Final Results

Safeland PLC 20 June 2001 FOR IMMEDIATE RELEASE 20th June 2001 SAFELAND PLC PRELIMINARY RESULTS FOR 12 MONTHS TO 31ST MARCH 2001 CONTACT: SAFELAND PLC 020 8203 9099 Larry Lipman, Manging Director Paul Davis, Finance Director BARON PHILLIPS ASSOCIATES 020 7397 8932 Baron Phillips CHAIRMAN'S STATEMENT Due to market conditions within the industry we have not been able to identify sufficient opportunities for the purchase of trading stock at a level that we consider likely to result in the returns that your Company has enjoyed over the last couple of years. Safeland has always taken a conservative view and is not prepared to purchase properties at a level where the Board considers the market to be overheating, as has been experienced throughout the majority of the year ended March 31, 2001. As a result we are reporting a pre-tax loss of £1.38m against a profit in the previous year of £5.6m. Shareholders may be aware that in January 2001 we issued a statement concerning the sale of six investment properties that had been purchased in the early - mid 1990's and had been financed by long term loans with Norwich Union. The decision was taken to re-pay these loans but there was a substantial penalty clause and approximately £1m had to be paid to Norwich Union on redemption. During the year the Company has continued its policy of purchasing its own shares and in excess of 2.8m shares were purchased and accordingly notwithstanding the loss as reported, although net assets have fallen to £ 18.9m compared to the £20.2m as at March 2000, NAV per share has actually increased from 70p to 73p. I am still pleased to report to shareholders that it is our intention to declare a final dividend of 1p which together with the interim dividend of 1p that has already been paid, makes a total of 2p for the year, such dividend to be paid on October 1, 2001 to shareholders appearing on the register as at September 7, 2001. Shareholders may recall that this time last year Safeland demerged its third venture, Bizspace Plc, a managed workspace company and during the year Bizspace expanded its portfolio with a purchase of six new centres and financed it by a Placing and Open Offer which Safeland was happy to support. Safeland continues to hold a stake not only in Bizspace but in the original two demergers of Hercules Property Services Plc and Safestore Plc and is very pleased with the continued investment in all three of these companies. Not surprisingly turnover has fallen substantially in the year to £19.6m from £37.1m reflecting the level of activity. The sale of the investment portfolio of in excess of £7.5m will not have been included in this figure. It is our continued intention as shareholders will be aware, having received a circular recently asking for authority, to continue our policy of buying back our own shares as and when they become available and provided that this is in the best interest for our shareholders as a whole, as has been demonstrated this year by virtue of the fact that net asset value per share has in fact risen notwithstanding the loss being posted. When I announced the results for the year ended March 31, 2000 I sounded a cautionary note on likely market conditions in the ensuing period which proved justified, however, since April 2001 activity has increased and we look forward to a return to profit although market conditions remain difficult. We continue to enjoy the support of our banks and other professionals and continue to monitor market conditions and are well positioned to take advantage of opportunities as they arise and I am therefore confident of an improvement in trading conditions in the ensuing year. Raymond Lipman Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT Year ended 31 March 2001 Note 2001 2001 2000 £'000 £'000 £'000 Unaudited Unaudited Audited TURNOVER 3 Group and share of joint venture 19,641 37,160 Less: share of joint venture (65) - Group turnover 19,576 37,160 Cost of sales (16,589) (27,286) GROSS PROFIT 2,987 9,874 Sales and distribution costs (239) (956) Administrative expenses Continuing operations (2,958) (3,140) Discontinued operations (154) - (3,112) (3,140) Other operating income 346 236 OPERATING (LOSS)/PROFIT Continuing operations 136 6,014 Discontinued operations (154) (18) 6,014 Share of operating profit of joint 179 169 venture Share of operating loss in associated (110) - undertakings 69 169 Group operating profit 51 6,183 Profit on disposal of investment 22 614 properties Profit on disposal of associated 118 - undertakings PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST 191 6,797 Interest receivable and similar income: Group 459 297 Joint venture 425 - Interest payable and similar charges: Group (2,457) (1,454) (Loss)/profit on ordinary activities before taxation 3 (1,382) 5,640 Tax credit/(charge) on (loss)/profit on 281 (1,654) ordinary activities (Loss)/profit on ordinary activities (1,101) 3,986 after taxation Equity dividend paid and proposed 4 (528) (232) Retained (loss)/profit for the 5 (1,629) 3,754 financial year Basic (loss)/earnings per share 2 (3.91)p 13.58p Diluted (loss)earnings per share 2 (3.92)p 13.58p STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Year ended 31 March 2001 2001 2000 £'000 £'000 Unaudited Audited Profit for the financial year (1,101) 3,986 Unrealised gain on disposal of subsidiary 515 - Unrealised surplus on revaluation of investment 1,184 432 properties Total recognised gains and losses for the year 598 4,418 CONSOLIDATED BALANCE SHEET 31 March 2001 2001 2000 Group Group £'000 £'000 Unaudited Audited FIXED ASSETS Tangible assets 740 764 Investment properties 4,936 10,678 Investment in joint venture Share of gross assets 2,172 2,221 Share of gross liabilities (1,824) (2,052) 348 169 Investments 5,828 3,343 11,852 14,954 CURRENT ASSETS Stocks 15,921 12,198 Debtors: Amounts falling due within one year 704 956 Amounts falling due after more than one 5,149 4,440 year Cash at bank and in hand 6,094 8,420 27,868 26,014 CREDITORS: amounts falling due within one year (4,637) (3,928) NET CURRENT ASSETS 23,231 22,086 TOTAL ASSETS LESS CURRENT LIABILITIES 35,083 37,040 CREDITORS: amounts falling due after more than one year (16,192) (16,846) 18,891 20,194 CAPITAL AND RESERVES Called up equity share capital 1,288 1,436 Share premium account 5,304 5,304 Capital redemption reserve 399 251 Investment property revaluation reserve 1,434 858 Profit and loss account 10,466 12,345 EQUITY SHAREHOLDERS' FUNDS 5 18,891 20,194 CONSOLIDATED CASH FLOW STATEMENT Year ended 31 March 2001 Note 2001 2000 £'000 £'000 Unaudited Audited Net cash (outflow)/inflow from operating activities 6 (4,131) 12,025 Returns on investment and servicing of (1,218) (1,157) finance Taxation (818) (1,044) Capital expenditure and financial 4,585 837 investment Acquisitions and disposals 34 - Equity dividends paid (270) (759) Cash (outflow)/inflow before financing (1,818) 9,902 Financing (508) (4,422) (Decrease)/increase in cash 7,8 (2,326) 5,480 NOTES TO THE STATEMENT Year ended 31 March 2001 1. BASIS OF PREPARATION The financial information set out in the announcement does not constitute the Company's statutory accounts within the meaning of Section 240 of the Companies Act 1985, for the years ended 31 March 2000 or 31 March 2001. The statutory accounts for the year ended 31 March 2001 will be finalised on the basis of 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 results for the year ended 31 March 2000 have been extracted from the full accounts for that period which have been delivered to the Registrar of Companies on which the auditors have given an unqualified report and which did not contain a statement under Sections 237(2) or (3) of the Companies Act 1985. This announcement is prepared on the basis of the accounting policies as stated in the previous year's financial statements. Copies of this announcement are available from the company's registered office at 144 Great North Way, London NW4 1EG. The Annual Report and Accounts will be sent to shareholders shortly. 2. EARNINGS PER SHARE 2001 2000 £ £ Basic Net (loss)/profit for the year (1,101,000) 3,986,000 Weighted average number of ordinary shares outstanding 28,125,500 29,347,276 (Loss)/earnings per share (3.91)p 13.58p Diluted Net (loss)/profit for the year as for basic Adjusted weighted average number of ordinary shares outstanding 28,053,334 29,347,274 (Loss)/earnings per share (3.92)p 13.58p Reconciliation of number of ordinary shares Basic earnings per share: weighted average number of shares 28,125,500 29,347,276 Adjustment in respect of potentially dilutive share options (72,166) - Diluted earnings per share: weighted average number of shares 28,053,334 29,347,276 3. SEGMENTAL INFORMATION The analyses of turnover, profit on ordinary activities before taxation and net assets attributable to the different classes of the group's business all of which were carried out in the United Kingdom after consolidation adjustments were as follows: 2001 2000 £'000 £'000 Unaudited Audited Turnover Property trading and refurbishment 18,851 35,825 Investment properties 725 1,335 19,576 37,160 Profit on ordinary activities before taxation Property trading and refurbishment (721) 4,175 Investment properties (661) 1,465 (1,382) 5,640 Net assets Property trading and refurbishment 12,807 14,462 Investment properties 6,084 5,732 18,891 20,194 4. EQUITY DIVIDENDS PAID AND PROPOSED 2001 2000 £'000 £'000 Unaudited Audited Interim dividend paid - 1p per 5p ordinary share (2000 - 1p per 5p ordinary share) 270 232 Final dividend proposed - 1 p per 5p ordinary share (2000 - nil per 5p ordinary share) 258 - 528 232 5. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 2001 2000 £'000 £'000 Unaudited Audited (Loss)/profit for the year (1,101) 3,986 Dividends (528) (232) (1,629) 3,754 Revaluation gains 1,184 432 Unrealised gain on disposal of subsidiary 515 - Repurchase of shares (including expenses) (1,373) (1,359) Net addition to equity shareholders' funds (1,303) 2,827 Opening equity shareholders' funds 20,194 17,367 Closing equity shareholders' funds 18,891 20,194 6. RECONCILIATION OF OPERATING (loss)/PROFIT TO NET CASH (outflow)/INFLOW FROM OPERATING ACTIVITIES 2001 2000 £'000 £'000 Unaudited Audited Operating (loss)/profit (18) 6,014 Depreciation 140 145 Loss/ (profit) on sales of fixed assets (22) (20) (Increase)/decrease in stocks (3,723) 3,424 (Increase)/decrease in debtors (197) 1,298 (Decrease)/increase in creditors (309) 1,164 Net cash (outflow)/inflow from operating (4,131) 12,025 activities 7. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT 2001 2000 £'000 £'000 Unaudited Audited (Decrease)/increase in cash in the year (2,326) 5,480 Cash (inflow)/outflow from decrease/(increase) in (869) 3,063 debt Change in net debt resulting from cash flows (3,195) 8,543 Net debt brought forward (9,105) (17,648) Net debt carried forward (12,300) (9,105) 8. ANALYSIS OF NET DEBT At 31 March At 2000 Cash Other changes 31 March 2001 £'000 flows £'000 £'000 Audited £'000 Unaudited Unaudited Unaudited Cash at bank and in hand 8,420 (2,326) - 6,094 Debt due within one year (679) (1,162) (361) (2,202) Debt due after one year (16,846) 293 361 (16,192) Total (9,105) (3,195) - (12,300)

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