RNS Number:4906P
Longbridge International PLC
08 September 2003
8 September 2003
Longbridge International Plc ("the Company")
Results six Months to 30 June 2003
Highlights
Profit after tax #337,617 (#98,861)
Earning per share 6.86p (2.34p)
Disposal of subsidiaries completed
Frank Varela, Chairman, commented:
I am pleased to report a continued improvement in the Company's performance for
the first half of 2003. During this time the successful reorganisation of the
Group structure was finally completed and the Company now has the appropriate
platform to move forward.
Enquiries:
Mathew Longbottom
Lehman Communications 020 7266 3020
Chairman's Statement
September 2003
I am pleased to report a continued improvement in the Company's performance for
the first half of 2003. During this time the successful reorganisation of the
Group structure was finally completed and the Company now has the appropriate
platform to move forward.
The profit before taxation for the half-year ended 30 June 2003 is #337,617
(2002 #98,861). Earnings per share are 6.86p (2.34p 2002).
Turnover for the six months ended 30 June 2003 was #2,698,676 (2002 #4,512,387).
This continues to reflect the conditions faced by the recruitment sector as a
whole and the rationalisation of the Group's operations. The first half of 2003
was more difficult by comparison to the first half of the previous year, but our
margins are a positive indicator that the cost base is under close control.
The Board does not recommend a dividend at this stage; however every effort is
being made to return to a good dividend yield.
Our core business, Law, continues to perform well and Banking and Financial
Services are regaining some vigour. Our consulting division continues to show
steady progress in its coaching, mentoring, development and performance
management specialisations. 'In brief', our legal publishing business is also
making good progress.
All in all this is a much healthier picture, but we proceed with caution and
prudence despite the much trumpeted recent market improvement. Our targets and
aims for the year 2003 remain conservative. It is still a challenging
environment albeit one in which we believe we can return good growth and profit.
A rise in income generation throughout the next twelve months should mostly feed
through to the bottom line and if the market stabilises we expect to see an
increase in margins.
We therefore believe that not only are we well placed for a recovery but we aim
to outperform the sector in the long term.
As usual I would like to thank our people for their commitment and support - my
gratitude to all of you. Together we look forward with optimism to the next
exciting cycle in our development.
Frank J Varela
Chairman & Managing Director
08 September 2003
Consolidated Profit and Loss Account
2003 2002 2002
6 months to 6 months to Year ended
30 June 30 June 31 December
Unaudited Unaudited Audited
# # #
Turnover 2,698,676 4,512,387 7,496,472
Cost of sales 1,814,164 2,924,636 5,211,737
Gross profit 884,512 1,587,751 2,284,735
Administrative expenses - exceptional
income
- - (72,716)
Other administrative expenses 793,400 1,444,554 2,716,245
Total Administrative expenses 793,400 1,444,544 2,643,529
Operating profit/ (loss) 91,112 143,197 (358,794)
Exceptional items - profit on disposal of
subsidiaries
265,459 - -
Net interest payable (18,954) (44,336) (60,507)
Profit/ (loss) before taxation 337,617 98,861 (419,301)
Taxation - - 79,500
Profit/ (loss) after taxation 337,617 98,861 (339,801)
Dividends - - -
Surplus/(Deficit) transferred to reserves 337,617 98,861 (339,801)
Earnings per share
Basic 6.86p 2.34p (7.60)p
Diluted 6.86p 2.34p (7.60)p
Dividends per share
Interim - - -
Final - - -
Consolidated Balance Sheet
2003 2002 2002
30 June 30 June 31 December
Unaudited Unaudited Audited
# # #
Fixed assets
Tangibles 311,577 481,271 364,558
Investments 20,573 56,826 29,602
332,150 538,097 394,160
Current assets
Debtors 1,508,424 2,610,196 1,084,098
Cash at bank and in hand 969 94,341 51,193
1,509,393 2,704,537 1,135,291
Creditors: amounts falling due within one year 1,997,210 3,262,013 2,144,779
Net current liabilities
(487,817) (557,476) (1,009,488)
Creditors: amounts falling due after more than one 212,332 265,325 155,286
year
Provisions for liabilities and charges - 29,500 -
Net assets (367,999) (314,204) (770,614)
Share capital 102,330 2,314,844 97,294
Share premium account 137,514 1,539,283 77,550
Shares to be issued - 100,000 -
Other reserves (1,229,900) (1,229,900) (1,229,900)
Profit and loss account 622,057 (3,038,431) 284,442
Shareholders' funds - equity (367,999) (314,204) (770,614)
Notes to the Interim Financial Statements
The Board approved the financial information set out in this report on 8th
September 2003. This statement does not comprise statutory accounts within the
meaning of Section 240 of the Companies Act 1985 (as amended) ("the Act").
The financial information for the year ended 31 December 2002 is an extract from
Longbridge's latest Group accounts. The financial information included in this
announcement has been prepared on a consistent basis and using the same
accounting policies as the audited financial statements for the year ended 31
December 2002. Full accounts for the year ended 31 December 2002, which
contained an unqualified auditors report with an explanatory paragraph on going
concern, have been delivered to the Registrar of Companies.
1. All recognised gains and losses are included in the profit
and loss account.
2. Earnings per share for the first half year ended 30 June
2003 have been calculated on the profit/(loss) after taxation and on 4,919,415
ordinary shares (first half 2002: 4,222,276; full year 2002 4,864,687), being
the weighted average number of ordinary shares in issue and ranking for dividend
during the period. Diluted earnings per share, adjusted for the effects of
dilutive share options, have been calculated on the basis of the profit/(loss)
after taxation and the weighted average number of shares number of shares of
4,919,415 (first half 2002: 4,222,276; full year 2002 4,864,687).
3. The directors do not recommend the payment of an interim dividend.
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