Interim Results
August 13 2008 - 2:01AM
UK Regulatory
RNS Number : 1989B
Mallett PLC
13 August 2008
MALLETT PLC
Interim Report for the 6 months ended 30th June 2008
Dear Shareholder
Our interim results for the six months ended 30th June 2008 show an operating loss of �328,000 (2007 - profit of �1,143,000). Whilst it
is disappointing to report a trading loss for the group, these results have been significantly impacted by the launch of two exciting new
ventures in the period which, it is hoped, will take Mallett forward into the next stage of the development of the group.
Launch of two businesses
Firstly, we launched Meta, our contemporary designs business, and its first range of products to the press at the Salone Internazionale
del Mobile in Milan on 15th April. This was followed by a sales exhibition in New York from 12th to 16th May. The range features nine
products from five leading contemporary designers - Hani Rashid, Tord Boontje, Matali Crasset, Barber Osgerby and Wales & Wales - and
coverage in the media has been exceptional with over 100 articles in international press and specialist magazines. Interest has been
encouraging with sales in the 1� months since the sales launch in New York totalling �182,000. However, the complexity of some of the
designs, combined with the use of rare materials and traditional production techniques which is a key aspect to all of Meta's products, led
to a delay in the launch and an increase in the overall cost of the project to the launch in May from �1,000,000 to �1,300,000. Costs of
�1,032,000 have been charged to the income statement in the first six months of this year and �482,000 is included in inventories.
Secondly, we launched James Harvey British Art in April as our picture gallery in new premises in Chelsea, London. Separating out our
picture department from Mallett in this way gives it a separate platform from which to market itself and grow under the leadership of James
Harvey. James has been with Mallett for eighteen years and has established himself as a knowledgeable and respected expert on British
artists from the 17th century to the present day. The fit-out of the new premises took three months at a cost of �150,000, but since the
launch in April the gallery has had total sales of �1,010,000 which is a 35% increase on the group's picture sales for the six months ended
30th June 2007.
Core business
Excluding Meta, the group made an operating profit of �522,000 (2007 - �1,143,000) on turnover of �7,983,000 (2007 - �10,666,000). The
54% reduction in operating profit compared to the same period for last year reflects the difficult trading conditions currently seen in the
antique art market and more generally in the retail sector. In addition, it reflects a 50% increase in the rent on our Bond Street showroom.
The operational review being undertaken by the Board is focussing both on our sales strategy to improve revenues and our cost base. We
anticipate being able to report our conclusions from the review in the course of the second half of the year.
Dividend
As mentioned above, the significant launch costs of Meta has meant that the group has made a loss for the six months to 30th June 2008.
The loss after tax for the group is �197,000 (2007 - profit of �1,035,000) and basic and diluted earnings per share is -1.45 pence (2007 -
7.60 pence). The Board has therefore decided not to declare an interim dividend for the six month period to 30th June 2008 (2007 - 2.4
pence).
Outlook for the second half
We expect little change in the trading conditions in the antique art market for the rest of the year. We will continue to market the
finest antique furniture and works of art with a catalogue and two fair exhibitions in the second half of the year, whilst focusing on cost
efficiencies. Meta intends to send out a catalogue featuring all nine of its products and have a London exhibition of the pieces in our Bond
Street showroom during Frieze week, the most prestigious contemporary art fair in London, in October. We then plan to bring the two
businesses together at Art Basel Miami Beach in December, the most important contemporary art and design show in the United States, with a
combined Mallett/Meta exhibition showing the finest furniture designs through the ages.
For further information please contact:
Lanto Synge, Chief Executive 020 7499 7411
Michael Smyth-Osbourne, Finance Director 020 7499 7411
MALLETT PLC
UNAUDITED CONSOLIDATED INTERIM INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30
JUNE 2008
6 months ended 30th 6 months ended 30th
June 2008 June 2007
Notes �'000 �'000
Revenue 8,165 10,666
Operating (loss)/profit (328) 1,143
Investment income (net) 31 303
(Loss)/Profit before tax (297) 1,446
Tax 3 100 (411)
(Loss)/Profit for the period (197) 1,035
Attributable to:
Equity holders of the parent (184) 1,037
Minority interests (13) (2)
(197) 1,035
Basic and diluted earnings per 4 -1.45p 7.60p
share
UNAUDITED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSES
6 months ended 30th 6 months ended 30th
June 2008 June 2007
�'000 �'000
(Loss)/Profit for the period (197) 1,037
Exchange differences on 147 (109)
translation of foreign
operations
Actuarial (losses)/gains on (403) 193
the defined benefit pension
scheme
Movement of deferred tax on 121 -
actuarial gains
Merger investment costs - (52)
Total recognised income and expenses for the (332) 1,069
period
MALLETT PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2008
30th June 31st December
2008 2007
Notes �'000 �'000
Non-current assets
Property, plant and equipment 4,790 4,749
Current assets
Inventories 19,858 18,372
Trade and other receivables 5,360 3,701
Cash and cash equivalents 940 2,410
26,158 24,483
Total assets 30,948 29,232
Equity
Share capital 690 690
Capital redemption reserve 5,168 5,168
Own shares (438) (468)
Retained profits 19,610 20,761
Minority interests (14) (1)
Total equity 25,016 26,150
Current liabilities
Trade and other payables 3,753 2,447
Bank overdrafts and loans 1,519 363
Tax liabilities 131 86
5,403 2,896
Non current liabilities
Retirement benefit pension obligations 687 204
Deferred tax 2 (158) (18)
529 186
Total liabilities 5,932 3,082
Total equity and liabilities 30,948 29,232
MALLETT PLC
UNAUDITED CONSOLIDATED CASH
FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30
JUNE 2008
6 months ended 30th 6 months ended 30th June 2007
June 2008
�'000 �'000
Net cash from operating (1,581) 1,898
activities
Returns on investment and 31 305
servicing of finance
Tax paid (222) (3,102)
Capital expenditure and (169) (224)
financial investment
B Share Scheme payments - (8,173)
Merger investment costs - (52)
Equity dividends paid (832) (1,628)
Effect of foreign exchange 147 (274)
rate changes
Net decrease in cash for the (2,626) (11,250)
period
MALLETT PLC
UNAUDITED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2008
Share Capital Capital Redemption Retained profits Own Shares Minority Interests
Total
Reserve
�'000 �'000 �'000 �'000 �'000
�'000
At 1st July 2007 690 5,168 21,065 (457) 38
26,504
Loss in 6 months to 31st - - (161) - -
(161)
December 2007
Minority interest - - (1) - (39)
(40)
Dividends paid in period - - (332) - -
(332)
Merger investment costs - - - - -
-
Actuarial gains - - 547 - -
547
Deferred tax movement on - - (222) - -
(222)
actuarial gain
Return of cash to shareholders - - (6) - -
(6)
through B share scheme
Net movement in own shares - - - (11) -
(11)
Net exchange loss - - (129) - -
(129)
At 31st December 2007 690 5,168 20,761 (468) (1)
26,150
Loss in 6 months to 30th June - - (197) - -
(197)
2008
Minority interest - - 13 - (13)
-
Dividends paid in period - - (832) - -
(832)
Actuarial losses - - (403) - -
(403)
Deferred tax movement on - - 121 - -
121
actuarial gain
Net movement in own shares - - - 30 -
30
Net exchange gain - - 147 - -
147
At 30th June 2008 690 5,168 19,610 (438) (14)
25,016
MALLETT PLC
Statement of Directors' Responsibilities
The directors confirm that to the best of their knowledge:
- the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting";
- the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
- the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
By order of the Board
Notes to the Interim Report
1. These accounts have been prepared in accordance with IAS34. They are unaudited and do not constitute statutory accounts
within the meaning of Section 240 of the Companies Act 1985 (the *Act*). The accounts for the year ended 31st December 2007 have been filed
with the Registrar of Companies and have been reported on by auditors under Section 235 of the Act. The auditor*s report on those accounts
was not qualified and did not contain a statement under Section 237 (2) or (3) of the Act.
2. The deferred tax asset reflects the tax recoverable on the defined benefit obligations
3. Taxation has been provided for at an estimated rate of 30% (2007 * 30%) taking into account �19,000 movement on deferred tax
to the income statement.
4. Basic and diluted earnings per share have been calculated on the profits for the period after taxation and divided by the
weighted average number of shares in issue during the period of 13,604,465.
5. The directors have not declared an interim dividend (2007 * 2.4p).
Company information
DIRECTORS George M. Magan, F.C.A.* Chairman
*Non-executive Lanto M. Synge Group CEO
Lord Daresbury*
James Heneage*
Giles H. Hutchinson Smith
Eloy Michotte*
M. Henry G. Neville
Michael Smyth-Osbourne Secretary
Thomas E. Woodham-Smith
REGISTERED OFFICE 141 New Bond Street
London W1S 2BS
COMPANY NUMBER 1838233
WEBSITE www.mallettantiques.com
This information is provided by RNS
The company news service from the London Stock Exchange
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