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05-11-09	Blacks Leisure Group - Posting of Documents	RNS
RNS Number : 0156C Blacks Leisure Group PLC 05 November 2009 Blacks Leisure Group plc ("Blacks") Posting of CVA Document and Shareholder Circular Further to the announcement made on 3 November 2009 in relation to its proposed company voluntary arrangements (the "CVA"), Blacks announces that the CVA Document and Shareholder Circular have been posted to Blacks' creditors and shareholders. A copy of the CVA Document and Shareholder Circular will also be available for inspection at the UK Listing Authority's Document Viewing Facility situated at the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS. Ends - For further information, please contact: `Citigate Dewe Rogerson 020 7638 9571` Simon Rigby Kevin Smith `Singer Capital Markets 020 3205 7500` Jeff Keating Jos Trusted This information is provided by RNS The company news service from the London Stock Exchange END MSCBABPTMMAMMJL More
03-11-09	UPDATE 1-Blacks Leisure rescue plan gets bank support	AFX UK Focus
LONDON, Nov 3 (Reuters) - British outdoor goods company Blacks Leisure said on Tuesday it had finalised the terms of a restructuring plan and secured the support of its bank to help keep the firm in business. `The plan will see a company voluntary arrangement (CVA), an increasingly popular insolvency process, proposed for Blacks Leisure and its subsidiary, The Outdoor Group Limited.` `Shares in Blacks, which have lost 38 percent of their value over the last three months, were up 1.7 percent at 30 pence at 0832 GMT, valuing the business at 12.8 million pounds ($20.93 million).` `Last week the firm, which runs the Blacks Outdoor and Millets chains, reported losses more than doubled in its first half.` `The CVA will seek to free Blacks from the claims of 101 landlords of stores which are closed or in the process of closing, and compromise the claims of a further nine landlords.` `The firm has also proposed to vary the terms of 291 store leases to allow monthly rent payments for 18 months.` `A compensation fund of 7.25 million pounds is being made available to landlords.` `Blacks also said its banker Lloyds Banking Group had agreed to extend to Dec. 23 an existing standstill deal and has made new facilities of 42.5 million pounds available to the retailer on condition the CVA is approved by creditors and shareholders.` `Subject to shareholder approval Blacks has agreed to issue warrants to Lloyds entitling the bank to buy new shares in the retailer representing 5 percent of its share capital at an exercise price of 1 pence a share.` "The restructuring plan announced today and the new banking facility supporting it provide a realistic opportunity to ensure the survival of the core outdoor business which has the potential to become a strong successful retailer," said Chief Executive Neil Gillis. ($1=.6115 Pound) (Reporting by James Davey; Editing by Hans Peters) Keywords: BLACKS LEISURE/ (james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters Messaging: james.davey.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
03-11-09	BRIEF-Blacks Leisure details restructuring plan	AFX UK Focus
LONDON, Nov 3 (Reuters) - Blacks Leisure Group PLC: UPDATE ON PROPOSED RESTRUCTURING PLAN COMPANY VOLUNTARY ARRANGEMENTS ARE BEING PROPOSED FOR COMPANY AND WHOLLY `owned subsidiary` CVA FOR COMPANY AND UNIT THE OUTDOOR GROUP TO COMPROMISE CLAIMS OF 101 `landlords of stores closed or being closed` CVA PLAN ALSO TO VARY THE TERMS OF APPROXIMATELY 291 LEASES OF RETAIL STORES BOS HAS AGREED TO AN EXTENSION TO 23 DECEMBER 2009 OF THE EXISTING STANDSTILL `agreement` THE COMPANY HAS EXECUTED NEW BANK FACILITIES WITH BOS, WHICH WILL BE USED TO `repay existing bank facilities with bos` ((London Equities Newsroom; +44 20 7542 7717)) (For more news, please click here) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
03-11-09	Blacks Leisure Group - Restructuring Plan	RNS
RNS Number : 8310B Blacks Leisure Group PLC 03 November 2009 Blacks Leisure Group plc Update on Proposed Restructuring Plan Further to the announcement made on 22 September 2009, Blacks Leisure Group plc ("Blacks" or the "Company") announces an update in relation to its proposed restructuring plan as well as new bank facilities with Bank of Scotland plc ("BoS"). The proposed plan seeks to address the Group's current financial difficulties by achieving an exit for the Group from its loss-making stores and thereby creating a more stable financial platform for the revitalisation of its core outdoor retail business. Highlights THE COMPANY HAS FINALISED THE TERMS OF A RESTRUCTURING PLAN WHICH IS SUPPORTED BY LLOYDS BANKING GROUP (OF WHICH BOS IS A SUBSIDIARY). UNDER THE RESTRUCTURING PLAN, COMPANY VOLUNTARY ARRANGEMENTS (THE "CVA PROPOSAL") ARE BEING PROPOSED FOR THE COMPANY AND ITS WHOLLY OWNED SUBSIDIARY, THE OUTDOOR GROUP LIMITED ("TOG"), TO COMPROMISE CLAIMS OF APPROXIMATELY 101 LANDLORDS OF RETAIL STORES WHICH ARE EITHER CLOSED OR IN THE PROCESS OF CLOSING, TO COMPROMISE THE CLAIMS OF APPROXIMATELY 9 LANDLORDS WITH GUARANTEES GIVEN TO THEM BY THE COMPANY AND TO VARY THE TERMS OF APPROXIMATELY 291 LEASES OF RETAIL STORES (AND ANY GUARANTEES GIVEN BY THE COMPANY IN RELATION TO THOSE STORES) TO PERMIT MONTHLY RENT PAYMENTS FOR THE PERIOD OF 18 MONTHS FROM THE NEXT RENT PAYMENT DATE. THROUGHOUT THE CVA PROCESS, THE COMPANY AND TOG WILL CONTINUE TO TRADE UNDER THE CONTROL OF THEIR RESPECTIVE DIRECTORS, OPERATING AS A GOING CONCERN. PURSUANT TO THE TERMS OF THE CVA PROPOSAL, THE LANDLORDS WHOSE CLAIMS ARE BEING COMPROMISED WILL BE ABLE TO MAKE A CLAIM AGAINST A TOTAL AGGREGATE FUND OF APPROXIMATELY &POUND;7.25 MILLION, WITH PAYMENTS FROM THAT FUND INTENDED TO BE MADE IN TWO INSTALMENTS, THE FIRST INSTALMENT OF 50 PER CENT. OF THE FUND IN MAY 2010 AND THE SECOND INSTALMENT FOR THE BALANCE IN JULY 2010. THE DETAILED TERMS OF THE CVA PROPOSAL, INCLUDING TIMINGS FOR THE REQUIRED CREDITORS' AND MEMBERS' MEETINGS, WILL BE CONTAINED IN A DOCUMENT (THE "CVA DOCUMENT") THAT WILL BE POSTED TO UNSECURED CREDITORS AND SHAREHOLDERS OF BOTH THE COMPANY AND TOG SHORTLY. BOS HAS AGREED TO AN EXTENSION TO 23 DECEMBER 2009 OF THE EXISTING STANDSTILL AGREEMENT ANNOUNCED ON 23 SEPTEMBER 2009 (SUBJECT TO CERTAIN CONDITIONS). THE COMPANY HAS EXECUTED NEW BANK FACILITIES WITH BOS, WHICH WILL BE USED TO REPAY THE EXISTING BANK FACILITIES WITH BOS. UNDER THESE NEW FACILITIES, INITIAL COMMITTED FACILITIES OF IN AGGREGATE &POUND;42.5 MILLION WILL BE MADE AVAILABLE TO THE GROUP (BEING A CORE FACILITY OF &POUND;35 MILLION AND A 'SEASONAL PEAK' FACILITY OF A FURTHER &POUND;7.5 MILLION) AND WILL BE COMMITTED FOR A PERIOD OF 2 YEARS FROM THE DATE THAT THE NEW FACILITIES BECOME UNCONDITIONAL. THE NEW FACILITIES WILL ONLY BE AVAILABLE ONCE THE CVA PROPOSAL IS APPROVED AND BECOMES EFFECTIVE AND ARE SUBJECT TO SATISFACTION OF CONVENTIONAL DOCUMENTARY CONDITIONS PRECEDENT. SUBJECT TO SHAREHOLDER APPROVAL, THE COMPANY HAS AGREED TO ISSUE WARRANTS TO BOS (OR AN AFFILIATE OF BOS) IN CONNECTION WITH THEIR CONTINUING SUPPORT OF THE BUSINESS. THE WARRANTS WILL ENTITLE BOS TO ACQUIRE NEW ORDINARY SHARES IN THE COMPANY EQUAL TO APPROXIMATELY 5 PER CENT. OF THE COMPANY'S EXISTING ISSUED SHARE CAPITAL (SUBJECT TO ADJUSTMENT IN CERTAIN CIRCUMSTANCES) AT AN EXERCISE PRICE OF 1 PENNY PER SHARE. IF SHAREHOLDER APPROVAL FOR THE ISSUE OF THE WARRANTS IS NOT OBTAINED, THE COMPANY HAS AGREED TO PAY TO BOS A FEE OF &POUND;2 MILLION IN CASH ON THE SECOND ANNIVERSARY OF THE DATE ON WHICH THE NEW FACILITIES BECOME UNCONDITIONAL. FURTHER INFORMATION IN RELATION TO THE WARRANTS, INCLUDING DETAILS OF THE GENERAL MEETING TO BE CONVENED TO APPROVE THE NECESSARY SHAREHOLDER RESOLUTION TO ENABLE THE COMPANY TO ISSUE THE WARRANTS, WILL BE CONTAINED IN A SEPARATE SHAREHOLDER CIRCULAR (THE "SHAREHOLDER CIRCULAR") THAT IS TO BE POSTED TO BLACKS SHAREHOLDERS SHORTLY. AS PART OF THE WIDER RESTRUCTURING OF THE GROUP, THE COMPANY'S WHOLLY OWNED NON-TRADING SUBSIDIARY, BLACKS OUTDOOR LEISURE LIMITED ("BOLL") WILL LATER TODAY BE PUT INTO ADMINISTRATION. BOLL IS THE TENANT OF TWO LEASES FOR OPEN RETAIL STORES. IN ADDITION, THE COMPANY'S WHOLLY OWNED NON-TRADING SUBSIDIARIES BLACKS CAMPING AND LEISURE LIMITED ("BCL") AND OUTDOOR STORES LIMITED ("OSL"), WILL LATER TODAY SEND OUT NOTICES TO CONVENE MEETINGS OF MEMBERS AND CREDITORS REGARDING A CREDITORS VOLUNTARY LIQUIDATION OF THESE COMPANIES. BCL IS THE TENANT OF A LEASE OF ONE OF THE GROUP'S CLOSED RETAIL STORES AND OSL HAS A SMALL INTRA-GROUP RECEIVABLE, HOLDS FOUR DORMANT SUBSIDIARIES AND IS THE GUARANTOR OF THE LEASES OF FOUR CLOSED STORES. NEW EMPLOYEE INCENTIVE ARRANGEMENTS ARE TO BE PUT IN PLACE, SUBJECT TO SHAREHOLDER APPROVAL. A FURTHER ANNOUNCEMENT WILL BE MADE WHEN THE CVA DOCUMENT AND THE CIRCULAR ARE PUBLISHED. Commenting on the CVA Proposal and the new financing arrangements, Neil Gillis, Chief Executive, said: "After several years of losses Blacks embarked on a turnaround plan in early 2008. That plan successfully reduced the cost base of the business, reduced our working capital requirements, improved retail standards and created a successful new retail format. However, the severity of the current trading environment and the drag of the loss-making Boardwear business has required a more radical set of measures to complete the turnaround of this business. The restructuring plan announced today and the new banking facility supporting it provide a realistic opportunity to ensure the survival of the core outdoor business which has the potential to become a strong successful retailer." `This summary should be read in conjunction with the full text of this announcement.` For further information, please contact: `Blacks Leisure Group plc 01604 597 222` Neil Gillis, Chief Executive `Citigate Dewe Rogerson 020 7638 9571` Simon Rigby Kevin Smith `Singer Capital Markets 020 3205 7500` Jeff Keating Jos Trusted Blacks Leisure Group plc Update on Proposed Restructuring Plan Further to the announcement made on 22 September 2009, Blacks Leisure Group plc ("Blacks" or the "Company") announces an update in relation to its proposed restructuring plan as well as new bank facilities with Bank of Scotland plc ("BoS"). The proposed plan seeks to address the Group's current financial difficulties by achieving an exit for the Group from its loss-making stores and thereby creating a more stable financial platform for the revitalisation of its core outdoor retail business. 1. Proposed company voluntary arrangements The Company has finalised the terms of a restructuring plan which is supported by Lloyds Banking Group (of which BoS is a subsidiary). Under the proposed restructuring plan, company voluntary arrangements are being proposed for the Company and its wholly owned subsidiary, The Outdoor Group Limited ("TOG"), to unsecured creditors and shareholders of the Company and TOG (the "CVA Proposal"). TOG is the lessee for a number of the Group's retail stores. The terms of the CVA Proposal are contained in a document (the "CVA Proposal Document") to be posted to unsecured creditors and shareholders of both the Company and TOG shortly by the joint nominees, Richard Fleming and Brian Green of KPMG LLP, appointed in relation to the CVA Proposal. A company voluntary arrangement or CVA is a formal procedure under the Insolvency Act 1986 which enables a company to agree with its unsecured creditors a composition in satisfaction of its debts or a scheme of arrangement of its affairs which can determine how its debts should be paid and in what proportions. In summary terms, if approved and not successfully challenged, the CVA Proposal will: COMPROMISE CLAIMS OF APPROXIMATELY 101 LANDLORDS OF RETAIL STORES WHICH ARE EITHER CLOSED OR IN THE PROCESS OF CLOSING TOGETHER WITH CERTAIN RELATED CONTINGENT CLAIMS (SUCH AS CLAIMS OF FORMER TENANTS AND GUARANTORS, BUT NOT INCLUDING RATES ON THOSE STORES); COMPROMISE CLAIMS OF APPROXIMATELY 9 LANDLORDS WHOSE LEASES HAVE BEEN GUARANTEED BY THE COMPANY; ENABLE LANDLORDS WHOSE CLAIMS ARE BEING COMPROMISED TO MAKE A CLAIM AGAINST A TOTAL AGGREGATE FUND OF APPROXIMATELY &POUND;7.25 MILLION, WITH PAYMENTS FROM THAT FUND INTENDED TO BE MADE IN TWO INSTALMENTS, THE FIRST INSTALMENT OF 50 PER CENT. OF THE FUND IN MAY 2010 AND THE SECOND INSTALMENT FOR THE BALANCE IN JULY 2010; AND VARY THE TERMS OF APPROXIMATELY 291 LEASES OF OPEN RETAIL STORES (AND ANY GUARANTEES GIVEN BY THE COMPANY IN RELATION TO THOSE STORES), SUCH THAT RENT, SERVICE CHARGE AND INSURANCE WILL BE ACCRUED AND PAID ON A MONTHLY RATHER THAN QUARTERLY BASIS FOR A PERIOD OF EIGHTEEN MONTHS FROM THE NEXT RENT PAYMENT DAY. The Company and TOG will remain liable for rates on the closed retail stores until those stores are surrendered/forfeited or assigned, which shall be at the landlord's discretion. The landlords of open retail stores will not be able to claim against the £7.25 million fund and will not otherwise receive any payment in relation to the CVA Proposal. Save as set out above, in general terms the CVA Proposal will not seek to compromise claims of any other creditors (such as suppliers and employees). Throughout the CVA process, the Company and TOG will continue trading under the control of their respective directors, operating as going concerns. The Company and TOG are not in and will not be in administration as result of commencing the CVA process. The CVA Proposal Document will contain notices of meetings ("CVA Meetings") of the unsecured creditors and members of both the Company and TOG to consider and, if thought fit, approve the CVA Proposal. To become effective, the CVA for the Company will require the approval of the requisite majority of the unsecured creditors of the Company and the CVA for TOG will require the approval of the requisite majority of unsecured creditors of TOG. The CVA relating to the Company will be conditional upon the CVA relating to TOG being implemented and this conditionality cannot be waived. The CVA relating to TOG will be conditional upon the CVA relating to the Company being implemented but this condition can be waived by the TOG directors subject to first obtaining the consent of BoS. If this happens, the TOG CVA can come into effect even if the CVA for the Company does not. A CVA also requires the approval of more than 50 per cent. In value of the members of the Company or TOG (as the case may be) present in person or by proxy and voting at a meeting on the resolution to approve the CVA. However, in accordance with section 4(A)(2) of the Insolvency Act, if the outcome of the meeting of members differs from the outcome of the meeting of a company's creditors, the decision of the creditors will prevail, subject to the right of any member to apply to the Court to challenge the approval of the CVA. The directors of the Company and TOG believe that the CVA Proposal and the CVA process in general will facilitate a better outcome for creditors than would occur if the Group was placed into administration or liquidation. The CVA Meetings for creditors of the Company and TOG are expected to be held later this month. Details will be contained in the CVA Proposal Document to be published shortly. 2. New bank facilities and issue of warrants As announced on 23 September 2009, the Company entered into a formal standstill agreement with BoS, in respect of its August financial covenant breach until 30 November 2009. The standstill was subject to the Company delivering a restructuring plan acceptable to the bank by 30 October 2009. This requirement has been satisfied and BoS has agreed to an extension of the standstill through to 23 December 2009, subject to approval of the CVA Proposal. BoS will be entitled to terminate the standstill if, among other things, either of the CVAs for the Company or TOG is not approved or if either CVA is subject to a challenge which BoS reasonably considers is capable of being adversely determined or if either CVA is revoked or suspended or if there is a breach of certain undertakings relating to the conduct of the CVAs. In addition, BoS has agreed to make available to the Group new banking facilities subject to the CVA Proposal being approved and not challenged and satisfaction of conventional documentary conditions precedent. Under the new facilities, initial committed facilities of £42.5 million will be made available to the Group which will be used in part to repay in full the existing bank facilities of £35 million with BoS. Of the new facilities, Facility A of £35 million is regarded by the Company as a core facility and Facility B of £7.5 million is regarded as a 'seasonal peak' facility to meet seasonal peaks. The new facilities will be committed for a period of 2 years from the date on which the new facilities become unconditional. The Company has agreed to pay an initial arrangement fee of £425,000 to BoS in connection with the new facilities provided the new facilities become unconditional. A further fee of £2 million is payable on the third anniversary of the date on which the new facilities become unconditional. The Company has also agreed to pay a fee of £1 million (inclusive of a fee of £175,000 carried forward from when the group's facilities with BoS were extended in August 2009) to BoS under the terms of the standstill, which will not be paid in the event the CVAs are approved and the new facilities become unconditional. In exchange for the continuing support of BoS pursuant to the new facilities, the Company has agreed to issue to BoS (or any affiliate of BoS) warrants to subscribe for new ordinary shares in the Company (the "Warrants") representing approximately 5 per cent. of the Company's current issued share capital at an exercise price of 1 penny per share, subject to shareholder approval. The number of ordinary shares to be issued on exercise of the Warrants is subject to customary adjustment provisions. The Warrants will be unlisted, in certificated form, detachable from the new facilities and exercisable at any time prior to the fifth anniversary of the date on which the Warrants are issued. If the Warrants are issued, BoS has agreed, for the period of twenty four months following the first issue of the relevant ordinary shares, to effect any sale of ordinary shares issued to it on the exercise of the Warrants through the Company's broker, subject to the ability of BoS to use another broker at its discretion (acting reasonably). Because the exercise price of the Warrants is to be less than the current 50p nominal value of the Company's ordinary shares, due to Companies Act 2006 restrictions, the Company will need to carry out a subdivision and reclassification of its ordinary shares before granting the Warrants. It also intends to seek specific authority under the Companies Act 2006 to issue, and to disapply the statutory pre-emption rights in relation to the issue of, the Warrants. These matters will require shareholder approval. Consequently, a general meeting of the Company is to be convened. Further information in relation to the Warrants and the timing of the general meeting will be contained in a shareholder circular that is to be posted to shareholders shortly (the "Shareholder Circular"). In the event that shareholder approval for the issue of the Warrants is not obtained, the Company has agreed (in addition to the fees referred to above) to pay an arrangement fee to BoS of £2 million on the second anniversary of the date on which the new facilities become unconditional. The issue of the Warrants to BoS is not a condition of the new facilities being available. 3. Working Capital Following the implementation of the CVA Proposal, the Company is of the opinion that the group has sufficient working capital for its present requirements, that is, for at least the next 12 months. If the standstill from BoS is terminated as described in paragraph 2 above, or if the CVA for TOG is not approved at the creditors' meeting or is approved but is subject to any challenge within the statutory challenge period which BoS reasonably considers is capable of being adversely determined, then all outstanding amounts under the group's existing bank facilities with BoS will become capable of being declared due and payable and one of the conditions precedent to the new facilities with BoS being made available to the group will not be satisfied. In these circumstances, unless BoS agrees to provide alternative funding (and the Directors do not believe that such alternative funding will be forthcoming), the Company and TOG will immediately cease to have working capital sufficient to continue trading which will result in the directors having to seek the appointment of administrators or liquidators. The unsecured creditors and members of the Company and the unsecured creditors and members of TOG will be unlikely to receive any dividend in administrations of (respectively) the Company and TOG. Therefore the approval of the CVA in relation to TOG is crucial to the survival of the group. If the CVA for the Company is not approved at the Company creditors' meeting or is approved but is subject to any challenge within the statutory challenge period which BoS reasonably considers is capable of being adversely determined, then all outstanding amounts under the group's existing facilities with BoS will become capable of being declared due and payable and one of the conditions precedent to the new facilities with BoS being made available to the group will not be satisfied. If this happens then, unless BoS agrees to provide alternative funding (and the Directors do not believe that such alternative funding will be forthcoming), the Company will immediately cease to have working capital sufficient to continue trading which will result in the directors of the Company having to seek the appointment of administrators or liquidators in respect of the Company. If the CVA for the Company is not approved but the CVA for TOG is approved, the TOG directors have the power to waive the condition to the TOG CVA which requires the CVA for the Company to have been approved but because one of the conditions precedent to the new facilities being made available to the Group is the approval of the CVA for the Company, TOG would in these circumstances have to seek alternative funding from BoS (and the Directors do not believe that such alternative funding will be forthcoming) whether the TOG directors exercise their power of waiver or not, the Directors believe that if the CVA for the Company is not approved then the unsecured creditors and members of the Company will be unlikely to receive any dividend in an administration or liquidation of the Company. `4. Administration of Blacks Outdoor Leisure Limited and Voluntary Liquidation of Blacks` `Camping and Leisure Limited and Outdoor Stores Limited.` As part of the wider restructuring of the Group, the Company's wholly owned non-trading subsidiary, Blacks Outdoor Leisure Limited ("BOLL") will later today be put into administration. BOLL is the tenant of two leases for open retail stores. In addition, the Company's wholly owned non-trading subsidiaries Blacks Camping and Leisure Limited ("BCL") and Outdoor Stores Limited ("OSL"), will later today send out notices to convene meetings of members and creditors regarding a creditors voluntary liquidation for these companies. BCL is the tenant of a lease of one of the Group's closed retail stores and OSL has a small intra-group receivable, holds four dormant subsidiaries and is the guarantor of the leases of four closed stores. 5. New employee incentive arrangements The Company wishes to adopt new employee incentive arrangements in order to incentivise the Group's senior managers (including the executive Directors) and align their interests with those of shareholders. Although the executive Directors and the majority of the senior managers have been granted share options in the past two years, these options do not currently have an incentive value as their performance conditions were set by reference to the market conditions and the state of the business prior to the current economic environment, with target share prices of £3.50, £4.25 and £5.00 as compared with the current share price of 28.5 pence (as at close of business on 2 November 2009, being the last business day prior to the publication of this announcement). Accordingly, these options no longer form any meaningful incentive for individuals involved. It is therefore proposed that at the general meeting at which the special resolution required to issue the Warrants to BoS will be proposed, ordinary resolutions will also be proposed to adopt The Blacks Leisure Group plc Turnaround Incentive Plan, The Blacks Leisure Group plc Joint Share Ownership Plan, the Blacks Leisure Group plc Employee Benefit Trust No. 1 and The Blacks Leisure Group Employee Benefit Trust No. 2. Further details of these plans will be contained in the Shareholder Circular. 6. CVA Proposal Document and Shareholder Circular Copies of the CVA Proposal Document and the Shareholder Circular will be made available for inspection at the registered office of the Company at 440-450 Cob Drive, Swan Valley, Northampton, Northamptonshire NN4 9BB during normal business hours on any business day with effect from their publication and up to and including the conclusion of the CVA Meetings (in the case of the CVA Proposal Document) and the General Meeting (in the case of the Shareholder Circular). Copies will also be available for download from the Company's website (http://www.blacksleisure.co.uk) with effect from their publication. Copies of the CVA Proposal Document and Shareholder Circular, when published, will also be available for inspection at the UK Listing Authority's Document Viewing Facility situated at the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS. A further announcement will be made when these documents are published. This information is provided by RNS The company news service from the London Stock Exchange END REPUUGGAGUPBUQW More
29-10-09	Blacks Leisure Group - Interim results	RNS
This news article is displayed preformatted as it may contain results tables RNS Number : 5565B Blacks Leisure Group PLC 29 October 2009 Blacks Leisure Group plc ("Blacks Leisure" or "the Group") Half-Yearly Results for the 26 weeks ended 29 August 2009 2009 2008 Revenue �124.9m �133.0m Gross margin 51.9% 54.0% Operating loss excluding exceptional items * �(10.6)m �(3.8)m Loss before tax and exceptional items * �(11.9)m �(4.5)m Loss before tax �(18.1)m �(6.7)m Basic loss per share excluding exceptional items * (28.65)p (10.36)p Basic loss per share (43.06)p (16.79)p * Exceptional items of �6.1m (2008: �2.2m) relating to impairment of property, plant and equipment and restructuring costs were incurred in the period. The comparative relates to onerous leases, inducements and restructuring costs. * Proposed restructuring plan has been presented to Lloyds Banking Group, in line with standstill agreement announced on 22 September 2009. Lloyds Banking Group has confirmed that this is in a form acceptable to the bank and is currently being discussed. Lloyds Banking Group has therefore confirmed that the Company has satisfied its obligation under the existing standstill arrangements granted on 23 September 2009 to deliver a restructuring plan acceptable to the bank by 30 October 2009. A further announcement is expected to be made shortly * First half Group like-for-like sales declined by 1.1% in tough trading environment. Excluding the closing stores like-for-like sales increased by 3.8% in the 2 months ended 27 October 2009 * Gross margin reduced to 51.9% (2008: 54.0%) reflecting more aggressive promotional stance * Ongoing losses from Boardwear division and tail of loss-making stores combine to produce significant increase in losses for the period * Core Outdoor estate continues to trade successfully but significant further restructuring measures necessary to restore the Group to profitability * No interim dividend is being declared * Loss-making Sandcity subsidiary placed into administration and closure of 89 loss-making stores announced subsequent to the period end Neil Gillis, Chief Executive, said: "In the current economic environment it is clear that more radical restructuring measures are needed to free the core Outdoor business from the burden of the loss-making Boardwear business and a tail of stores that have not traded profitably for many years. We will work with our advisors, KPMG, to implement the restructuring plan which will enable us to eliminate these losses. We expect to be in a position to announce further details of the restructuring shortly. We are confident that the actions taken and proposed to be taken will ultimately strengthen the business and help ensure that a strong and successful Outdoor retailer emerges from this process." Enquiries: Blacks Leisure Group plc (29/10/2009) 020 7638 9571 Neil Gillis, Chief Executive (Thereafter) 01604 597 000 Marc Lombardo, Finance Director Citigate Dewe Rogerson Simon Rigby/Nicola Smith 020 7638 9571 Blacks Leisure Group plc ("Blacks Leisure" or "the Group") Half-Yearly Results for the 26 weeks ended 29 August 2009 CHAIRMAN'S STATEMENT Blacks Leisure is now 18 months into the turnaround plan announced in early 2008. Since that time the business has made significant progress, removing �8 million of cost from the Group, introducing a new Outdoor store format which has demonstrated significant potential, exiting the unprofitable O'Neill wholesale business and turning a loss-making online division into a profitable one. However, the scale of the economic reversal we have had to face during this period has been such that all of these efforts have not been sufficient to return the business to profitability. In particular the impact on the business from the loss-making Boardwear division has continued. Attempts to sell this business have been unsuccessful, and whilst the conversion of a number of Boardwear sites to the Outdoor store format has worked well, there remains a large number of sites where this will not be possible due to the proximity of existing Blacks or Millets stores. At its heart, the Group has a successful Outdoor retail estate, centred on two market-leading brands - Blacks and Millets - but the future of this core business is being jeopardised by the Boardwear losses and a tail of stores across the Group that have not traded profitably for many years. In the current economic environment it is clear that more radical restructuring measures are needed to free the core business from this burden and allow it to prosper once more. Accordingly we have been working with our advisors, KPMG, to explore a range of restructuring options which will enable us to eliminate the considerable drag of the Boardwear business and the tail of loss-making stores. On 23 September 2009 the loss-making subsidiary Sandcity Limited, which managed the 11 O'Neill stores, was placed into administration. On 30 September 2009 the Group began the consultation process to close 89 loss-making stores and to remove a further 50 roles from the head office in Northampton. In line with the standstill agreement announced on 22 September 2009 the Directors have now presented a full restructuring plan to Lloyds Banking Group in a form acceptable to the bank and which is currently being discussed with it. We expect to be able to update the market on this plan shortly. Group results Group sales in the first half decreased by 6.1% to �124.9m (2008: �133.0m). Like-for-like retail sales decreased by 1.1% (2008: 7.7%). A gross margin of 51.9% was achieved in the period (2008: 54.0%). The reduction year on year was due to the business promoting more aggressively to drive sales in the current tough economic conditions. Operating losses excluding exceptional items for the first half were �10.6m (2008: �3.8m). Loss before tax was �18.1m (2008: �6.7m). Basic loss per share was 43.06p compared to 16.79p in the first half of last year. Dividend The Board has decided not to declare an interim dividend this year as the recent performance of the business does not warrant the resultant cash outlay. We will resume dividend payments as soon as circumstances permit. Going concern In determining the appropriate basis of preparation of financial statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. The Group has agreed a standstill with its lender and is in the process of agreeing a restructuring plan, acceptable to Lloyds Banking Group, to turn the business around which, in particular, seeks to address the Group's loss-making stores and Boardwear division. More details are provided in the Financial Review and note 2. People As announced on 15 July 2009, both Claude Littner and Andrew Mallett stepped down as Non-Executive Directors to enable them to spend more time on their other business commitments. The Board would like to thank Claude and Andrew for the invaluable contribution they made to the Group. I would also like to thank our staff across the Group for their contribution to the business during what has been a very challenging period. Current trading and outlook In the 2 months ended 27 October 2009, Group like-for-like sales increased by 14.2% (2008: 0.8% decrease), as analysed in the table below: Outdoor Boardwear Total Ongoing stores 3.3% 12.6% 3.8% Closing stores 67.1% 33.3% 60.0% Total 13.5% 21.9% 14.2% Total retail sales were 10.0% higher (2008: 3.3% lower). Gross margins have reduced due to the closing down sales. The outcome for the full year will be heavily dependent on the negotiations with our lender and the progress of the proposed restructuring plan as well as trading over the important Christmas period. David Bernstein 29 October 2009 Chairman CHIEF EXECUTIVE'S REVIEW Against a background of continuing tough trading conditions, the first half of this year has seen an acceptable like-for-like sales performance, declining by 1.1%, but the impact on profitability of the Boardwear division and the tail of loss-making stores has clearly required the business to begin implementing a more radical package of changes as part of the turnaround plan. The further reduction in overheads at the Northampton head office and the closure of 89 loss-making stores (both subject to employee consultation) and the administration of Sandcity Limited are steps being taken to reinforce the core Outdoor business which we believe has a strong future if it can be liberated from those parts of the Group which represent a financial burden it cannot continue to carry in the current economic environment. The Outdoor division, comprising Blacks and Millets, sustained an operating loss before exceptional items, of �6.2m (2008: �0.6m profit). This performance includes the negative impact of the tail of loss-making stores which have contributed to a like-for-like sales decline of 0.6% (2008: 5.2% decline). The margin in the period also declined due to the more aggressive promotional activity to drive sales and the strengthening of the US dollar. The combination of all these factors has resulted in the loss for the period. The Boardwear division, comprising Freespirit and O'Neill, continued its poor performance, reporting an operating loss before exceptional items of �3.1m (2008: �3.1m) for the period. The decline in like-for-like sales of 4.3% (2008: 16.1% decline) coupled with a reduced margin due to the significantly increased promotional activity has been mitigated by cost savings made from the consolidation of the Boardwear business on to a single site at Swan Valley in the prior period. Further decisive action has been taken to address the losses in the Boardwear division. The transfer of the O'Neill UK wholesale operation to O'Neill Europe was completed in the period. Eight Boardwear stores were rebranded to an Outdoor format which has led to an improvement in their performance. The remaining 11 O'Neill retail stores represented approximately one third of the Boardwear division and traded at a substantial loss. After the period end the decision was taken to put Sandcity Limited, the subsidiary responsible for O'Neill in the UK, into administration, the Board having concluded that there was no reasonable prospect of restoring profitability in the medium to long term. Richard Fleming and David Costley-Wood of KPMG have been appointed as administrators. The Directors believe that the administration of Sandcity Limited will not have a material effect on the Group's other businesses which continue to trade normally. Subsequent to the period end the Group announced the closure of 89 loss-making stores across its Free Spirit, Millets and Blacks fascias, whose performance has had a considerable effect on the core Outdoor business. The vast majority of the stores to be closed have not traded profitably for many years. Excluding these stores, in Outdoor, Millets now trades from 206 stores and Blacks from 89 stores, including 6 out of town stores. In Boardwear, Freespirit now operates from 14 stores. Having agreed a standstill agreement with our lender, we have presented a restructuring plan to them, which they have confirmed is in a form acceptable to them, and is currently being discussed. As we undertake this next and most difficult phase of the turnaround plan we have benefitted greatly from the ongoing support and positive attitude of our employees and I am grateful for the way in which they have managed these testing circumstances. We have also enjoyed strong support from our suppliers who continue to provide us with the quality and quantity of product to ensure that our trading stores are fully stocked as we approach the critical Christmas trading period. Once the Group completes its restructuring action we expect that current market expectations of losses from the ongoing estate, excluding the effects of the restructuring plan and the associated costs, can still be met. However, this outcome will be dependent upon Lloyds Banking Group waiving the covenant breach, the implementation of our restructuring plan and a normal trading level through the important Christmas period. We expect to announce further details of the restructuring programme to the market shortly. We are confident that the actions taken and to be taken will ultimately strengthen the business and help ensure that a strong and successful Outdoor retailer emerges from the current restructuring. Neil Gillis 29 October 2009 Chief Executive FINANCIAL REVIEW Shareholder value Basic loss per share was 43.06p (2008: 16.79p), reflecting the increase in Group operating loss. The Board has taken the decision not to pay an interim dividend (2008: �nil). Operating loss The operating loss of �16.7m (2008: �6.1m) comprises the results of the Outdoor division and Boardwear division, less unallocated costs. Unallocated costs consist of the remuneration of the Board, plus the costs of public company compliance and advisors. Goodwill The carrying value of goodwill was reviewed and the Board is satisfied that no provision for impairment is required at the current time. The review has taken into consideration the proposed restructuring plan and the steps being taken to close 89 loss-making stores. The ongoing stores are forecast to be sufficiently cash-generating over the next ten years to cover the carrying value of goodwill. Finance costs The Group's net finance costs increased to �1.3m (2008: �0.6m). The majority of the increase is due to the provision for the future unwinding of the discount factor in relation to the onerous lease provision which did not exist last year and the interest element received from a corporation tax refund from HM Revenue & Customs for overpayment in prior years, which was received last year. Underlying finance costs are flat year on year. Cash flow Cash used in operations was �2.7m (2008: �0.9m generated) and net working capital was reduced by �4.3m (2008: �1.6m), largely due to the management of Group stock levels during the period. Total inventories were �45.1m (2008: �47.2m). The year-end position was �50.1m. The capital expenditure in the period of �1.7m (2008: �2.5m) related to three main areas; store refurbishments accounted for �0.8m (2008: �1.0m) including the conversion of eight Boardwear stores and refurbishments; ongoing work to upgrade the central systems amounting to �0.7m (2008: �0.7m); and one new store opening in Bury St Edmunds amounting to �0.2m. Other project expenditure last year included �0.6m on the completion of the Swan Valley head office refurbishment. Capital investment for the full year is anticipated to be approximately �3.3m, with the remaining expenditure being focussed on ongoing improvements to the current store portfolio. Going concern In determining the appropriate basis of preparation for the financial statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. As announced during the period, Lloyds Banking Group formally agreed to extend the Group's working capital facility to 31 August 2010. In addition to this a further announcement on 22 September 2009 stated that the Directors anticipated that there would be a breach of the August period end financial covenant under such facilities when tested. The Directors held constructive discussions with Lloyds Banking Group regarding this expected breach. Following these discussions Lloyds Banking Group agreed to a standstill in respect of any breach of the relevant financial covenant until 30 November 2009, subject to the Directors delivering a restructuring plan, acceptable to Lloyds Banking Group, addressing the future viability of the Group, including actions to achieve an exit of the Group's loss-making stores, by 30 October 2009. Any waiver of the covenant breach is likely to be conditional upon such a restructuring plan being implemented. The Directors have now delivered a restructuring plan to Lloyds Banking Group which the bank has confirmed is in a form acceptable to it and is currently being discussed. Lloyds Banking Group has therefore confirmed that the Company has satisfied its obligation under the existing standstill arrangements granted on 23 September 2009 to deliver a restructuring plan acceptable to the bank by 30 October 2009. Having prepared the proposed restructuring plan and reviewed the underlying key assumptions, the Directors have a reasonable expectation that the Group will be able to meet its liabilities as they fall due for the foreseeable future. Accordingly, the Directors consider it appropriate to prepare the financial statements on a going concern basis. However, it is recognised that a material uncertainty may exist in respect of going concern if the Group fails to achieve the performance anticipated as a result of the restructuring. The Directors additionally recognise that a material uncertainty exists in that if an acceptable restructuring plan cannot be agreed with the bank and the formal waiver of the covenant breach is not forthcoming, this may cast doubt on the ongoing availability of the Group's credit facilities and hence its ability to continue as a going concern and to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern, which would include writing down the carrying value of assets, including goodwill, to their recoverable amount and providing for further liabilities that might arise. Risks The Board continually reviews and identifies the principal business risks and uncertainties facing the Group. The Board also takes an active role in reviewing operational developments to ensure that those risks identified are managed effectively. The key risks identified by the Board include: * Lloyds Banking Group not granting a waiver of the covenant breach; * Implementation of the restructuring plan; * The economic environment and market factors that influence customers' spending; * Customer expectations of quality products at competitive prices; * Competition, both current and new entrants to the market; * A supplier base that ensures the ability to meet demand and remain price competitive; * Warehouse and distribution minimising business interruption; * IT systems and business continuity to meet the future business needs; * Key personnel, the retention of and the ability to attract high calibre individuals; * Treasury and risk management for available funds to meet the business needs; and * Capital risk management to ensure the Group can continue as a going concern. Foreign currencies Transaction exposure resulting from purchases in foreign currencies may be hedged by forward foreign currency transactions and currency options. The Group's policy aims to minimise any exposure with the intention of protecting the buying margin from fluctuations in the value of foreign currency. At 29 August 2009 the Group was committed to forward exchange contracts to buy US$11.5m (2008: US$22.0m). There was no commitment to any euro forward exchange contracts at 29 August 2009 (2008: EUR11.5m). The forward exchange contracts that are currently in place are sufficient to cover all of the Autumn/Winter 2009 season requirements. Marc Lombardo 29 October 2009 Finance Director Blacks Leisure Group plc Condensed Consolidated Statement of Comprehensive Income For the 26 weeks ended 29 August 2009 Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 Total Total Total Note �'000 �'000 �'000 Revenue 3 124,929 133,010 267,551 Gross profit 64,782 71,864 145,164 Operating loss (16,725) (6,088) (12,042) Analysed as: Operating loss excluding (10,584) (3,841) (4,465) exceptional items Exceptional items 4 (6,141) (2,247) (7,577) (16,725) (6,088) (12,042) Finance costs (1,677) (1,585) (3,981) Finance income 348 945 1,607 Loss before tax 3 (18,054) (6,728) (14,416) Tax expense 5 (302) (428) (345) Analysed as: Tax (expense)/credit excluding (302) 63 (1,509) exceptional items Tax (expense)/credit on - (491) 1,164 exceptional items (302) (428) (345) Loss for the period (18,356) (7,156) (14,761) attributable to equity holders of the parent Other comprehensive income: Transferred to carrying amount (1,256) (694) (694) of hedged items Tax on items transferred from 352 194 194 equity Gains related to designated 128 866 1,256 cash flow hedges Tax on items taken directly to (36) (242) (352) equity Other comprehensive (812) 124 404 (expense)/income for the period, net of tax Total comprehensive expense (19,168) (7,032) (14,357) for the period attributable to equity holders of the parent Loss per share (pence) 6 - Basic (43.06) (16.79) (34.63) - Diluted (43.06) (16.79) (34.63) Blacks Leisure Group plc Condensed Consolidated Balance Sheet As at 29 August 2009 Unaudited Unaudited Audited At 29 August 2009 At 30 August 2008 At 28 February 2009 Note �'000 �'000 �'000 ASSETS Non-current assets Property, plant and equipment 8 24,823 34,478 32,556 Goodwill 34,598 36,352 34,598 Other intangible assets 9 845 1,283 988 Deferred income tax asset 2,707 3,124 2,693 Total non-current assets 62,973 75,237 70,835 Current assets Inventories 45,111 47,237 50,140 Trade and other receivables 9,379 11,058 10,563 Derivative financial instruments 128 866 1,256 Cash and cash equivalents 966 1,182 1,385 Total current assets 55,584 60,343 63,344 TOTAL ASSETS 118,557 135,580 134,179 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Share capital 10 21,319 21,319 21,319 Share premium 24,333 24,333 24,333 Reserve for own shares (773) (773) (773) Hedging reserve 92 624 904 Retained earnings 4,979 30,699 23,188 TOTAL EQUITY 11 49,950 76,202 68,971 Non-current liabilities Preference shares 891 891 891 Accruals and deferred income 4,951 5,652 6,028 Obligations under finance leases 1,753 2,902 2,335 Long-term provisions 7,163 6,435 8,195 Total non-current liabilities 14,758 15,880 17,449 Current liabilities Trade and other payables 37,045 34,923 36,426 Bank overdrafts 11,010 2,854 5,325 Obligations under finance leases 1,177 1,116 1,147 Short-term provisions 4,617 4,605 4,861 Total current liabilities 53,849 43,498 47,759 TOTAL LIABILITIES 68,607 59,378 65,208 TOTAL EQUITY AND LIABILITIES 118,557 135,580 134,179 Blacks Leisure Group plc Condensed Consolidated Statement of Cash Flows For the 26 weeks ended 29 August 2009 Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 �'000 �'000 �'000 Cash flows from operations Loss before taxes (18,054) (6,728) (14,416) Adjustments for: Net finance cost 1,329 640 2,374 Loss on disposal of property, 98 620 600 plant and equipment Depreciation and amortisation 3,954 4,626 8,805 Impairment of property, plant 5,571 - 423 and equipment Impairment of goodwill - - 1,754 Share-based payments charge 147 228 322 Release of capital receipts (82) (82) (152) Operating loss before working capital changes (7,037) (696) (290) Decrease in inventories 5,029 8,802 5,899 Decrease in trade and other 1,040 1,309 1,956 receivables Decrease trade and other (465) (6,937) (4,985) payables Decrease in provisions (1,276) (1,608) (408) Cash (used)/generated from operations (2,709) 870 2,172 Interest paid (1,588) (1,531) (2,690) Tax refund 144 1,801 2,056 Net cash (used)/generated from operating activities (4,153) 1,140 1,538 Cash flows from investing activities Purchase of property, plant and equipment (1,747) (2,507) (5,135) Proceeds from disposal of property, plant and equipment - - 263 Interest received 348 945 1,607 Net cash used in investing activities (1,399) (1,562) (3,265) Cash flows from financing activities Dividends paid - - (426) Payment of finance lease liabilities (552) (497) (1,034) Net cash used in financing activities (552) (497) (1,460) Net decrease in cash and cash equivalents (6,104) (919) (3,187) Cash and cash equivalents at the beginning of the period (3,940) (753) (753) Cash and cash equivalents at the end of the period (10,044) (1,672) (3,940) Blacks Leisure Group plc Condensed Consolidated Statement of Changes in Equity For the 26 weeks ended 29 August 2009 For the 26 weeks ended 30 August 2008 Share Share Reserve for Hedging Retained Total capital premium own shares reserve earnings equity �'000 �'000 �'000 �'000 �'000 �'000 At 2 March 2008 21,319 24,333 (773) 500 38,053 83,432 Loss for the period - - - - (7,156) (7,156) Other comprehensive income: Gains on cash flow hedges - - - 866 - 866 Tax on items taken directly to equity - relating to cash flow - - - (242) - (242) hedges Transferred to carrying amount of hedged items on cash flow hedges - - - (694) - (694) Tax on items transferred to equity - - - 194 - 194 Total comprehensive income/(expense) for the period - - - 124 (7,156) (7,032) Accrued equity-settled share-based payments charge - - - - 228 228 Dividends paid - - - - (426) (426) At 30 August 2008 21,319 24,333 (773) 624 30,699 76,202 For the 52 weeks ended 28 February 2009 Share Share Reserve for Hedging Retained Total capital premium own shares reserve earnings equity �'000 �'000 �'000 �'000 �'000 �'000 At 2 March 2008 21,319 24,333 (773) 500 38,053 83,432 Loss for the year - - - - (14,761) (14,761) Other comprehensive income: Gains on cash flow hedges - - - 1,256 - 1,256 Tax on items taken directly to equity - relating to cash flow - - - (352) - (352) hedges Transferred to carrying amount of hedged items on cash flow hedges - - - (694) - (694) Tax on items transferred to equity - - - 194 - 194 Total comprehensive income/(expense) for the period - - - 404 (14,761) (14,357) Accrued equity-settled share-based payments charge - - - - 322 322 Dividends paid - - - - (426) (426) At 28 February 2009 21,319 24,333 (773) 904 23,188 68,971 Blacks Leisure Group plc Condensed Consolidated Statement of Changes in Equity For the 26 weeks ended 29 August 2009 For the 26 weeks ended 29 August 2009 Share Share Reserve for Hedging Retained Total capital premium own shares reserve earnings equity �'000 �'000 �'000 �'000 �'000 �'000 At 1 March 2009 21,319 24,333 (773) 904 23,188 68,971 Loss for the period - - - - (18,356) (18,356) Other comprehensive income: Gains on cash flow hedges - - - 128 - 128 Tax on items taken directly to equity - relating to cash flow - - - (36) - (36) hedges Transferred to carrying amount of hedged items on cash flow hedges - - - (1,256) - (1,256) Tax on items transferred to equity - - - 352 - 352 Total comprehensive expense for the period - - - (812) (18,356) (19,168) Accrued equity-settled share-based payments charge - - - - 147 147 At 29 August 2009 21,319 24,333 (773) 92 4,979 49,950 Blacks Leisure Group plc Notes to the Condensed Half-Yearly Statements for the 26 weeks ended 29 August 2009 1. Basis of preparation The half-yearly financial statements for the 26 weeks ended 29 August 2009 have 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. They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group financial statements for the year ended 28 February 2009 which have been prepared in accordance with IFRSs as adopted by the European Union. These condensed half-yearly financial statements were approved by the Board of Directors on 29 October 2009. The results for each of the half-yearly periods have not been audited but have been reviewed by the auditors in accordance with the Auditing Practices Board guidance on Review of Interim Financial Information. The comparative figures for the year ended 28 February 2009 are not the Group's statutory accounts for that financial year. Those accounts have been reported on by the Company's Auditors and delivered to the registrar of companies. The report of the auditors (i) was unqualified; (ii) did not include a statement under section 237 (2) or (3) of the Companies Act 1985; but (iii) drew attention to an emphasis of matter regarding a material uncertainty which may cast doubt about the Group's ability to continue as a going concern. 2. Accounting policies Basis of preparation Except as described below, the accounting policies applied by the Group in these condensed half-yearly financial statements are consistent to those applied by the Group for the year ended 28 February 2009. The consolidated financial statements have been prepared on a historical cost basis except for derivative financial instruments and equity-settled share-based payments that have been measured at fair value. Sandcity Limited, a wholly owned subsidiary, was placed into administration on 23 September 2009 and as such has been accounted for under the break-up basis and its asset values have been written down accordingly, which is in accordance with IAS 10. Where necessary in order to value the assets and liabilities in Sandcity Limited the Directors have used estimates based upon amounts expected to be recovered after the balance sheet date as a precise valuation of those assets and liabilities is not available. The following new standards and amendments to standards are mandatory for the first time for the financial periods commencing on or after 1 January 2009: IAS 1 (revised) Presentation of financial statements includes the requirement to present a Statement of Changes in Equity as a primary statement and introduces the possibility of either a single Statement of Comprehensive Income (combining the Income Statement and a Statement of Comprehensive Income) or to retain the Income Statement with a supplementary Statement of Comprehensive Income. The Directors have chosen the first option. As this standard is concerned with presentation only it does not have any impact on the results or net assets of the Group. IFRS 8 Operating segments. IFRS 8 replaces IAS 14 Segment reporting. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. Following a review the Group's internal management information, the previously reported operating segments of Outdoor, Boardwear and Unallocated remain appropriate. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Board of Directors. Goodwill is allocated by management to groups of cash-generating units on a segment level. Going concern In determining the appropriate basis of preparation for the financial statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. As announced during the period, Lloyds Banking Group formally agreed to extend the Group's working capital facility to 31 August 2010. In addition to this a further announcement on 22 September 2009 stated that the Directors anticipated that there would be a breach of the August period end financial covenant under such facilities when tested. The Directors held constructive discussions with Lloyds Banking Group regarding this expected breach. Following these discussions Lloyds Banking Group agreed to a standstill in respect of any breach of the relevant financial covenant until 30 November 2009, subject to the Directors delivering a restructuring plan, acceptable to Lloyds Banking Group, addressing the future viability of the Group, including actions to achieve an exit of the Group's loss-making stores, by 30 October 2009. Any waiver of the covenant breach is likely to be conditional upon such a restructuring plan being implemented. The Directors have now delivered a restructuring plan to Lloyds Banking Group which the bank has confirmed is in a form acceptable to it and is currently being discussed. Lloyds Banking Group has therefore confirmed that the Company has satisfied its obligation under the existing standstill arrangements granted on 23 September 2009 to deliver a restructuring plan acceptable to the bank by 30 October 2009. Having prepared the proposed restructuring plan and reviewed the underlying key assumptions, the Directors have a reasonable expectation that the Group will be able to meet its liabilities as they fall due for the foreseeable future. Accordingly, the Directors consider it appropriate to prepare the financial statements on a going concern basis. However, it is recognised that a material uncertainty may exist in respect of going concern if the Group fails to achieve the performance anticipated as a result of the restructuring. 2. Accounting policies (continued) The Directors additionally recognise that a material uncertainty exists in that if an acceptable restructuring plan cannot be agreed with the bank and the formal waiver of the covenant breach is not forthcoming, this may cast doubt on the ongoing availability of the Group's credit facilities and hence its ability to continue as a going concern and to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern, which would include writing down the carrying value of assets, including goodwill, to their recoverable amount and providing for further liabilities that might arise. Standards and interpretations in issue not yet adopted The International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) have issued the following standards and interpretations to be applied to financial statements with periods commencing on or after the following dates: Improvements to IFRS (2009) comprising Effective date amendments to : IAS 23 Amendment - Borrowing costs 01 January 2009 IAS 27 Amendment - Consolidated and separate financial statements 01 July 2009 IAS 32 Amendment relating to puttable instruments and obligations arising on 01 January 2009 liquidation IAS 32* Amendment - Classification of rights issues 01 February 2010 IAS 39 Amendment - Financial instruments: Recognition and Measurement: Eligible 01 July 2009 hedged items IFRS 1* Revised - First time adoption of International Financial Reporting 01 January 2009 Standards IFRS 1 and IAS 27 Amendment - Cost of an investment in a subsidiary, 01 January 2009 jointly-controlled entity or associate IFRS 2 Amendment - Share-based payments: Vesting conditions and cancellations 01 January 2009 IFRS 2* Amendment - Group cash-settled share-based payment transactions 01 January 2010 IFRS 3 Revised - Business combinations 01 July 2009 IFRS 7* Amendment - Financial instruments: Improving disclosures 01 January 2009 IFRIC 9* IAS 39 Amendment - Embedded derivatives 01 July 2009 IFRIC 17* Distributions of non-cash assets to owners 01 July 2009 IFRIC 18* Transfer of assets from customers 01 July 2009 Improvements to IFRS (2010) comprising amendments to: Amendments to various standards (generally effective for annual periods beginning on or after 1 January 2010). * These standards and interpretations are not endorsed by the EU at present. The Directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the Group's financial statements in the period of initial application. 3. Segment information The Board considers the reportable operating segments in accordance with IFRS 8 to be split between Outdoor and Boardwear. Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 OUTDOOR �'000 �'000 �'000 Revenue Total revenue 106,952 106,714 220,176 Sales to external customers 106,952 106,714 220,176 Profit Segment (loss)/profit (6,243) 591 6,283 Segment disposal of property, plant and equipment (7) - 25 Exceptional items: -Segment impairment of property, plant and equipment (4,324) - (156) -Other exceptional charges - (687) (1,955) Operating (loss)/profit (10,574) (96) 4,197 Assets and liabilities Segment assets 103,094 105,118 107,538 Segment liabilities (45,586) (40,903) (46,181) Total net assets 57,508 64,215 61,357 Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 BOARDWEAR �'000 �'000 �'000 Revenue Total revenue 20,062 26,824 50,336 Inter-segment sales (2,085) (528) (2,961) Sales to external customers 17,977 26,296 47,375 Profit Segment loss (3,229) (3,405) (7,463) Inter-segment profit on stock 238 267 213 Segment disposal of property, plant and equipment (91) - (625) Exceptional items: -Segment impairment of property, plant and equipment (1,247) (620) (267) -Segment impairment of goodwill - - (1,754) -Other exceptional charges - (940) (3,445) Operating loss (4,329) (4,698) (13,341) Assets and liabilities Segment assets 11,773 26,147 22,404 Segment liabilities (10,645) (13,916) (12,421) Total net assets 1,128 12,231 9,983 3. Segment information (continued) Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 UNALLOCATED �'000 �'000 �'000 Profit Segment loss (1,252) (1,294) (2,898) Exceptional items: -Other exceptional charges (570) - - Operating loss (1,822) (1,294) (2,898) Net finance costs (1,329) (640) (2,374) Loss before tax (3,151) (1,934) (5,272) Tax expense (302) (428) (345) Loss for the year attributable to equity holders of the parent (3,453) (2,362) (5,617) Assets and liabilities Segment assets 3,690 4,315 4,237 Segment liabilities (12,376) (4,559) (6,606) Total net assets (8,686) (244) (2,369) Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 GROUP �'000 �'000 �'000 Revenue Total revenue 127,014 133,538 270,512 Inter-segment sales (2,085) (528) (2,961) Sales to external customers 124,929 133,010 267,551 Profit Segment loss (10,724) (4,108) (4,078) Inter-segment profit on stock 238 267 213 Segment disposal of property, plant and equipment (98) - (600) Exceptional items: -Segment impairment of property, plant and equipment (5,571) (620) (423) -Segment impairment of goodwill - - (1,754) -Other exceptional charges (570) (1,627) (5,400) Operating loss (16,725) (6,088) (12,042) Net finance costs (1,329) (640) (2,374) Loss before tax (18,054) (6,728) (14,416) Tax expense (302) (428) (345) Loss for the year attributable to equity holders of the parent (18,356) (7,156) (14,761) Assets and liabilities Segment assets 118,557 135,580 134,179 Segment liabilities (68,607) (59,378) (65,208) Total net assets 49,950 76,202 68,971 4. Exceptional items As announced on 23 September 2009, Sandcity Limited was placed into administration and, as explained in note 15, it is no longer in a position to trade as a going concern. Accordingly, its accounts have been prepared on a break-up basis. As a result of this, the property, plant and equipment of the O'Neill stores has been fully impaired. A review of all stores' profit performance at the half year end identified 89 stores which continue to be non-cash generating. This led to the full impairment of the property, plant and equipment of those stores. Subsequently the announcement on 30 September 2009 regarding two further steps to the restructuring plan included the intention to close the 89 loss-making stores identified. There is further information in note 14 in relation to this exceptional charge. These actions have resulted in an exceptional charge of �5,571,000 in the period. A similar review at the prior year end identified 6 non-cash generating stores and the full impairment of �423,000 of the property, plant and equipment of those stores was performed. During the period the Group incurred professional fees totalling �570,000 in relation to advice for the renewal of the banking facility and the restructuring plan. It is likely that the Group will continue to incur fees of this nature through to the year end and these will be analysed as exceptional in the year end financial statements. These decisions have resulted in a total exceptional charge for the 26 weeks to 29 August 2009 of �6,141,000 (2008: �2,247,000) and the nature of these costs are shown in the table below. Due to the unfavourable trading conditions that existed last year the assumptions made at 1 March 2008, for the stores covered by the onerous lease provision, were understated. This led to an additional exceptional charge of �1,003,000 at the last half year end and a further exceptional charge of �3,153,000 during the second half giving rise to a total charge of �4,156,000 in the last financial year. The impairment of goodwill in the prior year arose from the annual impairment test and reflects the difference between the value-in-use of the related cash-generating unit and its carrying value. The impairment of �1,754,000 related entirely to Just Add Water Limited. Following the operational review of the O'Neill business, during the year ended 1 March 2008, it was decided that the O'Neill business should be relocated from Washington, Tyne & Wear to the Northampton distribution centre from where the rest of the Group operates. This led to exceptional costs totalling �1,244,000 which was charged to the Statement of Comprehensive Income in the 26 weeks ended 30 August 2008 and which related to redundancy costs, relocation costs and the write down of property, plant and equipment at the Washington site. Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 �'000 �'000 �'000 Onerous leases and inducements - 1,003 4,156 Impairment of property, plant and equipment 5,571 - 423 Impairment of goodwill - - 1,754 Restructure costs 570 1,244 1,244 Total 6,141 2,247 7,577 5. Tax expense The tax expense is calculated by applying the expected annual effective tax rate of 28.0% (2008: 28.0%) to loss before tax for the period and adjusting for deferred tax movements. 6. Loss per share The calculation of basic earnings per share is based on loss after taxation of �18,356,000 (30 August 2008: �7,156,000, 28 February 2009: �14,761,000) by reference to the weighted average of 42,626,434 (30 August 2008 and 28 February 2009: 42,626,434) ordinary shares in issue during the period. Since the Group was loss-making in the current period there is no dilution effect of the options. The Group has 2,405,616 (2008: 3,366,321) options outstanding at the end of the period that may become dilutive. 7. Dividends paid and proposed The Board does not propose an interim dividend for the 52 weeks ending 27 February 2010. There were no dividends paid during the period (2008: �nil) and there was no final dividend proposed for the year ended 28 February 2009 (2008: 1.00p) and therefore no charge to the Statement of Comprehensive Income (2008: �426,000). 8. Property, plant and equipment Additions to property, plant and equipment amounted to �1,747,000 (2008: �2,507,000). During the period an impairment to property, plant and equipment amounted to �5,571,000 (2008: �nil). Details of this impairment are described in note 4. Capital commitments contracted but not provided for by the Group amounted to �391,000. 9. Other intangible assets There were no intangible assets acquired in the period (2008: �nil). 10. Share capital There were no equity Ordinary Shares issued in this period or the prior period. At 29 August 2009 there were outstanding options to receive allotments of 2,405,616 (2008: 3,366,321) Ordinary Shares under the Executive Share Option Scheme, the Company Share Option Plan, the Share Incentive Plan and the Save As You Earn Scheme. At 29 August 2009 the middle market quotation of the Ordinary Shares, as derived from the Stock Exchange Official List, was 50.5p. The highest price attained by the Ordinary Shares during the period was 57.5p and the lowest level was 32.3p. 11. Acquisitions There were no acquisitions in the current or prior half year periods. 12. Commitments and contingencies The Group leases various buildings which operate within the Outdoor and Boardwear segments. The leases are non-cancellable operating agreements with varying terms, escalation clauses and renewal rights. The Group also has various other non-cancellable operating lease arrangements. The Company has guaranteed bank borrowings of subsidiary undertakings which at 29 August 2009 amounted to �18,654,000 (2008: �12,174,000). 13. Related party disclosures Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. The remuneration of all key personnel is set out below. The key personnel are all main Board members, subsidiary Board members or regular attendees of the subsidiary Board meetings. Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 �'000 �'000 �'000 Short-term employee benefits 835 989 2,026 Post-employment benefits 15 39 95 Termination benefits 16 84 265 Equity-settled share-based payments charge 126 176 348 992 1,288 2,734 There were no material transactions in which any key personnel had an interest. 14. Post balance sheet events As announced on 23 September 2009, Richard Fleming and David Costley-Wood of KPMG LLP were appointed as administrators in respect of the wholly owned subsidiary, Sandcity Limited. This follows a review by the Directors of Sandcity Limited which has concluded that there is no reasonable prospect of restoring profitability in the medium to long-term and that Sandcity Limited is no longer in a position to trade as a going concern. Further details can be found in note 15. The announcement on 30 September 2009 focussed on two further steps in the restructuring plan. First is the closure and employee consultation process on 89 loss-making stores whose performance has been a considerable drag on the core Outdoor business which has traded successfully over the last two years. The vast majority of the stores to be closed have not traded profitably for many years. Second, the Group is also in a period of consultation with employees at its Northampton head office regarding the reduction of approximately 50 roles, representing about 20% of the total head office workforce. 15. Administration of Sandcity Limited As announced on 23 September 2009, over the last 18 months, the Group has been reviewing options to exit from its loss-making Boardwear division. As part of this review the Group has successfully exited the O'Neill wholesale business, converted a number of stores from Boardwear to Outdoor fascias, and reduced the cost base through a consolidation of the Sandcity and Freespirit management functions. A disposal of the Boardwear business has also been pursued but serious interest in this business was low and structural issues made a discrete sale of this business difficult to achieve. On 23 September 2009, Richard Fleming and David Costley-Wood of KPMG LLP were appointed as administrators in respect of the wholly owned subsidiary, Sandcity Limited. Sandcity Limited is part of the Boardwear segment and is a retailer of predominantly lifestyle and Boardwear clothing and accessories. It operated from 11 stores, which traded at a substantial loss. The appointment of the administrators of Sandcity Limited results in an exit from approximately one third of the Boardwear segment. The Directors believe that the administration of Sandcity Limited will not have a material effect on the Group's other businesses which continue to trade normally. Below is the condensed income statement of the Sandcity Limited with comparatives. These are included within the Boardwear segment in note 3 Segment information. Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 29 August 2009 30 August 2008 28 February 2009 �'000 �'000 �'000 Revenue 5,912 10,165 14,982 Gross profit 2,421 4,506 4,537 Operating loss (2,452) (2,274) (7,450) Analysed as: Operating loss excluding (1,654) (981) (5,307) exceptional items Exceptional items (798) (1,293) (2,143) (2,452) (2,274) (7,450) Finance costs (176) (135) (373) Loss before tax (2,628) (2,409) (7,823) Tax expense (5) (137) (1,204) Analysed as: Tax expense excluding (5) (151) (1,419) exceptional items Tax credit on exceptional - 14 215 items (5) (137) (1,204) Loss for the period (2,633) (2,546) (9,027) attributable to equity holders of the parent Blacks Leisure Group plc Directors' Statement of Responsibility The Directors' confirm to the best of their knowledge: * The condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU; * The half-yearly management report includes a fair review of the information required by DTR 4.2.7R being an indication of important events that have occurred during the first 26 weeks of the financial year and their impact on the condensed set of financial statements and a description of the principle risks and uncertainties for the remaining 26 weeks of the year; and * The half-yearly management report includes a fair review of the information required by DTR 4.2.8R being disclosure of related party transactions and changes therein since the last annual report. By order of the Board Neil Gillis 29 October 2009 Chief Executive Marc Lombardo 29 October 2009 Finance Director Blacks Leisure Group plc Independent Review Report to Blacks Leisure Group plc Introduction We have been engaged by the Group to review the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 29 August 2009 which comprises the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Balance Sheet, the Condensed Consolidated Statement of Cash Flows, the Condensed Consolidated Statement of Changes in Equity and the Notes to the Condensed Half-Yearly Financial Statements. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. Directors' responsibilities The half-yearly financial report is the responsibility of and has been approved by the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority. As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed set of financial statements included in this half-yearly 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 Group a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Our report has been prepared in accordance with the terms of our engagement to assist the Group in meeting its responsibilities in respect of half-yearly financial reporting in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability. 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 half-yearly financial report for the 26 weeks ended 29 August 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34, as adopted by the European Union, and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority. Emphasis of matter - going concern Without qualifying our conclusion, we draw attention to the disclosures in note 2 of the condensed set of financial statements concerning the Group's ability to continue as a going concern. These include the following material uncertainties: * the bank's formal acceptance of the proposed restructuring plan together with successful implementation within the required timescale; and * the ongoing availability of the credit facility given the actual and potential future covenant breaches; and * the achievability of forecasts and key assumptions within the forecasts. These events and conditions, along with other matters as disclosed in note 2, indicate the existence of material uncertainties which may cast significant doubt about the Group's ability to continue as a going concern. The condensed set of financial statements does not include the adjustments that would result if the Group was unable to continue as a going concern. BDO LLP 29 October 2009 Chartered Accountants and Registered Auditors, Epsom, United Kingdom This information is provided by RNS The company news service from the London Stock Exchange END IR FVLLLKBBBFBK More
29-10-09	Glance-PRESS DIGEST - British business - Oct 29	AFX UK Focus
The Times SLAUGHTER MAY LOSE ITS LEGAL STRANGLEHOLD ON BANKING The Treasury is asking other law firms to tender for the role of the government's legal adviser on the banking crisis, threatening the position of the current occupier of the post, Slaughter and May. The law firm has been involved in the bailouts since the collapse of Northern Rock in 2007 and has generated 25 million pounds in fees. At this stage it is unknown which firms have tendered bids, but Slaughter and May is almost certain to keep some work, while its "magic circle" rivals, including Allen & Overy and Linklaters, are likely contenders. BLACKS LEISURE SEEKS PACT TO LEAVE SHOPS AS DEADLINE LOOMS FOR FINDING RESCUE PLAN Blacks Leisure's attempts to restructure its store portfolio have been met with opposition from landlords. Its lender, Lloyds Banking Group, wants the company to offload 89 closed stores through a company voluntary arrangement. However, the retailer has not found a compromise that is acceptable to landlords. Blacks has until the end of November to jettison the loss-making stores, but must convince Lloyds that is has produced a viable turnaround plan by Friday. Martyn Chase, DTZ's retail head, said CVAs were "an absolute disaster for the industry. It's a blatant abuse." YELL'S RESCUE BID IN PERIL AS LENDERS FAIL TO BACK SCHEME Yell, the owner of Yellow Pages, has failed to convince its 300-plus lenders to approve its restructuring proposals and will now go ahead with a court application to impose the plan on the lenders. It is believed that just under 90 percent of the lenders by value agreed to the deal, five percent short of the required number. The deadline for the deal had been extended by three days, but yesterday's outcome means the courts could take up to eight weeks to approve a scheme of arrangement and leave Yell's share price in limbo until the new year. The Daily Telegraph LLOYDS TO QUIZ INVESTORS OVER 25 BILLION POUND CASH CALL Lloyds Banking Group will ask its investors on Thursday whether it should raise 25 billion pounds of capital in a bid to leave the government's insurance scheme for its toxic debts. The bank will meet government officials and shareholders on Thursday morning to discuss commitment to a planned 11 billion pound rights issue in the light of its falling share price. The government fears questions over economic stability if the rights issue fails. GSK SALES BOOSTED BY SWINE FLU GlaxoSmithKline has boosted its revenues through swine flu, toothpaste and its performance in emerging markets. On Wednesday, it announced third-quarter revenues of 6.76 billion pounds, up three percent in constant currency terms -- the first increase of that kind for over two years. Analysts are predicting sales of the swine flu vaccine Pandemrix will generate one billion pounds in revenue for GSK in the fourth quarter. Sales of its anti-viral treatment Relenza have already soared. Chief executive Andrew Witty said the results proved his diversification of GSK's investment strategy had worked. CARPETRIGHT POINTS TO HAPPIER OUTLOOK On Wednesday, Carpetright reported its strongest quarterly increase in sales since August 2002, a sign that the consumer economy is recovering. Lord Harris of Peckham, its founder, revealed an increase of 5.6 percent in the three months to October 24. Despite analysts' scepticism over the results -- which follow a double-digit decline last year -- Harris remained optimistic about the economy. He praised Carpetright's "solid start", before backing the Conservative Party to win next year's election. Carpetright's share price fell 14 pence to 886 pence. The Independent BAA LOSSES BALLOON ON LOW PRICE FOR GATWICK BAA, owned by Ferrovial, has revealed pre-tax losses of 785 million pounds over the first three quarters of 2009. It lost 261 million pounds because of an exceptional charge on its pension scheme deficit and 136 million pounds on financial instruments. There was also a 225 million pound gap between BAA's valuation of Gatwick Airport and its sale price. Passenger numbers declined 5.5 percent to 91 million across BAA's UK airports. Heathrow traffic has risen by 0.3 percent. ROCK UP FOR SALE AS EU CLEARS SPLIT The EU Competition Commission has sanctioned plans to divide Northern Rock into "good" and "bad" banks, amid reports that it will take ten years for the tax payer to recoup the money used to bail the bank out. Under the deal struck with the competition watchdog, Northern Rock will also have caps imposed on its lending and deposits until 2011. In addition, it will not be allowed a top three ranking in Moneyfacts mortgage categories for two, three, or five-year fixed or variable mortgages during this period. In return for these concessions, Northern Rock will receive a further eight billion pounds in state funding and will be able to call on four billion pounds of "stand-by liquidity". The Guardian TESCO RULES OUT NORTHERN ROCK TAKEOVER Tesco outlined plans for its new full service bank on Wednesday. The supermarket group will offer current accounts and mortgage products before eventually extending its offering to business banking. Tesco Bank chief executive Benny Higgins said the group had no interest in establishing a network of high street branches, describing the high street as "not where the future is". Tesco also ruled itself out of the running to take control of the "good" bank set to be spun off from Northern Rock. CENTRICA FEARS UK GREEN ENERGY TARGET IS AT RISK British Gas owner Centrica has warned that the UK risks missing its 2020 renewable energy targets unless the government maintains current subsidy levels. Wind farms approved by March 2010 will receive an increase in subsidies known as renewables obligation certificates, but government officials announced yesterday there were no plans to make the arrangement permanent. Centrica has just announced plans to invest 725 million pounds in a wind farm off the coast of Lincolnshire and Sarwjit Sambhi, managing director of the group's power business, noted the fact that the increased subsidy was what allowed Centrica to undertake the project. TRADING SLUMP AT THRESHERS CHAIN PUTS 6,000 JOBS IN PERIL The management of First Quench Retailing, the firm behind off licence chain Threshers, confirmed on Wednesday that it is considering a number of restructuring options, one of which is understood to be a pre-pack administration. The group, which made a 30 million pound loss last year, is being advised by KPMG. First Quench has 1,300 stores, staffed mainly by part-timers, and 6,500 jobs are at risk. Prepared for Reuters by Durrants `Keywords: PRESS DIGEST British business Oct 29` COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
27-10-09	Sports Direct asserts claim to Kaupthing assets	AFX UK Focus
LONDON, Oct 27 (Reuters) - British sportswear retailer Sports Direct is ready to defend its claim to a 28.5 percent stake in outdoor goods firm Blacks Leisure, rejecting a counter claim by administrators of Kaupthing Singer & Friedlander. "Sports Direct is in the process of taking an action against Kaupthing Singer & Friedlander and its administrators, Ernst & Young," Sports Direct said in a statement on Tuesday. "Those parties are aware of our determination to protect and vindicate our legal rights and the situation remains ongoing." `The retailer, controlled by Newcastle United soccer club owner Mike Ashley, had originally purchased the shares, and a 13 percent stake in rival JD Sports Fashion, with loans from Kaupthing Singer & Friedlander, which is the UK arm of failed Icelandic bank Kaupthing.` `The stakes were seized by Ernst & Young when Kaupthing Singer & Friedlander collapsed last year, prompting Sports Direct to write-off the 26.2 million pound ($42.82 million) value of the holdings in its year to April 26 results.` `Ernst & Young maintains the shares belong to the administrators and on Tuesday issued a holding in company statement to this effect through the stock exchange.` `"The joint administrators are applying to the court for directions as to beneficial ownership of the shares in respect of the dispute," said a spokeswoman for the firm.` `Nobody at Blacks was immediately available for comment.` `Shares in Sports Direct were up 2.4 percent at 103.9 pence at 1241 GMT, while shares in Blacks were up 1.7 percent at 29.5 pence.` `(Reporting by James Davey, editing by Paul Hoskins and Rupert Winchester) ($1=.6119 Pound) Keywords: SPORTS DIRECT/` (james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters Messaging: james.davey.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
27-10-09	Blacks Leisure Group - Holding(s) in Company	RNS
RNS Number : 4194B Blacks Leisure Group PLC 27 October 2009 `1. Identity of the issuer or the underlying issuer Blacks Leisure Group Plc` of existing shares to which voting rights are attached: ii 2 Reason for the notification (please tick the appropriate box or boxes): `An acquisition or disposal of voting rights X` An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments An event changing the breakdown of voting rights Other (please specify): `3. Full name of person(s) subject to the Kaupthing Singer & Friedlander Limited (In Administration)` notification obligation: iii 4. Full name of shareholder(s) (if different from 3.):iv `5. Date of the transaction and date on 08.10.2008` which the threshold is crossed or reached: v `6. Date on which issuer notified: 26.10.2009` `7. Threshold(s) that is/are crossed or 28%` reached: vi, vii 8. Notified details: A: Voting rights attached to shares viii, ix `Class/type of Situation previous Resulting situation after the triggering transaction` `shares to the triggering` `transaction` if possible using the ISIN CODE `Number Number Number Number of voting % of voting rights x` `of of of shares rights` `Shares Voting` `Rights` `Direct Direct xi Indirect xii Direct Indirect` `Ordinary Shares 0 0% 12,153,071 28.50%` Isin GB0001028322 B: Qualifying Financial Instruments Resulting situation after the triggering transaction `Type of financial Expiration Exercise/ Number of voting % of voting` `instrument date xiii Conversion Period xiv rights that may be rights` `acquired if the` `instrument is` `exercised/ converted.` C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi Resulting situation after the triggering transaction `Type of financial Exercise price Expiration date xvii Exercise/ Number of voting rights instrument refers to % of voting rights xix, xx` `instrument Conversion period xviii` `Nominal Delta` Total (A+B+C) `Number of voting rights Percentage of voting rights` `12,153,071 28.50%` 9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: xxi Kaupthing, Singer & Friedlander Ltd (In Administration) is in administration (the "Company"). The Company was placed into administration pursuant to a court order made on 8th October 2008. Margaret Elizabeth Mills, Patrick Joseph Brazzill, Thomas Merchant Burton and Alan Robert Bloom were appointed joint administrators of the Company (the "Joint Administrators"). The shares referred to above are held in a Crest account of Sinjul Nominees Limited (a subsidiary of the Company) as nominee and custodian for, and on behalf of, the Company. Please refer to Additional Information below. Proxy Voting: 10. Name of the proxy holder: 11. Number of voting rights proxy holder will cease to hold: 12. Date on which proxy holder will cease to hold voting rights: `13. Additional information: Disclosure based on 42,638,103 shares in issue.` `The Company is aware of a claim by a third party alleging that such third party` `is the beneficial owner of the shares. As far as the Joint Administrators are` `aware, the Company is the ultimate beneficial owner of the shares. It is the` `current intention of the Joint Administrators to apply to the Court for` `directions as to beneficial ownership of the shares in respect of this dispute.` `14. Contact name: Mark Gradie` `15. Contact telephone number: 020 3205 6612` Note: Annex should only be submitted to the FSA not the issuer Annex: Notification of major interests in share A: Identity of the persons or legal entity subject to the notification obligation `Full name Kaupthing Singer &` `(including legal form of legal entities) Friedlander Ltd (In` `Administration)` `Contact address 21 New Street,` `(registered office for legal entities) London, EC2M 4HR` `Phone number & email 020 3205 6612,` `mark.gradie@` `kaupthing.com` Other useful information (at least legal representative for legal persons) B: Identity of the notifier, if applicable Full name Contact address Phone number & email Other useful information (e.g. functional relationship with the person or legal entity subject to the notification obligation) C: Additional information This information is provided by RNS The company news service from the London Stock Exchange END HOLUBAWRKORRURA More
04-10-09	UK retailers face another bleak Christmas -study	AFX UK Focus
LONDON, Oct 4 (Reuters) - Many struggling British retailers are facing a worse Christmas than last year, when 15 major chains failed, according to insolvency specialist Begbies Traynor. `The company said rising unemployment and fragile consumer confidence would result in many companies entering formal insolvency proceedings within a year.` "Christmas 2009 could see just as many retail casualties as last year, affecting particularly those businesses with heavy debt burdens, any with weak online offerings and those reliant on discretionary, non-essential spending," said Nick Hood, Senior London Partner at Begbies. `Begbies said its Red Flag warning system showed 125 retail companies encountered critical problems in September, up 37 percent from August.` `Just last week, outdoor goods retailer Blacks Leisure announced plans to close 89 loss-making stores and axe jobs as part of a recovery plan.` `(Reporting by Victoria Bryan; editing by John Stonestreet) Keywords: BRITAIN RETAILERS/` (victoria.bryan@thomsonreuters.com; +44 207 542 9688; Reuters Messaging: victoria.bryan.thomsonreuters@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
01-10-09	Glance-PRESS DIGEST - Financial Times - Oct 1	AFX UK Focus
Financial Times JOBLESS FORECAST CUT BY MINISTERS Ministers have revised their forecasts for the number of long-term unemployed after a slower than expected rise in benefit claimants and warned welfare-to-work providers of the flagship Flexible New Deal to expect about 40 percent fewer jobseekers. Some providers have already laid off staff before the FND programme begins, but the reduced numbers are expected to save 75 million pounds of public money. Employment Minister Jim Knight said the government was not going to apologise for fewer people being out of work than previously expected. WHOLESALE GAS PRICES PUMP UP PROFITS FOR SUPPLIERS According to consultants Energy Contract Company, profit margins at gas suppliers are higher than at any time in the past ten years because the plunge in wholesale prices has not been matched by a drop in household bills. The level of profit generated is reliant on the timing of the purchase of the gas, and if bought during the summer, an estimated 20-30 percent of a household bill could be profit. Garry Felgate, chief executive of the Energy Retail Association, said suppliers purchased gas well in advance to protect consumers against market volatility. RECESSION SPURS RISE IN UNFAIR DISMISSAL CLAIMS According to figures published by the Tribunals Service, claims for unfair dismissal increased by 30 percent in the year to the end of March. Complaints related to the failure to consult on redundancies have more than doubled. Law firm Eversheds said employers will this week face a "double whammy" of an increase in statutory redundancy entitlements and unfair dismissal compensation coupled with court recommendations for increased discrimination rewards. BLACKS POISED TO CONTACT LANDLORDS FOR LEASE EXITS Blacks Leisure and its advisers KPMG are set to contact its landlords in order to set up a company voluntary agreement by November. Blacks is expected to offer landlords six months' rent in exchange for allowing it to withdraw from the leases on 89 stores it hopes to close. The company said: "The majority of the stores to be closed have not traded profitably for years." The plan is similar to those recently signed by JJB Sports and Focus DIY. Blacks also announced it would look to axe 50 jobs at its head office and has been consulting staff in about 400 stores about further redundancies. NEW INTERNATIONAL STRUCTURE HELPS E&Y WEATHER DOWNTURN Ernst & Young has reported revenue growth of eight percent, thanks to a new international structure that has helped it survive the economic downturn. The professional services group surpassed its sector peers by generating revenue of 1.38 billion pounds for the year to June 30. Globally, E&Y's revenues dipped 0.2 percent in local currency terms, while revenue in the U.S. dropped by 3.2 percent. Scott Halliday, managing partner for the UK and Ireland, said E&Y's tie-up between 87 of its partnerships across Europe, the Middle East, India and Africa had allowed it to shift staff between countries as needed. MANGANESE STARTS MORE JOB-CUT TALKS Hackney cab manufacturer Manganese Bronze warned of widening losses as it began consultations with workers over further job cuts. The group recently extended its summer shutdown amid falling demand and faltering sales, which gave rise to predictions that full-year losses would be worse than anticipated. Chief executive John Russell said the expected run-rate of sales indicated the business would not reach its break-even sales target of 2,000 vehicles a year. The company, which has begun production of a cheaper version of its taxi through a joint venture with Chinese carmaker Geely, hopes to reduce production costs by sourcing cheaper components in the country. ASOS DISPLAYS CAUTION DESPITE SURGING SALES Online fashion retailer Asos said extra costs incurred in expanding its product offering meant profits would be only slightly better than the same period last year, despite surging sales. The company said the strong sales seen during the recession had started to slow but that growth remained strong. Asos said it would concentrate on expanding its overseas business where sales rose 110 percent on the same period last year. UK sales were up 47 percent. TRAVIS PERKINS UPBEAT ON RAISING MARKET SHARE Geoff Cooper, chief executive of Travis Perkins, is confident that once the recovery takes hold the group can take market share from recession hit rivals who have had to scale down. This is despite the continuing struggles of the group's trade arm. The group has closed only one site since the market's 2008 peak -- compared with 600 closures across the sector. Sales at its retail division, which trades under the Wickes brand, were buoyed by the collapse of rival MFI -- with showroom sales rising 21 percent from the start of the year to September 26. BA STILL HOPES TO CONCLUDE IBERIA DEAL British Airways chief executive Willie Walsh has said there is still a chance the airline could complete the proposed merger with Spanish carrier Iberia before the end of the year. Walsh said talks were progressing but also restated his insistence that BA would accept no less than a 53 percent stake in the merged company. Walsh also said BA was interested in making a "very credible" offer for BMI if its majority owner Lufthansa decides to sell the loss-making airline. SMITHS COMBATS "TOUGH" YEAR WITH CUTS Higher than forecast cost savings at engineering conglomerate Smiths Group helped mitigate a sharp fall in underlying profits. Chief executive Philip Bowman referred to what he described as a "desperately tough year" but noted the group was well positioned to benefit from the economic recovery. Excluding exceptional items and the effect of exchange rate changes, sales at the group fell seven percent and profits fell 21 percent. Prepared for Reuters by Durrants `Keywords: PRESS DIGEST Financial Times Oct 1` COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
30-09-09	UPDATE 1-Blacks Leisure to close 89 stores, axe 50 HQ jobs	AFX UK Focus
LONDON, Sept 30 (Reuters) - British outdoor goods retailer Blacks Leisure plans to close 89 loss-making stores and axe about 50 head-office jobs, it said on Wednesday, as part of a recovery plan it hopes will win the support of its banks. `The firm, which has over 400 stores including the Blacks Outdoor and Millets chains, said the job losses represented about 20 percent of headcount at its head office in Northampton, central England, and that it still had more restructuring to do.` `Blacks said earlier this month it expected to breach its lending arrangements after worse than expected trading at its surfwear business and at loss-making stores.` `It said Lloyds Banking Group had agreed to freeze its lending agreements until Nov. 30, on condition it comes up with an acceptable turnaround plan by Oct. 30.` `A day later it put Sandcity, part of its surfwear business, into administration.` `"Further restructuring is still required to satisfy the condition to the standstill agreement, which the Company continues to develop with its advisers, KPMG," Blacks said on Wednesday.` `At 0735 GMT, Blacks shares were flat at 33 pence, valuing the business at about 14 million pounds ($22.3 million). The stock has dropped over 90 percent in the past 3-1/2 years.` ($1=.6272 Pound) (Reporting by Mark Potter; editing by Simon Jessop) Keywords: BLACKSLEISURE/ (mark.r.potter@thomsonreuters.com; +44 20 7542-2943; Reuters Messaging: mark.potter.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
30-09-09	BRIEF-Blacks Leisure to close 89 loss making stores	AFX UK Focus
LONDON, Sept 30 (Reuters) - Blacks Leisure Group PLC: HAS BEGUN CLOSURE OF 89 LOSS MAKING STORES WHICH HAVE BEEN A DRAG ON THE `outdoor business` WILL ENTER INTO CONSULTATION ABOUT LOSING 20% OF THE TOTAL HEAD OFFICE `workforce.` ACTIONS WILL STRENGTHEN BUSINESS AND ENSURE THAT IT BECOMES SUCCESSFUL AND `profitable again` FURTHER RESTRUCTURING IS REQUIRED TO SATISFY THE CONDITION TO THE STANDSTILL `agreement` ((London Equities Newsroom; +44 20 7542 7717)) (For more news, please click here) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
30-09-09	Blacks Leisure Group - Store Closure Programme	RNS
RNS Number : 9011Z Blacks Leisure Group PLC 30 September 2009 Blacks Leisure Group plc ("Blacks" or "the Company") Store Closure Programme On 22 September 2009 Blacks announced that it had agreed a standstill with its lender, Lloyds Banking Group ("Lloyds"), in respect of an expected covenant breach at the end of September. The standstill agreement was subject to the Company delivering a restructuring plan acceptable to the Company's bank, Lloyds, which included an exit of the Company's loss making stores. As a first step in that restructuring plan, the Company announced on 23 September 2009 that Sandcity, part of the Boardwear division, had been placed in administration. Today the Company is announcing two further steps in its restructuring plan. First, it has begun the closure and employee consultation process on 89 loss making stores whose performance has been a considerable drag on the core outdoor business which has traded successfully over the last two years. The vast majority of the stores to be closed have not traded profitably for many years. Second, the Company will now enter into a period of consultation with employees at its Northampton head office regarding the reduction of approximately 50 roles, representing about 20% of the total head office workforce. Whilst it is highly regrettable that the Company is having to take these steps, both actions will ultimately strengthen the business and help ensure that a successful and profitable outdoor retailer emerges from the current restructuring process. However, further restructuring is still required to satisfy the condition to the standstill agreement, which the Company continues to develop with its advisers, KPMG. Further announcements will be made in due course. Ends - Enquiries: `Blacks Leisure Group plc 01604 597 222` Neil Gillis, Chief Executive `Citigate Dewe Rogerson 020 7638 9571` `Kevin Smith` `Simon Rigby` `Singer Capital Markets 020 3205 7500` `Jeff Keating` `Jos Trusted` This information is provided by RNS The company news service from the London Stock Exchange END MSCSEEFMUSUSEDU More
27-09-09	Blacks Leisure to shed around 80 stores -paper	AFX UK Focus
LONDON, Sept 27 (Reuters) - British outdoor goods retailer Blacks Leisure Group Plc plans to put itself through a company voluntary arrangement (CVA), according to a report in the Sunday Times. `The move would involve it shedding about 80 stores of its 400-strong portfolio, which includes the Blacks, Millets and Free Spirit chains, and would put about 400 jobs at risk, the newspaper reported.` `A spokesman for Blacks Leisure declined to comment.` `On Wednesday, Blacks put its Sandcity surfwear business into administration as it battles to stem losses and produce a recovery plan that will win the continued support of its banks.` (Reporting by Matt Scuffham; Editing by David Holmes) Keywords: BLACKSLEISURE/CVA (matthew.scuffham@reuters.com; +44 20 7542 6734) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
25-09-09	RPT-Market upturns can lead to company failures -E&Y	AFX UK Focus
LONDON, Sept 24 (Reuters) - Improving business sentiment could be the trigger for some companies to file for insolvency, the head of UK corporate restructuring at Ernst & Young said. `One reason is that improved financing conditions make it easier to sell struggling companies using insolvency mechanisms, an option unavailable over the past year, Alan Bloom told Reuters in an interview.` Bloom, who has managed the administration of high-profile companies including Kaupthing Singer & Friedlander, Railtrack, and Barings Bank, also said improving lender confidence was a "great plus" for company rescues but was a "double-edged sword. `"Banks and funders make choices about who are the winners and losers, and typically funders want to back winners."` `Cash calls, such as those announced this week for Barratt Developments and Yell, will bolster balance sheets but investor appetite for such bailouts is "not infinite", Bloom said.` `"A number of ... retailers with less capital behind them are going to really struggle," he said.` `On Tuesday, outdoor lifestyle retailer Blacks Leisure Group became the latest well-known high street name to report difficulties. It appointed administrators to its Sandcity surfwear unit as it sought a financing deal for the remainder of its business.` `Analysts at Charles Stanley said on Thursday they expected Blacks to seek a company voluntary arrangement with creditors, which would help it reduce debt and stay out of administration.` (Reporting by Tom Freke; Editing by Dan Lalor) Keywords: BLOOM/BUST (tom.freke@thomsonreuters.com; +44 (0)207 542 4036; Reuters Messaging: tom.freke.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
23-09-09	UPDATE 1-Blacks Leisure puts Sandcity into administration	AFX UK Focus
LONDON, Sept 23 (Reuters) - British outdoor goods retailer Blacks Leisure has put its Sandcity surfwear business into administration as it battles to stem losses and produce a recovery plan that will win the continued support of its banks. `Blacks, which also runs the Blacks Outdoor and Millets chains, said on Wednesday that consultants KPMG had been appointed as administrators to Sandcity Ltd, which operates 11 stores under the O'Neill brand and employs 90 people.` `All of the stores are being traded by the administrators and no immediate redundancies have been made, KPMG said in a separate statement, adding it was seeking a buyer for the shops.` `Blacks said on Tuesday it expected to breach its lending arrangements after worse than expected trading at its surfwear business, which also includes around 30 Freespirit stores.` `It said Lloyds Banking Group had agreed to freeze its lending agreements until Nov. 30, on condition it comes up with an acceptable turnaround plan by Oct. 30.` `Blacks said on Wednesday that, as a result of putting Sandcity into administration, it might still be able to meet analysts' full-year financial expectations, excluding the effects of any restructuring costs.` `However, this would depend on Lloyds waiving the expected breach in its banking ruls and on trading during the key Christmas period.` `Blacks also said it had tried and failed to sell the surfwear business.` `Shares in the firm were down 6.5 percent at 37.5 pence, valuing the business at 19.6 million pounds ($32.22 million).` `(Reporting by Mark Potter; editing by James Davey) ($1=.6082 Pound) Keywords: BLACKS LEISURE/` (Mark.Potter@thomsonreuters.com; +44 20 7542 2943; Reuters Messaging: Mark.Potter.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
23-09-09	BRIEF-Blacks Leisure enters formal standstill agreement	AFX UK Focus
LONDON, Sept 23 (Reuters) - Blacks Leisure Group PLC: HAS ENTERED FORMAL STANDSTILL AGREEMENT WITH LLOYDS BANKING GROUP IN RESPECT OF COVENANT BREACH UNTIL NOVEMBER 30 ((London Equities Newsroom; +44 20 7542 7717)) (For more news, please click here) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
23-09-09	BRIEF-Blacks Leisure hires administrators of Sandcity	AFX UK Focus
LONDON, Sept 23 (Reuters) - Blacks Leisure Group PLC: APPOINTS KPMG AS ADMINISTRATORS OF SANDCITY UNIT ((London Equities Newsroom; +44 20 7542 7717)) (For more news, please click here) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
23-09-09	Blacks Leisure Group - Administration of Sandcity	RNS
RNS Number : 5430Z Blacks Leisure Group PLC 23 September 2009 For Immediate Release 23 September 2009 Blacks Leisure Group plc Standstill Arrangements & Administration of Sandcity Execution of standstill arrangements Further to the announcement made by the Company yesterday regarding an expected breach of one of its financial covenants under its bank facilities, the Company is pleased to announce that it has now entered into a formal standstill agreement with its bank, Lloyds Banking Group, in respect of this covenant breach until 30th November 2009. As previously announced, the standstill is subject to the Company delivering a restructuring plan, acceptable to the bank, addressing the future viability of the group, including actions to achieve an exit of the Company's loss-making stores, by 30th October 2009. Administration of Sandcity Limited Over the last 18 months, the Company has been reviewing options to exit from its loss-making Boardwear division. As part of this review, the Company has successfully exited the O'Neill wholesale business, converted a number of stores from Boardwear to Outdoor fascias, and reduced the cost base through a consolidation of the Sandcity and Freespirit management functions. A disposal of the Boardwear business has also been pursued but serious interest in this business was low and structural issues made a discrete sale of this business difficult to achieve. The Company announces today that Richard Fleming and David Costley-Wood of KPMG LLP have been appointed as administrators in respect of its wholly owned subsidiary, Sandcity Ltd ("Sandcity"). This follows a review by the directors of Sandcity which has concluded that there is no reasonable prospect of restoring profitability in the medium to long term and that Sandcity is no longer in a position to trade as a going concern. Sandcity is part of the Boardwear division and is a retailer of predominantly lifestyle and boardwear clothing and accessories. It operates out of 11 stores, which trade at a substantial loss. The appointment of administrators of Sandcity results in an exit from approximately one third of the Company's Boardwear division. The Directors believe that the administration of Sandcity will not have a material effect on the Company's other businesses which continue to trade normally. Lloyds Banking Group is supportive of the actions the Company is announcing today and has given its consent to Sandcity being put into administration. Trading Update As announced yesterday, the group has underperformed against budget for the first six months of the financial year to August 31st 2009. Whilst the Directors believe, partly as a result of the action being taken in relation to Sandcity as described above, that current market expectations can still be met (before taking into account the effects of any restructuring plan and the associated costs), this will be dependent on the bank waiving the expected covenant breach and on trading during the key Christmas period. A further announcement will be made in due course. The interim results are expected to be published towards the end of October 2009. Ends - Enquiries: `Blacks Leisure Group plc 01604 597 222` Neil Gillis, Chief Executive `Citigate Dewe Rogerson 020 7638 9571` Simon Rigby Kevin Smith `Singer Capital Markets 020 3205 7500` Jeff Keating Jos Trusted This information is provided by RNS The company news service from the London Stock Exchange END MSCBDGDCRSDGGCX More
22-09-09	UPDATE 1-Blacks Leisure sees loan breach, bank sets deadline	AFX UK Focus
LONDON, Sept 22 (Reuters) - British outdoor goods retailer Blacks Leisure has until Oct. 30 to come up with a turnaround plan acceptable to its banks, it said on Tuesday, after it predicted a breach of its lending arrangements. `Blacks, which runs chains including Blacks Outdoor and Millets, said Lloyds Banking Group had agreed to freeze its banking arrangements until Nov. 30 on condition that it received an acceptable recovery plan by the earlier date.` `The company then hopes to agree a waiver of its breach of the banking rules.` `"If a waiver of the covenant breach is not ultimately given, the ongoing prospects of the group will be uncertain," it said in a statement shortly before the market close.` `Blacks shares, which have dropped over two-thirds in value in the past 14 months, closed down 17.5 percent at 42 pence, valuing the firm at about 17 million pounds ($27.8 million).` `Blacks said it had underperformed against budget for the six months to Aug. 31 due to unexpectedly difficult trading at its surfwear business and loss-making stores.` `It said it had hired consultants KPMG to help with the turnaround plan.` `Blacks, which last month said it had secured funds for a further year, had previously been working to convert its surfwear outlets into outdoor stores.` `(Reporting by Mark Potter; editing by Rhys Jones) ($1=.6121 Pound) Keywords: BLACKSLEISURE/` (mark.r.potter@thomsonreuters.com; +44 20 7542-2943; Reuters Messaging: mark.potter.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More

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