Interim Results

Safeland PLC 26 November 2007 FOR RELEASE 26 NOVEMBER 2007 SAFELAND PLC INTERIM RESULTS Safeland plc, the property fund management and property trading group, announces results for the six months ended 30 September 2007. Financial Highlights: • Revenue of £13.32m (H1 06: £12.49m) • Profits before tax of £0.26m (H1 06: £3.95m - inc. £3.57m from Bizspace disposal) • EPS of 0.59p (H1 06: 14.53p including Bizspace disposal profit) • NAV per share of 114p (H1 06: 114p) • Gearing now stands at 75% Operational Highlights: • Successfully completed equity raising for property unit trust resulting in the fund when fully invested having an excess of £200m of property. • In excess of £53m has been invested in multi-let industrial properties. • Continued transition from being a property trader to focussing on property fund management. Raymond Lipman, Chairman of Safeland plc, said: 'Recent economic events have seen yields starting to soften and this together with the 'credit squeeze' could enable Safeland who have tremendous support from their banks alongside long term credit facilities, to take advantage of opportunities that may well present themselves both for the fund and for trading.' Safeland plc Tel: 020 8815 1600 Larry Lipman, Managing Director Paul Davis, Finance Director www.safeland.co.uk Parkgreen Communications Ltd Tel: 020 7479 7933 Paul McManus Mob: 07980 541 893 paul.mcmanus@parkgreenmedia.com SAFELAND PLC CHAIRMAN'S STATEMENT FOR THE SIX MONTHS ENDED 30 September 2007 I am pleased to report that for the six months ended September 30 2007 the Company is reporting a profit before taxation of £258,000 compared to £ 3.95m for the same period last year. Shareholders should remember that included in last year's profit was £3.57m in respect of the sale of the Company's shares in Bizspace Plc. As has been previously stated Espazio, the Italian self storage business has not been performing as anticipated. It has therefore been decided to terminate this activity and to place the Italian subsidiary into voluntary liquidation. Revenue has gone up from £12.5m to £13.3m.. Net asset value per share at September 30 2007 was 114p identical to September 30 2006. Earnings per share were 0.59p (2006: 14.53p) and the Company will not be paying a dividend for this period. Once again the 2006 figure would have included the profit emanating from the sale of the shares in Bizspace Plc. The Company during this period has continued its transition from that of principally being a property trader to focusing on property fund management. In my statement that accompanied the year end accounts to March 31 2007 I advised shareholders that earlier in the year CBRE had been instructed to assist in raising further equity for the property unit trust that was launched as a joint venture with Electra Partners Europe Ltd in October 2006. I am delighted to report that in September 2007 the company announced that this exercise had been successfully completed with Babcock & Brown committing £50m of equity and Electra a further £5m, thus raising their involvement to £20m. At the same time bank facilities were also increased by a further £135m. The result of this is that when fully invested the Fund will have in excess of £200m of property. Once invested this will facilitate a quality income stream alongside the property trading transactions. Already, in excess of £53m has been invested in multi-let industrial properties, which is the main focus of the Fund. Recent economic events have seen yields starting to soften and this together with the 'credit squeeze' could enable Safeland who have tremendous support from their banks alongside long term credit facilities, to take advantage of opportunities that may well present themselves both for the fund and for trading. I therefore look forward to the future with confidence. Raymond Lipman Chairman November 26 2007 SAFELAND PLC UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 September 2007 Neither Neither audited nor audited nor reviewed reviewed Audited Six months Six months Year ended ended ended 30 September 30 September 31 March 2007 2006 2007 Notes £'000 £'000 £'000 Revenue 13,318 12,490 18,266 Cost of sales (10,410) (10,048) (14,394) Gross profit 2,908 2,442 3,872 Sales and distribution costs (313) (160) (370) Administrative expenses (2,298) (2,404) (4,786) Other operating income 697 231 445 Profit on disposal of property, plant and equipment 2 - 939 Profit on disposal of investment properties 121 165 156 Profit on disposal of subsidiaries 34 192 192 Operating profit 1,151 466 448 Share of results of associate - post tax - - (4) Profit on disposal of available-for-sale investments - 3,571 3,572 Profit before interest 1,151 4,037 4,016 Finance income 30 121 140 Finance costs (923) (206) (465) Profit before tax 258 3,952 3,691 Tax (149) (1,264) (882) Profit for the financial period 109 2,688 2,809 Basic earnings per share 2 0.59p 14.53p 15.18p Diluted earnings per share 2 0.59p 14.53p 15.17p SAFELAND PLC UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 September 2007 Neither audited Neither audited nor reviewed nor reviewed Audited 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 Non-current assets Property, plant and equipment 4,251 5,355 4,263 Investment properties 1,007 1,661 1,868 Interests in associates 10 14 10 Available-for-sale investments 1,134 203 1,191 Deferred tax assets 46 55 46 Total non-current assets 6,448 7,288 7,378 Current assets Trading properties 31,091 14,587 38,753 Trade and other receivables 1,341 922 2,363 Cash and cash equivalents 1,314 3,267 1,448 Total current assets 33,746 18,776 42,564 Total assets 40,194 26,064 49,942 Current liabilities Bank loans and overdrafts 584 332 8,089 Trade and other payables 1,280 1,376 2,051 Current tax liabilities 479 1,660 541 Total current liabilities 2,343 3,368 10,681 Non-current liabilities Bank loans 16,616 1,570 18,040 Deferred tax liabilities 103 107 103 Total non-current liabilities 16,719 1,677 18,143 Total liabilities 19,062 5,045 28,824 Net assets 21,132 21,019 21,118 Equity Share capital 925 925 925 Share premium account 5,351 5,351 5,351 Capital redemption reserve 765 765 765 Translation reserve (46) 7 (7) Revaluation reserve 29 - 85 Retained earnings 14,108 13,971 13,999 Total equity 21,132 21,019 21,118 SAFELAND PLC UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 September 2007 Neither audited Neither audited nor reviewed nor reviewed Audited Six months Six months Year ended ended ended 30 September 30 September 31 March Notes 2007 2006 2007 £'000 £'000 £'000 Operating activities Net cash inflow/(outflow) from operations 4 8,992 (450) (26,100) Interest paid (841) (222) (481) Tax paid (340) - (728) Net cash inflow/(outflow) from operating activities 7,811 (672) (27,309) Investing activities Interest received 30 121 140 Purchase of investment properties (1) (568) (776) Purchase of property, plant and equipment (134) (267) (518) Purchase of available for sale investments - - (1,000) Proceeds from sale of property, plant and equipment 101 909 2,947 Proceeds from sale of investment properties 1,033 3,704 3,696 Proceeds from sale of available-for-sale investments - 6,889 6,890 Proceeds from the sale of subsidiaries 1,225 3,525 3,525 Net cash inflow from investing activities 2,254 14,313 14,904 Financing activities New loans 10,292 2,000 21,513 Loan repayments (20,699) (13,940) (9,306) Net cash (outflow)/inflow from financing activities (10,407) (11,940) 12,207 Net (decrease)/increase in cash and cash equivalents (342) 1,701 (198) Cash and cash equivalents at beginning of period 1,349 1,547 1,547 Cash and cash equivalents at end of period 1,007 3,248 1,349 SAFELAND PLC UNAUDITED CONSOLIDATED Statement of RECOGNISED INCOME AND EXPENSE FOR THE SIX MONTHS ENDED 30 September 2007 Neither Neither audited nor audited nor reviewed reviewed Six months Six months Audited ended ended Year ended 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 Fair value (losses)/gains on available-for-sale investments (56) 30 18 Exchange differences on translation of foreign operations (39) 57 43 Tax on items taken directly to equity - (10) (5) Net (loss)/income recognised directly in equity (95) 77 56 Transfer to profit on disposal of available-for-sale - (3,053) (3,053) investments Tax on items transferred from equity - 752 751 Profit for the period 109 2,688 2,809 Total recognised income and expense for the period 14 464 563 available to equity shareholders SAFELAND PLC NOTES TO THE FINANCIAL INFORMATION (UNAUDITED) 1. Basis of preparation and accounting policies This interim financial information was approved by the Board of Directors on November 23 2007. The results for the year ended 31 March 2007 are not statutory accounts within the meaning of s240, Companies Act 1985. Statutory accounts for that period were prepared and filed with the Registrar of Companies and received an unqualified audit report. The results for the six months to 30 September 2007 and 2006 are unaudited and do not constitute the Group's statutory accounts within the meaning of s240 of the Companies Act 1985. The accounting policies adopted in the preparation of this financial information are consistent with those used in the preparation of the 2007 statutory accounts. 2. Earnings per share Basic earnings per share of 0.59p (30 September 2006: earnings of 14.53p; 31 March 2007 earnings of 15.18p) are based on the profit for the period of £109,000 (30 September 2006: profit of £2,688,000; 31 March 2007: profit of £2,809,000) and on 18,500,530 ordinary shares being the weighted average number of shares in issue for each period. Diluted earnings per share of 0.59p (30 September 2006: diluted earnings of 14.53p; 31 March 2007: diluted earnings of 15.17p) are based on the profit for the period of £109,000 (30 September 2006: profit of £2,688,000; 31 March 2007: profit of £2,809,000) and on 18,500,300 ordinary shares being the weighted average number of shares in issue (30 September 2006: 18,500,530; 31 March 2007: 18,515,019). The increase in the weighted average number of shares in issue for the calculation of diluted earnings per share is due to the dilutive effect of the share options granted in the January 2007. This does not affect the weighted average number of shares in issue for the 6 months ended 30 September 2007 due to the average share price of Safeland plc for the period being below the exercise price of the share options. 3. Dividend No interim dividend has been declared. 4. Reconciliation of operating profit to net cash flow from operations Neither audited Neither audited nor reviewed nor reviewed Six months Six months Audited ended ended Year ended 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 Operating profit 1,151 466 448 Adjustments for: Depreciation of property, plant and equipment 85 264 342 Profit on sale of property, plant and equipment (2) (166) (939) Profit on sale of investment properties (121) (165) (156) Profit on sale of subsidiaries (34) (192) (192) Other non-cash changes - 57 - Changes in working capital: Decrease/(increase) in trading properties 7,662 (1,533) (25,699) Decrease/(increase) in trade and other receivables 1,022 486 (955) (Decrease)/increase in trade and other payables (771) 333 1,051 Net cash inflow/(outflow) from operations 8,992 (450) (26,100) 5. 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 94-96 Great North Road, London N2 0NL, and are available on the website www.safeland.co.uk This information is provided by RNS The company news service from the London Stock Exchange

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