HealthyDays Group PLC
LSE : HDGP

March 24, 2011 13:51 ET

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2010

                                                                                               
24 March 2011
                                         HEALTHYDAYS GROUP PLC
                                                   
                             ("HealthyDays", the "Company" or the "Group")
                                                   
                                            INTERIM RESULTS
                               FOR THE SIX MONTHS ENDED 31 DECEMBER 2010
                                                   
HealthyDays  Group plc (HDGP.PL) is a holding company which trades through an operating  subsidiary  that
markets products to assist people with mobility difficulties to improve their quality of life. The  Group
intends to grow both organically and by acquisition.

HealthyDays approaches its chosen markets using direct selling methods
and  markets  for  a  range  of products including adjustable beds, mattresses, therapy  units,  mobility
scooters,  bath  lifts  and other related products. The main sales emphasis to date  has  been  on  beds,
mattresses and therapy units.  However, the Group has expanded this range of products to include mobility
scooters,  bath  lifts and stairlifts. The Group also intends to achieve further expansion  by  acquiring
other suitable businesses in the industry.
                                                                                                         

Highlights for the Six Months Ended 31 December 2010

    *       Operating profit on mobility related products £23,000 (2009: £180,000).
    *       Profit after taxation £24,000 (2009 loss after taxation and exceptional items: £30,000).
    *       Interim net dividend of 0.35p per ordinary share (2009: 0.35p per ordinary share).

Chief Executive's Statement

Financials

Profit  after taxation was £24,000 for the six months to 31 December 2010, (2009 loss after taxation  and
exceptional items: £30,000).

Dividend

The  board is pleased to announce an interim net dividend of 0.35p per ordinary share in respect  of  the
six months to 31 December 2010 (2009: 0.35p per Ordinary Share).  The interim dividend will be paid on  6
June 2011 to shareholders on the register on 16 May 2011.  The Ex-dividend date will be 12 May 2011.

Trading

Sales have been less than anticipated reflecting a period of consolidation following the amalgamation  of
the  PureSleep  business with the HealthyDays business as reported in last year's interims and  financial
statements.   Margins  on  ongoing  sales in the second half have  continued  to  be  satisfactory.   The
Company's marketing material and approach to market has been further developed.

Strategy

As  stated in the Company's admission document, a key part of the Company's strategy is to acquire  other
companies in this sector which will add established and complementary businesses and allow the  group  to
expand  its product line and geographical coverage.  The Company is in discussion with a number  of  such
possible acquisitions.

We look forward to reporting further progress to you.

Prospects

Current  trading is broadly similar to that experienced in the first half of the year ended  31  December
2010  and  the Directors have continued to reduce the Company's quoted securities portfolio making  small
realised profits.  The Board remains confident about the future.

Finally we would like to thank all the staff for their efforts with HealthyDays during the period.

Amer Deen
Chief Executive

24 March 2011



HealthyDays Group plc
Consolidated Profit and Loss Account

                                                 Six months              Six months          Twelve months
                                                      ended                   ended                  ended
                                                31 December             31 December           30 June 2010
                                                       2010                    2009
                                                  Unaudited               Unaudited                Audited
                                      Note            £'000                   £'000                  £'000
Turnover                                                774                     710                  1,516
Cost of Sales                                         (612)                   (381)                (1,071)
                                               -------------------------------------------------------------
Gross profit                                            162                     329                    445
Administrative Expenses                               (131)                   (150)                  (383)
Administrative Expenses -                4                -                   (168)                  (184)
exceptional items
                                               -------------------------------------------------------------
Operating profit/(loss)                                  31                      11                  (122)
Other Income                                              -                       1                      1
                                               -------------------------------------------------------------
Profit/(Loss)  on ordinary                               31                      12                  (121)
activities before taxation
Tax on profit on ordinary                               (7)                    (42)                   (57)
activities
                                               -------------------------------------------------------------
Profit/(Loss)  for the period                            24                    (30)                  (178)
                                               -------------------------------------------------------------
Earnings/(Loss)  per share               6            0.19p                 (0.24p)                (1.46p)

                                                                                                      
The Group had no recognised gains or losses other than the loss for the period.  The profit/(loss) for
the period has been calculated on the historical cost basis.

HealthyDays Group plc
Consolidated Balance Sheet
31 December 2010
                                                     31 December         31 December           30 June
                                                            2010                2009              2010
                                                       Unaudited           Unaudited           Audited
                                                           £'000               £'000             £'000
Fixed Assets                                                                                          
Intangible assets                                              -                  20                 -
Tangible assets                                               15                 217                21
                                                   -------------------------------------------------------
                                                              15                 237                21
                                                   -------------------------------------------------------
Current Assets                                                                                        
Assets held for sale                                         191                   -               191
Stock                                                         23                   4                35
Debtors                                                       72                  64                71
Debtors: amounts falling due after                            60                  20                26
more than one year
Quoted Securities held for sale                              137                 325               315
Cash at bank and in hand                                       3                  13                 2
                                                   -------------------------------------------------------
                                                             486                 426               640
Creditors: amounts falling due within                      (332)               (197)             (511)
one year
                                                   -------------------------------------------------------
Net Current Assets                                           154                 229               129
                                                   -------------------------------------------------------
Total Assets less Current Liabilities                        169                 465               150
Provision for Liabilities                                                                             
Deferred taxation                                            (3)                   -               (3)
Warranty provision                                          (66)               (217)              (71)
                                                   -------------------------------------------------------
Net Assets                                                   100                 249                76
                                                   -------------------------------------------------------
Capital and Reserves                                                                                  
Called up share capital                                      123                 122               123
Reserves                                                    (23)                 127              (47)
                                                   -------------------------------------------------------
                                                             100                 249                76
                                                   -------------------------------------------------------

Notes to the Financial Statements
For the year ended 30 June 2010
                                                                                                      
1.  General Information

    HealthyDays  Group plc ('the Company') and its subsidiary (together 'the Group') are direct  sales
    companies marketing products to assist people with mobility difficulties to improve their  quality
    of  life.   The  Company is a public limited company incorporated and domiciled in  England.   The
    address of its registered office is Unit 2, Rutland Court, 161 Rutland Road, Sheffield S3 9PP.
    
    The  Company's  ordinary shares are admitted to trading on the PLUS-quoted Market.  The  Company's
    ordinary shares were suspended from trading on PLUS-quoted on 26 January 2011, following a  breach
    of the PLUS rules.
    
2.  Summary of Significant Accounting Policies

    Basis of Preparation
    
    The  interim results for the six months ended 31 December 2010 are unaudited and do not constitute
    statutory  accounts within the meaning of section 435 of the Companies Act 2006.  The  information
    contained in this announcement has not been reviewed by the Company's auditor.

    The  interim  results  for the six months ended 31 December 2010 have been  prepared  on  a  basis
    consistent with the accounting policies which will be applied by HealthyDays Group plc in its next
    annual accounts.
    
    Comparatives
    
    The  comparative  information contained in this report for the year ended 30 June  2010  does  not
    constitute the statutory accounts for that financial period.
    
    Basis of Consolidation
    
    The  Group's  financial  statements  consolidate the results of  HealthyDays  Group  plc  and  its
    subsidiary.   The subsidiary, HealthyDays Limited, has been consolidated using the  principles  of
    merger accounting.
    
3.  Segmental Reporting

    Management  currently  identifies  the Group's core sales in  mobility  related  products  as  one
    operating  segment  and  its  trading  in quoted securities  as  another  operating  segment.  The
    activities  are  considered to be the smallest group of cash generating units that are  separately
    identifiable.   These operating segments are monitored and strategic decisions  are  made  on  the
    basis  of  adjusted  segment operating results.  All of the Group's activities  and  revenues  are
    within the United Kingdom.

    Segmental information as presented to the Chief Executive is analysed as follows for the reporting
    periods under review:-

                                                Mobility       Quoted         Other          Total
                                                related        securities
                                                products
                                                £'000          £'000          £'000          £'000
    Six Months ended 31 December 2010                                                        
    Turnover                                    287            487            -              774
    Cost of sales                               (133)          (479)          -              (612)
    Administrative expenses                     (131)          -              -              (131)
                                             ----------------------------------------------------------
    Segment operating profit/(loss)             23             8              -              31
                                             ----------------------------------------------------------
                                             ----------------------------------------------------------
    Six Months ended 31 December 2009                                                        
    Turnover                                    516            194            -              710
    Cost of sales                               (207)          (174)          -              (381)
    Administrative expenses                     (129)          -              (189)          (318)
                                             ----------------------------------------------------------
    Segment operating profit/(loss)             180            20             (189)          11
                                             ----------------------------------------------------------
                                             ----------------------------------------------------------
                                                                                                      
                                                                                                      
                                                                                                      
    Twelve Months ended 30 June 2010                                                         
    Turnover                                    824            692            -              1,516
    Cost of sales                               (278)          (793)          -              (1,071)
    Administrative expenses                     (342)          -              (225)          (567)
                                             ----------------------------------------------------------
    Segment operating profit/(loss)             204            (101)          (225)          (122)
                                             ----------------------------------------------------------
                                             ----------------------------------------------------------


4.  Administrative Expenses - exceptional items

    The following are included within Administrative Expenses - exceptional items:

                                               Six months                Six months            Twelve months
                                                    ended                     ended                    ended
                                         31 December 2010          31 December 2009             30 June 2010
                                                Unaudited                 Unaudited                  Audited
                                                    £'000                     £'000                    £'000
    PureSleep (UK) Limited Goodwill                     -                       123                      123
    Impairment Review
    Listing Expenses                                    -                        45                       35
    PureSleep (UK) Limited Additional                   -                         -                      183
    Consideration
    Release of Warranty Provision                       -                         -                    (157)
                                        -----------------------------------------------------------------------
                                                        -                       168                      184
                                        -----------------------------------------------------------------------
                                        -----------------------------------------------------------------------
    
(a) PureSleep (UK) Limited: Goodwill Impairment Review £123,000
    
    At  31  December  2009  the directors undertook an impairment review of the consolidated  goodwill
    arising  on  the  acquisition of PureSleep (UK) Limited.  In addition  to  the  standard  goodwill
    amortisation charge for the period, a further £123,000 was written off in accordance  with  FRS11.
    This  additional charge has been based on the directors' estimate of net realisable value  at  the
    balance sheet date of the goodwill acquired.
    
(b) Listing Expenses £35,000 (Interims 31 December 2009 £45,000)
    
    During  the  period  the Company was charged professional fees and listing expenses  amounting  to
    £35,000 in relation to the Company's Admission to trading on the PLUS-quoted Market.

(c) PureSleep (UK) Limited: Additional Consideration £183,000
    
    The  admission document dated 16 December 2009 reported that under the terms of the PureSleep (UK)
    Limited  share  purchase agreement HealthyDays Limited is required to pay  the  vendors  earn  out
    consideration  based  on  the "Relevant Profit" (as defined in the agreement)  of  PureSleep  (UK)
    Limited for the 12 months to 30 June 2009.
    
    A  payment  was  due  to  be  made  by HealthyDays Limited to the vendors  before  28  July  2009.
    HealthyDays  Limited  has provided to the vendors an estimate of the quantum  of  Relevant  Profit
    which shows no earnout payment due to the vendors.
    
    As  provided  within  the  share purchase agreement, the calculation of the  Relevant  Profit  was
    referred  to an "Expert", an independent firm of Chartered Accountants, nominated by the President
    of  the  Institute of Chartered Accounts for England and Wales for determination, and  the  Expert
    ruled that a further £160,000 before costs was payable.  Including costs this amounts to £183,000.

(d) Release of Warranty Provision £(157,000)
    
    HealthyDays  Limited acquired PureSleep (UK) Limited in June 2008.  PureSleep  (UK)  Limited  sold
    certain  of its products with a five year warranty and a number of other products with a  lifetime
    warranty.  At 30 June 2009 this policy has been aligned with the warranty provision of HealthyDays
    Limited  which provides customers with warranties of a similar or shorter period to  that  of  the
    suppliers.  A provision of £240,000 was made during the year ended 30 June 2009 in the accounts of
    PureSleep  (UK)  Limited  against the cost of valid warranty claims for  the  cost  of  repair  or
    replacement  of  any product sold by PureSleep (UK) Limited in the year ended  30  June  2009  and
    previous  periods when the underlying products were sold; this was based on the sample  of  claims
    arising  in the three months to 30 September 2009.  The Directors have reviewed that provision  at
    30  June 2010 and, based on the sample of claims for the twelve month period to 30 June 2010, have
    decided to reduce the warranty provision required by £157,000.
    
    The  remaining  provision  continues to be based on historical warranty data  and  the  Directors'
    judgement in a weighting of possible outcomes against their associated probabilities.

5.  Dividend

    The  Company will pay an interim net dividend of 0.35p per ordinary share (2009 0.35p per Ordinary
    Share).  The interim net dividend will be payable according to the timetable below:
    
    *       Ex-dividend date: 12 May 2011
    *       Record date (or books close date): 16 May 2011
    *       Dividend payment date: 6 June 2011
    
    The cost of this dividend is £43,000 (2009 £43,000).
        
        
6.  Earnings per Share


                                    Six months ended        Six months ended      Twelve months ended
                                    31 December 2010        31 December 2009             30 June 2010
                                           Unaudited               Unaudited                  Audited
     Basic Earnings/(Loss)  per                0.19p                 (0.24p)                  (1.46p)
     share
     Weighted Average number of           12,302,560              12,120,000               12,213,640
     shares
                                                                                                      
    The  basic  earnings/(loss)  per share is based on the Group's profit for the  period  of  account
    divided by the weighted average number of ordinary shares in issue for the respective period.  The
    weighted  average  number of shares assumes that the shares issued by HealthyDays  Group  plc,  in
    consideration for the merger with HealthyDays Limited had been in issue throughout the periods  of
    account and not just from the date of the merger, on 30 September 2009.

    THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
    
                                              --- ENDS---
    
    HealthyDays Group Plc
    Amer Deen                                                          Tel: 07970 909685
    
    SVS Securities Plc - PLUS Corporate Adviser
    Peter Ward / Alexander Brearley                                    Tel: 020 7638 5600
    
    SVS Securities Plc - Broker
    Ian  Callaway  / Alex Mattey                                       Tel: 020 7638 5600
    
    HealthyDays Group PLC

Contact Information

  • HealthyDays Group PLC