Interim Results - Pre-tax Profits Up 115%

Safeland PLC 22 November 1999 SAFELAND PLC: INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 1999 H I G H L I G H T S * Pre-tax profits more than double to £2.06m + 115% * Earnings per share rises to 4.77p + 148% * Interim dividend of 1p a share declared + 100% * Net asset value per share now stands at 60p + 12% * £8m of property sales completed since beginning of October * £6m of properties already acquired in second half 'Although we have had a good start to the second half of the year it is becoming increasingly difficult to acquire the right type of properties at the right price. While the first half results were pleasing, it is too early to say whether a similar level of profitability will be achieved during the remainder of the current year. I therefore view the future with some degree of caution although shareholders should be aware that our first half performance has exceeded the total profits we achieved for the whole of last year,' Raymond Lipman, Chairman. CHAIRMAN'S STATEMENT It is pleasing to report on a period that has seen a more buoyant property market with a greater level of profitable activity than for the corresponding period last year. Although our turnover of around £19m for the first six months of the current year is actually lower margins have improved, translating into substantially higher gross profits. I am delighted to announce that pre-tax profits for the six months to September 30, 1999 are £2.06m which is more than twice the level we reported for the same period a year ago (1998 £952,000). This is reflected in improved earnings per share of 4.77p up from 1.92p last year. Consequently, the Board is declaring a dividend of 1p per ordinary share, a 100% increase over the 1998 level of 0.5p, and is payable on March 7, 2000 to shareholders on the register as at February 4, 2000. It is also worth noting that Safeland's net asset value per share on the balance sheet basis has risen by more than 12% to 60p. This improvement has been achieved despite the fact that there has been no interim revaluation of our investment properties nor does it reflect any increase in value of our quoted investments in both Hercules Property Services Plc and Safestore Plc. While we continue to focus our general day to day business in delivering excellent profits from a wide range of smaller property transactions we are also, where appropriate, prepared to increase the lot sizes of our deals where we perceive the opportunity to create above average trading profits. For example, in the first half year we were able to generate gross profits of more than £2m from the completed sales of only three buildings, Holborn Town Hall, a vacant warehouse building in South East London, and the Metropolitan Business Centre, in London's East End. I can also report that our property trading activities continue to be underpinned by our £18m property investment portfolio which currently generates annual rental income of around £1.5m. I can also report that since the end of September sales in excess of £8m have already been completed. These include a cinema in Wood Green, the £2.75m sale of a business centre in Greenwich and a property in Fulham that was sold for £2.25m. We have also contracted to sell more than £2m of properties since the beginning of October. Whilst we have been able to trade properties at excellent margins we can only do this if we are able to source the right type of property. Since the beginning of October we have acquired or contracted to purchase, more than £6m of properties. This includes a mixed investment in Kennington, a church hall in Spitalfields, where we believe a change of use will produce even better returns, and the leasehold interest in a 13,000 sq ft mixed use building in Great Portland Street, London W1. Although we have had a good start to the second half of the year it is becoming increasingly difficult to acquire the right type of properties at the right price. While the first half results were pleasing, it is too early to say whether a similar level of profitability will be achieved during the remainder of the current year. I therefore view the future with some degree of caution although shareholders should be aware that our first half performance has exceeded the total profits we achieved for the whole of last year. Raymond Lipman 22 November 1999 Chairman SAFELAND PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1999 Neither Neither audited nor audited nor reviewed reviewed Audited Six months Six months Year ended 30 ended 30 ended September September 31 March 1999 1998 1999 £'000 £'000 £'000 Turnover 19,008 20,862 38,692 Cost of sales (15,141) (17,691) (33,009) _______ _______ _______ Gross profit 3,867 3,171 5,683 Sales and distribution costs (439) (664) (977) Administrative expenses (1,244) (1,390) (2,629) Other operating income 237 556 1,046 _______ _______ _______ Operating profit 2,421 1,673 3,123 Profit on disposal of investment properties 268 193 327 Interest receivable and similar income 50 54 278 Interest payable and similar charges (680) (968) (1,996) _______ _______ _______ Profit on ordinary activities before taxation 2,059 952 1,732 Taxation on profit on ordinary activities (631) (305) (521) _______ _______ _______ Profit for the financial period/year 1,428 647 1,211 Dividend paid and proposed (287) (169) (696) _______ _______ _______ Retained profit for the period/year 1,141 478 515 ======= ======= ======= Basic earnings per share (pence) 4.77 1.92 3.62 ======= ======= ======= Diluted earnings per share (pence) 4.77 1.92 3.62 ======= ======= ======= SAFELAND PLC CONSOLIDATED BALANCE SHEETS AS AT 30 SEPTEMBER 1999 Neither Neither audited nor audited nor reviewed reviewed Audited 30 September 30 September 31 March 1999 1998 1999 £'000 £'000 £'000 Fixed assets Tangible assets 802 734 722 Investment properties 17,919 14,096 17,193 Investments 3,343 2,468 3,343 _______ _______ _______ 22,064 17,298 21,258 _______ _______ _______ Current assets Stocks 13,288 20,797 14,485 Debtors 525 523 1,274 Cash at bank and in hand 142 46 2,948 _______ _______ _______ 13,955 21,366 18,707 Creditors: amounts falling due within one year (4,070) (3,058) (3,658) _______ _______ _______ Net current assets 9,885 18,308 15,049 _______ _______ _______ Total assets less current liabilities 31,949 35,606 36,307 Creditors: amounts falling due after more than one year (14,800) (18,219) (18,940) _______ _______ _______ Net assets 17,149 17,387 17,367 ======= ======= ======= Capital and reserves Called up share capital 1,436 1,687 1,634 Share premium account 5,304 5,304 5,304 Capital redemption reserve 251 - 53 Investment property revaluation reserve 473 204 426 Profit and loss account 9,685 10,192 9,950 _______ _______ _______ Equity shareholders' funds 17,149 17,387 17,367 ======= ======= ======= SAFELAND PLC CONSOLIDATED CASHFLOW STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1999 Neither Neither audited nor audited nor reviewed reviewed Audited Six months Six months Year ended 30 ended 30 ended September September 31 March 1999 1998 1999 Note £'000 £'000 £'000 Net cash inflow from operating activities 6 4,721 3,830 9,878 _______ _______ _______ Returns on investment and servicing of finance Interest received 15 45 278 Interest paid (680) (968) (1,996) Dividends received 35 9 - _______ _______ _______ Net cash outflow from returns on investments and servicing of finance (630) (914) (1,718) _______ _______ _______ Taxation Tax paid (62) (83) (1,465) _______ _______ _______ Capital expenditure and financial investment Purchase of tangible fixed assets (291) (117) (361) Disposal of tangible fixed assets 178 26 263 Purchase of investment properties (2,490) (2,179) (4,144) Disposal of investment properties 2,032 2,338 2,703 Purchase of investments - (102) (977) _______ _______ _______ Net cash outflow from capital expenditure and financial investment (571) (34) (2,516) _______ _______ _______ Equity dividends paid Divdends paid - - (169) _______ _______ _______ Cash inflow before financing 3,458 2,799 4,010 _______ _______ _______ Financing Purchase of own shares (1,359) - (279) Loan repayments (5,184) (4,005) (2,043) _______ _______ _______ Net cash outflow from financing (6,543) (4,005) (2,322) _______ _______ _______ (Decrease)/increase in cash 7 (3,085) (1,206) 1,688 ======= ======= ======= SAFELAND PLC NOTES 1. The interim financial information for the six months ended 30 September 1998 and the six months ended 30 September 1999 is neither audited nor reviewed by the auditors. 2. The unaudited interim results have been prepared in accordance with accounting policies set out in the accounts for the year ended 31 March 1999. The financial information in this report for the year ended 31 March 1999 does not comprise statutory accounts within the meaning of the Act. Statutory accounts, which received an unqualified Auditors' Report and contained no statement under section 237 of the Act, have been delivered to the Registrar of Companies. 3. Basic earnings per share is calculated on profit on ordinary activities of £1,428,000 (30 September 1998: £647,000; 31 March 1999: £1,211,000) and on 29,958,200 ordinary shares (30 September 1998: 33,745,331; 31 March 1999: 33,427,797) being the weighted average number of shares in issue throughout the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all dilutive potential ordinary shares. The group does not have any dilutive potential ordinary shares because the exercise price of all share options granted is above the average price of the company's ordinary shares during the periods. 4. The dividend per share will be paid on 7 March 2000 to shareholders appearing on the register at the close of business on 4 February 2000. 5. Safeland plc purchased 3,950,000 of its own shares during the period for total consideration of £1,359,000. A balance of £198,000 has been transferred to the capital redemption reserve. 6. Reconciliation of operating profit to net cash inflow from operating activities Six months Six months Year ended 30 ended 30 ended September September 31 March 1999 1998 1999 £'000 £'000 £'000 Operating profit 2,421 1,673 3,123 Depreciation 60 90 132 Profit on sale of fixed assets (27) (1) (24) Decrease in stocks 1,197 2,865 8,036 Decrease in debtors 749 1,021 176 Increase/(decrease) in creditors 321 (1,818) (1,565) _______ _______ _______ Net cash inflow from operating activities 4,721 3,830 9,878 ======= ======= ======= 7. Reconciliation of net cash flow to movement in net debt Six months Six months Year ended 30 ended 30 ended September September 31 March 1999 1998 1999 £'000 £'000 £'000 (Decrease)/increase in cash in the period (3,085) (1,206) 1,688 Cash outflow from decrease in debt 5,184 4,005 2,043 _______ _______ _______ Charge in net debt resulting from cash flows 2,099 2,799 3,731 Net debt brought forward (17,648) (21,379) (21,379) _______ _______ _______ Net debt carried forward (15,549) (18,580) (17,648) ======= ======= ======= 8. Analysis of net debt At At 1 April Cash Other 30 September 1999 flows changes 1999 £'000 £'000 £'000 £'000 Cash 2,948 (2,806) - 142 Overdraft (8) (279) - (287) _______ _______ _______ _______ 2,940 (3,085) - (145) Debt due within one year (1,648) 5,184 (4,140) (604) Debt due after one year (18,940) - 4,140 (14,800) _______ _______ _______ _______ Total (17,648) 2,099 - (15,549) ======= ======= ======= ======= 9. Reconciliation of movements in shareholders' funds Six months Six months Year ended 30 ended 30 ended September September 31 March 1999 1998 1999 £'000 £'000 £'000 Profit for the financial period 1,428 647 1,211 Dividends (287) (169) (696) _______ _______ _______ 1,141 478 515 Other recognised gains and losses - - 222 Repurchase of shares (including expenses) (1,359) - (279) _______ _______ _______ Net addition to equity shareholders' funds (218) 478 458 Opening equity shareholders' funds 17,367 16,909 16,909 _______ _______ _______ Closing equity shareholders' funds 17,149 17,387 17,367 ======= ======= ======= 10. Copies of this statement are being sent to all shareholders and are available to the public for collection at the Company's Registered Office at 144 Great North Way, Hendon, London NW4 1EG. Contact: Safeland plc Tel: 0181-203 9099 Larry Lipman, Managing Director Paul Davis, Finance Director Baron Phillips Associates Tel: 0171-224 1302 Baron Phillips

Companies

Safeland plc (SAF.AMPX)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today