TIDMLFI 
 
LONDON FINANCE & INVESTMENT GROUP P.L.C. 
 
                   ("Lonfin", "the Company" or "the Group") 
 
Preliminary announcement of unaudited results for the year ended 30th June 2009 
 
London Finance & Investment Group P.L.C. (LSE: LFI, JSE: LNF), the investment 
company whose assets primarily consist of three Strategic Investments and a 
General Portfolio, today announces its Preliminary Results for the year ended 
30th June 2009. 
 
 
 
Chairman's statement 
 
Lonfin is an investment company whose assets primarily consist of three 
Strategic Investments and a General Portfolio. Strategic Investments are 
significant investments in smaller UK quoted companies and these are balanced 
by a General Portfolio, which consists mainly of investments in major U.K. and 
European equities. 
 
At 30th June 2009, the three Strategic Investments, in which we have board 
representation, were our associated company Western Selection P.L.C., MWB Group 
Holdings Plc and Finsbury Food Group plc. Detailed comments on our Strategic 
Investments are given below. 
 
Our objective is to achieve capital growth in real terms over the medium term, 
while maintaining a progressive dividend policy. 
 
We are operating in difficult times. Stock markets are down and many companies 
are cutting dividends. We are not immune to these external factors. In spite of 
this the Group is in a reasonable position: 
 
  * The General Portfolio is yielding 3.13%. 
 
  * Borrowings are 30% of the value of liquid stock market investments 
 
  * Operating costs have been reduced and are expected to fall further in the 
    current year 
 
Results 
 
The Group made a loss before tax for the year of GBP807,000 (2008 - loss - GBP 
995,000), after the Group share of an exceptional impairment charge in Western 
of GBP239,000 (2008 - GBP1,322,000). Our operating income last year was higher due 
to profits realised on sales of investments. Our loss after exceptional items, 
tax and minority interest was GBP796,000 (2008 - loss - GBP1,003,000) giving a loss 
per share of 2.6p (2008 - 3.2p). 
 
Our net assets per share have decreased 46% to 21p from 39p last year, 
reflecting the reduction in value of the Strategic Investments. These have 
declined in value by 45% and our General Portfolio by 24% after taking into 
account additions and disposals of investments. This compares with the 
decreases in the FTSE 100 index of 24% and the FTSE Eurotop 300 index of 29% 
over the year. At the date of this report, our unaudited net asset value had 
increased by 22% since the year end to 26p. 
 
Dividend 
 
In the absence of a dividend from Western, we are not recommending a final 
dividend, but it is our intention to resume paying dividends as soon as our 
dividend income recovers sufficiently. 
 
Strategic Investments 
 
Western Selection P.L.C. ("Western") 
 
The Company owns 7,864,412 shares, being 43.8% of the issued share capital of 
Western and 3,785,820 of Western's 2010 warrants 
 
On 29th September 2009, Western announced a loss before associates and 
exceptional items of GBP479,000 for its year to 30th June 2009 (2008 - profit - GBP 
378,000). In addition, Western has made impairment provisions against some of 
its investments of GBP546,000 (2008: provision against Creston GBP3,019,000). 
Including associates and after exceptional items and tax, and on its increased 
share capital, losses per share were 4.8p (2008 - losses 16.4p). 
 
Western is unable to pay a dividend because the decline in value of its 
investments is such that its net assets are 12% less than the total of its 
share capital, share premium and non-distributable reserves. Western's net 
assets at market value were GBP8,936,000, equivalent to 50p per share, a decrease 
of 14% from 58p last year. 
 
The market value of the Company's investment in Western at 30th June 2009 was GBP 
2,174,000 and the book value was GBP4,383,000. At market value this represents 
33% of the net assets of Lonfin. The underlying value of the Company's 
investment in Western, valuing Western's investments at market value, was GBP4.3 
million (2008 - GBP4.6 million). 
 
Mr. Marshall is the Chairman of Western and Mr. Robotham and Mr. Beale (the 
chief executive of our associated company City Group P.L.C.) are non-executive 
directors. Western has strategic investments in Creston plc, Northbridge 
Industrial Services plc, Swallowfield plc and Hartim Limited. An extract from 
Western's announcement of its strategic investments is set out below: 
 
     Creston plc 
 
     Creston is a marketing services group whose strategy is to grow within its 
     sector both by organic growth and through selective acquisition to become 
     a substantial, diversified marketing services group. The audited results 
     for the year to 31st March 2009, show a profit after tax of GBP6,597,000 
     (2008 - GBP4,782,000), equivalent to earnings of 12.2p per share (2008 - 
     8.65p). On 7th July 2009 Creston announced a placing of new shares, 
     raising approximately GBP3.3 million (gross). Western did not participate in 
     the placing and maintained it's holding of 3,000,000 shares in Creston. 
     Following the placing, this represents 4.9% of Creston's issued share 
     capital with a value at 30th June 2009 of GBP1,920,000 (2008 - GBP1,425,000) 
     being 21% (2008 - 14%) of Western's assets. 
 
     Northbridge Industrial Services PLC 
 
     Northbridge was formed for the purpose of acquiring companies that hire 
     and sell specialist industrial equipment supplying a non-cyclical customer 
     base including utility companies, the public sector and the oil and gas 
     industries. In particular it will seek to acquire specialist businesses 
     that have the potential for expansion into complete outsourcing providers. 
     Sales are made to the U.K., U.S.A., Brazil, Singapore, Germany, UAE and 
     Korea; Northbridge also has subsidiaries operating in Dubai and 
     Azerbaijan. 
 
     Northbridge announced profits of GBP1,918,000 for the year ended 31st 
     December 2008 (2007 - GBP1,154,000) and declared a final dividend of 2.6 per 
     share, making 3.9p for the year (2007 - 3p). In June 2009, Northbridge 
     raised approximately GBP2 million by way of an open offer in order to 
     finance the expansion of its hire fleet. Western took up 375,000 shares in 
     that offer at a cost of GBP413,000 and now holds 1,875,000 shares in 
     Northbridge (20.97%). The value of the investment at 30th June 2009 was GBP 
     2,156,000 (2008 - GBP2,558,000) being 24% (2008 - 25%) of Western's assets. 
 
     Swallowfield plc 
 
     Swallowfield is a market leader in the development, formulation 
     manufacture and supply of cosmetics, toiletries and related household 
     products for global brands and retailers operating in cosmetics, personal 
     care and household good markets. Since Western's year ends Swallowfield's 
     results for their year to 30th June 2009 have been announced showing 
     maintained profits of GBP1,522,000 (2008 - GBP1,537,000) and an increase of 
     dividend from 5.5p to 5.9p per share. Their board indicated progress for 
     the next 12 months. 
 
     Western increased its holding in Swallowfield during the year and now owns 
     1,331,500 shares which is 11.8% of the issued share capital. The market 
     value of Western's holding in Swallowfield on 30th June 2009 was GBP999,000 
     (2008 - GBP971,000), being 11% (2008 - 9%) of Westerns' net assets. 
 
     Western would like to see the Swallowfield board strengthened and remain 
     in discussions with the company and other major shareholders about the 
     composition of the Swallowfield board. 
 
     Hartim Limited 
 
     Hartim is the unquoted holding company for Tudor Rose International 
     Limited ("TRI") which was founded in 1984. It works closely with a number 
     of leading UK branded fast moving consumer goods companies, offering a 
     complete sales, marketing and logistical service. Based in Stroud, 
     Gloucestershire, TRI sells into 78 countries worldwide including USA, 
     Spain, Portugal, Italy, Czech Republic, Russia, Turkey, South Africa, 
     Saudi Arabia, UAE, Malaysia, Australia and China. 
 
     Western holds 49.5% of Hartim, which has a 31st December year end and 
     achieved profits in 2008 of GBP443,000 on turnover of GBP16,809,000. Western's 
     share of the consolidated profit after tax for the twelve months to 30th 
     June 2009 was GBP181,000 (2008 - three months GBP69,000) and the book value of 
     the investment at 30th June 2009 was GBP979,000 (2008 - GBP797,000), being 11% 
     (2008 - 8%) of Western's assets. 
 
MWB Group Holdings Plc ("MWB") 
 
The Company holding in MWB was unchanged from the 2 million shares held at June 
2008, representing 2.76% of MWB's issued share capital. The market value at 
30th June 2009 was GBP980,000, compared with the book value of GBP1,681,000, and 
represents 15% of the net assets of Lonfin. 
 
MWB is in the process of moneytising its assets for the benefit of all 
stakeholders through an orderly disposal programme. Mr. Marshall is a 
non-executive director of MWB and the board constantly reviews the programme of 
disposal. 
 
Finsbury Food Group plc ("Finsbury") 
 
The Company holding in Finsbury remains at 8,000,000 shares, representing 
15.55% of their share capital. The market value of the holding was GBP1,640,000 
on 30th June 2009 (cost - GBP1,893,000) and represents 25% of the net assets of 
Lonfin. 
 
Finsbury is one of the largest suppliers of premium cakes, bread and morning 
goods in the UK. The group currently supplies most of the UK's major 
supermarket chains, including Asda, Morrisons, Sainsbury, Somerfield, Tesco and 
Waitrose. 
 
Mr. Marshall is the non-executive chairman and Mr. Beale, the Chief Executive 
of our associated company City Group P.L.C., is a non-executive director of 
Finsbury. 
 
General Portfolio 
 
The General Portfolio is diverse with material interests in Food and Beverages, 
Oil, Natural Resources, Chemicals, and Tobacco. We believe that the portfolio 
of quality companies we hold has the potential to outperform the market in the 
medium to long term, especially in respect of our Western European holdings. 
 
The number of holdings in the General Portfolio has decreased to 29 from 35. We 
have decreased the amount invested in the General Portfolio by GBP715,000 (2008: 
decreased by GBP188,000) over the year. 
 
We have a GBP2 million bank facility in addition to the facility to cover the 
increased investment in Western, and at 30th June 2009 had drawn down GBP1.6 
million. This leaves GBP400,000 available for further investment when the Board 
feels appropriate. The fall in value of our investments over the period has 
increased borrowings as a percentage of the market value of all stock market 
investments from 20% to 29%. 
 
Outlook 
 
The outlook for stock markets remains very uncertain. We will continue to adopt 
a cautious stance, with our general portfolio invested in the best European 
companies. 
 
                                                          By Order of the Board 
 
                                                              CITY GROUP P.L.C. 
 
                                                                    Secretaries 
 
30th September 2009 
 
 
 
Annual General Meeting 
 
The Company's Annual General Meeting will be held at its registered office, 30 
City Road, London, EC1Y 2AG, U.K. on Wednesday 28th October 2008 at 10.30 a.m. 
The annual report and accounts will be posted to shareholders on or before 5th 
October 2009. 
 
Unaudited Consolidated Income Statement 
 
For the year ended 30th June                                     2009       2008 
 
                                                                 GBP000       GBP000 
 
Operating Income 
 
Investment operations                                            104        645 
 
Management services                                              468        516 
 
Administrative expenses 
 
Investment operations                                           (359)      (373) 
 
Management services                                             (492)      (507) 
 
                                                           ---------- ---------- 
 
Operating (loss)/profit                                         (279)       281 
 
Share of result of associated undertaking - normal              (138)       195 
 
Share of result of associated undertaking - exceptional         (239)    (1,322) 
 
Interest payable                                                (151)      (149) 
 
                                                           ---------- ---------- 
 
Loss on ordinary activities before taxation                     (807)      (995) 
 
Tax on result of ordinary activities                                -        (2) 
 
                                                           ---------- ---------- 
 
Loss on ordinary activities after taxation                      (807)      (997) 
 
Equity minority interest                                          11         (6) 
 
                                                           ---------- ---------- 
 
Loss for the financial year attributable to members of the      (796)    (1,003) 
holding company 
 
                                                               ======     ====== 
 
Reconciliation of headline earnings per share 
 
Basic (loss) per share                                         (2.6)p     (3.2)p 
 
Adjustment for exceptional items net of tax and minorities      0.8 p      4.2 p 
 
                                                            ---------  --------- 
 
Headline earnings per share                                    (1.8)p       1.0p 
 
                                                            ---------  --------- 
 
Unaudited Consolidated Statement of Changes in Shareholders' Equity 
 
                                                                       Share of 
 
                                                                  undistributed   Retained 
 
                      Ordinary      Share              Unrealised    results of   realised 
 
                         share    premium Revaluation    profits/  subsidiaries  profits & 
                                                         (losses)             & 
 
                       capital    account     Reserve          on    associates     losses      Total 
                                                      investments 
 
Year ended 30th           GBP000       GBP000        GBP000        GBP000          GBP000       GBP000       GBP000 
June 2008 
 
Balances at 1st         1,560      2,328         330           -             -          - 
July 2007 
 
Restated balances           -          -           -       9,095         1,702      5,505     20,520 
at 1st July 2007 
 
                    ---------- ----------  ----------  ----------    ---------- ---------- ---------- 
 
Loss before fair            -          -            -          -        (1,250)      (106)    (1,356) 
value release from 
equity 
 
Fair value of               -          -            -          -             -         353       353 
investments 
recycled to income 
statement on 
disposal 
 
                    ---------- ----------  ----------  ----------    ---------- ---------- ---------- 
 
Loss attributable           -          -           -           -        (1,250)       247     (1,003) 
to shareholders 
 
Fair value recycled         -          -            -       (353)             -          -      (353) 
from equity to 
income statement 
 
Fair value                  -          -           -      (6,589)            -          -     (6,589) 
adjustment on 
listed undertakings 
 
                    ---------- ----------  ----------  ----------    ---------- ---------- ---------- 
 
Total income and            -          -           -      (6,942)       (1,250)       247     (7,945) 
expense for the 
period 
 
                    ---------- ----------  ----------  ----------    ---------- ---------- ---------- 
 
Dividends paid in           -          -           -           -             -       (343)      (343) 
respect of the 
previous year 
 
Interim dividend            -          -           -           -             -       (172)      (172) 
paid 
 
                    ---------- ----------  ----------  ----------    ---------- ---------- ---------- 
 
Total transactions          -          -           -           -             -       (515)     (515) 
with shareholders 
for the year 
 
                    ---------- ----------  ----------  ----------    ---------- ---------- ---------- 
 
Balances at 30th        1,560      2,328         330       2,153           452      5,237     12,060 
June 2008 
 
                        ======     ======      ======      ======        ======     ======     ====== 
 
Year ended 30thJune 
2009 
 
Balances at 1st July     1,560      2,328        330      2,153        452     5,237      12,060 
2008 
 
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- 
 
Loss before fair             -          -          -          -       (503)      (470)      (973) 
value release from 
equity 
 
Fair value of                -          -          -          -          -        177        177 
investments recycled 
to income statement 
on disposal 
 
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- 
 
Loss attributable to         -          -          -          -       (503)      (293)      (796) 
shareholders 
 
Expenses of capital          -        (10)         -          -          -          -        (10) 
re-organisation 
 
Fair value recycled          -          -          -      (177)           -          -      (177) 
from equity to 
income statement 
 
Fair value                   -          -          -     (4,047)         -          -     (4,047) 
adjustment on listed 
undertakings 
 
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- 
 
Total income and             -       (10)          -     (4,224)      (503)      (293)    (5,030) 
expense for the 
period 
 
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- 
 
Final dividends paid         -          -          -          -          -       (202)      (202) 
in respect of the 
previous year 
 
Interim dividend             -          -          -          -          -       (172)      (172) 
paid 
 
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- 
 
Total transactions           -          -          -          -          -       (374)     (374) 
with shareholders 
for the year 
 
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- 
 
Balances at 30th         1,560      2,318        330    (2,071)        (51)     4,570      6,656 
June 2009 
 
                         ======     ======     ======     ======     ======     ======     ====== 
 
Unaudited Consolidated Balance Sheet 
 
at 30th June                                                     2009       2008 
 
                                                                 GBP000       GBP000 
 
Non-current Assets 
 
Tangible assets                                                  390        403 
 
Investments                                                    4,794      8,784 
 
                                                           ---------- ---------- 
 
                                                               5,184      9,187 
 
                                                           ---------- ---------- 
 
Current Assets 
 
Listed investments                                             3,976      5,726 
 
Accounts receivable                                              309        319 
 
Bank balance and deposits                                        114         36 
 
                                                           ---------- ---------- 
 
                                                               4,399      6,081 
 
Current Liabilities 
 
Accounts payable: falling due within one year                 (2,837)    (3,107) 
 
                                                           ---------- ---------- 
 
Net Current Assets                                             1,562      2,974 
 
                                                           ---------- ---------- 
 
Total Assets less Current Liabilities                          6,746     12,161 
 
                                                                =====      ===== 
 
Capital and Reserves 
 
Called up share capital                                        1,560      1,560 
 
Share premium account                                          2,318      2,328 
 
Revaluation reserve                                              330        330 
 
Unrealised profits and losses on investments                  (2,071)     2,153 
 
Share of undistributed profits and losses of subsidiaries        (51)       452 
and associates 
 
Company's retained realised profits and losses                 4,570      5,237 
 
                                                           ---------- ---------- 
 
                                                               6,656     12,060 
 
Minority equity interests                                         90        101 
 
                                                           ---------- ---------- 
 
                                                               6,746     12,161 
 
                                                                =====      ===== 
 
Unaudited Consolidated Cash Flow Statement 
 
For the year ended 30th June                                     2009       2008 
 
                                                                 GBP000       GBP000 
 
Cash inflow on operating activities 
 
Cash generated by operations, including General Portfolio        438          4 
investment 
 
Dividends receivable                                             537        458 
 
Interest paid                                                   (151)      (148) 
 
Interest received                                                  6          5 
 
Taxation paid                                                      -       (235) 
 
                                                           ---------- ---------- 
 
Net cash generated by operations                                 830         84 
 
Investing activities 
 
Non-current asset investments - purchased                          -     (1,297) 
 
                                                           ---------- ---------- 
 
Net cash outflow from investment activities                        -     (1,297) 
 
                                                           ---------- ---------- 
 
Financing 
 
Share capital issued                                               -          - 
 
Cost of warrant issue                                            (10)         - 
 
Equity dividends paid                                           (374)      (515) 
 
Net (repayment)/drawdown of loan facilities                     (368)     1,677 
 
                                                           ---------- ---------- 
 
Net cash (outflow)/inflow from financing                        (752)     1,162 
 
                                                           ---------- ---------- 
 
Increase/(Decrease) in cash                                       78        (51) 
 
                                                                =====      ===== 
 
 
 
Notes 
 
1.   Earnings per share are based on the loss on ordinary activities after 
     taxation and minority interests and on 31,201,133 shares (2008 - 
     31,200,000) being the weighted average of the number of shares in issue 
     during the year. 
 
2.   The net assets attributable to shareholders, taking investments at market 
     value, are before providing for any tax that may arise on realisation. 
 
3.   The financial information in this preliminary announcement of unaudited 
     group results does not constitute the company's statutory accounts for the 
     years ended 30th June 2009 or 30th June 2008 but is derived from those 
     accounts. The accounts have been prepared in accordance with International 
     Financial Reporting Standards (IFRS) as adopted by the European Union and 
     with those parts of the Companies Acts 2006 applicable to companies 
     reporting under IFRS. The accounts are prepared on the historical cost 
     basis, except for certain assets and liabilities which are measured at 
     fair value, in accordance with IFRS. The audited accounts of the group for 
     the year ended 30th June 2008 have been reported on with an unqualified 
     audit report and have been delivered to the Registrar of Companies. 
 
 
 
 
 
Enquiries to: 
 
London Finance & Investment Group            020 7448 8950 
 
David Marshall / Edward Beale 
 
 
 
END 
 

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