Final Results

RNS Number:2692Y
Leo Insurance Services PLC
13 June 2007


13 JUNE 2007

Leo Insurance Services plc ("LEO" or the "Company")

Chairman's Statement

This is the first opportunity I have had to write to shareholders with regard to
a full year's trading of Leo Insurance Services Plc.

In the year ended January 31 2007, the Company made a small consolidated loss
before exceptional administrative expenses of 3,541 (2006: 54,127).

The exceptional administrative expense of 169,912 (2006: 339,821) arose on
adoption of the new accounting standard on share options.  The charge is in
relation to the share options granted to the directors as detailed in the AIM
admission document.  This is an exceptional charge and there is no impact on
cash or distributable reserves.

As shareholders should be aware, Leo's only investment at present is a 50% share
of Grafton Insurance Services Ltd., a brokerage specialising in property
insurance which has amongst its client portfolio two long term contracts - one
with Safeland Plc and one with Bizspace Plc.

Safeland announced in October 2006 the launch of a property fund with a geared
value of 50m and made a further announcement in January 2007 regarding the
possible extension of this fund by the raising of a minimum of a further 50m of
equity.  Bizspace continues to expand its portfolio under the ownership of

I am therefore very pleased with both of these contracts and the future
potential for growth.

As I stated in the interim report, the board has been seeking potential
acquisitions and continues to do so, but no deal has as yet been concluded.

During the coming year I expect continued organic growth and whilst our search
for the right acquisition continues I look forward to the future with

LG Lipman


13 June 2007

CONSOLIDATED PROFIT AND LOSS ACCOUNT for the year ended 31 January 2007

                                                                   Unaudited                       Audited
                                          Notes                                                   Restated
                                                                        2007                          2006


Turnover: Group and share of joint                                   308,517                             -
Less: Share of joint venture's                                     (308,517)                             -
GROUP TURNOVER                                                             -                             -

Administrative expenses
 - Exceptional                                3       169,912                      339,821
 - Other                                               67,773                       54,766

                                                                   (237,685)                     (394,587)

GROUP OPERATING LOSS                                               (237,685)                     (394,587)
Share of operating profit from joint                                  76,866                            -

TOTAL OPERATING LOSS                                               (160,819)                     (394,587)

Interest receivable
Group                                                   1,393                          639
Joint Venture                                           4,255                            -

                                                                       5,648                           639
Interest payable (group)                                             (4,167)                             -

LOSS ON ORDINARY ACTIVITIES BEFORE                                 (159,338)                     (393,948)

Group                                                       -                            -
Joint Venture                                        (15,651)                            -

                                                                    (15,651)                             -

LOSS ON ORDINARY ACTIVITIES AFTER                                  (174,989)                     (393,948)

Basic and diluted                             2                      (2.44p)                       (7.06p)

The operating loss for the year arises from the group's continuing operations.


                                                                 Notes       Unaudited                Audited
                                                                                  2007                   2006

Loss for the year                                                            (174,989)              (393,948)

Total recognised gains and losses relating to the financial                  (174,989)              (393,948)

Prior year adjustment                                                3       (339,821)

Total gains and losses recognised since the last financial                   (514,810)

                                                                    Unaudited                       Audited
                                          Notes                         2007                           2006

Investment in joint venture
Share of gross assets                         7                      393,088                             50
Share of gross liabilities                    7                    (327,568)                              -

                                                                      65,520                             50
Debtors                                                              16,111                           1,264
Cash at bank                                                         18,476                         107,721

                                                                     34,587                         108,985

CREDITORS: amounts falling due within                              (81,390)                        (21,777)
one year

NET CURRENT (LIABILITIES)/ASSETS                                   (46,803)                          87,208

TOTAL ASSETS LESS CURRENT LIABILITIES                                18,717                          87,258

CREDITORS: amounts falling due after                                     -                         (65,000)
more than one year

NET ASSETS                                                           18,717                           22,258

Called up share capital                       3                      72,160                          70,624
Share premium account                                                 5,761                           5,761
Profit and loss account                       4                     (59,204)                       (54,127)

EQUITY SHAREHOLDERS' FUNDS                    5                      18,717                          22,258

CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 January 2007
                                                                               Unaudited               Audited
                                                                   Notes            2007                  2006


Cash flow from operating activities                                   6a        (92,174)              (29,253)

Returns on investments and servicing of finance                       6b           1,393                   639

Acquisitions and disposals                                            6b               -                  (50)

Taxation                                                                               -                     -

CASH OUTFLOW BEFORE FINANCING                                                   (90,781)              (28,664)

Financing                                                             6b           1,536               136,385

(DECREASE) / INCREASE IN CASH IN THE YEAR                                       (89,245)               107,721


                                                                               Unaudited               Audited
                                                                   Notes            2007                  2006


(Decrease) / Increase in cash in the year                                       (89,245)               107,721

NET FUNDS AT 1 FEBRUARY 2006                                                     107,721                     -

NET FUNDS AT 31 January 2007                                          6c          18,476               107,721

ACCOUNTING POLICIES for the year ended 31 January 2007 (unaudited)


The consolidated financial statements have been prepared under the historical
cost convention and in accordance with applicable United Kingdom accounting
standards. The material accounting policies adopted are set out below.


The Company has adopted Financial Reporting Standard No. 20 "Share Based Payment
" which is mandatory for accounting periods commencing on or after 1 January
2006 and in accordance with this standard, the comparative numbers have been
restated accordingly.  The impact of this new accounting standard is explained
in note 3.


As at 31 January 2007, the group had net current liabilities of 46,803.
Included in creditors falling due within one year are redeemable preference
shares of 65,000 due to Safeland plc, a related party, which falls due for
redemption in January 2008.  Subsequent to 31 January 2007, the directors have
received an undertaking from Safeland plc that these preference shares will only
be redeemable if there is adequate cash resources within the group to enable the
group to meet its liabilities as they fall due for the foreseeable future.  On
the basis of this commitment, the directors have prepared the financial
statements on the going concern basis.


The consolidated financial statements incorporate the financial statements of
Leo Insurance Services plc, its subsidiary undertaking and the group's share of
profits and losses and net assets of its joint venture made up to 31 January
each year.


Joint ventures are accounted for in the consolidated financial statements using
the gross equity method.  The consolidated profit and loss account includes the
group's share of operating profit, interest and taxation.  The consolidated
balance sheet includes the group's share of gross assets and gross liabilities
within fixed asset investments.


The Company has applied the requirements of FRS20 Share-based payment which
requires the fair value of share based payments to be recognised as an expense.
This standard has been applied to share options.  The fair value of the options
granted is measured on the date at which they are granted by using the
Black-Scholes model, and is expensed to the profit and loss over the appropriate
vesting period.

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 January 2007


         This preliminary statement is not the Company's statutory accounts for the year ended 31 January 2007
         or the period ended 31 January 2006. The statutory accounts for the year ended 31 January 2007 will
         be finalised based on the financial information presented by the directors in this preliminary
         announcement and will be delivered to the Registrar of Companies following the Company's Annual
         General Meeting. The statutory accounts for the year ended 31 January 2006 have been delivered to the
         registrar of companies and received an Auditors' Report which was unqualified and did not contain
         statements under s237 (2) and (3) of the Companies Act 1985.

         The financial information contained within this preliminary announcement was approved by the board on
         13 June 2007.

                                                                          Unaudited                Audited
 2        LOSS PER ORDINARY SHARE                                                                 Restated
                                                                              2007                    2006


          The calculations of loss per share are based on the
          following losses and number of shares:

          Loss for the financial period                                  (174,989)               (393,948)

                                                                            Number                  Number

          Weighted average number of shares for basic and diluted        7,177,247               5,579,152
          loss per share

          As there is a loss for the year, there is no dilutive effect of the share options and therefore
          no difference between the basic and diluted loss per share.

                                                                           Unaudited                  Audited
 3         SHARE CAPITAL                                                        2007                     2006

           20,000,000 ordinary shares of 1p each                             200,000                  200,000
           65,000 preference shares of 1 each                                65,000                   65,000
                                                                             265,000                  265,000

           Allotted, issued and fully paid:
           7,215,956 (2006: 7,062,381) ordinary shares of 1p each             72,160                   70,624

Share issue

On 4 May 2006, following the exercise of a share option, the Company issued
153,575 1p ordinary shares for 1,536 cash consideration.

Share rights

The redeemable preference shares provide for a fixed cumulative dividend at a
rate of 6% per annum which accrued on a daily basis.  The preference shares can
be redeemed by the Company at any time on seven days written notice.  The
preference shares can be redeemed by the holder if the dividend is in arrears
for at least 12 months or, in any event the shares are redeemable, upon the
second anniversary of issue.  If the preference shares are not redeemed by the
appropriate date, the dividend rate will increase to 9% per annum.  The
preference shares do not confer a right to attend, speak or vote at any general
meeting of the Company.  In accordance with Financial Reporting Standard No. 25,
these redeemable preference shares are included within creditors.

Share options:

On 3 February 2005 L Lipman, E Lipman and P Davis were each conditionally
granted options over 911,458 ordinary shares worth 175,000 as valued by
reference to the average closing middle market quotation for an ordinary share
for the three dealing days following admission.  Each option is exercisable at
the market value at the date of the grant, being the par value of 1p per share,
at any time after 18 months and before 10 years following the date of grant.

The Company has granted options to subscribe for ordinary shares in the Company
equivalent to 1% of the issued share capital on completion of an acquisition
which exceeds 75% in any class test within the AIM rules.  These options are
only exercisable during the period from date of acquisition to the period ending
18 months after that date at a price equivalent to the issue price in connection
with the acquisition.

As at 31 January 2007, the Company had 2,734,374 (2006: 2,887,949) outstanding
unexpired options that are exercisable at 1p per ordinary share.

Share based payment:

The Company has adopted Financial Reporting Standard No. 20 "Share Based Payment
" which is mandatory for accounting periods commencing on or after 1 January
2006 and in accordance with this standard, the comparative numbers have been
restated accordingly.

The share based payment charge has been calculated using the Black-Scholes model
to calculate the fair value of the share options. This share option charge is
included in the profit and loss account as an exceptional administrative expense
over the 18 month vesting period from 5 February 2005 to 5 August 2007.  The
exceptional charge for the year was 169,912 (2006: 339,821).

                                                                           Unaudited                Audited
 4        PROFIT AND LOSS ACCOUNT                                               2007                   2006


          1 February 2006 as previously reported                            (54,127)                      -
          Prior year adjustment                                            (339,821)                      -

          1 February 2006 as restated                                       (54,127)                      -
          Loss for the year                                                (174,989)              (393,948)
          Share option charge                                                169,912                339,821

          31 January 2007                                                   (59,204)               (54,127)

                                                                            Unaudited               Audited
 5         RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS                                Restated
                                                                                 2007                  2006


           Shares issued in period (net of expenses)                            1,536                76,385
           Share option charge                                                169,912               339,821
           Loss for the year                                                (174,989)             (393,948)

           Net (reduction in)equity shareholders' funds                       (3,541)                22,258
           Opening equity shareholders' funds                                  22,258                     -

           Closing equity shareholders' funds                                 18,717                 22,258

                                                                           Unaudited                Audited 
 6        CASH FLOWS                                                                               Restated             
                                                                                2007                   2006

 a        Reconciliation of operating loss to net cash flow from
          operating activities
          Operating loss                                                    (237,685)             (394,587)
          Increase in debtors                                                (14,797)               (1,314)
          (Decrease)/ Increase in creditors                                   (9,604)                21,777
          Share option charge                                                 169,912               339,821
          Shares issued to settle expenses                                          -                 5,000

          Net cash flow from operating activities                            (92,174)              (29,253)

                                                                            Unaudited                Audited
                                                                                 2007                   2006

 b       Analysis of cash flows for headings netted in the cash flow
         Returns on investments and servicing of finance

         Interest received                                                      1,393                    639

         Net cash inflow from returns on investments and servicing              1,393                    639
         of finance

         Acquisitions and disposals
         Purchase of interest in joint venture                                      -                   (50)

         Net cash outflow from acquisitions and disposals                           -                   (50)


         Issue of ordinary share capital  (net of expenses)                     1,536                 71,385
         Issue of preference share capital                                          -                 65,000

         Net cash inflow from financing                                         1,536                136,385

                                                           At                                        At
c         Analysis of net funds                   01 February                                31 January
                                                         2006           Cash flows                 2007


          Cash at bank and in                         107,721             (89,245)                18,476


On 5 January 2006, the Company acquired 50 1 "B" ordinary shares in Grafton
Insurance Services Limited at par.  The Company owns 100% of the "B" ordinary
shares which represents 50% of the issued ordinary shares.

The principal activity of Grafton Insurance Services Limited is to trade as a
property insurance broker.

The group's share of the joint venture results and net assets are set out below.

                                                                            Audited               Unaudited
                                                                               2007                    2006


          Turnover                                                          308,517                       -

          Operating profit                                                   76,866                       -
          Interest received                                                   4,255                       -

          Profit before tax                                                  81,121                       -
          Tax                                                                15,651                       -

          Profit after tax                                                   65,470                       -

                                                                               2007                    2006

          Current assets                                                    393,088                      50
          Current liabilities                                             (327,568)                       -

          Net assets                                                         65,520                      50

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