UK: Bakery Firm Lees Foods Sees H1 Revenue Increase 14%

30 September 2009

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INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2009

Group Sales for the first six months of 2009 exceeded last year's figures by £1,052,929, increasing from £7,798,838 to £8,851,767.  Profit before tax for the six-month period of this year was £393,831 against last year's figure of £208,093.

David Simson, Group Finance Director commented:

"We are pleased to report a 14 per cent increase in our sales for the first six months of 2009. The increase has been achieved through record sales at Lees of Scotland and The Waverley Bakery."

"Both companies have successfully introduced new products to the market and we have continued to grow our business with existing customers and in addition developed new customers across the UK."

"Pre-tax profits improved due to higher sales and an improvement in our margins. We endeavour to source materials at the most economic levels, however, the euro exchange rate has adversely affected costs of some ingredients. This has been partially offset by lower energy costs and improved production efficiencies."

"As previously reported, Patisserie UK was placed in administration in March 2009, and all revenues and costs associated with this business have now been transferred to discontinuing operations on the Income Statement. We continue to progress a claim against the Vendors under the warranties contained within the acquisition agreement."

"Both our continuing operations expect to maintain trading at levels in line with forecasts for the remainder of the year with underlying profits for the full year anticipated to be better than originally forecasted. Nadia Millar will continue to head The Waverley Bakery and Clive Miquel will continue to manage Lees of Scotland."

"The Directors are focussed on continuing to grow the sales and profit of Lees Foods and we believe that there are exciting opportunities, especially through new product developments, to achieve our growth targets. We will also consider acquisition opportunities that are complementary to our business if and when, these arise."

"The dividend of 6.7p which was proposed at the AGM was paid to shareholders on 26 June 2009."

"Following the departure of Raymond Miquel on 11 September 2009 as the Company's Chairman and Chief Executive, there is a new Board Structure and this will be announced shortly."

  

LEES FOODS PLC

CONSOLIDATED INCOME STATEMENT TO 30TH JUNE 2009

  

LEES FOODS PLC

CONSOLIDATED BALANCE SHEET AT 30th JUNE 2009

  LEES FOODS PLC

CONSOLIDATED CASH FLOW STATEMENT for the six months ended 30 June 2009

  LEES FOODS PLC

NOTES TO THE FINANCIAL INFORMATION for the six months ended 30 June 2009

1.    Accounting Policies

    

Basis of preparation

The condensed financial statements have been prepared using accounting policies consistent with  International Financial Reporting Standards (IFRSs) and in accordance with International Accounting Standard (IAS) 34: Interim Financial Reporting.

Significant accounting policies

The condensed financial statements have been prepared under the historical cost convention.

The same accounting policies, presentation and methods of computation are followed in these condensed financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2008. The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 31 December 2009.

 The figures for the year ended 31 December 2008 have been extracted from the audited accounts of Lees Foods Plc. The accounts for the year ended 31 December 2008 received an unqualified audit report and are filed with the Registrar of Companies.

 The financial information for the 6 months ended 30 June 2009 and 30 June 2008 are unaudited and do not constitute statutory accounts.

    The 6 months results have been approved by the board.

Basis of consolidation

The condensed financial statements incorporate the financial statements of the company and all principal subsidiaries for the period ended 30 June 2009.  

          All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

2.    Segment information

The directors have considered the revenue streams of the business, in line with IAS 14 "Segment reporting", and conclude that the business has one main business segment, the manufacture and supply of bakery related products. In reaching this conclusion the directors have considered, the nature of the products, the nature of the production processes, the type of customers for the products, and the methods used to distribute the products.

Geographical information

The Group's production facilities are based in the UK.

3.    Taxation

    Taxation has been provided at the expected annual tax rate.

4.    Discontinued operations

    Patisserie UK Limited discontinued its operations and was placed into administration in March 2009. As a result, the consolidated income statements to 30 June 2008 and to 31 December 2008 have been restated to transfer the trading results of the company to (loss)/profit from discontinued operations. 

    The trading results of Patisserie UK Limited are analysed as follows:

5.    Earnings per Share

    Basic earnings per share is calculated on the basis of profit for the period after tax divided by the weighted average of shares in issue.

    Diluted earnings per share is calculated on the basis of profit after tax for the period divided by the weighted average of shares in issue, adjusted for the number of shares under option.

6.    Dividend

    The final dividend for the year ended 31 December 2008 of 6.7p (2007: 6.7p) was paid on 26 June 2009.

7.     Property, plant and equipment

    During the period, the Group spent approximately £238,000 on additions to property, plant and equipment. 

It also disposed of certain of its property, plant and equipment with a carrying amount of approximately £2,000 for proceeds of £2,200. 

8.    Related party transactions

    There were no material related party transactions in the period ended 30 June 2009.

9.    Statement of Changes in Shareholders' Equity

    

10.    Approval of interim financial statements

    The interim financial statements were approved by the board of directors on 29 September 2009.