RNS Number : 4853U
Luminar Group Holdings PLC
15 May 2008
Luminar Group Holdings Plc
Condensed consolidated financial information for the year ended 28 February 2008
Strategy on track, progress on KPIs and robust trading
As at 28 February 2008, Luminar operated 100 high quality destination nightclubs predominately under the brands of Oceana (10), Liquid
(33), Lava & Ignite (7) and Life (2). It also operated 28 high quality unbranded clubs.
Year ended Year ended Growth / (reduction)
28 1 March
February 2007
2008
Continuing operations:
Revenue (87 units) (£m) 201.3 197.6 1.9%
Like-for-like dancing (71 units) 1.6% - -
Like-for-like branded dancing 4.8% - -
(44 units)
PBT *(£m) 31.5 28.1 12.1%
PBT (£m) 25.0 23.6 5.9%
EBITDA** (£m) 60.5 55.4 9.2%
PAT* (£m) 28.1 21.2 32.5%
PAT (£m) 22.4 19.1 17.3%
Fully diluted EPS * 45.5p 30.0p 51.7%
Fully diluted EPS 36.2p 27.0p 34.1%
Total operations
(continuing and discontinued):
PAT (£m) 3.8 35.6 (89.3%)
Fully diluted EPS 6.1p 50.4p (87.9%)
* Pre-exceptional items
* Pre-loss from associate of £2.6m (2007: £0.3m)
Highlights
* Strategy remains to deliver optimal shape of 110 units during FY2011:
* Roll out of key brands has continued with eight new venues opened and 15 refurbishments during the year. New investments are
performing well.
* Only 12 non-core units remain (following the disposal of 26 units in April 2008) of which six will be converted into branded
units.
* Prudent examination of capital expenditure has resulted in the decision to only invest in the premier locations over the next two
years.
* EBITDA per unit from continuing operations has increased to £0.7m (2007: £0.6m).
* Freeholds recently re-valued on same basis at £180.0m
* Majority of key performance indicators remain on track or exceeding three year targets:
* Dancing admissions increased 6.4% on a like-for-like basis to 13.9m.
* Gross margins increased by 0.7% to 83.6%.
* Central costs have been reduced by £5.4m during the year, bringing the total central costs reduction to £8.0m over two years.
* Investment cost per square foot has significantly reduced (Oceana: £103, Liquid: £99). Targets of £98 for Oceana and £88 for
Liquid have been set for the current year.
* Return of capital and dividend
* Increased proposed final dividend of 13.95 pence, up 13.2% from the prior year. The total dividends for the year, subject to
shareholder approval, will be 19.32 pence per share (2007: 17.20 pence per share), up 12.3%.
* £82.6m of cash returned to shareholders from the share buy-back programme (£41.8m) and Scheme of Arrangement (£40.8m) over the
past two years.
* Current trading
* Dancing Division like-for-like sales up 1.9% in the first ten weeks of the new financial year.
* Branded dancing like-for-like sales up 7.5% in the first ten weeks of the new financial year.
* Gross margins in the first ten weeks have continued to strengthen, realising the benefits of the operational effectiveness
actions.
Stephen Thomas, Chief Executive, said:
"Important steps have been achieved during the year and since the year end to transform Luminar into the highest quality late night
destination estate in the UK.
Through the quality of its brands and products, the resilience of its customer base and management's experience and understanding of its
market, the Group is trading well.
We are confident of delivering further progress in the current year."
15 May 2008
Enquiries
Luminar Group Holdings plc
Stephen Thomas, Chief Executive Tel: 020 7457 2020 (today)
Nick Beighton, Finance Director Tel: 01908 544100 (thereafter)
College Hill
Matthew Smallwood Tel: 020 7457 2020
Introduction
The last year has seen Luminar consolidate its position as the leader within the late night entertainment market and sharpen its focus
on operating its high quality estate of Oceana, Liquid and Lava & Ignite brands. Eight new branded units were opened during the year.
Significant progress has been made towards achieving our strategy of creating an optimal business of 110 high quality venues during
FY2011. The Board is focused on delivering its clear plan and strives to consistently achieve high returns for shareholders.
Luminar remains extremely cash generative and is in the second year of a three year programme of enhancing shareholder returns.
The Group's strategy is clearly focused around three key streams (maintaining momentum towards the 2011 business structure, improving
our operational effectiveness and improving our financial effectiveness) to create enhanced shareholder value. Our progress towards the
completion of this strategy is measured by KPI targets set in 2006, the majority of which are either on track or exceeding their targets at
this stage.
Significant events
On 19 October 2007 Luminar Group Holdings plc replaced Luminar plc as the listed holding company for the Group and undertook a Scheme of
Arrangement, in order to create sufficient distributable reserves to facilitate its plans for returning cash to shareholders. Following the
Scheme of Arrangement, distributable reserves of over £200.0m have been created which is after returning £40.8m to shareholders.
On 16 April 2008 the Group exchanged contracts with Cavendish Bars Limited for the disposal of five subsidiaries, which included 26
non-core units, the majority of which were sub-let or closed. This effectively completed the streamlining of the Group which began two
years ago. The transaction generated a net loss on disposal of £11.1m (cash cost of £7.3m including transaction costs), excluding a £4.2m
indemnity provision given in favour of Cavendish Bars Limited, in relation to guarantee liabilities given on leases for units sold
previously. At the year end £3.5m of this indemnity was provided for, being the indemnity for property costs which the Group considers are
likely to be called upon by Cavendish Bars Limited.
Our business and the market in which we operate
The Group operates in the late night market for entertaining, dancing and drinking, largely through three branded concepts: Oceana, Lava
& Ignite and Liquid. The Group is the largest operator in its chosen market, with the competition largely comprised of much smaller groups
and privately owned clubs.
The strategic focus of the Group has sharpened following the disposal of 98 entertainment and other non-core units in January 2007 and
26 units in April 2008.
Our core target consumers are in the 18-24 age range, which represent over 80% of our customer base. 55% of this group visit our
nightclubs more than once a month. The Group continues to monitor changing trends and tastes, and tailors its branded offerings and
marketing activity to compete effectively with other operators in the market, and with the many other activities that compete for the
disposable income of our wider target 18-30 age customers.
Whilst general consumer confidence in the UK has been falling, largely due to the difficult economic climate, our target 18-30 age
customers remain less susceptible to economic downturn. They live more for today, do not generally have mortgages, children or regular
savings. These characteristics are even stronger amongst our core 18-24 age customers.
Rising industry standards and legislative changes are forcing weaker operators to exit the industry with the number of nightclubs in the
UK declining over the last two years. This decline is expected to continue over the next few years.
The Group is well placed to exploit the growing market opportunity for a genuine high quality clubbing experience and the Group
continues to develop new product sessions to broaden our offering to existing and new customers.
The legal and regulatory environment in which the Group operates has been subject to significant change in recent years, notably
licensing reform and smoking bans. New noise regulations came into force in April 2008 and further changes to licensing law in Scotland are
also to be introduced. Licensing reform has enabled the Group to differentiate itself further from the high street, drink led establishments
and to utilise our skill set in entertainment and marketing to the full. We have made excellent progress with our smoking solutions, all
units have scenting machines and we have only seven units where we are presently unable to provide our customers with an appropriate outside
area.
The Group takes seriously its corporate responsibility on a range of issues including responsible retailing, underage drinking, health
and safety, drug awareness, smoking and the environment.
Our customers should enjoy a fun, safe night out. We strive to achieve the highest levels of safety within our venues by investing in
the best possible security and procedures.
Strategy - maintaining momentum towards the 2011 business structure
The Group's strategy has continued to build on its leading position in the late night market for dancing and drinking, with a more
concentrated focus following the disposal of the 98 entertainment and non-core units in January 2007, and a further 26 units sold as part of
the sale of five subsidiaries to Cavendish Bars Limited. In addition to a number of branded units, the Group will retain other properties
suitable for branding, plus a selection of other good quality clubs that achieve high returns.
The future Luminar nightclub business will be high quality, predominantly branded, and will provide a product that will differentiate it
from competitors in the marketplace and allow the business to continue to prosper through this period of regulatory change.
In pursuing this strategy the Group has invested in proven branded concepts, leveraging its substantial operational strengths and
experience in the late night market.
During the year, the Group invested £46.2m in re-branding, refurbishment and maintenance capital expenditure, of which 93.9% was on
dancing venues. There were eight branded openings - two Oceanas, five Liquids and one Lava & Ignite and 15 refurbishments during the year.
Since the year end, there have been four branded openings and seven refurbishments.
The future composition of the Group's business is planned to be as follows:
Segments 1 March 2007 * 28 February 2008 ** 28 February 2008 *** Strategy Future
units
by 2011
units units units post
transaction
Dancing 93 80 78 Brand approximately 110
74 (67%) as core
brands (Oceana,
Liquid, Lava &
Ignite)
Non-core 29 20 12 Realise value from -
combining or
disposing
Total operations
122 100 90 110
The units presented above represent the total of continuing and discontinued operations, but exclude units in development (21 at 28
February 2008) and sub-let units (14 at 28 February 2008)
* Of the total 122 units, 93 within dancing and 13 within non-core represent continuing operations (total continuing operations being
106)
** Of the total 100 units, 78 within dancing and nine within non-core represent continuing operations (total continuing operations being
87)
*** Unit position post transaction to Cavendish Bars Limited provided for information. Of the total 90 units, 78 within dancing and nine
within non-core represent continuing operations (total continuing operations being 87)
Key performance indicators (KPIs)
The Board reviews and approves the annual budget in the context of the previously approved strategy. In addition to reviewing
performance against budget on a monthly basis, the Board has established a number of KPIs set in 2006 for a three year period, to track the
delivery of the Group's strategy and monitor the performance of the business.
Operational effectiveness
Target * increase admissions by 5.0%
- Dancing admissions up 6.4% on a like-for-like basis
Target * increase gross margin by 0.5%
- Gross margin up 0.7% to 83.6% (2007: 82.9%)
Target * deliver a £6.0m central cost reduction
- £5.4m achieved during the year, £8.0m achieved over two years
Target * reduce development cost to £100 per square foot for Oceana and £90 for Liquid
- Significant reductions achieved to date: Oceana brand £103 per square foot, Liquid brand £99 per square foot
- Targets of £98 per square foot set for Oceana and £88 per square foot set for Liquid for next financial year
Financial effectiveness
Target * dividend cover of two times
- Total dividends for the year of 19.32 pence per share (2007: 17.20 pence per share) achieves cover of 2.3 times
- On track with target, achieving a sensible dividend progression year on year
Target * share buy-back of £70.0m over three years
- £82.6m returned over two years
- £18.8m returned during the year from share buy-back programme, £41.8m since the programme began
- £40.8m returned from Scheme of Arrangement
Target * return on investment of 25.0% post-tax
- Initiatives in place to drive down costs and increased rigour over capital expenditure are expected to deliver returns in excess
of the target
*
Financial review
Comparative income statement and cash flow information has been reclassified at the balance sheet date to reflect the composition of the
operations and their segments as at these dates.
The total turnover and profitability generated by the Group is detailed below:
Total operations
Units Revenue EBITDA* ~ PBT*
28 February 2008 2008 2007** 2008 2007** 2008 2007**
Number £m £m £m £m £m £m
Continuing operations
87 201.3 197.6 60.5 55.4 31.5 28.1
Discontinued operations ***
13 5.3 102.8 (0.9) 15.1 (1.4) 13.4
Total 100 206.6 300.4 59.6 70.5 30.1 41.5
Includes units disposed of during the year
~ Pre-loss from associate
* Pre-exceptional items
** Reclassified for composition of the operations and their segments as at 28 February 2008
*** Post disposal to Cavendish Bars Limited, this is reduced by ten units
Sales from continuing operations were up £3.7m (1.9%) to £201.3m (2007: £197.6m). Continuing like-for-like sales for the Dancing
Division were up 1.6%, with continuing branded like-for-like sales up 4.8%.
Gross margin from total operations for the year increased by 0.7% to 83.6% of revenue (2007: 82.9%). Gross margin from continuing
operations has weakened by 60 basis points to 83.7% (2007: 84.3%). As a consequence of some planned liquor range changes, cash margin per
drink sold in the category has improved but the percentage margin on higher retail prices has reduced.
EBITDA pre-exceptional items (and pre-loss from the associate) from continuing operations has increased by £5.1m to £60.5m (2007:
£55.4m). This gave an EBITDA per unit from continuing operations of £0.7m (2007: £0.6m). EBITDA from continuing and discontinued
operations pre-exceptional items (and pre-loss from the associate) was down £10.9m to £59.6m (2007: £70.5m). This decrease was due to the
units sold as part of the Entertainment Division and other disposals.
Total profit before tax pre-exceptional items has reduced to £30.1m (2007: £41.5m) due to the sale of the Entertainment Division and
other disposals. Profit before tax from continuing operations pre-exceptional items has increased by £3.4m to £31.5m (2007: £28.1m), and
the loss before tax from discontinued operations pre-exceptional items was £1.4m (2007: £13.4m profit). The increase from continuing
operations was due to a £3.8m reduction in central costs, a £2.1m reduction in net finance costs, offset by a £2.3m increase in the loss
from the associate and £0.2m reduction in profit from operations. Net finance costs have reduced due to a lower weighted average net debt
level, despite an increase in the interest rate payable. Diluted earnings per share from continuing operations pre-exceptional items was up
51.7% to 45.5 pence per share (2007: 30.0 pence per share).
Profit before tax from continuing operations post-exceptional items was up 5.9% to £25.0m (2007: £23.6m), despite an additional £2.0m
of exceptional items in the current year. Diluted earnings per share from continuing operations post-exceptional items was up 34.1% to 36.2
pence per share (2007: 27.0 pence per share).
Segmental review
The table below reconciles the units as at 1 March 2007 to those reported as at 28 February 2008.
1 March 2007 28 February 2008
Segments Total units * Additions ** Net transfers *** Disposals **** Total units *
Branded 48 - 4 - 52
Unbranded 45 1 (18) - 28
Dancing 93 1 (14) - 80
Non-core 29 1 (3) (7) 20
Total 122 2 (17) (7) 100
* The units presented above exclude those units which are closed for development or have been sub-let
** Additions include one unit acquired back due to the liquidation of the previous owner, but exclude one acquired unit which is
currently in development
*** Net transfers relate to units transferred to development, sub-let or units collapsed from two trading units into one
**** Disposals exclude one unit in development and one sub-let unit
Subsequent to the disposal of the five subsidiary companies to Cavendish Bars Limited, the Group will have 51 branded units, 27
unbranded units, 12 non-core units, 18 units in development and three sub-let units.
The performance of each segment within continuing operations is set out below:
Units Revenue Revenue per unit Profit from operations * Profit from operations per unit *
28 February 2008 2008 2007 ** 2008 2007 ** 2008 2007 ** 2008 2007 **
number £m £m £000 £000 £m % £m % £000 £000
Dancing 78 175.2 162.3 2,246 2,081 47.9 27.3 44.9 27.7 614 576
Non-core 9 26.1 35.3 2,900 3,922 4.2 16.1 7.4 21.0 467 822
Continuing operations 87
201.3 197.6 2,314 2,271 52.1 25.9 52.3 26.5 599 601
* Pre-exceptional items, central costs, net finance costs, loss from associate and tax
** Reclassified for composition of the operations and their segments as at 28 February 2008
Dancing Division
The performance of the Dancing Division reported within continuing operations is set out below:
Dancing Division * Year ended28 Year ended1 March 2007*** Movement%
February 2008
Revenue (£m) 175.2 162.3 8
EBITDA ** (£m) 64.5 58.6 10
Operating profit ** (£m) 47.9 44.9 7
Operating margin ** 27.3% 27.7% -
Number of units at year end 78
* Relating to continuing operations
** Pre-exceptional items
*** Reclassified for composition of the operations and their segments as at 28 February 2008
The Group has continued to transform its underlying business to a more focused branded destination dancing business. There were eight
branded openings during the year, bringing the branded portfolio at the year end to ten Oceanas, seven Lava & Ignites, 33 Liquids and two
Life clubs.
Continuing sales were driven by the increase from the Dancing Division. Performance was particularly strong in the first half, with
growth of 7.9% for the year. Sales in the branded dancing units increased by 12.8% to £125.1m (2007: £110.9m), with a like-for-like sales
increase of 4.8%. Like-for-like sales for the Oceana and Liquid brands were up 5.2% and 7.6% respectively. Like-for-like sales for the Lava
& Ignite brand were down 1.4% for the year.
Operating profit was up £3.0m on prior year levels, but operating margin was down 0.4% to 27.3% (2007: 27.7%). However, operating
margin for the branded dancing units was up 1.0% to 27.5% of revenue (at £34.4m), compared to 26.5% of revenue (at £29.4m) in the prior
year. The operating margin for the unbranded units reduced to 26.9% of revenue (2007: 30.1%).
Operating costs have increased as a result of higher fixed costs and carrying the closure costs of certain units whilst undergoing
re-branding. However, labour cost control has improved, with a reduction in the cost as a percentage of revenue to 27.3% (2007: 27.5%).
Non-core Division
The performance of the Non-core Division reported within continuing operations is set out below:
Non*core Division * Year ended28 Year ended1 March 2007*** Movement%
February 2008
Revenue (£m) 26.1 35.3 (26)
EBITDA ** (£m) 7.1 10.8 (34)
Operating profit ** (£m) 4.2 7.4 (43)
Operating margin ** 16.1% 21.0% (5)
Number of units at year end 9
* Relating to continuing operations
** Pre-exceptional items
*** Reclassified for composition of the operations and their segments as at 28 February 2008
The non-core units reported within continuing operations include the six units previously reported within the Entertainment Division,
and three closed non-core units, which did not meet the criteria for presentation as held for sale at the year end, and therefore have been
classified within continuing operations. This Division also includes units which are closed for development until the unit has re-opened,
at which point the unit is transferred into dancing.
Sales for the Non-core Division were down 26.1% to £26.1m (2007: £35.3m), of which units in development have contributed to a 35.7%
reduction in sales to £16.2m (2007: £25.2m). Operating profit has reduced to £4.2m (2007: £7.4m), of which units in development have
contributed to a £3.3m reduction in operating profit to £1.4m (2007: £4.7m). The remaining loss can be explained by an increase in fixed
property costs and employee costs, as a percentage of revenue.
Central costs
Central costs comprise the head office and administrative functions, area and divisional management costs, central depreciation and
information technology costs for the Group.
During the year the Group has made excellent progress in reducing the corporate cost base. Central costs from continuing operations
reported within operating margin pre-exceptional items have reduced by £3.8m from £17.2m to £13.4m.
Discontinued operations
Discontinued operations comprise the 26 units included in the Cavendish Bars Limited transaction, units sold as part of the
Entertainment Division and non-core clubs disposal, and other units, which are either held for sale or have been disposed of during the year
or during the prior year. Non-core units yet to be marketed for sale are presented within continuing operations, since although these units
form part of the Group's disposal strategy, these units do not meet the criteria to be classified as discontinued operations under IFRS 5,
Non-current assets held for sale and discontinued operations.
The number of units comprising discontinued operations totals 148, of which nine relate to disposals in the current year and 110 relate
to prior year disposals. The remaining 29 units relate to other trading or closed non-core operations held for sale.
Of the nine single site units disposed of in the current year within discontinued operations, six related to unit sales with net
proceeds of £6.5m, one was a lease surrender for a payment of £0.2m, one was a lease assignment and one was a lease expiry.
Sales relating to discontinued operations total £5.3m (2007: £102.8m), with a loss before tax pre-exceptional items of £1.4m (2007:
£13.4m profit). The significant decrease in sales and profitability was mainly due to the large number of prior year disposals.
Investment in associate
As part of the disposal of the Entertainment Division in the prior year to The 3D Entertainment Group Limited, the Group acquired a 49%
stake in The 3D Entertainment Group Limited, initially valued at £30.6m. The Group has recognised its share of the post tax loss of the
associate totalling £2.6m (2007: £0.3m) relating to the period until the investment was classified as held for sale from 18 September
2007. The investment is therefore no longer equity accounted for, but is held at the lower of adjusted cost (cost adjusted for changes in
the net assets of the associate) and fair value less costs to sell.
Exceptional items
The Group has recognised exceptional items before taxation relating to continuing operations of £6.5m (2007: £4.5m). Full details are
included in note seven to this preliminary statement.
Current trading and outlook
Our leading market position is set to strengthen as supply in the nightclub market contracts. Luminar's assets are unrivalled in the
late night sector, well invested and supported by freehold backing.
Like-for-like sales for the first ten weeks of the financial year were up 1.9% within the Dancing Division and up 7.5% for branded
dancing.
Whilst it would be imprudent to suggest that Luminar is totally impervious to the current economic climate, the majority of our customer
base, being aged 18-24 are non-homeowners and have a spontaneous attitude to their social behaviour. This, together with our leading market
position and our deep understanding and experience of the late night market, gives us confidence that our business is differentiated from
the drink led high street operators and has a higher degree of in-built resilience. Accordingly, the Board is confident of delivering
further progress during the current financial year.
Summary
The Group is, by a significant margin, the largest and most experienced nightclub operator in the United Kingdom. It has strong cash
flows, outstanding assets and well-motivated, capable and experienced staff. The Group's strategy is being successfully implemented and we
are well on track with the programme to deliver substantial shareholder value through the share buy-back programme.
The Group's 2008/09 development programme is progressing well with four new branded openings and seven refurbishments since the year
end.
Luminar is substantially through its transformation. Having achieved clarity on our strategy, we are well on the way to creating the
optimal shape of the Group. Now our energy is directed at achieving our stated operational KPIs, delivering efficiency and hence returns.
The focus on the content of our units will drive growth and maintain our market leadership. The Board is confident in the Group's future
prospects.
Consolidated Income Statement
for the year ended 28 February 2008
Year ended 28 February 2008 Year ended 1 March 2007 (reclassified) ****
Pre- Exceptional Pre- Exceptional
excepti items exceptiona items
onal (note 7) l (note 7)
items £m Total items £m Total
£m £m £m £m
Note
Continuing operations
Revenue 2 201.3 - 201.3 197.6 - 197.6
Cost of sales (32.9) - (32.9) (31.0) - (31.0)
Gross profit 168.4 - 168.4 166.6 - 166.6
Administrative expenses *
(129.7) (4.1) (133.8) (131.5) (3.9) (135.4)
Profit / (loss) from trading
operations 38.7 (4.1) 34.6 35.1 (3.9) 31.2
Exceptional items relating to
the closure of properties
- (1.9) (1.9) - (0.6) (0.6)
Profit / (loss) from
operations ** 2 38.7 (6.0) 32.7 35.1 (4.5) 30.6
Finance income 3 1.9 - 1.9 1.6 - 1.6
Finance costs 3 (6.5) (0.5) (7.0) (8.3) - (8.3)
Loss from associates (2.6) - (2.6) (0.3) - (0.3)
Profit / (loss) before
taxation 2 31.5 (6.5) 25.0 28.1 (4.5) 23.6
Tax on profit / (loss) 4 (3.4) 0.8 (2.6) (6.9) 2.4 (4.5)
Profit / (loss) for the year
from continuing operations
attributable to equity
shareholders
28.1 (5.7) 22.4 21.2 (2.1) 19.1
(Loss) / profit from
discontinued operations ***
2,8 (1.0) (17.6) (18.6) 10.0 6.5 16.5
Profit / (loss) for the year
attributable to equity
shareholders
27.1 (23.3) 3.8 31.2 4.4 35.6
Earnings per share from
continuing operations
Basic 6 36.5p 27.1p
Diluted 6 36.2p 27.0p
Earnings per share from
continuing and discontinued
operations
Basic 6 6.2p 50.4p
Diluted 6 6.1p 50.4p
Dividends per share
5 19.32p 17.20p
* The exceptional items within administrative expenses include £2.4m (2007: £1.8m) in relation to the Group reorganisation. Further
details are included in note seven.
** The profit / (loss) from operations is stated after central costs of £15.7m post-exceptional items (2007: £18.6m).
*** The (loss) / profit from discontinued operations is stated post tax.
**** Reclassified for composition of the operations and their segments as at 28 February 2008.
Consolidated Balance Sheet
at 28 February 2008
28 February 2008 1 March 2007
Note £m £m
Non-current assets
Goodwill 172.6 174.9
Other intangible assets 2.3 1.8
Property, plant and equipment 314.6 300.4
Other non-current assets 4.1 4.7
Investment in associate - 30.3
Trade and other receivables 21.1 19.5
514.7 531.6
Current assets
Inventories 2.3 2.4
Trade and other receivables 7.6 7.3
Cash and cash equivalents 7.0 14.7
16.9 24.4
Assets classified as held for sale 8 10.3 13.6
Investment in associate held for sale 27.7 -
Total current assets held for sale 38.0 13.6
54.9 38.0
Current liabilities
Trade and other payables (21.5) (27.5)
Current tax liabilities (38.2) (35.6)
Deferred income (0.5) (0.5)
Provisions (1.9) (4.3)
(62.1) (67.9)
Liabilities classified as held for sale 8 (11.1) (3.7)
(73.2) (71.6)
Net current liabilities (18.3) (33.6)
Total assets less current liabilities 496.4 498.0
Non-current liabilities
Borrowings and loans (144.5) (72.7)
Derivative financial instruments (2.7) -
Deferred income (6.7) (7.2)
Obligations under finance leases (7.9) (8.0)
Provisions (1.5) (4.4)
Deferred tax liabilities (25.2) (26.9)
(188.5) (119.2)
Net assets 307.9 378.8
Capital and reserves
Share capital 134.2 17.5
Share premium - 61.0
Capital reserve - 2.3
Capital redemption reserve 29.8 0.8
Merger reserve - 235.3
Equity reserve 1.2 0.4
Retained earnings 142.7 61.5
Shareholders' equity 307.9 378.8
Consolidated Cash Flow Statement
for the year ended 28 February 2008
Year ended Year ended
28 1 March
February 2007
Note 2008 £m
£m
Cash flows from operating activities
Net cash inflow from operations 9 47.0 59.2
Finance costs paid (6.6) (8.4)
40.4 50.8
Cash flows from investing activities
Purchase of property, plant and equipment (45.1) (52.3)
Purchase of intangible assets (1.1) (0.6)
Net proceeds from sale of property, plant and
equipment (including motor vehicles) 7.8 12.1
Acquisition of business units (2.7) -
Proceeds received on disposal of business - 76.8
Costs associated with disposal of business (2.4) (2.8)
Payments associated with surrender of leases (0.2) (2.6)
Finance income received 0.3 1.3
(43.4) 31.9
Cash flows from financing activities
Repayment of long-term borrowings (90.0) (106.7)
Drawdown of old facility 16.7 -
Drawdown of new facility (post-issue costs) 144.5 -
Repurchase of shares (20.4) (21.6)
Payment from shares issued - 0.1
Purchase of shares through Luminar plc Employee (2.7) -
Trust
Cash receipts through Luminar plc Employee Trust 0.5 -
Issue costs paid from share premium account (0.6) -
Settlement of interest rate swap - (0.5)
Dividends paid (11.8) (11.4)
Return of capital under Scheme of Arrangement (40.8) -
(4.6) (140.1)
Net decrease in cash and cash equivalents (7.6) (57.4)
Cash and cash equivalents at beginning of year * 14.7 72.1
Cash and cash equivalents at end of year * 7.1 14.7
* Cash and cash equivalents of £7.1m (2007: £14.7m), includes cash and cash equivalents presented within assets classified as held for
sale of £0.1m (2007: £nil).
Net Debt Statement
for the year ended 28 February 2008
The movement in net debt in the year was analysed as follows:
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Decrease in cash in the year 7.6 57.4
Non-cash changes - movement in finance lease (0.9) 1.7
liabilities
- issue costs on new bank facility 0.5 -
Cash inflow from increases in debt (post-issue costs) 161.2 -
Cash outflow from repayment of debt (90.0) (106.7)
Movement in net debt in the year 78.4 (47.6)
Opening net debt 67.4 115.0
Closing net debt 145.8 67.4
Consolidated Statement of Changes in Shareholders' Equity
for the year ended 28 February 2008
Share capital Share premium Capital reserve Capital redemption Merger reserve Equity reserve
Retained earnings Total
reserve
£m
£m £m £m £m £m
£m
£m
Brought forward at 3 March 18.3 60.9 2.3 - 241.1 0.5
55.2 378.3
2006
Profit for the year - - - - - -
35.6 35.6
Share-based payment credit - - - - - (0.1)
- (0.1)
Deferred taxation on
share-based payment (note 4) - - - - - -
(0.5) (0.5)
Shares issued - 0.1 - - - -
- 0.1
Share buy-backs (0.8) - - 0.8 - -
(23.2) (23.2)
Dividends paid (note 5) - - - - - -
(11.4) (11.4)
Transfer from merger reserve - - - - (5.8) -
5.8 -
Carried forward at 1 March 17.5 61.0 2.3 0.8 235.3 0.4
61.5 378.8
2007
Brought forward at 2 March 17.5 61.0 2.3 0.8 235.3 0.4
61.5 378.8
2007
Profit for the year - - - - - -
3.8 3.8
Share buy-backs (1.8) - - 1.8 - -
(18.9) (18.9)
Issue costs - (0.6) - - - -
- (0.6)
Transfers as a result of 118.5 (60.4) (2.3) 27.2 (235.3) -
152.3 -
restructure
Share-based payment charge - - - - - 0.8
- 0.8
Deferred taxation credit to - - - - - -
1.3 1.3
equity (note 4)
Return of capital (note 5) - - - - - -
(40.8) (40.8)
Dividends paid (note 5) - - - - - -
(11.8) (11.8)
Change in fair value of cash - - - - - -
(2.7) (2.7)
flow hedge
Net purchase of shares through
Employee Benefit Trust - - - - - -
(2.0) (2.0)
Carried forward at 28 February 134.2 - - 29.8 - 1.2
142.7 307.9
2008
Notes to the Consolidated Financial Statements
for the year ended 28 February 2008
1 Basis of preparation
The preliminary announcement for the year ended 28 February 2008 has been prepared in accordance with International Accounting Standards
and International Financial Reporting Standards (collectively "IFRS"), as adopted by the European Union at 28 February 2008, and the
accounting policies set out in the financial statements for the year ended 1 March 2007. These accounts can be found within the investors
section of the Group's website, www.luminar.co.uk.
The annual financial information presented within the preliminary announcement for the year ended 28 February 2008 is extracted from,
and is consistent with, that in the Group's consolidated financial statements for the year ended 28 February 2008, and those financial
statements will be delivered to the Registrar of Companies following the Group's Annual General Meeting.
Information in this preliminary announcement does not constitute the full financial statements of the Group within the meaning of s240
of the Companies Act 1985. Financial statements for the year ended 1 March 2007, on which PricewaterhouseCoopers LLP expressed an
unqualified opinion, have been filed with the Registrar of Companies.
2 Segmental reporting
Business segments
The Group is principally engaged as owner, developer and operator of nightclubs and themed bars in the United Kingdom.
For management purposes, the Group is now organised into two main business divisions - Dancing and Non-core.
Comparative income statement and cash flow information has been reclassified to reflect the composition of the divisions at the balance
sheet date. Segmental information about these business divisions is presented below:
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
2 Segmental reporting (continued)
Year ended 28 February 2008
Dancing Non-core Central costs Consolidated
£m £m £m £m
Total revenue 175.2 26.1 - 201.3
Profit / (loss) from
operations pre-exceptional
items 38.7
47.9 4.2 (13.4)
Exceptional items (1.6) (2.1) (2.3) (6.0)
Exceptional finance cost - - (0.5) (0.5)
Segment result 46.3 2.1 (16.2) 32.2
Net finance costs (4.6)
Loss from associate (2.6)
Profit before taxation 25.0
Tax on continuing operations (2.6)
Profit for the year from
continuing operations
attributable to equity
shareholders
22.4
Loss from discontinued
operations pre-exceptional
items
(0.6) (0.8) - (1.4)
Exceptional items (2.4) (4.9) (10.2) (17.5)
Loss from discontinued
operations before tax (3.0) (5.7) (10.2) (18.9)
Tax on discontinued operations 0.3
Loss from discontinued
operations
(18.6)
Profit for the year
attributable to equity
shareholders
3.8
Central costs comprise the head office and administrative functions, area and divisional management costs, together with information
technology costs for the Group.
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
2 Segmental reporting (continued)
Year ended 1 March 2007 (reclassified)
Dancing Non-core Central costs Consolidated
£m £m £m £m
Total revenue 162.3 35.3 - 197.6
Profit / (loss) from
operations pre-exceptional
items
44.9 7.4 (17.2) 35.1
Exceptional items (0.6) (2.5) (1.4) (4.5)
Segment result 44.3 4.9 (18.6) 30.6
Net finance costs (6.7)
Loss from associate (0.3)
Profit before taxation 23.6
Tax on continuing operations
(4.5)
Profit for the year from
continuing operations
attributable to equity
shareholders
19.1
Profit / (loss) from
discontinued operations
pre-exceptional items
1.7 13.3 (1.6) 13.4
Exceptional items - (12.3) (1.2) (13.5)
(Loss) / profit from
discontinued operations before
tax
1.7 1.0 (2.8) (0.1)
Tax on discontinued operations
16.6
Profit from discontinued
operations
16.5
Profit for the year
attributable to equity
shareholders
35.6
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
3 Net finance costs
Net finance costs relating to continuing operations are as follows:
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Interest payable on bank borrowings (6.8) (7.6)
Interest payable on obligations under finance leases (0.4) (0.4)
Amortisation of issue costs of the bank loan * (0.2) (0.2)
Other interest payable - (0.1)
Total borrowing costs (7.4) (8.3)
Less amounts capitalised in the cost of qualifying 0.9 -
assets
Finance costs (6.5) (8.3)
Income on bank deposits 0.3 1.4
Interest on loan to associate 1.6 0.2
Finance income 1.9 1.6
Net finance costs (4.6) (6.7)
* For the year ended 28 February 2008 this relates to issue costs amortised on the previous bank facility of £0.1m, and £0.1m of issue
costs amortised on the new bank facility. This excludes £0.5m of issue costs written off upon repayment of the bank loan. These costs have
been classified as an exceptional finance cost item.
Finance costs relating to discontinued operations, being interest payable on obligations under finance leases, total £0.1m (2007:
£0.1m).
4 Tax on profit / (loss)
(a) Analysis of charge in period
The taxation charge is based on the profit for the year and represents:
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Current tax
- Continuing operations:
- Current period (8.4) (6.1)
- Adjustments from prior periods 6.5 1.9
- Discontinued operations:
- Current period (0.6) (1.2)
(2.5) (5.4)
Deferred tax
- Continuing operations (0.7) (0.3)
- Discontinued operations 0.9 17.8
0.2 17.5
Total taxation (charge) / credit
- Continuing operations (2.6) (4.5)
- Discontinued operations 0.3 16.6
(2.3) 12.1
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
4 Tax on profit / (loss) (continued)
(b) Tax on items charged to equity
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Share-based payments 0.5 0.5
Derivative financial instruments 0.8 -
1.3 0.5
(c) Factors affecting tax charge for period
The tax assessed for the period is lower (2007: lower) than the standard rate of corporation tax in the UK. The differences are
explained as follows:
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Profit on ordinary activities from continuing
operations before tax 25.0 23.6
Profit on ordinary activities multiplied by
standard rate of corporation tax in the UK of 30%
(2007: 30%) (7.5) (7.1)
Effects of:
Expenses not deductible for tax purposes (0.3) (0.1)
Non-deductible exceptional items (1.7) (0.1)
Loss after tax of associate not taxed (0.8) (0.1)
Remeasurement of deferred tax change in UK tax rate 1.8 -
Adjustments in respect of the prior year 6.5 1.9
Non-qualifying depreciation (0.6) 1.0
Total tax charge from continuing operations for the
year (2.6) (4.5)
The post-tax loss from the associate is shown within one line on the face of the income statement, and hence has been taken out in the
reconciliation shown above.
On 21 March 2007 it was announced that the corporation tax rate will reduce from 30% to 28% with effect from 1 April 2008. The
legislation to enact this change was substantially enacted at the balance sheet date and so this change has been recognised for deferred tax
purposes.
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
5 Dividends
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Ordinary shares - final dividend paid: 12.32 pence
per share (2 March 2006: 10.74 pence per share) 8.5 7.8
Ordinary shares - interim dividend paid: 5.37 pence
per share (1 March 2007: 4.88 pence per share) 3.3 3.6
11.8 11.4
A further £40.8m was returned to shareholders via the Scheme of Arrangement.
In addition, the Directors are proposing a final dividend in respect of the current financial year of 13.95 pence per share, which will
absorb an estimated £8.5m of shareholders' funds. It will be paid on 25 July 2008 for shareholders on the register as at 20 June 2008 (ex
dividend date of 18 June 2008) . This dividend is subject to approval at the Annual General Meeting, and has not been included as a
liability within these financial statements in accordance with IAS 10, Events after the balance sheet date.
6 Earnings per share
The calculation of the basic earnings per share (EPS) is calculated by dividing the earnings attributed to equity shareholders by the
weighted average number of shares in issue during the year. For diluted earnings per share the weighted average number of ordinary shares in
issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group has two classes of dilutive potential ordinary
shares: share options granted to Directors and employees where the exercise price is less than the average market price of the Group's
ordinary shares during the year, and the contingently issuable shares under the Group's long-term incentive plan (i.e. the Deferred Bonus
Plan). At the year end an assessment is made as to whether the performance criteria for the vesting of awards under the share option schemes
of the Group is likely to be met and any potential shares unlikely to be exercised are excluded from the diluted EPS calculation.
An alternative measure of earnings per share has been presented below, that being earnings per share from continuing operations
pre-exceptional items, as the Directors believe that this measure of pre-exceptional earnings from continuing operations is more reflective
of the ongoing trading of the Group.
Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below:
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
6 Earnings per share (continued)
Year ended 28 February 2008
Weighted average
number of shares (in
millions)
Per share amount
(pence)
Earnings
£m
Basic EPS
Earnings attributable to
ordinary shareholders 3.8 61.4 6.2
Effect of dilutive options and - 0.4 -
warrants
Diluted EPS 3.8 61.8 6.1
Basic EPS from continuing 22.4 61.4 36.5
operations
Diluted EPS from continuing 22.4 61.8 36.2
operations
Basic EPS from discontinued (18.6) 61.4 (30.3)
operations
Diluted EPS from discontinued (18.6) 61.8 (30.1)
operations
EPS from continuing operations
pre-exceptional items
Basic EPS from continuing
operations pre-exceptional 28.1 61.4 45.8
items
Diluted EPS from continuing
operations pre-exceptional 28.1 61.8 45.5
items
Year ended 1 March 2007
Weighted average
number of shares
(in millions)
Per share
amount
Earnings (pence)
£m
Basic EPS
Earnings attributable to ordinary
shareholders 35.6 70.6 50.4
Effect of dilutive options and - 0.1 -
warrants
Diluted EPS 35.6 70.7 50.4
Basic EPS from continuing operations 19.1 70.6 27.1
Diluted EPS from continuing 19.1 70.7 27.0
operations
Basic EPS from discontinued 16.5 70.6 23.4
operations
Diluted EPS from discontinued 16.5 70.7 23.3
operations
EPS from continuing operations
pre-exceptional items
Basic EPS from continuing operations
pre-exceptional items 21.2 70.6 30.0
Diluted EPS from continuing
operations pre-exceptional items 21.2 70.7 30.0
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
7 Exceptional items
(a) Continuing operations
The Group incurred exceptional items on continuing operations as follows:
Year ended Year ended
28 1 March
February 2007
2008 £m £m
Exceptional items relating to trading
Impairment of property, plant and equipment (1.7) (2.1)
Costs relating to reorganisation and rationalisation (2.4) (1.8)
(4.1) (3.9)
Exceptional items relating to the closure of
properties
Impairment of property, plant and equipment (1.2) (0.8)
Provision for onerous lease commitments (1.2) (1.5)
Reversal of provision for onerous lease commitments 0.5 -
Net profit on insurance recovery due to fire - 1.7
(1.9) (0.6)
Exceptional items relating to finance costs (0.5) -
Pre-tax exceptional items relating to continuing
operations (6.5) (4.5)
Tax on exceptional items 0.8 2.4
Post-tax exceptional items relating to continuing
operations (5.7) (2.1)
The exceptional items recognised within continuing operations have been split between those which relate to units associated with the
ongoing trading of the Group and those which relate to the closure of units.
These units, although closed, were not actively marketed prior to the balance sheet date. As a result these units do not meet the
criteria to be classified as held for sale, and therefore have been presented within continuing operations.
(i) Exceptional items relating to trading
The impairment of property, plant and equipment of £1.7m (2007: £2.1m) on trading units reflects the difference between the value in
use of cash generating units (e.g. discrete trading units) and their carrying value.
Costs of reorganisation and rationalisation of £2.4m (2007: £1.8m) have been incurred in respect of listing Luminar Group Holdings plc
and negotiating new banking facilities. £0.7m of this cost relates to the share based payment charge under IFRS 2, which has arisen due to
the historic share options no longer being subject to performance conditions as a result of the Scheme of Arrangement.
(ii) Exceptional items relating to the closure of properties
The impairment of property, plant and equipment of £1.2m (2007: £0.8m), has principally arisen from the closure of two non-core units.
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
7 Exceptional items (continued)
* Continuing operations (continued)
(ii) Exceptional items relating to the closure of properties (continued)
The charges arising from onerous lease commitments of £1.2m (2007: £1.5m) are to recognise the obligation for rent, rates and other
property related holding costs on currently vacant or closed units, where the likelihood of assignment of the lease or sub-let of the
property is unlikely in the short term. These units are closed or vacant due to them being unprofitable and unsuitable for re-branding.
During the year a £0.5m provision for onerous lease commitments was reversed due to a change in the intended use of the unit as a
result of the re-branding strategy.
During the prior year, £2.5m was received in relation to an insurance recovery claim against a unit which burnt down in 2005. This unit
had been impaired in 2006 to £0.3m, and therefore a profit of £2.1m, after incurring costs of £0.1m, was recorded. £0.4m of this profit
relating to business interruption, was credited to administrative expenses.
(iii) Exceptional items relating to finance costs
The Group has recognised £0.5m of unamortised costs written off during the year in relation to the previous bank facility as an
exceptional finance cost.
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
7 Exceptional items (continued)
(b) Discontinued operations
The Group incurred exceptional items relating to discontinued operations as follows:
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Impairment of property, plant and equipment (1.1) (3.5)
Reversal of prior years impairment of property,
plant and equipment - 0.1
Impairment of other non-current assets - (0.6)
Costs relating to reorganisation and rationalisation (0.2) (1.2)
Provision for onerous lease commitments (1.1) (3.7)
Reversal of provision for onerous lease commitments 0.3 0.8
Realised loss on disposal of the Entertainment (0.6) (3.6)
Division
Lease surrender (0.2) -
Realised (loss) / profit on disposals - (0.3)
Other costs associated with disposals - (1.5)
(2.9) (13.5)
Costs associated with the disposal of companies:
Goodwill impairment (2.9) -
Impairment of property, plant and equipment (4.6) -
Impairment of non-current assets (0.4) -
Release of finance lease creditor 0.8 -
Release of onerous lease provisions 3.3 -
Provision for cash injection into businesses (4.8) -
Transaction costs including advisors fees (2.5) -
(11.1) -
Indemnity provision (3.5) -
(14.6) -
Pre-tax exceptional items relating to discontinued
operations (17.5) (13.5)
Tax on exceptional items (0.1) 20.0
Post-tax exceptional items relating to discontinued
operations (17.6) 6.5
The impairment of property, plant and equipment of £1.1m (2007: £3.5m, and non-current assets of £0.6m) has resulted from
re-measuring to fair value less costs of sale units held for sale.
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
7 Exceptional items (continued)
(b) Discontinued operations (continued)
The provision for onerous lease commitments of £1.1m (2007: £3.7m), relating to sites presented within discontinued operations, has
arisen from the closure of sites following the decision to exit from non-core operations. The reversal of previously recognised provisions
of £0.3m (2007: £0.8m) has arisen as a result of lower than expected repairs and dilapidations costs than those previously provided for.
In the prior year a loss of £0.3m was incurred on the disposal of 12 units for consideration of £4.3m. Other costs of £1.5m were
incurred in relation to these disposals. Of the 12 units disposed, payments totalling £2.6m were made to landlords in relation to the
surrender of three leases.
On 16 April 2008 the Group agreed to sell 26 units within five subsidiary companies to Cavendish Bars Limited for a consideration of £1
each. Completion of three of the companies took place on the same day. Completion of the sale of two of the Disposal Companies (which own 10
of the 26 units) is conditional upon Luminar receiving landlord consent to the transfer of certain units, which do not form part of the
disposal, out of the Disposal Companies. This transaction has generated a loss of £11.1m in the year, comprising a cash cost of £4.8m,
impairments to assets and goodwill of £7.9m, estimated transaction costs of £2.5m, and a release of provisions for onerous leases and
finance leases, totalling £4.1m.
As part of the deal, the Group also agreed to enter into indemnities capped at £4.2m in favour of Cavendish Bars Limited in relation to
guarantee liabilities given on leases for units sold previously. At the year end £3.5m of this indemnity was provided for, being the amount
relating to property costs.
During the prior year a tax credit of £20.0m was recognised on exceptional items relating to discontinued operations. This arose due to
the release of the entire deferred tax liability carried in respect of the units disposed of during the year, principally the liability
relating to the units sold as part of the Entertainment Division disposal.
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
8 Discontinued operations and non-current assets held for sale
Comparative income statement and cash flow information is restated at each balance sheet date to reflect the composition of discontinued
operations as at the latest balance sheet date.
(a) Results of discontinued operations
The results of discontinued operations, which comprise the 26 units sold to Cavendish Bars Limited, the Entertainment Division and other
non-core units, either disposed of or held for sale, forming part of the Group's plan to exit from non-core operations, included within the
Consolidated Income Statement were as follows:
Year ended Year ended
28 1 March
February 2007
2008
£m £m
Revenue 5.3 102.8
Administrative expenses (6.6) (89.3)
Finance costs (0.1) (0.1)
(Loss) / profit before tax pre-exceptional items (1.4) 13.4
Attributable tax credit / (charge) 0.4 (3.4)
(Loss) / profit after tax pre-exceptional items (1.0) 10.0
Exceptional items (see note 7) (17.5) (13.5)
Attributable tax (charge) / credit (0.1) 20.0
Loss /(profit) from discontinued operations (18.6) 16.5
(b) Cash flow from discontinued operations
The Consolidated Cash Flow Statement includes the following cash flows arising from discontinued operations:
Year ended Year ended
28 February 2008 1 March
2007
£m £m
Net cash flows from operating activities (3.9) 10.6
Net cash flows from investing activities 3.4 76.0
Net cash flows from financing activities - -
(0.5) 86.6
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
8 Discontinued operations and non-current assets held for sale (continued)
(c) Assets and liabilities of units held for sale
As at 28 February 2008 31 units were classified as held for sale, of which 26 units were within the Non-core Division, four were within
the Dancing Division and one was a former administration centre. 29 of the units held for sale are reported within discontinued operations,
and the remaining two dancing units are reported within continuing operations.
The major classes of assets and liabilities comprising the units classified as held for sale are as follows:
28 February 2008 1 March 2007
£m £m
Property, plant and equipment 9.6 13.0
Inventories 0.1 0.1
Trade and other receivables 0.5 0.5
Cash and cash equivalents 0.1 -
Total assets classified as held for sale 10.3 13.6
Trade and other payables (1.1) (0.9)
Deferred income (0.1) (0.2)
Obligations under finance leases - (0.8)
Provisions (9.7) (1.8)
Deferred tax liabilities (0.2) -
Total liabilities classified as held for sale (11.1) (3.7)
Net (liabilities) / assets classified as held
for sale (0.8) 9.9
During the year goodwill of £2.9m was transferred into assets held for sale. This has been subsequently impaired to nil. The total
loss incurred in writing these assets down to fair value less costs to sell have been included in exceptional items (see note seven).
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
9 Cash flow from operating activities
a) Reconciliation of net cash inflow from operating activities
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Profit before taxation - continuing operations 25.0 23.6
Loss before taxation - discontinued operations (18.9) (0.1)
Profit before taxation 6.1 23.5
Depreciation and amortisation 22.2 21.9
Amortisation of lease premiums 0.2 0.2
Amortisation of issue costs on previous bank loan 0.1 0.2
Issue costs written off on previous bank loan 0.5 -
Loss from associate 2.6 0.3
Net impairment of property, plant and equipment 8.6 6.3
Impairment of goodwill 2.9 -
Impairment of other non-current assets 0.4 0.6
Accrued transaction costs 2.3 -
Profit on insurance recovery due to fire - (2.1)
Loss on sale of property, plant and equipment - 0.3
Profit on sale of motor vehicles (non-exceptional) (0.2) -
Loss on disposal of intangible assets 0.2 0.2
Loss on disposal of Entertainment Division 0.6 3.6
Non-cash charges for share based payments 0.8 -
Net finance costs 4.7 6.8
52.0 61.8
Decrease in inventories 0.1 1.5
(Increase) / decrease in receivables (1.0) 0.7
Decrease in trade and other payables (6.0) (8.5)
Increase in provisions 2.8 2.0
(Decrease) / increase in finance lease liabilities (0.9) 1.7
Net cash inflow from operations 47.0 59.2
Notes to the Consolidated Financial Statements (continued)
for the year ended 28 February 2008
9 Cash flow from operating activities (continued)
b) Cash flows from continuing operations
To assist in the understanding of cash flows relating to the ongoing business of the Group, the following tables outline the cash flows
relating to discontinued operations and exceptional items to be excluded in order to present operating cash flows that relate to the Group's
continuing business:
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Cash flows from operating activities 40.4 50.8
Add: net cash flows from operating activities -
discontinued operations (including exceptional cash
items)
3.9 (10.6)
Cash flows from operating activities - continuing
operations 44.3 40.2
Add: net exceptional cash flows from operating
activities - continuing operations 3.2 2.1
Pre-exceptional cash flows from operating activities
- continuing operations 47.5 42.3
Year ended Year ended
28 1 March
February 2007
2008 £m
£m
Net cash inflow from operations 47.0 59.2
Add: net cash flows from operating activities -
discontinued operations (including exceptional cash
items)
3.9 (10.6)
Net cash inflow from operations - continuing
operations 50.9 48.6
Add: net exceptional cash flows from operations -
continuing operations 3.2 2.1
Net pre-exceptional cash inflow from operations -
continuing operations 54.1 50.7
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DGGMKVDDGRZM
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