RNS Number : 1027H
Instore PLC
31 October 2008
INSTORE PLC
Interim Report 2008
� Total sales increased by 1.5%, equivalent to a 1.4% like-for-like decrease, in the context of strong comparables last year.
� Gross margins have improved, reflecting improved buying, lower markdowns and better shrinkage.
� As expected, the first half loss after exceptional items has increased from �5.2 million to �7.1 million, reflecting essential
investment in the business and increases in energy costs.
� Cash balances were �6.9 million, against �10.2 million at the previous half year.
� Stock levels rose to �39.6 million (2007: �33.7 million) to ensure higher levels of availability, and investment in our *everyday
consumables* offer.
� Total sales were up 4.3% in the first seven weeks of the second half, equivalent to a 1.9% like-for-like increase.
Commenting on the results, Peter Burdon, Chief Executive of Instore plc, said:
*Comparable trading in the first half was tough as a result of the weather being considerably worse than the spring and early summer of last
year. In addition, increased energy costs brought a further challenge for the business. Nevertheless, the continuing improvements in the
offer, investment in the stores and the efficiency of the business is starting to be reflected positively in our trading performance.
*The economic climate brings opportunities as well as challenges. Consumers of all demographics are keenly seeking value and we are well
positioned to take advantage of this trend. Plans for Christmas have been well laid and, although we remain cautiously confident, the full
year outcome is dependent on this key trading period.*
For further information please contact:
Ebrahim Suleman, Group Finance Director (01484) 431 444
Chairman*s Statement and Chief Executive*s Review
CHAIRMAN*S STATEMENT
During the first half there have been important changes in both the ownership and management of the Company.
On 8th July, Seaham Investments Limited, an indirectly wholly owned subsidiary of Crown Crest Group Limited, announced the terms of a cash
offer for the entire issued share capital of the Company. This offer, which the Independent Directors of the Company did not recommend to
shareholders, was declared unconditional in all respects on 30th July. Following the closure of the offer on 1st October, Seaham Investments
now owns 56.89% of the issued share capital of Instore plc.
As result of this change in ownership, there were changes made to the constitution of the Board. Dr Christo Wiese stood down as Chairman and
resigned from the Board on 10th July. In addition, non-executive Directors Mr Cornus Moore and Mr John Gnodde also resigned from the Board
on this date. Following Dr Wiese*s departure, my fellow Directors asked me to assume the Chairmanship of the Board, and I was delighted to
do so.
On behalf of my fellow Directors, I thank my former colleagues for all their endeavours. In particular, I thank Dr Wiese for his leadership
and support for the Company over the last 14 years.
In July, we also announced that Peter Burdon, our Chief Executive Officer, would be standing down on 15th July 2009 as part of the
transition of control to Seaham Investments.
On 1st May, Ebrahim Suleman, who had been working as director of finance of the Company*s principal trading subsidiary, Poundstretcher
Limited, since October 2007, joined the Board and was appointed Group
Finance Director.
Finally, in August, we strengthened the Board further by the appointment of Rashid Tayub and Anne Tomlinson as non-executive Directors.
I welcome the new members of the Board and look forward to them applying their considerable experience and acumen to the business. As a
further consequence of the change in ownership, the Board determined that it would be appropriate to appoint the existing auditors of Crown
Crest Group Limited, PKF (UK) LLP,
to the audit of Instore plc. Accordingly, the incumbent auditors, PwC, were invited to resign, and they did so with effect from 26th August
2008.
John Jackson
Chairman
31st October 2008
CHIEF EXECUTIVE*S REVIEW
We have continued to introduce changes to improve the performance of the business as rapidly as possible.
These changes have been focused on leveraging our established position as a leading retailer in the value sector, and at the same time
rebuilding our historically powerful reputation for low everyday prices, good value and fantastic deals.
We have continued to improve our footfall driving food and toiletries offer, as well as increasing the frequency and attractiveness of *wow
deals* for customers. As a result of more direct sourcing from the Far East, we have renegotiated cost prices to enable lower retail prices,
which is in tune with the consumer trend for better value. Our marketing spend has been focused on leaflets and local in-store promotions to
directly increase awareness of the price offer.
We have also strived to reduce our costs at every level of the business and improve the efficiency of the supply chain and the availability
of stock.
Recognising that the state of our store environments and operational standards was below acceptable levels, we have invested to resolve
these issues. The extra investment in stores has commenced but will continue for at least two years, given the scale of dilapidation of the
store fabric. We have also strengthened the field management team and this investment is already being reflected in the performance of the
stores.
Following the successful trial last year of a new layout, we have built on this initiative with a new trial containing a much greater
proportion of food and toiletries in the offer. Whilst there has been a decline in gross margin in the trial stores, reflecting the change
in the range, the increase in sales has more
than compensated for this. The early results have been very encouraging and we are planning an orderly roll-out of the concept to
appropriate locations.
We have partly implemented a number of changes to improve the supply chain to reduce unit costs and improve the availability of stock in the
stores. Further improvements in the supply chain will take place in the New Year.
Our property strategy continues to reflect a prudent view towards estate expansion, as the emphasis continues to be placed on improving the
trading of the current stores. In the first half, we opened two stores and closed four, giving a total of 303 *Poundstretcher* and *Instore*
outlets. Once the Company has been
restored to a profitable position, there are many opportunities to increase the store network, including our heartland in the North.
Finally, the acquisition and integration of the Ponden Mill business is proceeding well. Having reviewed the trading of the 33 acquired
stores, we have closed or are about to close 14 of these. The remaining 19 stores are largely on factory outlet locations and we are
confident about their trading prospects. The stores and the product are undergoing a rebranding to *Coloroll*, with a positioning in the
market which offers *contemporary affordable style*. In addition to the retail channel, we are investigating opportunities to license or
wholesale the brand to other retailers.
The first half of this financial year has been challenging but we have made good progress on the path of restoring robust profitability to
the Company.
Trading Performance and Financial Results
Total sales in the 26 weeks to 30th August 2008 were �135.8 million, an increase of 1.5% against the �133.8 million achieved in the same
period last year. Within this total, like-for like sales showed a small decline of 1.4%, reflecting the unfavourable weather during the
first quarter.
Cost of sales before exceptional items increased to �124.6 million (2007: �120.7 million) as a direct result of better achieved margins due
to a reduction in markdown spend and improvements to shrinkage results, offset by a significant increase in retail costs, as a result of
required investment in the store network and increased energy costs. As a result, gross profit before exceptional items has declined to
�11.2 million (2007: �13.0
million) decreasing gross profit margin to 8.3% (2007: 9.7%).
After net operating expenses before exceptional items of �17.5 million (2007: �16.7 million), the business reported a net operating loss
before exceptional items for the period of �6.3 million, a �2.8 million decline
versus last year*s loss of �3.5 million.
After the exceptional costs of �0.8 million, relating to the costs of the offer from Seaham Investments and the employee share movements,
and after net interest paid of �0.07 million (2007: net interest received of �0.1 million), the total loss before taxation for the period
was �7.1 million, compared with last year*s �5.2 million.
The basic loss per share was 3.32p (2007: 2.54p).
Balance Sheet
Capital expenditure in the 26 week period to 30th August 2008 was �0.3 million (2007: �3.3 million), reflecting the decision to limit new
store openings and concentrate on improving the trading of the current stores. This resulted in fixed assets at the period end decreasing
from �35.4 million to �30.1 million. Stock amounted to �39.6 million, an increase of 18.9% on 2007 levels reflecting the focus on achieving
consistently high levels of availability, plus targeted stock investment in our everyday consumables offer.
At the half-year end, the Group had net cash balances of �6.9 million (2007: �10.2 million), after a net decrease in cash of �3.3 million
(2007: �11.2 million).
Risk and Uncertainties
The Group faces a number of risks and uncertainties, both over the remainder of the financial year and beyond, and it is our policy to
mitigate these risks to the greatest extent possible.
In common with most retailers, the Group*s performance is affected by the underlying economic climate. The full effects of recent economic
events have yet to be seen, but we believe these provide us with opportunities as well as challenges, given the *value* nature of our offer
and the possibility of that offer becoming increasingly attractive to a wider range of customers. Nevertheless, in such circumstances our
sector is likely to become ever more competitive, and we will have to ensure our sourcing remains robust if we are to continue to offer our
customers best value.
As regards sourcing, the Group acquires a significant proportion of goods for re-sale from outside the UK, paid for in foreign currency, and
it is our policy to manage the inherent risks from such currency exposure by entering into forward contracts in respect of payments to such
overseas suppliers.
Finally, the day-to-day operation of the business is hugely dependent on the smooth operation of our logistics and IT systems. Given their
centralised nature, we have invested much effort in establishing a robust business continuity plan, which will minimise the impact of any
major disaster suffered at our head office location. Nevertheless, these effects cannot be eradicated fully, and any such disaster would
have a significant short-term impact on the business.
Outlook
Total sales were up 4.3% in the seven weeks ended 18th October 2008, equivalent to a 1.9% like-for-like increase. Plans for Christmas have
been well laid and, although we remain cautiously confident, the full year outcome is dependent on this key trading period.
Peter Burdon
Chief Executive
31st October 2008
Independent Review Report to Instore plc
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the 26 weeks
ended 30th August 2008 which comprises the Consolidated Income Statement,
Consolidated Balance Sheet, Consolidated Cash Flow Statement, Consolidated Statement of Changes in Equity and the related notes. We have
read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with the terms of our engagement. Our review has been undertaken so that we might
state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the
conclusions we have reached.
Directors* Responsibilities
The interim financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing
the interim financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom*s Financial Services Authority.
As disclosed in note 3, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union.
The condensed set of financial statements included in this interim financial report has been prepared in accordance with International
Accounting Standard 34, *Interim Financial Reporting*, as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report
based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, *Review of Interim Financial
Information Performed by the Independent Auditor of the Entity* issued by the Auditing Practices Board for use in the United Kingdom. A
review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the
interim financial report for the 26 weeks ended 30 August 2008 is not prepared, in all material respects, in accordance with International
Accounting Standard 34 as adopted by the European Union and Disclosure and Transparency Rules of the Financial Services Authority.
PKF (UK) LLP
Nottingham
31st October 2008
Unaudited Consolidated Income Statement
for the 26 weeks ended 30th August 2008
26 weeks ended 30th August 2008 26 weeks ended 25th August 2007
Before Exceptional Before Exceptional
exceptional items exceptional items
items (note 6) Total items (note 6) Total
Notes �*000 �*000 �*000 �*000 �*000
�*000
Revenue 135,821 * 135,821 133,763 *
133,763
Cost of sales (124,580) * (124,580) (120,732) *
(120,732)
Gross profit 11,241 * 11,241 13,031 *
13,031
Distribution costs (10,155) * (10,155) (8,701) *
(8,701)
Administrative expenses (7,319) (782) (8,101) (7,962) (1,725)
(9,687)
Operating loss (6,233) (782) (7,015) (3,632) (1,725)
(5,357)
Finance income 33 * 33 170 *
170
Finance costs (104) * (104) (38) *
(38)
Loss on ordinary
activities before taxation (6,304) (782) (7,086) (3,500) (1,725)
(5,225)
Taxation 7 (194) * (194) (430) *
(430)
Loss for the period
attributable to equity
shareholders (6,498) (782) (7,280) (3,930) (1,725)
(5,655)
Loss per share (pence)
* Basic and diluted 8 (3.32)
(2.54)
Unaudited Consolidated Statement of Changes in Shareholders* Equity
for the 26 weeks ended 30th August 2008
Share Share Other Retained
capital premium reserves earnings
Total
�*000 �*000 �*000
�*000 �*000
At 25th February 2007 28,721 97,794 3,310 (95,889)
33,936
Loss for the period * * * (5,655)
(5,655)
Share-based payment
credit for the period * * (772) *
(772)
Cash flow hedges
Fair value gains in
the period * * 3,152 *
3,152
Transfers to net profit * * (2,855) *
(2,855)
Movement in respect of
investment in own shares * * * (230)
(230)
At 25th August 2007 28,721 97,794 2,835 (101,774)
27,576
Share Share Other Retained
capital premium reserves earnings
Total
�*000 �*000 �*000
�*000 �*000
At 1st March 2008 28,721 97,794 3,729 (104,089)
26,155
Loss for the period * * * (7,280)
(7,280)
Cash flow hedges
Fair value gains in the period * * 3,123 *
3,123
Transfers to net profit * * (2,013) *
(2,013)
At 30th August 2008 28,721 97,794 4,839 (111,369)
19,985
Unaudited Consolidated Balance Sheet
as at 30th August 2008
(Audited)
30th August 25th August
1st March
2008
2007 2008
Notes �*000
�*000 �*000
Assets
Non-current assets
Property, plant and equipment 9 30,138 35,432
33,987
Deferred tax 1,976
2,040 1,754
Other non-current receivables 50 949
233
32,164
38,421 35,974
Current assets
Inventories 39,635
33,326 35,706
Trade and other receivables 7,751 9,330
5,148
Derivative financial assets 4,142 *
1,491
Cash and cash equivalents 6,913 10,208
8,711
58,441
52,864 51,056
Total assets 90,605 91,285
87,030
Liabilities
Current liabilities
Trade and other payables 11a (52,842) (47,850)
(44,263)
Derivative financial liabilities (2,679)
(1,260) (894)
Current tax payable (112) (112)
(112)
Provisions 12 (1,618)
(1,230) (690)
(57,251)
(50,452) (45,959)
Net current assets 1,190 2,412
5,097
Non-current liabilities
Provisions 12 (9,710)
(9,707) (11,434)
Other non-current payables 11b (3,659) (3,550)
(3,482)
(13,369)
(13,257) (14,916)
Total liabilities (70,620)
(63,709) (60,875)
Net assets 19,985
27,576 26,155
Shareholders* equity
Called up share capital 28,721 28,721
28,721
Share premium 97,794 97,794
97,794
Other reserves 4,839
2,835 3,729
Retained earnings (111,369) (101,774)
(104,089)
Total equity 19,985
27,576 26,155
Unaudited Consolidated Cash Flow Statement
for the 26 weeks ended 30th August 2008
26 weeks 26 weeks
ended ended
30th
August 25th August
2008 2007
Notes
�*000 �*000
Cash flows from operating activities
Cash absorbed by operations 10 (1,176)
(7,410)
Interest received
33 170
Interest paid
(104) (38)
Tax received/(paid)
* *
Net cash outflow from operating activities (1,247)
(7,278)
Cash flows from investing activities
Purchase of property, plant and equipment (551)
(3,646)
Net cash used in investing activities (551)
(3,646)
Cash flows from financing activities
Acquisition of own shares *
(230)
Net cash from financing activities *
(230)
Net decrease in cash, cash equivalents and overdrafts (1,798) (11,154)
Cash and cash equivalents at 1st March 2008/25th February 2007 8,711 21,362
Cash and cash equivalents at 30th August 2008/25th August 2007 6,913 10,208
Notes to the Interim Report
for the 26 weeks ended 30th August 2008
1 GENERAL INFORMATION
The Company is a limited liability company incorporated and domiciled in the UK. The address of its registered office is Trident Business
Park, Leeds Road, Huddersfield, HD2 1UA.
The Company has its primary listing on the London Stock Exchange.
This condensed consolidated half-yearly financial information was approved for issue on 31st October 2008.
These interim financial results do not comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985. Statutory
accounts for the 53 weeks ended 1st March 2008 were approved by the Board of Directors on 29th April 2008 and delivered to the Registrar of
Companies. The financial information contained in this interim report in respect of the 53 weeks ended 1st March 2008 has been extracted
from the 2008 annual
report and financial statements. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under Section 237 of the Companies Act 1985.
2 SEASONALITY OF OPERATIONS
The company*s principal activity is retail within the value sector. Historically, 55% of sales revenue is generated in the second half year,
although this is partially offset by a corresponding rise in variable costs.
3 BASIS OF PREPARATION
This condensed consolidated half-yearly financial information for the period ended 30th August 2008 has been prepared in accordance with the
Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, *Interim financial reporting* as adopted by the
European Union. The half-yearly condensed consolidated financial report should be read in conjunction with the annual financial statements
for the 53 weeks ended 1st March 2008, which have been prepared in accordance with IFRSs as adopted by the European Union.
The financial statements have been prepared on the historical cost basis, with the exception of certain financial assets and financial
liabilities (including derivative instruments) which are measured at fair value.
4 ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the financial statements for the 53 weeks ended 1st March 2008, as described in
those annual financial statements.
There have been no significant changes in the bases upon which estimates have been determined, compared to those applied at 1st March 2008
and no change in estimate has had a material effect on the current period.
These condensed consolidated interim financial statements have been prepared on the basis of IFRS in issue that are effective or available
for early adoption at the Group annual reporting date as at 28th February 2009.
5 SEGMENT INFORMATION
Turnover is derived from a single activity, being variety discount retailing in the UK, and therefore there is only one business segment,
operating in one geographical location.
6 EXCEPTIONAL ITEMS
Items that are both material in size and unusual and infrequent in nature are presented as exceptional items in the income statement. The
Directors are of the opinion that the separate recording of exceptional items provides helpful information about the Group*s underlying
business performance.
Operating exceptional items are analysed as follows: 26 weeks 26 weeks
ended ended
30th
August 25th August
2008 2007
�*000 �*000
Administration Expenses:
1) Restructuring costs *
(1,725)
2) Cost of evaluating offer to shareholders (245)
*
3) Write-down of investment in own shares (1,370)
*
4) Receipts re previously impaired employee share loan 880
*
5) Employee share loan provision (47)
*
(782) (1,725)
1) During the 26 week period ended 25th August 2007 restructuring costs of �1.7 million were incurred.
2) During the 26 week period ended 30th August 2008 Seaham Investments Limited made an offer to the minority shareholders of Instore
plc to buy their shares. The cost of evaluating and effecting this offer was �0.2 million.
3) During the 26 week period ended 30th August 2008 shares which were held by former employees of the Company under share option
schemes were handed back to the Instore plc Employee Share Trust. The cost of this was �1.37 million.
4) During previous accounting periods, an impairment charge has been recognised in respect of a potential shortfall on loans made to
employees. Under the terms of the loans the shares can be returned and purchased by the Instore plc Employee Share Trust. During the 26 week
period ended 30th August 2008 �0.9 million was received in repayment of loans previously impaired.
5) During the 26 week period ended 30th August 2008, an impairment charge of �0.05 million has been recognised in respect of a
potential shortfall on loans made to employees for the purpose of acquiring shares in the Company.
7 TAXATION
The tax charge for the period is �194,000 (2007: �430,000). The effective rate of tax is lower than the prevailing UK statutory rate of 28%
as no deferred tax asset has been recognised in relation to losses arising in the period. The tax change relates to movements in deferred
tax relating to short-term timing differences.
8 LOSS PER SHARE
The basic loss per share calculation for the 26 weeks ended 30th August 2008 is based on the loss after taxation of �7,280,000 (2007:
�5,655,000), divided by the weighted average number of ordinary 10p shares of 219,470,129 (2007: 222,831,674), which has been reduced to
reflect own shares purchased by the Brown & Jackson Employee Share Trust which are treated as being cancelled for the purpose of this
calculation. The diluted loss per share is equal to the basic loss per share.
The basic loss per share before exceptional items for the 26 weeks ended 30th August 2008 was 2.96p (2007: 1.76p).
9 CAPITAL EXPENDITURE
26
weeks 26 weeks
ended ended
30th
August 25th August
2008 2007
�*000 �*000
Opening net book amount 1st March 2008/25th February 2007 33,987 36,114
Additions
259 3,322
Disposals
(478) (286)
Depreciation, amortisation, impairment and other movements (3,630) (3,718)
Closing net book amount 30th August 2008/25th August 2007 30,138 35,432
The Group had capital commitments of �nil at 30th August 2008 (2007: �nil) and capital commitments which had been authorised but not
contracted for of �nil (2007: �nil).
10 NOTE TO THE CASH FLOW STATEMENT
Reconciliation of cash absorbed by operations 26 weeks 26 weeks
ended ended
30th
August 25th August
2008 2007
�*000 �*000
Loss for the financial period (7,280)
(5,655)
Adjustments for:
Taxation
194 430
Finance income
(33) (170)
Finance costs
104 38
Depreciation
4,125 3,718
Impairment
(495) *
Loss on disposal of property, plant and equipment 478
286
Fair value movements on derivative financial instruments (171)
(157)
Share-based payment charge *
(772)
Increase in inventories (3,929)
(6,832)
Increase in trade and other receivables (2,420)
(1,732)
Increase in payables 9,047
4,276
Decrease in provisions (796)
(840)
Cash absorbed by operations (1,176)
(7,410)
11 LIABILITIES
(a) Current liabilities
(Audited)
30th August 25th August
1st March
2008
2007 2008
�*000
�*000 �*000
Trade payables 35,369 30,147
27,615
Other taxes and social security costs 2,514 2,109
1,945
Other payables 2,121 4,253
1,787
Accruals and deferred income 12,838 11,341
12,916
52,842
47,850 44,263
(b) Other non-current liabilities
30th August 25th August
1st March
2008
2007 2008
�*000
�*000 �*000
Other payables 3,659 3,550
3,482
12 PROVISIONS
Dilapidation Closed store Onerous lease
provision provision
provision Total
�*000 �*000
�*000 �*000
Opening net book amount
25th February 2007 10,352 1,425 *
11,777
Charged to profit and loss account 12 * *
12
Utilised during the period (253) (436) *
(689)
Released during the period (163) * *
(163)
Closing net book amount
25th August 2007 9,948 989 *
10,937
Opening net book amount
1st March 2008 9,635 689 1,800
12,124
Charged to profit and loss account 112 * *
112
Utilised during the period (58) (582) *
(640)
Released during the period (28) * (240)
(268)
Closed net book amount
30th August 2008 9,661 107 1,560
11,328
Provisions have been analysed between current and non-current as follows:
26
weeks 26 weeks
ended ended
30th
August 25th August
2008 2007
�*000 �*000
Current
1,618 1,230
Non-current
9,710 9,707
11,328 10,937
13 CONTINGENT LIABILITIES
The Group had guaranteed certain lease obligations of its subsidiary undertakings which were disposed of to Tradegro Limited during the
period ended 22nd February 2003. Tradegro Limited has agreed to indemnify the Company against claims received under the guarantees. These
leases all expire between 8 and 11 years. The maximum potential annual liability under these leases is �336,000 (2007: �427,000).
As at 30th August 2008 the Group had guarantees in respect of Customs and Excise duty deferment of �500,000 (2007: �500,000) and stand-by
letters of credit given to suppliers of �nil (2007: �720,000).
14 RELATED PARTY TRANSACTIONS
Tradehold Limited, Tradegro Limited and Tradegro (UK) Limited are related parties to Instore plc and its subsidiary undertakings. At 30th
August 2008 Tradegro Limited owned 15.43% of the ordinary 10p shares in Instore plc 2007: 34.81%). C H Wiese and C Moore, directors of
Tradehold Limited, were also Directors of Instore plc until they resigned on 10th July 2008. C Moore is a director of Tradegro and Tradegro
(UK) Limited.
Material transactions between related parties in relation to Tradehold Limited, Tradegro Limited and Tradegro (UK) Limited in the period to
30th August 2008 were:
a) �35,000 (2007: �nil) was paid to Tradegro, Switzerland from the sale of company shares to repay the loan to a director of a
subsidiary company.
b) �6,000 (2007: �nil) was paid to Tradegro (UK) Limited for travel costs relating to the previous year.
c) �Nil (2007: �9,000) was paid to Tradegro Limited for travel costs incurred during the period.
d) �Nil (2007: �56,000) was received from Tradegro (UK) Limited in respect of payments reimbursed in connection with the identity
arrangements agreed on disposal of previously held subsidiaries.
Crown Crest (Leicester) plc and Seaham Investments Limited are also related parties to Instore plc and its subsidiary undertakings. At 30th
August 2008 Seaham Investments owned 55.84% of the ordinary 10p shares in Instore plc (2007 29.78%). A A Tayub and A R Tayub are directors
of Crown Crest (Leicester) plc and A A Tayub is a director of Seaham Investments Limited. A A Tayub and A R Tayub are also non-executive
Directors of Instore plc. Although A A Tayub is a non-executive Director, he is performing some of the duties of an executive Director.
Material transactions between related parties in relation to Crown Crest (Leicester) plc and Seaham Investments Limited in the period to 1st
March 2008 were:
a) �8,600,000 (2007: �6,586,000) paid to Crown Crest (Leicester) plc during the period for purchases of goods for resale during the
ordinary course of business. As at 30th August 2008 an amount of �2,635,000 (2007: �763,000) was owed to Crown Crest (Leicester) plc in
respect of these purchases.
b) �Nil (2007: �38,000) was paid to Crown Crest (Leicester) plc during the period for the purchase of a motor vehicle.
Sert UK plc is a related party to Instore plc and its subsidiary undertakings. S Tayub, a director and shareholder of Sert UK plc, is
related to A Tayub, a non-executive Director of Instore plc.
a) �360,000 (2007: �nil) paid to Sert UK plc during the period for purchases of goods for resale during the ordinary course of
business. As at 30th August 2008 �nil (2007: �nil) was owed to Sert UK plc in respect of these purchases.
b) �152,000 (2007: �nil) was received from Sert UK plc during the period for purchases of goods for resale during the ordinary course
of business. As at 30th August 2008 �nil (2007: �nil) was owed by Sert UK plc in respect of these purchases.
Key management represents Directors. Key management compensation amounted to �235,000 as of 30th August 2008 (�182,000 as of 25th August
2007). Further details are given in the table below:
30th
August 25th August
2008 2007
�*000 �*000
Salaries and other short-term benefits 235
377
Termination benefit
* 451
Share-based payments *
(646)
235 182
There have been no other material transactions with related parties in the period.
Statement of Directors* Responsibilities
The Directors confirm, to the best of their knowledge:
a) that this set of interim financial statements, which have been prepared in accordance with IAS 34 as adopted by the European Union,
give a true and fair view of the assets, liabilities, financial position and profit and loss of the Company and Group taken as a whole; and
b) that as required by DTR 4.2.7 and DTR 4.2.8, the interim management report includes a fair review of the important events that have
occurred during the first six months and their impact on the interim set of financial statements, a description of the principal risks and
uncertainties for the remaining six months of the financial year, and material related party transactions in the first six months and any
material changes in the related party transactions described in the last Annual Report.
The Directors of Instore plc are listed in the Instore plc annual report for the 53 week period ended 1st March 2008, with the exception of
the following changes in the period: Dr C H Wiese, Mr C Moore and Mr J A Gnodde all resigned on 10th July 2008; Mr E Suleman was appointed
on 1st May 2008; Mrs A Tomlinson and Mr A R Tayub were both appointed on 18th August 2008. A list of current Directors is available from
Instore plc*s registered office.
By order of the Board
P Burdon
Chief Executive
J B H Jackson
Chairman
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRBDGUSXGGIG
Instore (LSE:INST)
Historical Stock Chart
From Apr 2024 to May 2024
Instore (LSE:INST)
Historical Stock Chart
From May 2023 to May 2024
