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LEP GROUP PLC RELEASES INTERIM STATEMENT OF RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 1992

 LEP GROUP PLC RELEASES INTERIM STATEMENT OF RESULTS
 FOR THE SIX MONTHS ENDED JUNE 30, 1992
 GREENWICH, Conn., Oct. 30 /PRNewswire/ -- David N. James, chairman of LEP Group PLC (NASDAQ-NMS: LEPGY), today issued the following comments on the group's interim statement of results for the six months ended June 30, 1992:
 Introduction
 The results for the six months to June 30, 1992, cover a period in which the group's trading activities were adversely affected by the uncertainty caused by the negotiations taking place during this period with regard to the financial restructuring of the company. Trading was further affected by the continuing, and in some cases worsening, economic recession in many of the group's major markets.
 The group's turnover in the six months to June 30, 1992, fell to 644,865,000 pounds sterling (1991: 749,083,000 pounds), a decrease of 104,218,000 pounds, of which 97,295,000 pounds relates to discontinued operations. In the same period the group recorded a loss after taxation and minority interests, but before extraordinary items, of 16,061,000 pounds compared to a profit of 539,000 pounds in 1991.
 Operating Results
 Shareholders should note that, although the group recorded a significant loss after taxation, the underlying continuing operations of the group remained profitable in overall terms. This is reflected by the operating profit from continuing businesses, before exceptional items, of 13,220,000 pounds (1991: 16,429,000 pounds), as shown in note 5 to the interim results.
 These operating results are stated before interest charges, which totalled 22,262,000 pounds (1991: 17,140,000 pounds) for the group in this period.
 The interest expense in future periods will, however, reduce as a consequence of the conversion, as part of the company's financial restructuring, of 180 million pounds of bank debt into ordinary share capital on Aug. 28, 1992.
 Exceptional and Extraordinary Items
 In my address to shareholders at the extraordinary general meeting held on Aug. 24, 1992, I provided a detailed review of the exceptional and extraordinary charges arising in the year to Dec. 31, 1991.
 Subsequent events and further reviews have resulted in the need for additional exceptional and extraordinary items in the period to June 30, 1992. Details of these charges are set out in notes 6 and 7 to the interim results.
 The exceptional charges in this period total 5,567,000 pounds and include further restructuring costs and provisions of 3,369,000 pounds, which have resulted from actions taken following reviews of group businesses by the new board since the publication of the 1991 accounts. The remaining exceptional charges of 2,198,000 pounds comprise additional costs incurred in respect of the recently completed restructuring.
 The extraordinary charges in the six months to June 30, 1992, total 2,639,000 pounds and relate mainly to further adjustments to the carrying values of certain of the group's non-core investments. These adjustments reflect revised estimates of value in the light of continuing negotiations with potential purchasers and ongoing reviews of these investments.
 Dividend
 As a result of the accumulated losses the board is not declaring an interim dividend. It is not expected that a dividend will be paid for some years.
 Outlook
 As has been stated earlier, the difficult world trading conditions affecting several of the group's major markets show no current signs of improvement and, in some markets, worsening conditions are evident. The recent successful completion of the financial restructuring has, however, eliminated a significant uncertainty and, as a result, the group's continuing operations are expected to benefit.
 The board is currently involved in a comprehensive review of all aspects of the group's operations and shareholders should be aware that this review is expected to result in further exceptional and extraordinary charges in the full year accounts to Dec. 31, 1992. Your board believes that the actions which result from this review will support improved future performances from the group's continuing operations and leave them well placed to take advantage of any economic recovery in their markets.
 /end of chairman's comments/
 LEP GROUP PLC
 Unaudited Results for the Six Months to June 30, 1992
 (Pounds in thousands)
 Periods Six Months Year
 Ended 6/30/92 6/30/91 12/31/91
 Turnover 644,865 749,083 1,510,964
 Profit on ordinary
 activities 13,831 20,136 27,228
 Share of losses of
 related companies and
 property ventures (157) (1,094) (714)
 Operating profit before
 exceptional items 13,674 19,042 26,514
 Exceptional items (5,567) -- (47,320)
 Operating profit/(loss)
 after exceptional items 8,107 19,042 (20,806)
 Net interest expense (22,262) (17,140) (38,256)
 (Loss)/profit on ordinary
 activities before taxation (14,155) 1,902 (59,062)
 Tax on (loss)/profit on
 ordinary activities:
 - UK -- -- (3,285)
 - Overseas (1,810) (532) (2,049)
 - Total (1,810) (532) (5,334)
 (Loss)/profit on ordinary
 activities after taxation (15,965) 1,370 (64,396)
 Minority interests (96) (831) 1,388
 Total (16,061) 539 (63,008)
 Extraordinary items (2,639) (148) (172,086)
 (Loss)/profit attributable
 to shareholders (18,700) 391 (235,094)
 Dividends -- -- --
 Retained (loss)/profit
 transferred (from)/to
 reserves (18,700) 391 (235,094)
 Dividends per 2p share -- -- --
 (Loss)/earnings per 2p share (11.6)p 0.4p (45.6)
 Notes:
 1. The results of overseas subsidiaries and associated undertakings have been translated into sterling at the average rates of exchange for the relevant period.
 2. On Sept. 30, 1992, LEP Group plc was served with an unquantified legal claim issued in the United States of America by Itoba Limited, a subsidiary of ADT Limited. In the proceedings against the company and certain current and former directors, Itoba Limited alleges that it relied upon misleading public statements when it acquired shares in LEP Group plc in 1990.
 The company intends to resist this claim vigorously and is currently taking legal advice. There have been no significant developments since the issue of the 1991 accounts and the results for the six months to June 30, 1992, contain no provision for this matter.
 3. The figures shown for the year ended Dec. 31, 1991, are not statutory accounts. A copy of the statutory accounts for that year, upon which the auditors gave a qualified report, has been delivered to the Registrar of Companies.
 4. Earnings per ordinary share have been calculated on the weighted average of 138,332,635 shares in issue during the first half of 1992 (1991 - 138,187,648). This calculation does not include the effect of the 783,884,932 new ordinary shares of 2p each in the company, issued on Aug. 28, 1992, as part of the recent refinancing of the company.
 5. Operating profit by division is as follows (pounds in thousands):
 Periods Six Months Year
 Ended 6/30/92 6/30/91 12/31/91
 OPERATING PROFIT BEFORE
 EXCEPTIONAL ITEMS
 Freight forwarding 1,463 1,809 (1,071)
 Security services 8,497 9,380 18,066
 U.K. property (A) 3,260 5,240 6,011
 Total continuing operations 13,220 16,429 23,006
 Discontinued operations 454 2,613 3,508
 Total 13,674 19,042 26,514
 OPERATING PROFIT AFTER
 EXCEPTIONAL ITEMS
 Freight forwarding 608 1,809 (18,213)
 Security services 5,983 9,380 5,114
 U.K. property (A) 3,260 5,240 6,011
 Total continuing operations 9,851 16,429 (7,088)
 Discontinued operations 454 2,613 8
 Common exceptional costs
 not allocated (2,198) -- (13,726)
 Total 8,107 19,042 (20,806)
 (A) -- U.K. property operating profit relates to the group's continuing investment in Swiss Bank House. In the six months to June 30, 1991, U.K. property includes the profit on sale of a property to the LEP U.K. Pension Plan. This profit, amounting to 1,886,000 pounds, was not recorded in the accounts for the full year to Dec. 31, 1991.
 6. Exceptional items comprise (pounds in thousands):
 Periods Six Months Year
 Ended 6/30/92 6/30/91 12/31/91
 Costs & provisions arising from:
 - permanent diminution in value
 of customer contracts below
 original cost -- -- (12,870)
 - restructuring costs and
 provisions (3,369) -- (6,709)
 - trading losses and
 restructuring costs arising
 from freight forwarding oper.
 in eastern Germany -- -- (7,095)
 - provisions for future rental
 costs on building space in
 excess of requirements -- -- (3,500)
 - issue and associated costs of
 deep discount bond -- -- (3,390)
 - costs incurred as a result of
 group refinancing (2,198) -- (10,336)
 - write down of Austrian
 property -- -- (3,420)
 Total (5,567) -- (47,320)
 7. Extraordinary items comprise (pounds in thousands):
 Periods Six Months Year
 Ended 6/30/92 6/30/91 12/31/91
 Costs & provisions arising from:
 - withdrawal from property
 development in the U.S. -- -- (92,365)
 - withdrawal from certain
 property interests in
 the U.K. (2,065) -- (10,896)
 - winding down and disposal of
 Trading Alliance Corp. and
 associated businesses -- -- (23,147)
 - disposal of LEP Industrial
 Holdings businesses (460) -- (21,486)
 - disposal of physical
 distribution businesses -- -- (18,780)
 - closure or disposal of other
 non-core businesses (114) (148) (5,416)
 - minority interests -- -- 4
 Total (2,639) (148) (172,086)
 8. The interim statement will be sent to shareholders on or about Oct. 30, 1992, and will be made available to the public at the Registered Office of the company, LEP House, 87 East Street, Epsom, Surrey KT17 1DT.
 LEP's ordinary shares trade in the form of ADRs on the NASDAQ National Market System under the symbol "LEPGY."
 -0- 10/30/92
 /CONTACT: David N. James. chairman of LEP Group, in Epsom, England, 011-44-372729595; or George V. Flagg, in Greenwich, Conn., 203-531-3501, for LEP Group/
 (LEPGY) CO: LEP Group plc ST: Connecticut IN: SU: ERN


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