RNS Number:7149S
Landround Plc
02 December 2003
Embargoed 7am Tuesday December 2 2003
LANDROUND PLC ANNOUNCES RECORD PRELIMINARY RESULTS
Landround plc, the AIM-listed travel promotions company, announces its unaudited
results for the year ended 30 September 2003.
Highlights
* Profit of #2,070,000 * (2002: #862,000*)
* Earnings per share up 150 per cent at 27.4p (2002: 10.9p)
* Turnover increased by 40 per cent to #9.9m (2002: #7.1m)
* Recommended final dividend of 7.0p per share (2002: 3.0p) making total
dividend of 10.5p.
* Voucher business strong, Ireland progressing well
* pre tax and amortisation of goodwill
Chairman, Michael Crompton, said: "I derive satisfaction from the manner in
which these results were achieved and the promise that holds for the future of
Landround. We have put in place the management and infrastructure necessary to
support the future growth of the Group.
"I believe that Landround is managing the transition from a founder/manager led
business into a professionally structured company without losing any of its
entrepreneurial drive.
"Our voucher business continues to be strong, Ireland has made a wonderful start
and is progressing well, electronic Buy and Fly! will, we believe, contribute
significantly to that outstanding product's advance. I have reason to look
forward to the coming year with confidence".
David Lyne, Chief Executive, said: "Landround Marketing had a record year with
significant growth in sales and profits, both in the UK and Republic of Ireland.
The Landround voucher business has gone from strength to strength this year. We
are tapping into a rich new seam of business in the newspaper sector. In Ireland
vouchers have continued to gain momentum with Coca-Cola, Gallahers and Spar all
placing voucher business in the second half.
"Buy and Fly! has continued to extend its reach in the business to business
market and in staff incentives. A gratifying number of new trade clients in the
second half included a large contract with Antalis, a major paper manufacturer.
The Bank of Ireland has already renewed its first contract following the success
of the programme in incentivising its customers. Clearly, contract renewals will
play a major part in the longer term quality of earnings.
"We continue, in line with previous years, to develop new innovative promotions.
Our commitment to keep our portfolio fresh and relevant ensures that we always
have an attractive choice of travel promotions for our clients, over 70 per cent
of whom are returning as repeat business".
-ends-
For further information:
David Lyne, Chief Executive 0207 334 0243 (until noon)
Landround plc 07961 453771 (after noon)
Paul Quade 0207 334 0243
CityRoad Communications 07947 186694
CHAIRMAN'S STATEMENT
I am pleased to present these excellent results for the year ended 30 September
2003. Profit before taxation and amortisation of goodwill for the year was
#2,070,000, an increase of 140% on the equivalent figure for the previous year
of #862,000. Earnings per share, adjusted to exclude goodwill amortisation, were
27.4p (2002: 10.9p).
I derive satisfaction from the manner in which these results were achieved and
the promise that holds for the future of Landround. We have put in place the
management and infrastructure necessary to support the future growth of the
Group.
MANAGEMENT AND STAFF
Shareholders will be aware that, in the last two years, we have made a number of
changes at board level, all in response to a strategy which was clearly defined
some time ago and which is being effectively carried through. The first move was
to appoint David Lyne as Chief Executive. Subsequently, I moved to non-executive
Chairman, Clare Dyer was promoted to Finance Director and John Moxon joined the
board as an additional non-executive director.
The entire team, under David Lyne, deserves credit for what has been achieved. I
believe that Landround is managing the transition from a founder/manager led
business to a professionally structured company without losing any of its
entrepreneurial drive. All of our people, from board level, through the
directors of the subsidiary companies and on to all of our staff, have had to
adapt to new reporting lines and new ways of doing things. They have responded
magnificently.
Investors in People
The Company's commitment to staff development was recognised on 13 October 2003,
when we were accredited as an Investor in People.
Investors in People is a national quality standard which sets a level of good
practice for the training and development of staff to achieve business goals,
thereby improving an organisation's performance through its people.
We are proud that the team's efforts have been recognised in this way.
The following paragraphs have been extracted from the Chief Executive's report:
LANDROUND MARKETING
Landround Marketing had a record year with significant growth in sales
and profits, both in the UK and the Republic of Ireland.
Buy and Fly! has continued to extend its reach in the business to
business market and in staff incentives. A gratifying number of new
trade clients in the second half included a large contract with Antalis,
a major paper manufacturer, which is using Buy and Fly! both in the UK
and in the Republic of Ireland, to incentivise clients.
Consumer facing clients are still slow to sign up to the Buy and Fly!
programme but the strategic partnership announced on 31 July with
Carlson Marketing Group has already brought client gains.
We were also pleased to announce, since the year-end, the launch on 17
November of electronic Buy and Fly!
The Republic of Ireland continues to see much success for Buy and Fly!,
which was introduced last year, and we are pleased to have announced in
the course of the year the signing of Statoil, Ireland's largest petrol
retailer, which joined the Bank of Ireland as an issuer of Buy and Fly!
points direct to the public. Our experiences in the Republic of Ireland
continue to validate the Buy and Fly! model and, indeed, the Bank of
Ireland has already renewed its first contract following the success of
the programme in incentivising its customers. Clearly, contract renewals
will play a major part in the longer term quality of earnings.
The Landround voucher business has gone from strength to strength this
year. We reported at the half year a major promotion with the Daily Mail
and Mail on Sunday which ran in January, and I am pleased to report that
the success of this has led to further promotions with Associated
Newspapers. We are tapping into a rich new seam of business in the
newspaper sector.
We also recorded, in the second half, voucher promotions with Dollond &
Aitchison, HBOS, The Rockport Company and Grattan, among many hundreds
of clients and we were pleased to announce on 28 October a major
contract with Virgin Megastores which sees them offering a free flight
to every customer who spends #50 or more in-store, in the run-up to
Christmas.
In Ireland, vouchers have continued to gain momentum with Coca-Cola,
Gallahers and Spar all placing voucher business in the second half. In
fact so pleased are we with progress in the Republic of Ireland that we
have recently signed a lease for larger premises and taken on additional
sales staff.
We continue, in line with previous years, to develop new innovative
promotions and this year has seen the launch of new vouchers in
partnership with Keycamp and Thomson Holidays (Free Mediterranean
Cruise) amongst others. Our commitment to keep our portfolio fresh and
relevant ensures that we always have an attractive choice of travel
promotions for our clients, over 70% of whom are returning as repeat
business.
LANDROUND TRAVEL
Landround Travel has historically produced a result close to break even,
which reflects its role as a service organisation acting purely to
redeem vouchers and Buy and Fly! points sold by Landround Marketing to
its clients. This year has once again seen a small profit recorded.
We remain committed to the highest levels of customer service within
Landround Travel and are proud of the positive feedback that we have
received from our clients' customers. This is once again reflected in
our retention of the ABTA Gold Award which recognises this commitment.
TRAVEL OFFERS LIMITED
Travel Offers Limited produced a welcome stream of sales and this year
has seen a significant increase in profit generated. Renewals continue
to improve. The management of the business has bought advertising space
more cost-effectively this year, which has contributed to the increase
in profitability.
DIVIDEND
The Directors will be recommending a final dividend of 7.0p per share (2002:
3.00p) at the Annual General Meeting. This, together with the interim dividend
of 3.5p (2002: 1.00p), gives a total dividend for the year of 10.5p (2002:
4.00p).
The dividend will be paid on 3 February 2004 to shareholders on the register on
9 January 2004.
COMMUNICATIONS
We are proud to have won the "Best Communication Award" at the AIM awards annual
dinner held in October 2003. In naming Landround as the best communicator, the
judges said that Landround had maintained an impressive investor communications
programme throughout its life as a public company and had consistently made
itself available to its shareholders.
We hold shareholder relations to be important - it is, after all, you the
shareholders who own the Company and we have always striven to keep you in the
picture. It is gratifying to have achieved this recognition of our efforts.
SHAREHOLDER TRAVEL PRIVILEGES
Our package of Shareholder Travel Privileges continues to be popular with our
private shareholders. Our intention is to extend the current package and details
will be announced at our Annual General Meeting on 29 January 2004.
OUTLOOK FOR THE CURRENT YEAR
In my opening comments, I said that Landround had put in place the management
and infrastructure necessary to support the future growth of the Group.
Our voucher business continues to be strong, Ireland has made a wonderful start
and is progressing well, electronic Buy and Fly! will, we believe, contribute
significantly to that outstanding product's advance, and Travel Offers is well
placed to generate another year of good profit growth.
I have reason to look forward to the coming year with confidence.
Michael Crompton
Chairman
2 December 2003
LANDROUND plc
UNAUDITED GROUP PROFIT AND LOSS ACCOUNT
for the year ended 30 September 2003
2003 2002
Notes #'000 #'000 #'000 #'000
Turnover 9,891 7,066
Cost of sales (5,195) (3,960)
______ ______
Gross profit 4,696 3,106
Operating expenses
Distribution costs (14) (10)
Administrative expenses (2,640) (2,654) (2,249) (2,259)
_____ ______
Group operating profit before
goodwill amortisation 2,042 847
Amortisation of goodwill (108) (108)
_____ _____
Group operating profit 1,934 739
Interest 28 15
_____ _____
Profit on ordinary activities 1
before taxation 1,962 754
Taxation on profit on ordinary activities 2 (577) (268)
_____ ____
Profit on ordinary activities after taxation 1,385 486
Dividends on equity shares 3 (570) (218)
_____ _____
Retained profit for the financial year
transferred to reserves 13 815 268
_____ _____
Earnings per share 18 25.4p 8.9p
Adjusted earnings per share excluding 18 27.4p 10.9p
goodwill amortisation
Diluted earnings per share 18 25.2p 8.8p
Diluted adjusted earnings per share 18 27.1p 10.8p
All operating income and operating profits relate to continuing activities.
There are no recognised gains and losses other than those passing through the profit and loss account.
LANDROUND plc
UNAUDITED BALANCE SHEET
As at 30 September 2003
Group Company
2003 2002 2003 2002
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets 1,733 1,841 - -
Tangible assets 564 504 - -
Investment in subsidiaries - - 230 230
_____ _____ _____ ____
2,297 2,345 230 230
_____ _____ _____ ____
Current assets
Stock 95 138 - -
Debtors 3,752 2,128 4,479 3,423
Cash at bank 2,107 1,368 1 17
_____ _____ _____ _____
5,954 3,634 4,480 3,440
_____ _____ _____ _____
Current liabilities
Amounts falling due within one year 3,651 2,194 463 316
_____ _____ _____ _____
Net current assets 2,303 1,440 4,017 3,124
____ ____ _____ _____
Total assets less current liabilities 4,600 3,785 4,247 3,354
Provisions for liabilities and charges 49 49 - -
_____ _____ _____ ____
Net assets 4,551 3,736 4,247 3,354
===== ===== ===== =====
Capital and reserves
Called up share capital 272 272 272 272
Share premium account 2,302 2,302 2,302 2,302
Capital redemption reserve 10 10 10 10
Profit and loss account 1,967 1,152 1,663 770
_____ _____ _____ _____
Equity shareholders' funds 4,551 3,736 4,247 3,354
===== ===== ===== =====
LANDROUND plc
UNAUDITED GROUP CASHFLOW STATEMENT
for the year ended 30 September 2003
2003 2002
#'000 #'000
Cashflow from operating activities 1,812 329
Returns from investments and servicing of finance 28 15
Taxation (537) 52
Capital expenditure and financial investment (211) (232)
Equity dividends paid (353) (54)
_____ ____
Increase in cash 739 110
Notes
1. The above financial information for the year ended 30 September 2003 is
unaudited and does not constitute statutory accounts within the meaning of
section 240 of the Companies Act 1985. Statutory accounts for the year ended
30 September 2003 will be delivered to the Registrar of Companies.
2. Turnover represents the net total of goods sold during the year, excluding
VAT.
3. Earnings per share of 25.4p have been calculated by reference to a profit
after taxation of #1,385,000 and the number of shares in issue of 5,447,570.
Adjusted earnings per share, excluding goodwill amortisation of #108,000,
were 27.4p. Diluted earnings per share has been calculated using the same
earnings but is divided by 5,491,962 being the number of shares that would
have been in issue if the outstanding options to exercise shares in the
Group had been exercised at the average share price during the year.
4. The Directors recommend the payment of a final dividend of 7p per share to be
paid on 3 February 2004 to all shareholders on the register on 9 January
2004.
5. The same accounting policies have been used in the preparation of these
accounts as in the previous accounting period.
This information is provided by RNS
The company news service from the London Stock Exchange
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