RNS Number : 2542B
Leo Insurance Services PLC
23 October 2009
23 October 2009
Leo Insurance Services Plc
("Leo", the "Company" or the "Group")
Interim results for the six months ended 31 July 2009
CHAIRMAN'S STATEMENT
In the half year to 31 July 2009 the Group made a consolidated loss of £26,330 (2008: loss of £15,078).
Leo's single investment is a 50 per cent. share in Grafton Insurance Services Limited a brokerage specialising in property insurance where the main asset continues to be its long term contract with Safeland Plc.
The Board continues to search for growth both organically and via acquisitions.
LG Lipman
Chairman
22 October 2009
CONSOLIDATED INCOME STATEMENT
for the six months ended 31 July 2009
| | Notes | | 6 months ended 31 July 2009 (unaudited) £ | 6 months ended 31 July 2008 (unaudited) £ | 12 months ended 31 January 2009 (audited) £ |
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| Revenue | | | - | - | - |
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| Cost of sales | | | - | - | - |
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| GROSS PROFIT | | | - | - | - |
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| Administrative expenses | | | (38,569) | (45,831) | (85,837) |
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| OPERATING LOSS | | | (38,569) | (45,831) | (85,837) |
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| Share of results of joint venture - post tax | | | 15,133 | 33,206 | 58,135 |
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| LOSS BEFORE INTEREST | | | (23,436) | (12,625) | (27,702) |
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| Finance Income | | | - | 462 | 506 |
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| Finance Costs | | | (2,894) | (2,915) | (5,850) |
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| LOSS BEFORE TAX | | | (26,330) | (15,078) | (33,046) |
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| Taxation | | | - | - | - |
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| LOSS FOR THE PERIOD | | | (26,330) | (15,078) | (33,046) |
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| LOSS PER ORDINARY SHARE | | | | | |
| Basic | 2 | | (0.36p) | (0.21p) | (0.46p) |
| Diluted | 2 | | (0.36p) | (0.21p) | (0.46p) |
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| All results in the current and preceding financial year derive from continuing operations. | |||||
CONSOLIDATED BALANCE SHEET
31 July 2009
| | | | 31 July 2009 (unaudited) £ | 31 July 2008 (unaudited) £ | 31 January 2009 (audited) £ |
| | | Notes | | | |
| NON CURRENT ASSETS | | | | | |
| Interest in joint ventures | | 4 | 34,309 | 49,247 | 19,176 |
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| CURRENT ASSETS | | | | | |
| Trade and other receivables | | | 17,828 | 20,239 | 3,391 |
| Cash and cash equivalents | | | 3,041 | 2,384 | 55,428 |
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| TOTAL CURRENT ASSETS | | | 20,869 | 22,623 | 58,819 |
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| TOTAL ASSETS | | | 55,178 | 71,870 | 77,995 |
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| CURRENT LIABILITIES | | | | | |
| Redeemable preference shares | | | (65,000) | (65,000) | (65,000) |
| Trade and other payable | | | (61,636) | (34,030) | (58,123) |
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| TOTAL CURRENT LIABILITIES | | | (126,636) | (99,030) | (123,123) |
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| NET LIABILITIES | | | (71,458) | (27,160) | (45,128) |
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| EQUITY | | | | | |
| Share capital | | | 72,160 | 72,160 | 72,160 |
| Share premium account | | | 5,761 | 5,761 | 5,761 |
| Retained losses | | | (149,379) | (105,081) | (123,049) |
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| TOTAL EQUITY | | | (71,458) | (27,160) | (45,128) |
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CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 31 July 2009
| | Notes | 6 months ended 31 July 2009 (unaudited) £ | 6 months ended 31 July 2008 (unaudited) £ | 12 months ended 31 January 2009 (audited) £ |
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| OPERATING ACTIVITIES | | | | |
| Net cash out flow from operations | 3 | (52,387) | (67,621) | (69,621) |
| Interest paid | | - | - | - |
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| NET CASH OUTFLOW FROM OPERATING ACTIVITIES | | (52,387) | (67,621) | (69,621) |
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| INVESTING ACTIVITIES | | | | |
| Interest received | | - | 462 | 506 |
| Dividends received from joint venture undertaking | | - | - | 55,000 |
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| NET CASH INFLOW FROM INVESTING ACTIVITIES | | - | 462 | 55,506 |
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| NET DECREASE IN CASH AND CASH EQUIVALENTS | | (52,387) | (67,159) | (14,115) |
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| Cash and equivalents at beginning of period | | 55,428 | 69,543 | 69,543 |
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| CASH AND CASH EQUIVALENTS AT END OF PERIOD | | 3,041 | 2,384 | 55,428 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 July 2009
| | Share Capital £ | Share Premium £ | Retained Losses £ | Total £ |
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| As at 31 January 2008 | 72,160 | 5,761 | (90,003) | (12,082) |
| Loss for the period | - | - | (15,078) | (15,078) |
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| As at 31 July 2008 | 72,160 | 5,761 | (105,081) | (27,160) |
| Loss for the period | - | - | (17,968) | (17,968) |
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| As at 31 January 2009 | 72,160 | 5,761 | (123,049) | (45,128) |
| Loss for the period | - | - | (26,330) | (26,330) |
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| As at 31 July 2009 | 72,160 | 5,761 | (149,379) | (71,458) |
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NOTES TO THE INTERIM FINANCIAL INFORMATION
for the six months ended 31 July 2009
1. BASIS OF PREPARATION
The financial information contained in this interim report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The figures for the period ended 31 January 2009 have been extracted from the audited statutory accounts. The interim results, which have not been audited or reviewed by the company's auditors, have been prepared in accordance with applicable International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). These standards are also collectively referred to as "IFRS".
The accounting policies and methods of computations used are consistent with those used in the Group Annual Report for the year ended 31 January 2009 and are expected to be used in the Group Annual Report for the year ended 31 January 2010.
Statutory accounts for the year ended 31 January 2009 were prepared and filed with the Registrar of Companies and received an unqualified audit report.
The interim report was approved by the Board of Directors on 22 October 2009.
As at 31 July 2009, the Group had net current liabilities of £105,767. Included within current liabilities are redeemable preference shares of £65,000 and accrued dividends on those shares of £16,944. These amounts are all due to Safeland plc, a related party, who has given an undertaking to the group that these amounts will only be payable when there are adequate cash resources within the group so that the group can continue to meet its liabilities as they fall due for the foreseeable future. On the basis of this commitment, and after considering the group's cash flow forecasts, the directors have prepared these interim results on the going concern basis.
Copies of this statement are available to the public for collection at the company's Registered Office at 94-96 Great North Road, London N2 0NL and on the Company's website, www.leoinsurance.co.uk
2. LOSS per share
The loss per share for the period is calculated based upon the following information:
| | | 6 months ended 31 July 2009 (unaudited) | 6 months ended 31 July 2008 (unaudited) | 12 months ended 31 January 2009 (audited) |
| | Weighted average number of shares for basic loss per share | 7,215,956 | 7,215,956 | 7,215,956 |
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| | Weighted average number of shares for diluted loss per share | 7,215,956 | 7,215,956 | 7,215,956 |
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| | Loss for the period | (26,330) | (15,078) | (33,046) |
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3. Reconciliation of operating LOSS to net cash flow from operating activities
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| 6 months ended 31 July 2009 (unaudited) £ | 6 months ended 31 July 2008 (unaudited) £ | 12 months ended 31 January 2009 (audited) £ | |
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| | Loss for the period | (26,330) | (15,078) | (33,046) |
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| | Adjustments for: | | | |
| | Finance income | - | (462) | (506) |
| | Finance costs | 2,894 | 2,915 | 5,850 |
| | Share of results of joint venture - post tax | (15,133) | (33,206) | (58,135) |
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| | Operating cash flow before movements in working capital | (38,569) | (45,831) | (85,837) |
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| | (Increase)/decrease in debtors | (14,437) | (16,480) | 368 |
| | Increase/(decrease) in creditors | 619 | (5,310) | 15,848 |
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| | Net cash flow from operating activities | (52,387) | (67,621) | (69,621) |
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| 4. INTERESTS IN JOINT VENTURE | | | | | | ||||||
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| The Group holds a 50 per cent. investment in Grafton Insurance Services Limited, a joint venture via the ownership of 100% of the "B" ordinary shares. The principal activity of the joint venture is that of a property insurance broker. The Group's share of the joint venture's results and net assets are set out below. | |||||||||||
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| | | 6 months ended 31 July 2009 (unaudited) £ | | 6 months ended 31 July 2008 (unaudited) £ | | 12 months ended 31 January 2009 (audited) £ | |||||
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| | Revenue | 64,477 | | 100,667 | | 161,464 | |||||
| | Operating profit | 18,900 | | 40,751 | | 72,554 | |||||
| | Finance Income | 16 | | 1,276 | | 874 | |||||
| | Profit before tax | 18,916 | | 42,027 | | 73,428 | |||||
| | Tax | (3,783) | | (8,821) | | (15,293) | |||||
| | Profit after tax | 15,133 | | 33,206 | | 58,135 | |||||
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| | Interest in joint venture at 1 February 2009 | 19,176 | | 16,401 | | 16,401 | |||||
| | Share of profit for the year | 15,133 | | 33,206 | | 58,135 | |||||
| | Dividends | - | | - | | (55,000) | |||||
| | Interest in joint venture at 31 July 2009 | 34,309 | | 49,247 | | 19,176 | |||||
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