (10,003)
=================================== ============== ==============
TOTAL NET ASSETS 14,561 15,583
=================================== ============== ==============
Capital and reserves attributable
to
equity holders of the Company
Share capital 3,279 3,792
Capital redemption reserve 1,113 600
Treasury share reserve - (807)
Foreign exchange reserve 2,185 2,741
Retained earnings 7,984 9,257
TOTAL EQUITY 14,561 15,583
==================================== ======== ========
The financial statements were approved and authorised for issue
by the Board of Directors on 15 October 2021 and were signed on
behalf of the Board by:-
Jan G Holmstrom
Non-Executive Chairman
Consolidated Cash Flow Statement
for the year ended 31 May 2021
Year ended Year ended
31 May 2021 31 May 2020
GBP000 GBP000
------------------------------------------- -------------- --------------
Cash flows from operating activities
Loss for the year (466) (2,354)
Adjustments for:
Government assistance credit (966) -
Depreciation of property, plant
and equipment 624 723
Depreciation of right-of-use assets 1,062 876
Impairment of right-of-use assets 333 -
Depreciation of investment property - 13
Amortisation of intangible assets 6 6
Finance expense - interest on bank
loans 154 174
Finance expense - interest lease
liabilities 74 86
Gain on sale of property, plant
and equipment (14) (32)
Tax (credit)/charge (42) 6
Cash flows from/(to) operating
activities before
changes in working capital and
provisions 765 (502)
(Increase)/decrease in inventories (571) 1,735
Decrease in trade and other receivables 718 965
(Decrease)/increase in trade and
other payables (599) 38
Cash generated from operating activities 313 2,236
Tax received 110 519
Net cash flows from operating activities 423 2,755
=========================================== ============== ==============
Investing activities
Purchase of property, plant and
equipment (562) (560)
Proceeds from the sale of fixed
assets 21 1,317
Net cash (used in)/generated from
investing activities (541) 757
=========================================== ============== ==============
Financing activities
Bank borrowings drawn 787 -
Bank borrowings repaid (771) (2,378)
Repayment of principal on lease
liabilities (985) (840)
Repayment of interest on lease
liabilities (74) (86)
Bank interest paid (154) (174)
Government assistance received 705 -
Net cash used in financing activities (492) (3,478)
=========================================== ============== ==============
Net (decrease)/increase in cash
and cash equivalents (610) 34
Translation (loss)/gain on cash
and cash equivalents (22) 5
Cash and cash equivalents at the
beginning of the year 1,104 1,065
Cash and cash equivalents at the
end of the year 472 1,104
=========================================== ============== ==============
Cash on demand or on short term
deposit 670 1,104
Bank overdrafts (198) -
=========================================== ============== ==============
Cash and cash equivalents at the
end of the year 472 1,104
=========================================== ============== ==============
Consolidated Statement of Changes in Equity
for the year ended 31 May 2021
Share Capital Treasury Foreign Retained
capital redemption share exchange earnings Total equity
reserve reserve reserve GBP000
GBP000 GBP000 GBP000 GBP000 GBP000
---------------------------- ---------- ------------- ---------- ----------- ----------- ----------------
At 31 May 2019 3,792 600 (807) 2,545 11,611 17,741
Loss for the year - - - - (2,354) (2,354)
Other comprehensive
income - - - 196 - 196
Total comprehensive
income/(loss) - - - 196 (2,354) (2,158)
---------------------------- ---------- ------------- ---------- ----------- ----------- ----------------
At 31 May 2020 3,792 600 (807) 2,741 9,257 15,583
Cancellation of treasury
shares (513) 513 807 - (807) -
Loss for the year - - - - (466) (466)
Other comprehensive
loss - - - (556) - (556)
---------------------------- ---------- ------------- ---------- ----------- ----------- ----------------
Total comprehensive
loss - - - (556) (466) (1,022)
---------------------------- ---------- ------------- ---------- ----------- ----------- ----------------
At 31 May 2021 3,279 1,113 - 2,185 7,984 14,561
============================ ========== ============= ========== =========== =========== ================
The following describes the nature and purpose of each reserve
within equity:
Reserve Description and purpose
Share capital The nominal value of issued ordinary shares
in the Company.
Capital redemption reserve Amounts transferred from share capital on
redemption of issued shares.
Treasury share reserve Cost of own shares held in treasury.
Foreign exchange reserve Gains/(losses) arising on retranslation
of the net assets of overseas operations
into sterling.
Retained earnings Cumulative net gains/(losses) recognised
in the consolidated statement of comprehensive
income after deducting the cost of cancelled
treasury shares.
Notes
1. Basis of preparation
This announcement has been prepared in accordance with
International Accounting Standards in conformity with the Companies
Act 2006.
Going Concern
When considering its opinion about the application of the going
concern basis of preparation of the financial statements to 31 May
2021, the Directors have given due consideration to:
-- The performance of the Group in the last financial year and
the robustness of forecasts for the next 24 months, which return
the Group to profit.
-- Any downside sensitivities including the impact of the
Covid-19 pandemic on the business, its suppliers and its
customers.
-- The financing facilities available to the Group and the
circumstances in which these could be limited or withdrawn.
Financial performance and forecasts
Having been consistently profitable in the past, the Group has
been loss making in each of the last three years.
-- In the year to 31 May 2019, the Group reported a pre-tax loss
from continuing operations of GBP1.3m after writing off goodwill of
GBP1.0m.
-- In the year to 31 May 2020, the Group reported a pre-tax loss
from continuing operations of GBP2.0m. Approximately GBP1.0m of
this loss arose in the final quarter which was significantly
impacted by the Covid-19 restrictions discussed below. To address
the poor underlying performance the Directors and management
restructured the business in the first half of the year to focus on
profitable business streams and reduce its operating costs.
Restructuring costs of GBP0.4m were incurred in the financial year
which will benefit results going forward. Although loss making, the
business was cash generative in the year with net debt reducing by
GBP2.4m, of which GBP1.3m resulted from the sale of investment
properties.
-- In the year to 31 May 2021, the Group reported a pre-tax loss
from continuing operations of GBP0.5m primarily due to the ongoing
impact of the Covid-19 pandemic.
Forecasts have been prepared for the 24-month period to May 2023
which indicate a return to modest profit over that period. These
forecasts have been prepared in the knowledge of current Covid-19
conditions and assume that there is no further period of total
country-wide lockdown. At the end of the first quarter of the
current financial year sales and profit were in line with forecast.
The company has sensitised these forecasts for a reduction in
revenues of 10% at both Hemmers and KMR in the forecast period and
an additional net EUR1 million profit reduction from a second
period of lockdown. The Directors are of the opinion that this is a
reasonable worst case, and the currently available facilities would
be sufficient in this scenario.
Covid-19 Impact
Both Hemmers and KMR are located in Germany which has responded
well to the outbreak. KMR was most directly impacted by the
measures put in place with all shops closed from late March 2020 to
early May 2020 and again from mid December 2020 to early March 2021
with further local restrictions from early March 2021 to late May
2021. Since the start of the financial year, the shops have
performed in line with forecast with all restrictions lifted.
Hemmers has traded in line with forecast in the first quarter of
the current year
Both businesses have been supported by the government employment
scheme which reimburses the company for payments to employees for
any short time working. The German government also provides a
scheme whereby companies can be compensated for a reduction in
trading with reference to reduced turnover and goods sold at
reduced margins as a result of the pandemic. This scheme will
remain available through any further affected periods. In addition,
KMR has negotiated rent reductions for its shops in the current
financial year which are reflected in the forecasts.
The ongoing effects of the Covid-19 pandemic are still being
experienced globally with markets not fully recovered and supply
chain issues. Although the Group is affected by these issues, we
are currently managing delays in deliveries effectively through
good stock management and any increased costs associated with
container shipments from the Far East are being recovered through
an increase in sales prices. While there is clearly uncertainty
about the future course of the pandemic, the Directors consider
that with ongoing government support it is well placed to trade
through reasonably foreseeable scenarios.
2. Dividends
The Directors do not recommend the payment of a dividend in 2021
(2020: GBPnil).
3. Loss per share
Year ended Year ended
31 May 2021 31 May 2020
----------------------------------------- -------------- --------------
Numerator
Total loss for the year GBP466,000 GBP2,354,000
Denominator
Weighted average number of shares 27,320,843 27,320,843
Basic and diluted total loss per share 1.7p 8.6p
========================================= ============== ==============
Numerator
Loss for the year from continuing operations GBP466,000 GBP2,022,000
Denominator
Weighted average number of shares 27,320,843 27,320,843
Basic and diluted loss from continuing
operations per share 1.7p 7.4p
=============================================== ============ ==============
Numerator
Loss for the year from discontinued operations - GBP332,000
Denominator
Weighted average number of shares - 27,320,843
Basic and diluted loss from discontinued
operations per share - 1.2p
================================================= ========= =============
Since there are no outstanding share options, there is no
difference between basic and diluted earnings per share.
4. Segmental information
Year ended Hemmers KMR Inter Parent Continuing Discontinued Total
31 May 2021 segmental Company operations operations Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------- ------------ ---------- -------------- ---------- ------------- -------------- ----------
External revenue 27,669 5,344 - - 33,013 - 33,013
Inter-segmental
revenue 1,071 1 (1,072) - - - -
Cost of sales (24,160) (3,602) 1,062 - (26,700) - (26,700)
Gross profit 4,580 1,743 (10) - 6,313 6,313
Distribution
costs (1,499) (1,148) - - (2,647) - (2,647)
Admin expenses (3,212) (1,498) 187 (389) (4,912) - (4,912)
Other income 461 692 (187) - 966 - 966
Operating
profit/(loss) 330 (211) (10) (389) (280) - (280)
Finance expense (128) (100) - - (228) - (228)
Internal interest (213) - - 213 - - -
Loss before tax (11) (311) (10) (176) (508) - (508)
===================== ============ ========== ============== ========== ============= ============== ==========
At 31 May 2021 Hemmers KMR Adj Parent Continuing Discontinued Total
Company operations operations Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------- --------- --------- --------- ---------- ------------- -------------- ---------
Total assets 15,803 5,688 (174) 2,904 24,221 - 24,221
Total liabilities (5,589) (3,969) - (102) (9,660) - (9,660)
Total net assets 10,214 1,719 (174) 2,802 14,561 - 14,561
==================== ========= ========= ========= ========== ============= ============== =========
Year ended Hemmers KMR Inter Parent Continuing Discontinued Total
31 May 2020 segmental Company operations operations Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------------- ---------- --------- ------------ ---------- ------------- -------------- ----------
External revenue 27,060 8,007 - - 35,067 488 35,555
Inter-segmental
revenue 1,563 5 (1,681) - (113) 113 -
Cost of sales (24,468) (5,930) 1,472 - (28,926) (697) (29,623)
Gross profit/(loss) 4,155 2,082 (209) - 6,028 (96) 5,932
Distribution
costs (1,628) (1,312) 64 - (2,876) (51) (2,927)
Admin expenses (3,913) (988) 233 (240) (4,908) (185) (5,093)
Other income 88 - (88) - - - -
Operating loss (1,298) (218) - (240) (1,756) (332) (2,088)
Finance expense (147) (113) - - (260) - (260)
Internal interest (148) - - 148 - - -
Loss before tax (1,593) (331) - (92) (2,016) (332) (2,348)
====================== ========== ========= ============ ========== ============= ============== ==========
At 31 May 2020 Hemmers KMR Inter Parent Continuing Discontinued Total
segmental Company operations operations Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------- --------- --------- ------------ ---------- ------------- -------------- ----------
Total assets 16,998 5,745 (218) 3,061 25,586 - 25,586
Total liabilities (5,769) (4,151) - (83) (10,003) - (10,003)
Total net assets 11,229 1,594 (218) 2,978 15,583 - 15,583
==================== ========= ========= ============ ========== ============= ============== ==========
5. Loans and borrowings
The book value of loans and borrowings are as follows:
31 May 2021 31 May
GBP000 2020
GBP000
Current
Secured bank loans 2,926 2,671
Non - current
Secured bank loans 1,498 1,950
Total loans and borrowings 4,424 4,621
============================= ============= =========
Current loans and borrowings
At 31 May 2021 current loans and borrowings of GBP2,926,000
(2020: GBP2,671,000) comprise short term loans of GBP2,562,000 and
instalments due on long term loans detailed below of GBP364,000.
The interest rate on the short-term loans range from 1.25% to 3%
(2020: 1.25% to 3%) and these loans are secured on working capital
of Hemmers and KMR. The short-term loans are drawn down by Hemmers
against short-term borrowing facilities of up to a maximum of
GBP10.3m (EUR11.5m) and by KMR against short-term borrowing
facilities of GBP0.9m (EUR1m).
At 31 May 2021, the maximum limit available totalled GBP7m
(EUR8.2m) of which GBP2.6m (EUR3m) has been utilised, therefore the
headroom within the facility was GBP4.4m (EUR5.2m). Neither the
Parent Company nor any of its subsidiaries other than Hemmers and
KMR have borrowing facilities. The bank facilities are reviewed
annually every May and are now in place for the forthcoming
year.
Non-current loans and borrowings
A non-current loan was drawn down in 2007 from Kreissparkasse to
finance the freehold extension of the warehouse in Nordhorn. In
2016 and 2017 further loans were drawn down to finance developments
at Nordhorn.
The Group's loans and borrowings are within the accounts of
Hemmers. They are denominated in Euros, and their principal terms
are as follows:
Fixed Repayment Final repayment 31 May 2021 31 May 2020
interest profile date GBP000 GBP000
rate
Loan September
1 4.07% Equal monthly instalments 2027 353 436
Loan Equal quarterly September
2 1.65% instalments 2025 835 1,124
Loan Equal quarterly
3 1.05% instalments March 2026 310 390
Non-current loans 1,498 1,950
================================================= ================= ============= =============
6. Other information
The financial information set out above does not constitute the
company's statutory accounts for 2021 or 2020.
Statutory accounts for the years ended 31 May 2021 and 31 May
2020 have been reported on by BDO LLP, Statutory Auditor. The
Independent Auditor's Report on the Annual Report and Financial
Statements for both 2021 and 2020 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 May 2020 have been
filed with the Registrar of Companies. The statutory accounts for
the year ended 31 May 2021 will be delivered to the Registrar in
due course. The Annual Report and Accounts giving notice of the
2021 Annual General Meeting, have been today published on the
Group's website at www.leedsgroup.plc.uk . and have been sent to
those shareholders who have elected to receive a hard copy of the
Annual Report and Accounts by the post.
The Annual General Meeting will be held at 12 noon on 23
November 2021 at the Radisson Blu Hotel, Chicago Avenue, Manchester
Airport, M30 3RA.
Note:
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on the Company's current expectations,
estimates, and projections about its industry; its beliefs; and
assumptions. Words such as 'anticipates,' 'expects,' 'intends,'
'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These
statements are not a guarantee of future performance and are
subject to known and unknown risks, uncertainties, and other
factors, some of which are beyond the Company's control, are
difficult to predict, and could cause actual results to differ
materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders
and prospective security holders not to place undue reliance on
these forward-looking statements, which reflect the view of the
Company only as of the date of this announcement. The
forward-looking statements made in this announcement relate only to
events as of the date on which the statements are made. The Company
will not undertake any obligation to release publicly any revisions
or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of
this announcement except as required by law or by any appropriate
regulatory authority.
This information is provided by RNS, the news service of the
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END
FR GPGAUUUPGGBA
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October 18, 2021 02:00 ET (06:00 GMT)
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