RNS Number:9949R
Hardy Amies PLC
30 September 2005
Hardy Amies plc
30 September 2005
IMMEDIATE RELEASE 30 September 2005
HARDY AMIES PLC
PRELIMINARY HALF-YEAR RESULTS
"Retail Sales up 38% following investment in the Hardy Amies Brand"
Hardy Amies plc, designers and retailers of haute couture and ready-to-wear
garments and accessories for the Hardy Amies brand is pleased to announce its
preliminary half-year results for the period ended 30 June 2005.
Financial Highlights
Retail sales up 38% to GBP162k (2004: GBP117k).
Total turnover including licensing revenues up 12% to GBP544k (2004: GBP486k)
Gross profit also increased by 12% to GBP339k (2004: GBP302k)
Administrative expenditure of GBP763k (2004: GBP460k) includes marketing
investment
Group operating loss of GBP420k (2004: GBP157k) in line with business expansion
plan
Refurbished flagship store at 14 Savile Row well received
New Bespoke Menswear distribution agreements in place
Hardy Amies Fragrance now also on sale at Space NK stores
Chief Executive, Tim Maltin commented:
"We are delighted to be able to report a 38% increase in retail sales and we
expect trading to remain strong as we continue to invest in the Hardy Amies
brand"
For further information please contact:
Tim Maltin, Chief Executive: 020 7734 2436
Guy Peters, Shore Capital: 020 7408 4090
Chairman's Statement
I am delighted to be able to report a 38% increase in retail sales. This
dramatic improvement is the direct result of the significant investment we
continue to make in our unique brand. We expect that sales will continue to
grow as we begin to reap the full benefits of our newly refurbished flagship
store at 14 Savile Row and our significant investment in brand marketing.
This week has seen the completion of our new menswear store within 14 Savile Row
and I am delighted to report that significant progress has already been made in
our bespoke menswear where, as well as dressing several Sky News Presenters, we
have also reached exclusive marketing agreements to provide our visiting
tailoring service to executives within Tower 42 and Nomura International Bank.
We are also in discussion with other potential partners in this area.
Our new Hardy Amies fragrance for women has been well received by press and
customers and is currently also on sale throughout the Space N.K. network of
cosmetics stores. It is the intention of the Board to follow this success by
signing a new international cosmetics licensing deal with a major fragrance
distributor and to work with them to develop Eau de Toilet versions for both men
and women, for wider sale both in the UK and internationally.
Our international licensing income is up 4% and this week sees the conclusion of
a new sub-licensing deal for Hardy Amies underwear in South Korea. We are also
in discussion with several potential new licensees for both Hardy Amies and
Norman Hartnell, both in the UK and overseas.
Gross Profit is up 12% and we expect this to further improve as our highly
profitable licensing income increases.
BMB are making strong progress with their diffusion line for Hardy Amies
menswear, which they expect to launch at 14 Savile Row in January of next year,
for sale throughout the UK from Autumn/Winter 2006.
The new Hardy Amies advertising campaign is currently featured in a selection of
fashion magazines from Vogue to Esquire and has proved a great success with our
traditional customers as well as with the press and new customers. The
significant increase in our Administrative Expenditure this year begins to
reflect our increased investment in marketing and advertising, as well as
all-important investment in our trademark portfolios.
We will continue to invest in your brand, with a view to making it a stronger
and stronger platform from which to execute profitable licensing deals. Thank
you all for your continued support and I look forward to seeing as many of you
as possible at our forthcoming AGM.
Timothy Maltin
Chairman and Chief Executive
Hardy Amies plc
29 September 2005
Group Profit and Loss Account
for the period 1 January 2005 to 30 June 2005
Year
6 Months 6 Months ended
to 30 June to 30 June 31 Dec
2005 2004 2004
Unaudited Unaudited Audited
Notes # # #
Turnover
Licensee income 382,418 367,810 671,600
Retail sales 162,067 117,692 224,845
__________ __________ __________
544,485 485,502 896,445
Cost of sales (205,873) (183,053) (334,097)
__________ __________ __________
Gross profit 338,612 302,449 562,348
Administrative expenses:
AIM flotation costs - - (81,393)
Other administrative expenses (762,891) (459,866) (1,058,885)
Other operating income 4,000 - -
__________ __________ __________
Group operating loss (420,279) (157,417) (577,930)
Interest receivable and similar
income 8,641 - -
Interest payable and similar
charges (9,910) (12,224) (27,307)
__________ __________ __________
Loss on ordinary
activities before taxation (421,548) (169,641) (605,237)
Tax on loss on
ordinary activities 3 (27,365) (32,312) (60,199)
__________ __________ __________
Loss for the group for the
financial year (448,913) (201,953) (665,436)
Accumulated loss brought forward (6,009,852) 5,344,416 (5,344,416)
__________ __________ __________
Accumulated loss carried forward (6,458,765) (5,546,369) (6,009,852)
__________ __________ __________
Loss per ordinary share 2 (0.50)p (0.47)p (1.50)p
__________ __________ __________
Fully diluted loss per share 2 (0.50)p (0.42)p (1.33)p
__________ __________ __________
There are no recognised gains or losses other than the profit or loss for the
above two financial periods.
None of the group's activities was acquired or discontinued during the above two
financial periods.
Group Balance Sheet
as at 30 June 2005
30 June 30 June 31 Dec
2005 2004 2004
Unaudited Unaudited Audited
Notes # # #
Fixed assets
Intangible assets 643,461 686,793 665,127
Tangible assets 4 214,231 164,719 148,802
_________ _________ _________
857,692 851,512 813,929
_________ _________ _________
Current assets
Stocks 106,670 29,829 58,712
Debtors 371,118 345,769 363,518
Cash at bank and in hand 478,967 23,840 1,394,978
_________ _________ _________
956,755 399,438 1,817,208
_________ _________ _________
Creditors: amounts falling
due within one year (218,563) (590,248) (345,011)
_________ _________ _________
Net current assets/(liabilities) 738,192 (190,810) 1,472,197
_________ _________ _________
Total assets less current
liabilities 1,595,884 660,702 2,286,126
Creditors: amounts falling due
after more than one year (202,484) (206,041) (206,041)
Accruals and deferred income (1,043,392) (1,398,949) (1,275,257)
_________ _________ _________
Net assets/(liabilities) 350,008 (944,288) 804,828
_________ _________ _________
Capital and reserves
Called up share capital 7 2,729,325 2,263,017 2,729,325
Reserves (2,379,317) (3,207,305) (1,924,497)
_________ _________ _________
Shareholders' funds/(deficit) 5 350,008 (944,288) 804,828
_________ _________ _________
Equity interests (1,483,397) (2,777,693) (1,028,577)
Non-equity interests 1,833,405 1,833,405 1,833,405
_________ _________ _________
350,008 (944,288) 804,828
_________ _________ _________
Group Cash Flow Statement
for the period 1 January 2005 to 30 June 2005
6 Months 6 Months Year ended
to 30 June to 30 June 31 Dec
2005 2004 2004
Unaudited Unaudited Audited
# # #
Reconciliation of operating loss to net
cash inflow from operating activities
Operating loss (420,279) (157,417) (577,930)
Depreciation 41,801 34,767 91,889
Movement in stocks (47,958) (7,124) (36,007)
Movement in debtors (7,600) 217,235 199,488
Movement in creditors (126,448) (6,751) (251,990)
Movement in accruals and deferred income (231,865) (240,000) (363,692)
_________ _________ _________
Net cash inflow from operating activities (792,349) (159,290) (938,242)
_________ _________ _________
CASH FLOW STATEMENT
Net cash inflow from operating activities (792,349) (159,290) (938,242)
Returns on investments and servicing of
finance (1,269) (12,224) (27,307)
Taxation (27,365) (32,312) (60,199)
Capital expenditure (85,564) (1,966) (21,505)
_________ _________ _________
(906,547) (205,792) (1,047,253)
Financing (9,464) 2,342 2,214,941
_________ _________ _________
(Decrease)/increase in cash in the period (916,011) (203,450) 1,167,688
_________ _________ _________
Reconciliation of net cash flow to movement in net funds (Note 6)
(Decrease)/increase in cash in the period (916,011) (203,450) 1,167,688
Cash outflow/(inflow) from decrease in 3,557 (11,022) (11,022)
debts and loan financing
_________ _________ _________
Movement in net (debt)/funds in the (912,454) (214,472) 1,156,666
period
Net debt at 1 January 1,164,937 8,271 8,271
_________ _________ _________
Net funds/(debt) at period end 252,483 (206,201) 1,164,937
_________ _________ _________
Notes to Financial Statements
for the period 1 January 2005 to 30 June 2005
1. Accounting policies
1.1. Accounting convention
The financial statements are prepared under the historical cost convention
and in accordance with applicable accounting standards.
The company has consistently applied all relevant accounting standards.
1.2. Basis of of preparation
The financial information in this report has been reviewed by the company's
auditor, but is unaudited and does not constitute statutory accounts within
the meaning of section 240 (3) of the Companies Act 1985. Statutory
accounts for the year ended 31 December 2004, upon which the auditors gave
an unqualified report, have been delivered to the Registrar of Companies.
1.3. Basis of consolidation
The group financial statements consolidate the accounts of Hardy Amies plc
and all its subsidiary undertakings made up to the accounting reference
date each period. The combination with Royal Parks Enterprises Limited has
been recorded under the principles of merger accounting and the combination
with all other subsidiary undertakings has been recorded under the
principles of acquisition accounting.
Turnover and profits arising on trading between group companies are
excluded.
1.4. Deferred taxation
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events have occurred at that date that will result in an obligation to pay
more, or a right to pay less or to receive more tax, with the following
exceptions:
Deferred tax assets are recognised only to the extent that the directors
consider that it is more likely than not that there will be suitable
taxable profits from which the future reversal of the underlying timing
differences can be deducted. Deferred tax is measured on an undiscounted
basis at the tax rates that are expected to apply in the periods in which
timing differences reverse, based on tax rates and laws enacted or
substantively enacted at the balance sheet date.
2. Loss per share
The calculation of the loss per share is based on the consolidated loss
after tax for the period of #448, 913 (30 June 2004: loss #201,953 and
year ended 31 December 2004: loss #665,436) and on 89,591, 867 (30 June
2004: 42,961,169 and 31 December 2004: 44,264,457) ordinary shares of 1p
each.
The calculation of the fully diluted loss per share is based on the loss as
above and on 89,591,867 (30 June 2004: 52,553,403 and 31 December 2004:
49,267,846) ordinary shares of 1p each being the weighted average number of
shares in issue and share options and warrants available, during the
period.
3. Tax on loss on ordinary activities
Year
Analysis of charge in the period 6 Months 6 Months ended
to 30 June to 30 June 31 Dec
2005 2004 2004
Unaudited Unaudited Audited
# # #
Current tax
Foreign withholding tax 27,365 32,312 60,199
_______ _______ _______
Total current tax charge 27,365 32,312 60,199
_______ _______ _______
Tax on loss on ordinary activities 27,365 32,312 60,199
_______ _______ _______
Factors that may affect future tax charges
No deferred tax asset has been recognised in the accounts for the year
ended 30 June 2005 on the grounds that there is insufficient evidence that
this asset is recoverable. This assumption is based on the financial
projections and the recent performance of the group as a whole. The group
has an unrecognised deferred tax asset of #2,470,457 (30 June 2004:
#2,000,000 and 31 December 2004: #2,372,246) in this respect.
The deferred tax asset would become recoverable if the group started to
make sufficient taxable profits to allow the brought forward losses to be
utilised.
The deferred tax asset is based upon the unrelieved trading losses of the
group and timing differences that have originated but not reversed by the
balance sheet date.
4. Tangible fixed assets
Short Plant and Fixtures, Total
leasehold machinery fittings &
improve- equipment
ments
# # # #
Group
Cost
At 1 January 2005 199,084 8,343 171,483 378,910
Additions 53,858 2,139 29,567 85,564
_______ _______ _______ _______
At 1 January 2005
At 30 June 2005 252,942 10,482 201,050 464,474
_______ _______ _______ _______
Depreciation
At 1 January 2005 55,374 5,386 169,348 230,108
Charge for the period 13,112 3,194 3,829 20,135
_______ _______ _______ _______
At 1 January 2005
At 30 June 2005 68,486 8,580 173,177 250,243
_______ _______ _______ _______
Net book values
At 30 June 2005 184,456 1,902 27,873 214,231
_______ _______ _______ _______
At 31 December 2004 143,710 2,957 2,135 148,802
_______ _______ _______ _______
5. Reconciliation of movements in shareholders' funds/(deficit)
30 June 30 June 31 Dec
2005 2004 2004
Unaudited Unaudited Audited
# # #
Group
Loss for the period (448,913) (201,953) (665,436)
Net proceeds of equity shares issues (5,907) (8,680) 2,203,919
_________ _________ _________
Net (reduction)/addition to shareholders'
funds (454,820) (210,633) 1,538,483
Opening shareholders' funds/(deficit) 804,828 (733,655) (733,655)
_________ _________ _________
350,008 (944,288) 804,828
_________ _________ _________
6. Analysis of changes in net funds
Opening Cash Closing
balance flows balance
1 January 30 June
2005 2005
# # #
Cash at bank and in hand 1,394,978 (916,011) 478,967
Overdrafts (24,000) - (24,000)
_________ _________ _________
1,370,978 (916,011) 454,967
_________ _________ _________
Debt due after one year (206,041) 3,557 (202,484)
_________ _________ _________
Net funds 1,164,937 (912,454) 252,483
_________ _________ _________
7. Share capital 30 June 30 June 31 Dec
2005 2004 2004
Unaudited Unaudited Audited
# # #
Authorised equity
316,659,479 ordinary shares of 1p each 3,166,595 3,166,595 3,166,595
183,340,521 deferred shares of 1p each 1,833,405 1,833,405 1,833,405
_________ _________ _________
5,000,000 5,000,000 5,000,000
_________ _________ _________
Allotted, called up and fully paid equity
89,591,867 (30 June 2004: 42,961,169)
ordinary shares of 1p each 895,920 429,612 895,920
183,340,521 deferred shares of 1p each 1,833,405 1,833,405 1,833,405
_________ _________ _________
2,729,325 2,263,017 2,729,325
_________ _________ _________
Equity interest 895,920 429,612 895,920
Non-equity interest 1,833,405 1,833,405 1,833,405
_________ _________ _________
2,729,325 2,263,017 2,729,325
_________ _________ _________
Class rights
The deferred shares of 1p each carry the right to repayment of 1p each on a
winding up or repayment of capital of the company after repayment of
#1,000,000 on each of the ordinary shares of 1p in issue in the capital of
the company and carry no other right to participate in the capital or
income of the company or right to vote.
Share issues
On 12 August 2004, the company issued 3,350,000 ordinary shares of 1p each
at 6p per share, raising #201,000. The share premium in this respect has
been credited to the share premium account.
In December 2004, a further 43,280,698 ordinary shares of 1p each at 6p per
share were issued, raising #2,596,842. The share premium in this respect
has been credited to the share premium account.
Warrants
The company has issued warrants to subscribe for 4 million ordinary shares
of 1p each at a price of 9p per share.
Share options
At 30 June 2005, the following share options were in issue in respect of
the ordinary shares of 1p each.
Number Exercisable Price
from to
Timothy Maltin 1,000,000 08/01/02 08/01/11 20p
10% equity 03/12/03 03/12/08 6p
Lady Rona Delves Broughton 200,000 18/02/00 18/02/05 45.5p
Anthony Lim 10% equity 03/12/03 03/12/08 6p
Robert MacDonald Watson 50,000 06/11/01 17/10/06 40p
8. Copies of the interim report
Copies of the interim report will be sent to shareholders and are available
from the company secretary at the company's registered office:
85 Elsenham Street, London SW18 5NX.
REVIEW REPORT BY THE AUDITORS OF HARDY AMIES PLC TO THE
DIRECTORS OF HARDY AMIES PLC
Introduction
We have been instructed by the company to review the financial information
set out on pages 2 to 9 and we have read the other information contained in
the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein,
is the responsibility of, and has been approved by the directors. The AIM
Rules require that the accounting policies and presentation applied to the
interim figures should be consistent with those that will be adopted in the
company's annual accounts.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists
principally of making enquiries of group management and applying analytical
procedures to the financial information and underlying financial data and
based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope
than an audit performed in accordance with Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 30 June 2005.
UHY Hacker Young
Chartered Accountants 168 Church Road Hove East Sussex BN3 2DL
Date: 29 September 2005
This information is provided by RNS
The company news service from the London Stock Exchange
END
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