THE JOHN DAVID GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 6 months ended 31 July 2004
Unaudited Unaudited Audited
6 months 6 months ended 12 months
31 July ended 31
January
ended 31 July
2004 2003 2004
Note £000 £000 £000
Turnover 212,079 209,731 458,073
Cost of sales (114,530) (114,077) (249,379)
_______ _______ _______
Gross profit 97,549 95,654 208,694
Operating
expenses (net)
- normal (95,772) (97,583) (198,982)
Operating
expenses (net)
- exceptional (4,717) (1,102) (1,978)
_______ _______ _______
Operating
(loss) /
profit (2,940) (3,031) 7,734
------------------- ------- ------ -------- -------- ---------
Analysed as:
Profit /
(loss) before
exceptional
items and
goodwill
amortisation 2,170 (1,541) 10,498
Exceptional
items 1 (4,717) (1,102) (1,978)
Goodwill
amortisation 1 (393) (388) (786)
------------------- ------- ------ -------- -------- ---------
Operating
(loss) /
profit (2,940) (3,031) 7,734
Loss on
disposal of
fixed assets 2 (1,314) (312) (1,095)
_______ _______ _______
(Loss) /
profit on
ordinary
activities
before
interest (4,254) (3,343) 6,639
Interest
receivable and
similar income 170 50 100
Interest
payable and
similar
charges (2,285) (2,349) (4,634)
_______ _______ _______
(Loss) /
profit on
ordinary
activities
before
taxation (6,369) (5,642) 2,105
Taxation on
(loss) /
profit on
ordinary
activities 3 2,654 2,472 (1,457)
_______ _______ _______
(Loss) /
profit on
ordinary
activities
after taxation (3,715) (3,170) 648
Dividends paid
and proposed 4 (1,063) (1,337) (3,038)
_______ _______ _______
Retained loss (4,778) (4,507) (2,390)
_______ _______ _______
Earnings per
ordinary
share: 5
- Basic (7.95p) (6.78p) 1.39p
- Adjusted to
exclude
exceptional
items and
goodwill
amortisation 0.34p (4.32p) 6.21p
- Diluted (7.95p) (6.78p) 1.39p
CONSOLIDATED BALANCE SHEET
As at 31 July 2004
Unaudited Unaudited Audited
as at as at as at
31 July 31 July 2003 31 January
2004 2004
£000 £000 £000
Fixed assets
Intangible assets 14,583 12,568 14,976
Tangible assets 61,669 70,528 68,183
_______ _______ _______
76,252 83,096 83,159
_______ _______ _______
Current assets
Stocks 72,113 78,646 65,727
Debtors and prepayments 10,623 12,734 14,452
Cash at bank and in hand 24,583 13,919 4,934
_______ _______ _______
107,319 105,299 85,113
Creditors: amounts falling due within
one year (60,877) (70,001) (55,667)
_______ _______ _______
Net current assets 46,442 35,298 29,446
_______ _______ _______
Total assets less current liabilities 122,694 118,394 112,605
Creditors: amounts falling due after
more than one year (64,991) (61,627) (51,555)
Provisions for liabilities and charges (5,187) (2,510) (3,756)
_______ _______ _______
Net assets 52,516 54,257 57,294
_______ _______ _______
Capital and reserves
Called up share capital 2,338 2,338 2,338
Share premium account 8,917 8,917 8,917
Profit and loss account 41,261 43,002 46,039
_______ _______ _______
Equity shareholders' funds 52,516 54,257 57,294
_______ _______ _______
RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS
As at 31 July 2004
Unaudited Unaudited Audited
as at as at as at
31 July 31 July 31 January
2004 2003 2004
£000 £000 £000
(Loss) / profit for the financial
period (3,715) (3,170) 648
Dividends paid and proposed (1,063) (1,337) (3,038)
_______ _______ _______
Retained loss for the financial (4,778) (4,507) (2,390)
period
Irrevocable dividend waiver - - 920
_______ _______ _______
Net movement in equity shareholders'
funds (4,778) (4,507) (1,470)
Opening equity shareholders' funds 57,294 58,764 58,764
_______ _______ _______
Closing equity shareholders' funds 52,516 54,257 57,294
_______ _______ _______
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 31 July
2004
Unaudited Unaudited Audited
6 months 6 months 12 months
ended 31 ended 31 ended 31
July July January
2004 2003 2004
Note £000 £000 £000
Net cash inflow from operating
activities 9,431 11,837 23,600
Returns on investments and servicing of
finance (2,115) (2,203) (4,302)
Taxation 1,074 (58) (1,287)
Capital expenditure (2,741) (4,847) (9,229)
Equity dividends paid - (1,337) (4,375)
_______ _______ _______
Net cash inflow before financing 5,649 3,392 4,407
Financing 14,000 7,000 (3,000)
_______ _______ _______
Increase in cash 6 19,649 10,392 1,407
_______ _______ _______
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1 Operating (loss) / profit and exceptional items
Operating (loss) / profit is stated after charging goodwill amortisation of
£393,000 relating to the acquisition of the Sport and Fashion division from
Blacks Leisure Group Plc in May 2002.
The exceptional items totalling £4,717,000 comprise an impairment provision of
£2,976,000 on stores earmarked for disposal, a provision of £1,012,000 for
onerous leases on stores not trading and £729,000, principally for the
termination costs of the previous Chairman and a number of senior staff in
buying, merchandising, marketing and HR.
2 Exceptional items
In addition to the items described in Note 1 there is an additional charge of
£1,314,000 relating to loss on disposal of fixed assets associated with store
closures.
3 Taxation
Taxation has been estimated at the expected rate for the full year.
4 Dividend
The Directors have declared an interim dividend of 2.20p per ordinary share,
to be paid on 14 January 2005 to shareholders on the register as at 10
December 2004.
5 Earnings per ordinary share
Basic earnings per ordinary share represent the loss for the period of
£3,715,000 (2003: loss £3,170,000) divided by the weighted average number of
ordinary shares in issue of 46,748,607 (2003:46,748,607).
Adjusted earnings per ordinary share have been based on the profit or loss on
ordinary activities after taxation for each financial period but excluding
exceptional items and goodwill amortisation.
The earnings used to calculate earnings per ordinary share is given below:
Unaudited Unaudited Audited
6 months 6 months ended 12 months
31 July ended 31
ended 31 July January
2004 2003 2004
Earnings
attributable
to ordinary
shareholders £000 £000 £000
(Loss) /
profit on
ordinary
activities
after taxation (3,715) (3,170) 648
- Exceptional
items 4,717 1,102 1,978
- Tax
relating to
exceptional
items (1,237) (339) (509)
- Goodwill
amortisation 393 388 786
_______ _______ _______
Profit /
(loss) after
taxation
excluding
exceptional
items and
goodwill
amortisation 158 (2,019) 2,903
_______ _______ _______
Adjusted
earnings per
ordinary share 0.34p (4.32p) 6.21p
_______ _______ _______
6 Analysis of net debt
At 31 January Cash At 31 July
2004 flow 2004
£000 £000 £000
Cash at bank and in hand 4,934 19,649 24,583
_______ _______ _______
4,934 19,649 24,583
Loans (56,000) (14,000) (70,000)
_______ _______ _______
Total net debt (51,066) 5,649 (45,417)
_______ _______ _______
7 Basis of preparation
The unaudited results have been prepared using the same accounting policies as
those used for the financial statements for the year ended 31 January 2004.
The financial information set out above does not constitute full statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The
amounts shown in respect of the period ended 31 January 2004 have been
extracted from the full statutory accounts, on which the auditors have made an
unqualified report. The statutory accounts have been filed with the Registrar
of Companies.
Copies of the interim financial statements will be posted to shareholders and
are available to members of the general public from the company's registered
office: Hollinsbrook Way, Pilsworth, Bury, Lancashire BL9 8RR.
Independent review report by KPMG Audit Plc to The John David Group Plc
Introduction
We have been engaged by the Company to review the financial information set out
on pages 6 to 10 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.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the company for
our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules which require that the accounting policies and presentation applied to the
interim figures should be consistent with those applied in preparing the
preceding annual accounts except where they are to be changed in the next annual
accounts in which case any changes, and the reasons for them, are to be
disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/
4: Review of interim financial information issued by the Auditing Practices
Board for use in the United Kingdom. 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 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 31 July 2004.
KPMG Audit Plc
Chartered Accountants
Preston
14 October 2004