Final Results
Comland Commercial PLC
03 August 2006
Preliminary results for the year ended 31 March 2006
Chairman's Statement
I have pleasure in reporting to you on the year ended 31 March 2006.
Results
In the year to 31 March 2006 the turnover of the group was £6.35 million (2005:
£6.70 million). This figure includes the revenue from property disposals and
from operation of The Hollywood Arms. Gross profit was £0.68 million (2005:
£2.62 million). Other operating income, which is primarily rental income, has
decreased to £6.33 million (2005: £7.05 million). Operating profit has decreased
to £5.06 million (2005: £7.80 million). Pre-tax profits are £1.95 million (2005:
£4.67 million) after finance costs of £3.11 million (2005: £3.12 million). The
levels of revenue and profits in the year ended 31 March 2006 reflect the
reduced size of the property disposals in the year. No dividend will be paid
(2005: £nil).
Property Disposals
Since 31 March 2005 we have disposed of the following properties:
King Street, Maidenhead - £0.76 million. As previously reported the sale of this
property was completed in June 2005.
Land adjacent to Chelmsley Wood Industrial Estate, Birmingham - £0.10 million.
This land was sold in October 2005. We had previously believed this site to be
of limited value being adjacent to the Chelmsley Wood Industrial Estate which
had been sold by one of the subsidiaries of Banner Homes Group PLC prior to the
de-merger of certain property assets from Banner Homes Group PLC into the
Comland Commercial PLC Group.
62 High Street, Marlow, Flat 2 - £0.20 million. This sale was completed in
January 2006. The remaining flat in the building was disposed of after the year
end for £0.23 million, whilst the commercial property on the ground floor has
been retained.
St Johns Court, High Wycombe - £4.53 million. We completed the sale of this
22,000 square feet office in the centre of High Wycombe in January 2006. This
represented a yield of 7.47%. At the time of disposal there were only 35 months
remaining on the current lease and little expectation of the lease being renewed
by the existing tenant. Given the short term nature of the remaining income and
the future letting risk, we decided to realise our interest in this property and
reduce the group's borrowings.
Plover House, Basingstoke - Unit 12 was disposed of in April 2006 for £0.32
million. Contracts have been exchanged for the sale of the remaining two units
for a total consideration of £0.73 million since the year end.
Preliminary results for the year ended 31 March 2006
Chairman's Statement (continued)
Acquisitions
During the year ended 31 March 2006 we have acquired:
Land at Liston Exchange, Marlow - £1.08 million. This site just off the High
Street in Marlow was purchased in June 2005 with planning permission for an
office building of approximately 13,000 square feet.
Chariott House, Windsor - £3.87 million. We completed the acquisition of this
12,000 square feet office building in the centre of Windsor in December 2005.
The current lease has expired and the tenant is holding over pending
negotiations regarding dilapidations. We remain convinced that a building of
this size in this strong location will provide us with numerous opportunities in
the near future.
Bridge Avenue, Maidenhead - £0.62 million. We exchanged on this conditional
acquisition in March 2006. Completion is conditional on the granting of planning
for 6,700 square feet of office space.
Future Developments and Planning
Whilst continuing to remain acquisitive we have concentrated on enhancing the
future use of our sites during the year.
Prospect House, Farnham Common -We are nearing completion of this retail and
residential flat development. Both retail units are let and we intend to market
the flats when completed.
Premium House, Farnham Common - We have obtained planning permission for the
redevelopment of Premium House. This includes 3,500 square feet of retail space
on the ground floor, with 2,900 square feet of office space above.
Holtspur Lane, Wooburn Green - We have completed the section 106 negotiations in
relation to the planning permission for our 49,000 square feet office scheme.
The occupational lease for this site runs until September 2009.
Liston Exchange, Marlow - We have recently been granted planning permission for
a revised office scheme of 14,300 square feet and since the year end have
completed the demolition and site clearance work. This revised development
scheme has not only provided more space but has also allowed us to produce a
more attractive design. We expect to start the building work on this in the
autumn.
We have a further eleven schemes either in planning or due to go to planning in
the next few months.
Preliminary results for the year ended 31 March 2006
Chairman's Statement (continued)
The Future
The acquisition of good commercial property opportunities remains difficult with
many cash rich buyers competing for the quality opportunities that are
available. Having found it difficult to justify chasing many of these deals we
have concentrated on maximising the development potential of the opportunities
within our portfolio. We have seen the value of our portfolio increase
significantly in the year due to market conditions which in turn increases our
debt capacity, leaving us well placed to exploit acquisition opportunities that
become available in the future.
SJ Crossley
Chairman
3 August 2006
Preliminary results for the year ended 31 March 2006
Consolidated Profit & Loss Account
Notes 2006 2005
£'000 £'000
Turnover 4 6,348 6,697
Cost of sales (5,667) (4,079)
__________ __________
Gross profit 681 2,618
Administrative expenses (1,950) (1,863)
Other operating income 6,332 7,048
__________ __________
Operating profit 5,063 7,803
Profit on disposal of trade - 8
Loss on disposal of fixed assets (5) (27)
__________ __________
Profit on ordinary activities before interest 5,058 7,784
Interest receivable and similar income 1 3
Interest payable and similar charges (3,113) (3,122)
__________ __________
Profit on ordinary activities before taxation 1,946 4,665
Tax on profit on ordinary activities (577) (1,359)
__________ __________
Retained profit for the year 1,369 3,306
__________ __________
Basic and diluted earnings per share of continuing operations 6 30.0p 73.0p
Basic and diluted earnings per share of discontinued operations 6 - (0.4)p
Basic and diluted earnings per share based on profit for the year 6 30.0p 72.6p
The accompanying notes are an integral part of this consolidated profit and loss
account.
The Group has no recognised gains or losses other than the results for each
year.
Preliminary results for the year ended 31 March 2006
Consolidated Balance Sheet
Notes 2006 2005
£'000 £'000
Fixed assets
Tangible assets 2,571 2,736
Investments 92 92
_________ _________
2,663 2,828
Current assets
Stocks 65,581 65,082
Debtors 3,043 3,313
Cash at bank and in hand 24,727 24,811
_________ _________
93,351 93,206
Creditors: amounts falling due within one year (29,592) (30,260)
_________ _________
Net current assets 63,759 62,946
_________ _________
Total assets less current liabilities 66,422 65,774
Creditors: amounts falling due after more than one year (51,400) (52,121)
_________ _________
Net assets 15,022 13,653
_________ _________
Capital and reserves
Called-up share capital 456 456
Capital redemption reserve 25 25
Other reserves 2,880 2,880
Profit and loss account 11,661 10,292
_________ _________
Equity shareholders' funds 7 15,022 13,653
_________ _________
The accompanying notes are an integral part of this consolidated balance sheet.
Preliminary results for the year ended 31 March 2006
Notes 2006 2005
£'000 £'000
Net cash inflow from operating activities 8 5,127 11,093
Returns on investments and servicing of finance
- Interest received 1 3
- Interest paid (3,059) (3,082)
__________ __________
Net cash outflow from returns on investments and servicing of finance (3,058) (3,079)
Taxation (972) (1,431)
Capital expenditure and financial investment
- Payments to acquire tangible fixed assets (142) (2,640)
- Payments to acquire fixed asset investments - (92)
- Receipts from sale of tangible fixed assets 196 42
__________ __________
54 (2,690)
Acquisitions and disposals
Receipts from sale of trade - 8
Net cash inflow before financing 1,151 3,901
Financing
- New bank loans 2,000 7,580
- Repayment of bank loans (2,819) (3,863)
- Repayment of other loans - (5,589)
__________ __________
Net cash outflow from financing (819) (1,872)
__________ __________
Increase in cash in the year 9 332 2,029
__________ __________
The accompanying notes are an integral part of this consolidated cash flow
statement.
Preliminary results for the year ended 31 March 2006
Notes
1. The accounting policies adopted are consistent with those in the most
recently published set of financial statements for the year ended 31 March
2005.
2. The summarised financial information has been extracted from the unaudited
accounts of the Group for the year ended 31 March 2006. The above
information does not amount to statutory accounts within the meaning of the
Companies Act 1985. Statutory Accounts for the previous financial year
ended 31 March 2005 have been delivered to the Registrar of Companies. The
auditors' report on those accounts was unqualified and did not contain any
statement under S237(2) or (3) of the Companies Act 1985. The auditors
have not reported on accounts for the year ended 31 March 2006, nor have
any such accounts been delivered to the Registrar of Companies.
3. Copies of the annual report and accounts will be posted to shareholders in
September 2006 and will be available from the Company's Head Office at
Lunar House, Mercury Park, Wooburn Green, High Wycombe, Bucks, HP10 0HH.
4. Segmental information and analysis of continuing and discontinued
operations
2006 2005
Property Other Total Property Other Total
Development & Activities Development & Activities
Trading Trading
Turnover 5,617 731 6,348 5,945 752 6,697
__________ __________ __________ __________ __________ __________
Profit/(loss) on 2,025 (79) 1,946 4,994 (329) 4,665
ordinary activities
before taxation
__________ __________ __________ __________ __________ __________
Net assets/ 15,227 (205) 15,022 14,129 (476) 13,653
(liabilities)
__________ __________ __________ __________ __________ __________
All turnover arises in the United Kingdom.
Other activities comprise the results and net liabilities of the operations of
the Hollywood Arms public house in 2005 and 2006 and results of the private
medical practice solely in 2005. The Hollywood Arms contributed turnover of
£731,000 (2005: £613,000), loss on ordinary activities before
taxation of £79,000 (2005: £184,000) and had net liabilities of £205,000 (2005:
£140,000).
Preliminary results for the year ended 31 March 2006
2006 2005
Continuing Discontinued Total Continuing Discontinued Total
Operations Operations Operations Operations
Turnover 6,348 - 6,348 6,558 139 6,697
Cost of Sales (5,667) - (5,667) (4,004) (75) (4,079)
__________ __________ __________ __________ __________ _________
Gross profit 681 - 681 2,554 64 2,618
Administrative (1,950) - (1,950) (1,649) (214) (1,863)
expenses
Other operating 6,332 - 6,332 7,048 - 7,048
income
__________ __________ _________ __________ __________ _________
Operating profit/ 5,063 - 5,063 7,953 (150) 7,803
(loss)
__________ __________ _________ __________ __________ _________
Discontinued operations comprise the results of the private medical practice
which was sold during 2005.
5. No final dividend will be payable (2005: £nil).
6. Earnings per share have been calculated based on a weighted average of
4,556,520 ordinary shares being in issue during the period to 31 March 2006
(4,556,520 ordinary shares during the period to 31 March 2005).
7. The movement in shareholders' funds is analysed as follows:-
2006 2005
£'000 £'000
Shareholders' funds at 1 April 13,653 10,347
Profit for the year 1,369 3,306
__________ __________
Shareholders' funds at 31 March 15,022 13,653
__________ __________
Preliminary results for the year ended 31 March 2006
8. Reconciliation of operating profit to net operating cash outflow
2006 2005
£'000 £'000
Operating profit 5,063 7,803
(Increase)/decrease in stocks (499) 3,232
Decrease in debtors 257 691
Increase/(decrease) in creditors 186 (809)
Depreciation 120 176
_________ _________
Net cash inflow from operating activities 5,127 11,093
__________ __________
9. Analysis and reconciliation of net debt
31 March Cashflow 31 March
2005 2006
£'000 £'000 £'000
Cash in hand and at bank 24,811 (84) 24,727
Bank overdraft (24,290) 416 (23,874)
_________ _________ __________
Net cash 521 332 853
Bank loans due within one year (574) 98 (476)
Bank loans due after one year (52,121) 721 (51,400)
_________ _________ __________
Net debt (52,174) 1,151 (51,023)
_________ _________ __________
2006 2005
£'000 £'000
Increase in cash in the year 332 2,029
Cash inflow from debt financing 819 1,872
_________ _________
Change in net debt resulting from cash flows in the year 1,151 3,901
Exchange loss on other loans - (22)
Other non cash movements - 6
Net debt at 1 April (52,174) (56,059)
_________ _________
Net debt at 31 March (51,023) (52,174)
__________ __________
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