RNS Number:7847A
Partners Holdings PLC
15 November 1999
                           

                                
                      Partners Holdings plc
                          ("Partners")
                                
      Interim Results for the 28 weeks ended 9 October 1999



Partners  Holdings  plc, the operator of 105  specialist  retail
stationery  stores, today announces Interim results for  the  28
weeks to 9th October 1999.

*    Turnover increased 11.6% to #20.5m (1998: #18.3m)

*    Pre tax loss of #799,000 including an exceptional profit on
     sale of property leases of #286,000 (1998: loss #1.17m)

*    Loss per share reduced to 4.3p (1998: loss 5.7p)



                                                15 November 1999

Enquiries:

Partners Holdings plc                   Tel: 01270 505888
Michael Scorey, Chairman
Peter Davey, Chief Executive
Alan Goodwin, Finance Director

College Hill                            Tel: 0171 457 2020
Mathew Smallwood



            Interim Report for the 28 weeks ended 9 October 1999
                                      
                            CHAIRMAN'S STATEMENT


Turnover  during the period increased by 11.6% to #20.47 million.  Operating
losses,  before exceptional items, were #997,000 compared with a  loss  last
year  of  #1,092,000.  Pre tax losses were #799,000 compared  to  #1,170,000
last  year.  Exceptional profits of  #286,000 arose  from  the  disposal  of
operating leases following the relocation of two stores.

Net cash outflow for the period was #0.9million after capital investment  of
#0.5million. Group net assets were #4.4million.

As  previously  stated  the Board expects the current  year  to  be  one  of
continued restructuring whilst the business is re-focussed and re-positioned
for the future. Although sales growth during the period has, on a comparable
basis,  been positive we have suffered an erosion in gross margin which  has
resulted in only a small improvement in the level of interim losses.

DIVIDENDS

In  the  light  of the results, the Board has decided,  that payment  of  an
interim dividend would not be appropriate. (1998 - 0.5p)

FUTURE PROSPECTS

Whilst  our  results,  are  in  line with our  expectations  and  show  some
improvement on last year there remains much to be done.

Our  strategy in the short term is focussed on generating growth in our core
stores by means of two key initiatives as follows:

Firstly  the  process  of fully reviewing our existing  product  ranges  has
continued  although  it  will be some months before this  exercise  will  be
complete.

Secondly  the store modernisation programme, which was initiated last  year,
has continued. In addition to the four stores that were previously converted
to  our new retail format, we have also converted 2 further stores following
re-location and 16 stores into a lower cost version of this format.  We  are
continuing to monitor performance in both groups of stores to determine  the
optimum configuration for the future

The  results  for the second half of the year will be largely determined  by
our sales in the important Christmas trading period which has just begun.


Michael Scorey
Chairman

CONSOLIDATED PROFIT AND LOSS ACCOUNT (unaudited)

 
                                              
                                                                              
                                        
            
            Before                                  Before                    
            Excep-   Excep-                         Excep-    Excep-
           tional    tional                         tional    tional
           Items     Items                          Items     Items
           28 weeks  28 weeks  28 weeks  28 weeks   Year to   Year to  Year to
           9 October 9 October 9 October 10 October 31 March 31 March 31 March
             1999     1999      1999       1998      1999      1999      1999
              #000    #000      #000       #000      #000      #000      #000

                                          

TURNOVER     20,472   -       20,472      18,336     38,880     -      38,880
Cost of sales(19,551) -      (19,551)    (17,828)   (36,194) (104)    (36,298)
            

GROSS PROFIT   921    -          921         508      2,686  (104)      2,582

Distribution 
costs        (261)    -         (261)       (234)     (479)     -        (479)


Administration 
expenses   (1,677)    -       (1,677)     (1,386)   (2,664)   (302)    (2,966)
                
           (1,017)    -       (1,017)     (1,112)     (457)   (406)      (863)


Other net-
operating 
income        20    286          306         20        38       -          38

OPERATING
(LOSS)/PROFIT(997)  286         (711)    (1,092)    (419)     (406)      (825)
               
Interest
receivable     4     -             4          2        5         -          5

Interest
payable      (92)    -           (92)       (80)    (135)        -       (135)
    
(LOSS)/PROFIT
ON ORDINARY 
ACTIVITIES 
BEFORE 
TAXATION  (1,085)   286         (799)    (1,170)    (549)     (406)      (955)


Tax on (loss)/profit 
on ordinary 
activities   178     -           178        100        87       64        151


(LOSS)/PROFIT FOR 
THE PERIOD  (907)   286         (621)    (1,070)     (462)    (342)      (804)

Dividends on 
equity shares  -     -            -         (93)                          (93)

RETAINED (LOSS)
/PROFIT     (907)   286         (621)    (1,163)                         (897)


(Loss)/profit per  
share - basic &  diluted       (4.3p)     (5.7p)                        (4.3p)

There are no recognised gains or losses other than the loss for the relevant
periods.

CONSOLIDATED BALANCE SHEET (unaudited)


                                                  as at    as at     as at
                                              9 October 10 October 31 March
                                                   1999     1998      1999
                                                   #000     #000      #000
FIXED ASSETS
Tangible Assets                                   6,512    7,010     6,848
                                             

CURRENT ASSETS
Stock                                             6,980    5,928     5,788
Debtors                                           2,361    2,305     2,170
Cash at bank and in hand                             59       60        58
                                          
                                                  9,400    8,293     8,016
CREDITORS:amounts falling due within one year.  (11,207)  (9,512)   (9,119)
                                        

NET CURRENT ASSETS / (LIABILITIES)               (1,807)  (1,219)   (1,103)

TOTAL ASSETS LESS CURRENT LIABILITIES             4,705    5,791     5,745

PROVISIONS FOR LIABILITIES AND CHARGES
Deferred taxation                                     -    (253)     (179)
ACCRUALS AND DEFERRED INCOME
Deferred income                                   (275)    (754)     (516)
                                           

                                                  (275)  (1,007)     (695)
                                            

                                                  4,430    4,784     5,050

CAPITAL AND RESERVES
Called up share capital                             187      187       187
Share premium account                             5,691    5,691     5,691
Capital redemption reserve                            9        9         9
Profit and loss account                         (1,457)  (1,103)     (837)
                                             

Shareholder's funds:
Equity                                            4,430    4,784     5,050

GROUP CASH FLOW STATEMENT (unaudited)

                                               28 weeks 28 weeks   Year to
                                              9 October 10 October 31 March
                                                   1999     1998      1999
                                                   #000     #000      #000
NET CASH (OUTFLOW) / INFLOW FROM
OPERATING ACTIVITIES                              (280)      677     1,556

RETURNS ON INVESTMENTS AND SERVICING
OF FINANCE
Interest Paid                                      (88)     (80)    (135)
Interest Received                                     -       2        5

NET CASH OUTFLOW FROM RETURNS ON
INVESTMENTS AND SERVICING OF FINANCE               (88)     (78)    (130)

TAXATION
Corporation tax paid (including ACT)                  -     (47)     (240)

CAPITAL EXPENDITURE AND FINANCIAL
   INVESTMENTS
Capital Expenditure                               (534)    (724)   (1,228)
Sale of tangible fixed assets                         -        -         -

NET CASH OUTFLOW FROM INVESTING ACTIVITIES        (534)    (724)   (1,228)

EQUITY DIVIDENDS PAID                                 -    (187)     (280)


FINANCING
Issue of Ordinary Shares                              -        -         -
Costs incurred in the issue of Ordinary Shares        -        -         -
Deferred ordinary share issue costs                   -        -         -
Repayment of capital element of finance lease rentals
   and hire purchase contract payments             (13)     (18)      (26)
Repayment of loans                                    -        -         -
Redemption of Deferred Ordinary Shares                -        -         -
                                        

NET CASH OUTFLOW FROM FINANCING                    (13)     (18)      (26)

DECREASE IN CASH                                  (915)    (377)     (348)

NOTES ON THE ACCOUNTS

1. Reconciliation of operating (loss) / profit to net cash inflow from
   operating activities

                                  28 weeks    28 weeks  Year to
                                 9 October  10 October 31 March
                                      1999        1998     1999
                                      #000        #000     #000

Operating loss                        (711)     (1,092)    (825)
Depreciation                            826         871    1,537
Amortisation of deferred income       (241)       (231)    (469)
Profit on disposal of fixed assets      44           -        -
Increase in debtors                   (191)       (347)    (114)
Increase in stocks                  (1,192)     (1,165)  (1,025)
Increase in trade creditors           1,135       2,069    1,962
Increase in other creditors              50         572      490
                        
Net cash (outflow)/inflow from continuing
operating activities                  (280)         677    1,556
                    
2. Exceptional Items

Costs relating to the restructuring of the business and income relating to
profit on disposals of leases have been treated as exceptional items before
arriving at operating profit:

                                  28 weeks    28 weeks   Year to
                                  9 October   10 October 31 March
                                      1999        1998     1999
                                      #000        #000     #000

Profit on disposals of leases           286          -        -
Costs relating to restructuring           -          -     (406)
                             
                                        286          -     (406)
                            
3. Reconciliation of net cash flow to movement in net debt

                               at 31 March       Cash      at 9 October
                                      1999       Flows     1999
                                      #000        #000     #000

Cash in hand                            58           1       59
Overdrafts                          (2,123)       (916)  (3,039)
                             
                                    (2,065)       (915)  (2,980)
Debt due within 1 year                 (27)         13      (14)
                     
Total                               (2,092)       (902)  (2,994)


4. The Group results for the 28 weeks ended 9th October 1999 are unaudited
   but have been reviewed by the auditors whose report to the shareholders is
   shown below.  The results for the year ended 31st March 1999 set out above
   are  an abridged version of the Group's full accounts for that year.  Full
   1999  accounts, incorporating an unqualified auditors' report,  have  been
   delivered to the Registrar of Companies.
  
5. The interim financial information has been prepared in accordance with
   the  accounting  policies  set  out in the  Annual  Report  and  Financial
   Statements for the year ended 31st March 1999.
  
6. Diluted  earnings  per  share  has been calculated  and  disclosed  in
   accordance with FRS 14.
  
7. This report is being posted to shareholders on 24th November 1999  and
   copies  are available at the Company's registered office, Savoy Road,  Off
   Weston Road, Crewe, Cheshire, CW1 6NA.
  
AUDITORS' REVIEW

We  have reviewed the interim financial information set out on pages 2 to  6
in   respect  of  the  28  weeks  ended  9th  October  1999,  which  is  the
responsibility   of,  and  has  been  approved  by,  the   directors.    Our
responsibility is to report on the results of our review.

Our  review was carried out having regard to the Bulletin, Review of interim
financial information, issued by the Auditing Practices Board.  This  review
consisted principally of obtaining an understanding of the process  for  the
preparation  of  the  interim  financial  information,  applying  analytical
procedures  to  the underlying financial data, assessing whether  accounting
policies have been consistently applied, and making enquiries of the group's
management responsible for the financial and accounting matters.  The review
excluded  audit  procedures such as tests of controls  and  verification  of
assets and liabilities and was therefore substantially less in scope than an
audit  performed in accordance with Auditing Standards.  Accordingly, we  do
not express an audit opinion on the interim financial information.

On the basis of our review:

    we are not aware of any material modifications that should be made in the
    interim financial information as presented; and

    in  our opinion the interim financial information has been prepared using
    accounting  policies consistent with those adopted by the  Group  in  its
    statutory accounts for the year ended 31st March 1999.

Ernst & Young
Registered Auditors
Manchester


Partners Holdings plc
Savoy Road
Off Weston Road
Crewe
Cheshire  CW1 6NA


END
IR CCBCQODDDFDD


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