LAURA ASHLEY HOLDINGS PLC
Group Profit and Loss Account
For the 26 weeks ended 31 July 2004
 
 
 26 weeks to 26 weeks to 53 weeks to
 31 July 2004 26 July 2003 31 January 2004
 (unaudited) (unaudited) (audited)
 Total Total Total
 £m £m  £m
------------------------------ --------- ------- ----------
Turnover 118.0 137.9 283.5
Cost of sales (69.9) (82.5) (170.9)
------------------------------ --------- ------- ----------
Gross profit 48.1 55.4 112.6
------------------------------ --------- ------- ----------
Operating expenses  (49.3) (56.4) (109.3)
------------------------------ --------- ------- ----------
Operating (loss)/profit (1.2) (1.0) 3.3
Share of operating
profit of associated
undertaking 0.2 0.5 0.6
------------------------------ --------- ------- ----------
(Loss)/profit on ordinary 
activities before interest (1.0) (0.5)  3.9
Interest receivable 0.1 0.1 0.2
Interest payable (0.3) (0.6) (1.0)
------------------------------ --------- ------- ----------
(Loss)/profit on ordinary 
activities before taxation (1.2) (1.0) 3.1
Taxation on (loss)/profit on
ordinary activities 0.4 (0.3) (1.1)
------------------------------ --------- ------- ----------
(Loss)/profit for the
financial period (0.8) (1.3) 2.0
------------------------------ --------- ------- ----------
(Loss)/earnings per share - 
basic and diluted  (0.11)p (0.20)p 0.28p
------------------------------ --------- ------- ----------
 
The Group's results shown above are derived entirely from
continuing operations.
 
Statement of Total Recognised Gains and Losses
For the 26 weeks ended 31 July 2004
 
 26 weeks to 26 weeks to 53 weeks to
 31 July 2004 26 July 2003 31 January 2004
 (unaudited) (unaudited) (audited)
 £m £m £m
------------------------------ --------- ------- ----------
(Loss)/profit on ordinary 
activities after taxation (0.8) (1.3) 2.0
Exchange differences arising 
on translation of net 
investments in overseas 
subsidiary undertakings - (1.2) (0.5)
Prior year adjustment relating 
to the period ended 25 January
2003 and before - (0.5) (0.5)
------------------------------ --------- ------- ----------
Total recognised (losses)/
gains for the period (0.8) (3.0)  1.0
------------------------------ --------- ------- ----------
 
 
Group Balance Sheet
As at 31 July 2004
 
 At 31 July 2004 At 26 July 2003 At 31 January 2004
 (unaudited) (unaudited) (audited)
 £m £m £m
------------------------- ---------- ---------- -------------
Fixed assets
Tangible fixed assets 31.9  36.8 33.9
 ---------- ---------- -------------
Investment in associated
undertaking 3.3 3.4 3.4
Own shares  0.8 0.8 0.8
 ---------- ---------- -------------
Total investments 4.1 4.2 4.2
 ---------- ---------- -------------
------------------------- ---------- ---------- -------------
 36.0 41.0 38.1
------------------------- ---------- ---------- -------------
Current assets
Stocks 40.5 52.0 41.8
Debtors 26.1 27.7 20.8
Short-term deposits and 
cash 10.3 11.4 15.1
------------------------- ---------- ---------- -------------
 76.9 91.1 77.7
------------------------- ---------- ---------- -------------
Creditors: amounts due 
within one year
Trade and other creditors 46.5 64.1 47.4
------------------------- ---------- ---------- -------------
Net current assets  30.4 27.0 30.3
------------------------- ---------- ---------- -------------
Total assets less current 
liabilities 66.4 68.0 68.4
------------------------- ---------- ---------- -------------
Creditors: amounts due 
after one year
Trade and other creditors 5.0 6.1 5.6
------------------------- ---------- ---------- -------------
Provisions for
liabilities and charges 0.5 3.9 1.1
------------------------- ---------- ---------- -------------
Net assets 60.9 58.0  61.7
------------------------- ---------- ---------- -------------
Capital and reserves
Share capital 37.3 37.3 37.3
Share premium account 86.4 86.7  86.4
Profit and loss account (62.8) (66.0) (62.0)
------------------------- ---------- ---------- -------------
Equity shareholders'
funds 60.9 58.0  61.7
------------------------- ---------- ---------- -------------
 
 
Group Cash Flow Statement
For the 26 weeks ended 31 July 2004
 26 weeks to 26 weeks to 53 weeks to
  31 July 2004 26 July 2003 31 January 2004
 (unaudited) (unaudited) (audited)
 £m £m £m
---------------------------------- -------- -------- ---------
Net cash (outflow)/inflow from
operating activities (1.9) (1.3) 10.6
---------------------------------- -------- -------- ---------
Dividends received from
associated undertaking 0.1 0.2 0.2
---------------------------------- -------- -------- ---------
Returns on investments and
servicing of finance
Interest received 0.1 0.1 0.1
Interest paid (0.3) (0.4) (0.7)
Interest element of finance
lease rental payments (0.1) (0.2) (0.3)
----------------------------------  -------- -------- ---------
Net cash outflow for returns
on investments and servicing
of finance (0.3) (0.5) (0.9)
---------------------------------- -------- -------- ---------
Net tax paid (0.4) (0.1) (0.7)
---------------------------------- -------- -------- ---------
Capital expenditure
Acquisition of tangible fixed
assets  (1.5) (1.4) (2.4)
Disposal of tangible fixed
assets 1.1 1.5 1.7
---------------------------------- -------- -------- ---------
Net cash (outflow)/inflow for
capital expenditure and
financial investment (0.4) 0.1 (0.7)
---------------------------------- -------- -------- ---------
Acquisitions and disposals
Cash balances disposed of with
subsidiaries  - - (1.5)
---------------------------------- -------- -------- ---------
Net cash outflow for
acquisitions and disposals - - (1.5)
---------------------------------- -------- -------- ---------
Net cash (outflow)/inflow
before financing (2.9) (1.6) 7.0
---------------------------------- -------- -------- ---------
Financing
Issue of ordinary share capital - 9.0 9.0
Expenses of share issue - (0.5) (0.8)
Loans repaid (1.0) (6.2) (9.4)
Capital element of finance leases (0.9) (1.3) (2.6)
---------------------------------- -------- -------- ---------
Net cash (outflow)/inflow from
financing (1.9) 1.0 (3.8)
---------------------------------- -------- -------- ---------
Net (decrease)/increase in cash (4.8) (0.6) 3.2
---------------------------------- -------- -------- ---------
 
Reconciliation of Net Cash Flow to Movement in
Net Funds/(Debt)
 26 weeks to 26 weeks to 53 weeks to
 31 July 2004 26 July 2003 31 January 2004
  (unaudited) (unaudited) (audited)
 £m £m £m
---------------------------------- -------- -------- ---------
Net (decrease)/increase in cash (4.8)  (0.6) 3.2
Cash outflow from changes in
loans and leases 1.9 7.5 12.0
---------------------------------- -------- -------- ---------
Change in net cash resulting
from cash flows (2.9) 6.9 15.2
Other non-cash items:
Translation differences - 0.3 0.1
---------------------------------- -------- -------- ---------
Change in net funds during the
period (2.9) 7.2 15.3
Net funds/(debt) at the
beginning of the period 6.8 (8.5) (8.5)
---------------------------------- --------  -------- ---------
Net funds/(debt) at the end of
the period 3.9 (1.3) 6.8
---------------------------------- -------- -------- ---------
 
Notes
 
 
 
1 Basis of preparation
 
The unaudited results for the 26 weeks ended 31 July 2004 were approved by the
Board of Directors on 22 September 2004 and have been prepared in accordance 
with applicable Accounting Standards in the United Kingdom. The accounting
principles applied are those set out in the Annual Report and Accounts for the
period ended 31 January 2004 together with any subsequent requirements 
thereafter.
 
The results for the period ended 31 January 2004 are extracted from the Group's
full statutory accounts for that period.
 
The financial information in this statement does not constitute full statutory
acounts within the meaning of Section 240 of the Companies Act 1985. Full 
statutory accounts for the year ended 31 January 2004 incorporating an 
unqualified auditors' report have been delivered to the Registrar of Companies.
 
2 Segmental analysis
 
 26 weeks to 26 weeks to 53 weeks to
 31 July 2004 26 July 2003 31 January 2004
  Total Total Total
 (unaudited) (unaudited) (audited)
 £m £m £m
 ------------------------------- ---------  -------- ---------
Turnover
Retail 102.1 124.4 254.7
Non-retail 15.9 13.5 28.8
------------------------------- --------- --------  ---------
 118.0 137.9 283.5
------------------------------- --------- -------- ---------
 
Retail turnover reflects sales through Laura Ashley managed stores, Mail Order
and Internet.
 
Non-retail turnover includes Licensing, Franchising and Manufacturing.
 
(Loss)/profit before taxation
Branch contribution
Retail 6.9 8.7 20.2
Non-retail 3.7  3.7 8.7
------------------------------- --------- -------- ---------
 10.6 12.4 28.9
Indirect overhead costs (11.8) (13.4) (25.6)
------------------------------- --------- -------- ---------
Operating (loss)/profit (1.2) (1.0) 3.3
Share of profit of
associated undertaking 0.2 0.5 0.6
Net interest payable (0.2) (0.5) (0.8)
------------------------------- --------- -------- ---------
(Loss)/profit on ordinary
activities before taxation (1.2) (1.0) 3.1
------------------------------- --------- -------- ---------
 
Net assets
Retail 44.8 43.1 46.0
Non-retail 16.1 14.9 15.7
------------------------------- --------- -------- ---------
 60.9 58.0 61.7
 ------------------------------- --------- -------- ---------
 
Retail branch contribution reflects contribution through Laura Ashley managed
stores, Mail Order and Internet.
 
Branch contribution is stated after deducting direct operating expenses but
before exceptional items, buying, marketing and administrative costs.
 
 
3 Principal exchange rates 
 
 26 weeks to 26 weeks to 53 weeks to
 31 July 2004 26 July 2003 31 January 2004
 ------------- ------------- -------------
 Average Period end Average Period end Average Period end
------------- ------- ---------- ------- ---------- ------- ----------
US Dollar 1.81 1.82 1.61 1.62 1.65 1.82
Euro 1.49 1.51 1.45 1.41 1.44 1.47
Japanese Yen 199 203 192 193 190 193
------------- ------- ---------- ------- ---------- ------- ----------
 
4 Taxation
 
Taxation has been calculated by applying the forecast full year effective rate
of tax in the individual fiscal territories to the results for this period.
 
5 (Loss)/earnings per share 
 
Basic (loss)/earnings per share is calculated by dividing the (loss)/earnings 
attributable to ordinary shareholders by the weighted average number of ordinary 
shares during the year.
 
 26 weeks to 26 weeks to 53 weeks to
 31 July 2004 26 July 2003 31 January 2004
 (unaudited) (unaudited) (audited)
----------------------------- ------------ ------------ ---------------
(Loss)/earnings attributable 
to ordinary shareholders (£m) (0.8) (1.3) 2.0
----------------------------- ------------ ------------ ---------------
Weighted average number
of ordinary shares ('000)
- basic and diluted 743,547 659,925 702,525
----------------------------- ------------ ------------ ---------------
(Loss)/earnings per share (0.11)p (0.20)p 0.28p
----------------------------- ------------ ------------ ---------------
 
6 Reconciliation of movements in shareholders' funds 
 
 26 weeks to 26 weeks to 53 weeks to
 31 July 2004 26 July 2003 31 January 2004
  (unaudited) (unaudited) (audited)
 £m £m £m
----------------------------- ------------ ------------ ---------------
(Loss)/profit for the
financial period  (0.8) (1.3) 2.0
Other recognised losses 
(net) - (1.2) (0.5)
New share capital
subscribed, after issue
costs of £0.5m - 8.5  8.2
----------------------------- ------------ ------------ ---------------
Net (decrease in)/addition
to shareholders' funds (0.8) 6.0 9.7
Opening equity shareholders'
funds  61.7 52.0 52.0
----------------------------- ------------ ------------ ---------------
Closing equity shareholders'
funds 60.9 58.0 61.7
----------------------------- ------------ ------------ ---------------
 
7 Profit and loss account 
 
 (unaudited)
 £m
----------------------------- ---------------
At 31 January 2004 (62.0)
Loss retained for the period (0.8)
-----------------------------  ---------------
At 31 July 2004 (62.8)
----------------------------- ---------------
 
8 Reconciliation of operating loss to net cash (outflow)/inflow from operating
activities
 
 26 weeks to 26 weeks to 53 weeks to
 31 July 2004 26 July 2003 31 January 2004
 (unaudited) (unaudited) (audited)
  £m £m £m
----------------------------- ------------ ------------ ---------------
Operating (loss)/profit (1.2) (1.0) 3.3
Depreciation charge  3.3 3.8 7.3
Cash element of losses
on termination - - 1.5
Profit on sale of fixed
assets (0.8) (0.6) (1.0)
Decrease/(increase) in
stocks 1.3 (4.7) 3.9
(Increase)/decrease in
debtors (5.3) (0.9) 5.5
Increase/(decrease) in
creditors 1.3 5.3 (4.7)
Movement on provisions (0.4) (3.1) (5.0)
Net cash outflow in
respect of restructuring (0.1) (0.1) (0.2) 
----------------------------- ------------ ------------ ---------------
Net cash (outflow)/inflow
from operating activities (1.9) (1.3) 10.6
----------------------------- ------------ ------------ ---------------
 
9 Provisions
 
 Restructuring Pensions Deferred Tax Total
 £m £m £m £m
---------------------- -------- ----------- ----------- ---------
At 1 February 2004 1.0  0.1 - 1.1
Utilisation (0.6) - - (0.6)
---------------------- -------- ----------- ----------- ---------
At 31 July 2004 0.4 0.1  - 0.5
---------------------- -------- ----------- ----------- ---------
 
 £m
---------------------- -------- ----------- ----------- ----------
Restructuring
provisions
Rationalisation of
administrative 0.1
functions
Rationalisation of
store portfolio 0.1
Provision for 
termination of
European operations 0.2
---------------------- -------- ----------- ----------- ----------
 0.4
---------------------- -------- ----------- ----------- ----------