London & Ednbrgh Pub - Final Results
01 July 1997 - 5:33PM
UK Regulatory
RNS No 7472a
LONDON & EDINBURGH PUBLISHING PLC
30th June 1997
LONDON & EDINBURGH PUBLISHING PLC
("THE COMPANY")
CHAIRMAN'S STATEMENT
It gives me no pleasure to report pre-tax profits of #56,000
for the year ended 31st December 1996. On admission to the
Alternative Investment Market, the directors forecast a profit
of #400,000 compared to a loss before taxation in 1995 of
approximately #52,000. The turnover for the year ended 31st
December, 1996 has increased to #1,073,957 compared with
#355,444 for 1995 and shareholders funds have increased to a
positive position of #1,071,969 compared to a deficit of
#82,499.
The shortfall in profit compared to the forecast for the year
was caused by the cancellation of projects and a high level of
bad debts. In the forecast a significant profit was
attributed to the Wedding Book to be created for Pronuptia and
Youngs. Unfortunately, late in 1996 their parent company, The
Formal Group Plc, placed Pronuptia and Youngs into
administration, and significant costs incurred were written
off. At that time it was hoped that other projects would make
up the shortfall. A complementary publication titled Mother
and Child has been deferred until this year.
Bad debts amounted to #60,000 in the period which arose partly
as a result of a number of clients ceasing trading. In
addition, the Directors have been unable to recover certain
debts which they had anticipated realising at the time of the
trading statement in May 1997 and for which full provision has
now been made. New controls have now been implemented to
ensure that such problems do not recur.
1996 proved to be a frustrating year for your company.
However, there have been a number of achievements.
Foundations have been developed for international growth,
advertising revenues have increased and the Internet has
become an additional source of income. We published a total
of eleven different titles in 1996 compared with seven in
1995. We have already established a great deal of goodwill
and new titles for 1997. In December, we secured the rights
to publish the official souvenir magazine for the Dubai World
Cup and have started negotiations for other new projects in
Dubai. As a result we have become one of the world's leading
publishers of horseracing souvenir magazines. Our title
"Seventy Glorious Years" received international acclaim and we
have now started to market "India: The First Fifty Years", a
celebration of India's fiftieth anniversary of independence to
be launched and co-hosted by the Indian High Commission in
London. The Derby 1996 magazine won the prestigious British
Association of Communications in Business award to External
Publications.
Because of the timing of the publication of the souvenir
magazines, the Company usually incurs losses in the first six
months of the calendar year. We have added a publication to
celebrate Pakistan's 50th Anniversary of Independence and also
we have been asked to produce the Philippine Centennial
Publication for the Philippine Government.
However, the costs of bringing future publications to print
has meant that 1997 has got off to a poor start and the first
half of this year is expected to be disappointing.
In addition, I shall be retiring as your chairman and am
delighted that Adrian Collins, whose energy and drive will
augment the expertise of the other board members, will be my
successor as executive chairman.
M.Goletka
Chairman
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER 1996
Pro-forma
Year ended
31st December
1996 1995
# #
Turnover 1,073,957 355,444
Cost of sales (629,883) (247,340)
Gross Profit 444,074 108,104
Administrative expenses (391,566) (157,286)
Operating profit/(loss) 52,508 (49,182)
Interest receivable 9,837 1,400
62,345 (47,782)
Amounts written off
investments - (1,000)
Interest payable (5,764) (2,994)
Profit/(loss) on ordinary
activities before taxation 56,581 (51,776)
Tax on profit/(loss) on
ordinary activities (5,000) 722
Profit/(loss) on ordinary
activities after taxation #51,581 #(51,054)
Earnings per share
- Basic 0.23p (0.29p)
- Fully diluted 0.25p -
NOTES:
1 The comparative figures represent the 1995 figures for
Tobasgo Publishing Limited which has been merger accounted.
As this is the first period since incorporation there are no
comparatives for the parent company.
The acquisition of Tobasgo Publishing Limited, and its
subsidiaries has been treated as a merger in accordance
with Financial Reporting Standard No.6 and the financial
statements have been prepared on a basis which assumes
that the group existed in its current form since the
incorporation of Tobasgo Publishing Limited.
2 Earnings per share
Basic earnings per share has been calculated on profit on
ordinary activities after taxation of #51,581 and on a
weighted average of 22,828,767 ordinary shares in issue
during the period.
The fully diluted earnings per share is based on earnings
of #58,686 and a weighted average of 23,365,967 shares in
issue. These figures assume that all options granted at
31st December 1996 had been exercised in full at the time
of grant.
Basic earnings per share for 1995 has been calculated on
a loss on ordinary activities of #51,054 and a weighted
average of 18,000,000 ordinary shares in issue.
3 The Directors are not proposing the payment of a dividend
in respect of the year ended 31st December, 1996.(1995:
Nil.)
4 Report and Accounts
The report and Accounts have been posted to shareholders.
The financial information for the year ended 31st
December, 1996, is extracted from the group's financial
statements to that date which received an unqualified auditors'
report and will be filed with the Registrar of Companies.
5 Annual General Meeting
The annual general meeting will be held on Wednesday,
30th July, 1997. at 11.00 a.m.
Copies of the Report and Accounts will be available from the
offices of John East & Partners Limited, Crystal Gate, 28-30
Worship Street, London EC2A 2AH during normal business hours
on any weekday (Saturdays and public holidays excepted) until
14th July, 1997.
Enquiries:
John East & Partners Limited
Jeffrey Coburn 0171 628 2200
David Worlidge 0171 628 2200
London & Edinburgh Publishing PLC
Michael Goletka 0171 499 7469
Robert Gold 0171 554 3300
END