Interim Results
03 June 2003 - 5:00PM
UK Regulatory
RNS Number:8245L
Landround Plc
03 June 2003
Embargoed 7am Tuesday June 3 2003
LANDROUND PLC ANNOUNCES RECORD INTERIM RESULTS
AND MAJOR NEW CLIENT
Landround plc, the AIM-listed travel promotions company, announces its unaudited
interim results for the six months ended March 31 2003.
Highlights:
* Profit before tax more then trebled to #950,000 (2002: #272,000)*
* Turnover up a third at #3.9m (2002: #2.9m)
* Earnings per share at 12.2p (2002: 3.34p)
* Interim dividend of 3.5p per share (2002: 1p)
* Ireland's Statoil signs to Buy and Fly!
* Board changes announced
*Prior to goodwill amortisation
Chairman Michael Crompton said: "These results were achieved against an
uncertain UK economic background. The slowdown in the domestic economy, and the
prospect, then the reality of war in the Middle East, appear not to have harmed
our business.
"Profits from our traditional voucher based products were particularly strong,
reflecting the attraction of the product to marketers and the management effort
that has gone into building and focusing the sales team. The planned growth in
Buy and Fly! continued with sales 46 per cent up on the equivalent period last
year. Travel Offers Limited's performance also continued to improve.
"Our Buy and Fly! proposition continues to gain momentum despite the wider
uncertainty surrounding air travel. We have signed several new clients in in the
first half in the business to business and staff incentives sector, including
Reckitt & Benckiser and Britvic.
"Voucher sales in the core UK market have surpassed all expectations during this
half with major promotions with Surf and Pertemps amongst others. Our decision
to expand our business in the Republic of Ireland has been successful with major
business contract wins with Eircom, Toyota and Vodafone.
More...
"The year has started particularly well and there is every reason to look
forward to a good second half.
"I have decided to relinquish my few remaining duties and become non-executive
Chairman. This move reflects the success that David Lyne has brought to the role
of Chief Executive and the effectiveness of the management team around him."
Mr Crompton also announced the promotion of Clare Dyer from Chief Financial
Officer to Finance Director and the appointment of John Moxon, a director of
Beeson Gregory until his retirement, as a non-executive.
Landround also announces this morning that Statoil, the market leader in fuel
and forecourt convenience retailing in Ireland, has agreed to offer its Premium
Club members the opportunity to acquire buy and fly! points.
-ends-
For further information
Michael Crompton, Chairman 07785 572080
David Lyne, Chief Executive 07961 453771
Landround plc
Paul Quade 020 7334 0243
CityRoad Communications 07947 186694
LANDROUND PLC CHAIRMAN'S STATEMENT
RESULTS
I am delighted to report very good results for the half-year. Profits from our
traditional voucher based products were particularly strong, reflecting the
attraction of the product to marketers and the management effort that has gone
into building and focusing the sales team. The planned growth in Buy and Fly!
continued with sales 46% up on the equivalent period last year. Travel Offers
Limited's performance also continued to improve.
Profit before taxation and amortisation of goodwill for the six months ended 31
March 2003 was #950,000 (2002: #272,000), giving adjusted earnings per share of
12.2p (2002: 3.34p).
These results were achieved against an uncertain UK economic background. The
slowdown in the domestic economy and the prospect, and then the reality, of war
in the Middle East, appear not to have harmed our business. I have long affirmed
my belief in the defensive qualities of sales promotion in difficult times: by
comparison with traditional "above the line" advertising, sales promotion is
inexpensive, measurable and effective.
DIVIDEND
The Board has decided to pay an interim dividend per share of 3.5p (2002:
1.00p).
The interim dividend will be paid on 11 July 2003 to shareholders on the
register on 20 June 2003.
TRADING
Landround Marketing
The first six months of the current year have seen continued growth in sales and
profitability within Landround Marketing.
Our Buy and Fly! proposition continues to gain momentum despite the wider
uncertainty surrounding air travel. We have signed several new clients in the
first half in the business-to-business and staff incentives sector, including
Reckitt & Benckiser and Britvic, and we expect that the second half will see the
signing of major consumer facing brands to complement these. We were delighted
to bring the Post Office on board as a client of Buy and Fly! during this period
under the guise of First Rate Travel Services, a joint venture with the Bank of
Ireland.
Our decision to expand our business in the Republic of Ireland has been
successful with major business contract wins with Eircom, Toyota and Vodafone.
Voucher sales in the core UK market have surpassed all expectations during this
half with major promotions with Surf (on pack) and Pertemps amongst others. We
were also delighted to extend our existing relationship with the Associated
Newspapers Group, running the first ever "Free Flight for Every Reader"
promotion in the Daily Mail in January of this year, which was an overwhelming
success, surpassing last year's McDonald's promotion, as the largest ever UK
travel promotion..
The performance of Landround Marketing reflects well on sales management and the
sales team, now streamlined along product lines with fourteen dedicated sales
people, all of whom are making a contribution.
Landround Travel
Landround Travel continues to provide consistently high levels of service to our
clients and their customers and made a useful contribution to Landround's
profits in the six month period.
Travel Offers Limited
The first half of the year has seen a good performance, with Travel Offers
delivering growth in profits of 24%.
A gratifying aspect of Travel Offers' business in the past six months has been
the continued increase in renewals by existing holders. As Travel Offers' major
overhead is the cost of media buying, renewals are welcome as they deliver a
higher gross margin, as well as demonstrating holders' commitment to the
product.
MANAGEMENT
We continue to make changes at board level which we believe will strengthen the
Landround Group's long-term performance.
I have decided to relinquish my few remaining executive duties and to become
non-executive Chairman. This move reflects the success that David Lyne has
brought to the role of Chief Executive since his appointment in January 2002,
and the effectiveness of the management team around him.
Clare Dyer, who has been Chief Financial Officer since 24 October 2001, is
promoted to the board as Finance Director, in addition to her existing duties as
Company Secretary. She has thoroughly earned this promotion.
John Moxon is appointed as an additional non-executive director and joins both
the Audit and the Remuneration Committees. John is well acquainted with
Landround, having led the Beeson Gregory team which handled the share placing
when we acquired Travel Offers in 2000. We pride ourselves on our relationships
with our shareholders, both large and small, and believe that John's
understanding of institutional investors, after his long and successful career
in the City, will provide valuable counsel.
These changes will be announced today.
PROSPECTS
The year has started particularly well and there is every reason to look forward
to a good second half.
Michael Crompton
Chairman
3 June 2003
LANDROUND PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 MARCH 2003
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2003 2002 2002
Unaudited Unaudited Audited
#000 #000 #000
Notes
2 Turnover 3,960 2,912 7,066
Cost of sales (1,746) (1,615) (3,960)
______ ______ ______
Gross profit 2,214 1,297 3,106
Operating expenses
Distribution costs (20) (5) (10)
Administrative expenses (1,258) (1,026) (2,249)
_____ _____ ______
Operating profit 936 266 847
Interest 14 6 15
_____ _____ _____
Operating profit after interest 950 272 862
Amortisation of goodwill (54) (54) (108)
_____ _____ _____
Profit on ordinary activities before taxation 896 218 754
3 Taxation on profit on ordinary activities (283) (90) (268)
_____ _____ _____
Profit on ordinary activities after taxation 613 128 486
Dividends on equity shares (191) (54) (218)
_____ _____ _____
Retained profit/ (loss) for the financial period 422 74 268
transferred to reserves
===== ===== =====
4 Earnings per share 11.2p 2.35p 8.9p
Adjusted earnings per share excluding goodwill amortisation 12.2p 3.34p 10.9p
and exceptional item
LANDROUND PLC
SUMMARISED CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2003
31 March 31 March 30 September
2003 2002 2002
Unaudited Unaudited Audited
#000 #000 #000
Notes
Fixed assets
Intangible assets 1,787 1,895 1,841
Tangible assets 497 517 504
_____ _____ _____
2,284 2,412 2,345
Current assets
Stock 111 168 138
Debtors - due within one year 2,957 1,973 2,128
Cash at bank and in hand 1,988 1,166 1,368
_____ _____ _____
5,056 3,307 3,634
Current liabilities
Amounts falling due within one year (3,131) (2,136) (2,194)
_____ _____ _____
Total assets less current liabilities 4,209 3,583 3,785
Provisions for liabilities and charges (51) (41) (49)
_____ _____ _____
Net assets 4,158 3,542 3,736
===== ===== =====
Capital and reserves
Called up share capital 272 272 272
Share premium account 2,302 2,302 2,302
Capital redemption reserve 10 10 10
Profit and loss account 1,574 958 1,152
_____ _____ _____
5 Equity shareholders' funds 4,158 3,542 3,736
===== ===== =====
LANDROUND PLC
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2003
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2003 2002 2002
Unaudited Unaudited Audited
#000 #000 #000
Notes
8 Cash flow from operating activities 820 (1) 329
Returns on investments and servicing of finance 14 6 15
Taxation - 90 52
Capital expenditure and financial investment (51) (187) (232)
Equity dividends paid (163) - (54)
_____ _____ _____
Increase/ (decrease) in cash 620 (92) 110
_____ _____ _____
NOTES
1. The interim report was approved by the directors on 3 June 2003.
This interim report, which is the responsibility of the
directors, has not been audited but has been reviewed by our auditors,
Baker Tilly.
The interim report has been prepared using the accounting
policies set out in the Company's statutory accounts for the year ended
30 September 2002.
2. Turnover represents the net total of goods sold during the 6
month period ended 31 March 2003 excluding VAT.
3. The taxation charge for the period is analysed as follows: -
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2003 2002 2002
Unaudited Unaudited Audited
#000 #000 #000
UK corporation tax charge for the period 281 75 245
Deferred tax 2 15 23
_____ _____ _____
283 90 268
===== ===== =====
4. Earnings per share for the half year ended 31 March 2003
have been calculated using the number of shares in issue throughout the
period of 5,447,570 (2002 - 5,447,570).
5. The movement in shareholders' funds is analysed as follows: -
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2003 2002 2002
Unaudited Unaudited Audited
#000 #000 #000
Opening shareholders' funds 3,736 3,468 3,468
Retained profit for the financial period 422 74 268
_____ _____ _____
4,158 3,542 3,736
===== ===== =====
6. The results for the year ended 30 September 2002 are abridged
from the 2002 annual report and accounts ich received an unqualified
auditors' report and which have been filed with the Registrar of
Companies.
7. The interim dividend is payable on 11 July 2003 to those
shareholders registered on 20 June 2003.
8. Reconciliation of operating profit to net cash flow from operating
activities:-
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2003 2002 2002
Unaudited Unaudited Audited
#000 #000 #000
Operating profit 936 266 847
Depreciation charges 58 51 109
Decrease/ (increase) in stocks 27 (24) 6
(Increase)/ decrease in debtors (829) (433) (588)
Increase /(decrease) in creditors 628 139 (45)
_____ _____ _____
820 (1) 329
===== ===== =====
This information is provided by RNS
The company news service from the London Stock Exchange
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