Preliminary results - year en

RNS Number : 2952Q
Safeland PLC
02 August 2010
 



2 August 2010

SAFELAND PLC

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2010

Chairman's Statement

Safeland plc

Chairman's Statement for the year ended 31 March 2010

 

Market conditions have improved during the second half of the year under review. However, they still remain challenging and it is against this backdrop that the Company announces its results for the year ended 31 March 2010.

 

The Group has made a loss before tax for the year of £1,025,000 (2009: £8,339,000). The resultant loss per share is 7.2p (2009: 51.3p). Gearing at the year end was 144% (2009: 154%) and Net Assets per Share were 56p (2009: 63p).

 

As previously announced, the Board has examined the value of the portfolio as at the year end with the assistance of external valuers and the overall effect is an increase in the value of the trading property portfolio of £195,000 (2009: deficit £4,648,000) and investment properties of £666,000 (2009: £1,295,000).

 

However, due to the continued pressure on the value of industrial property a further £250,000 has been written off the value of the investment held in the Managed Workspace Fund which now stands at £100,000.

 

Post the year end, shareholders may be aware that the company has agreed to acquire the 50% shareholding in Grafton Insurance Services Limited that was previously held by Leo Insurance Services Plc ("Leo") for a value of £90,000.  The consideration was satisfied by the set off against amounts owed by Leo to Safeland.  This transaction was approved by the shareholders of Leo Insurance Services at an EGM on 30 July 2010.

 

Trading remains difficult, but activity is improving, albeit slowly.  We continue to enjoy the support of our lenders and our professionals and remain well positioned to take full advantage of improvements in market conditions as they occur.

 

I therefore remain optimistic of the long term future.

 

 

Raymond Lipman

Chairman

 

2 August 2010

 


CONSOLIDATED INCOME STATEMENT

Year ended 31 March 2010

 

 

 

2010

£'000

2009

£'000

 

 

 

Unaudited

Audited

Revenue

 

 

11,940

15,115

 

 

 

 

 

Cost of sales    (including amounts written back to  inventories of £195k

                         (2009: written off £4,648k))

 

 

(9,052)

(18,472)

 

 

 

 

 

Gross profit / (loss)

 

 

2,888

(3,357)

 

 

 

 

 

Sales and distribution costs

 

 

(322)

(464)

 

 

 

 

 

Administrative expenses

 

 

(3,777)

(4,114)

 

 

 

 

 

Other operating income

 

 

645

758

 

 

 

 

 

Loss on disposal of property plant and equipment

 

 

(102)

(14)

 

 

 

 

 

Gain on revaluation of investment properties

 

 

666

1,295

 

 

 

 

 

Loss on disposal of investment properties

 

 

(9)

(290)

 

 

 

 

 

Operating loss

 

 

(11)

(6,186)

 

 

 

 

 

Impairment of available- for- sale investments

 

 

(250)

(900)

 

 

 

 

 

 

 

 

 

 

Loss before interest

 

 

(261)

(7,086)

 

 

 

 

 

Finance income

 

 

4

84

Finance costs

 

 

(768)

(1,337)

 

 

 

 

 

Loss before tax

 

 

(1,025)

(8,339)

 

 

 

 

 

Tax

 

 

(188)

(312)

 

 

 

 

 

Loss for the financial year attributable to equity holders of the parent company

 

 

 

(1,213)

 

(8,651)

 

 

 

 

 

 

 

 

 

 

Basic loss per share

2

(7.20)p

(51.33)p

Diluted loss per share



(7.20)p

(51.33)p

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 March 2010

 

 

 

 

2010

£'000

2009

£'000

 

 

 

 

Unaudited

Audited

 

 

 

 

 

 

Loss for the year

 

 

 

(1,213)

(8,651)

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

Fair value gains / (losses) on available-for-sale investments

 

 

 

2

(16)

 

 

 

 

 

 

Tax on items taken directly to equity

 

 

 

-

6

 

 

 

 

 

 

 

 

 

 

Other comprehensive income for the year

 

 

2

(10)

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the year attributable to equity holders of the parent company

 

 

 

 

(1,211)

(8,661)

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 March 2010

 

 

 

 

2010

£'000

 

2009

£'000

Non-current assets

 

 

 

Unaudited

 

Audited

Property, plant and equipment

 

 

 

287

 

2,052

Investment properties

 

 

 

3,462

 

3,046

Interests in associates

 

 

 

-

 

-

Available-for-sale investments

 

 

 

275

 

273

 

 

 

 

 

 

 

Total non-current assets

 

 

 

4,024

 

5,371

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Trading properties

 

 

 

20,732

 

22,272

Trade and other receivables

 

 

 

412

 

427

Cash and cash equivalents

 

 

 

434

 

1,811

 

 

 

 

 

 

 

Total current assets

 

 

 

21,578

 

24,510

 

 

 

 

 

 

 

Total assets

 

 

 

25,602

 

29,881

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Bank loans and overdrafts

 

 

 

276

 

18,179

Trade and other payables

 

 

 

1,270

 

572

Current tax liabilities

 

 

 

-

 

15

 

 

 

 

 

 

 

Total current liabilities

 

 

 

1,546

 

18,766

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Bank loans

 

 

 

13,757

 

-

Derivative financial instruments

 

 

 

185

 

-

Deferred tax liabilities

 

 

 

676

 

466

 

 

 

 

 

 

 

Total non-current liabilities

 

 

 

14,618

 

466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

16,164

 

19,232

 

 

 

 

 

 

 

Net assets

 

 

 

9,438

 

10,649

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

 

 

 

843

 

843

Share premium account

 

 

 

5,351

 

5,351

Capital redemption reserve

 

 

 

847

 

847

Share based payment reserve

 

 

 

210

 

210

Investment revaluation reserve

 

 

 

5

 

3

Retained earnings

 

 

 

2,182

 

3,395

 

 

 

 

 

 

 

Total equity attributable to equity holders of the parent company

 

 

 

9,438

 

10,649

 

 

 

 

 

 

 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended 31 March 2010

 

 

Attributable to owners of the parent

 

 

 

Share Capital

Share premium account

Capital redemption reserve

Share based payment reserve

Investment revaluation reserve

Retained earnings

Total equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 April 2008

843

5,351

847

86

13

12,046

19,186

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the year

-

-

-

-

-

(8,651)

(8,651)

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value losses on available-for-sale investments

-

-

-

-

(16)

-

(16)

Tax on items taken directly to equity

-

-

-

-

6

-

6

 

 

 

 

 

 

 

 

Total other comprehensive income

-

-

-

-

(10)

-

(10)

 

 

 

 

 

 

 

 

Total comprehensive income

-

-

-

-

(10)

(8,651)

(8,661)

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share based payment charge for the year

-

-

-

124

-

-

124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 April 2009

843

5,351

847

210

3

3,395

10,649

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the year

-

-

-

-

-

(1,213)

(1,213)

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value gain on available-for-sale investments

-

-

-

-

2

-

2

 

 

 

 

 

 

 

 

Total other comprehensive income

-

-

-

-

2

-

2

 

 

 

 

 

 

 

 

Total comprehensive income

-

-

-

-

2

(1,213)

(1,211)

 

 

 

 

 

 

 

 

Transactions with owners

-

-

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 March 2010

843

5,351

847

210

5

2,182

9,438

 

 

 

 

 

 

 

 


CONSOLIDATED STATEMENT OF CASH FLOWS

Year ended 31 March 2010

 

Note

 

 

2010

£'000

2009

£'000

 

 

 

 

Unaudited

Audited

Operating activities

 

 

 

 

 

Net cash generated from operations

3

 

 

1,800

5,798

Interest paid

 

 

 

(583)

(1,337)

Tax received

 

 

 

7

416

 

 

 

 

 

 

Net cash generated from operating activities

 

 

 

1,224

4,877

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Interest received

 

 

 

4

68

Dividends received

 

 

 

-

16

Purchase of investment properties

 

 

 

-

(511)

Purchase of property, plant and equipment

 

 

 

(155)

(139)

Purchase of available for sale investments

 

 

 

(250)

(100)

Proceeds from sale of property, plant and equipment

 

 

 

1,705

64

Proceeds from sale of investment properties

 

 

 

241

524

 

 

 

 

 

 

Net cash generated/(outflow) from investing activities

 

 

 

1,545

(78)

 

 

 

 

 

 

Financing activities

 

 

 

 

 

New loans

 

 

 

5,300

9,439

Loan repayments

 

 

 

(9,667)

(12,464)

 

 

 

 

 

 

 

 

 

 

 

 

Net cash outflow from financing activities

 

 

 

(4,367)

(3,025)

 

 

 

 

 

 

Net (decrease) / increase in cash and cash equivalents

 

 

 

(1,598)

1,774

Cash and cash equivalents at beginning of year

 

 

 

1,756

(18)

 

 

 

 

 

 

Cash and cash equivalents at end of year

4

 

 

158

1,756

 

 

 

 

 

 

 


NOTES TO THE PRELIMINARY ANNOUNCEMENT

Year ended 31 March 2010

1.             BASIS OF PREPARATION

The financial information does not constitute statutory financial statements as defined by section 435 of the Companies Act 2006 for the years ended 31 March 2010 or 2009.

 

The statutory financial statements for the year ended 31 March 2010 will be finalised and signed 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 financial information for the year ended 31 March 2009 is derived from the statutory accounts for that year. The auditor reported on those statutory accounts which have been delivered to the Registrar of Companies. The audit report was unqualified, did not include references to matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2) or (3) of the Companies Act 1985.

 

This announcement is prepared applying International Financial Reporting Standards and IFRIC interpretations (`IFRS') as adopted by the European Union, with those parts of the Companies Act 2006 applicable to companies reporting under IFRS and using accounting policies that are consistent with those as stated in the previous year's financial statements.

The financial information contained within this preliminary announcement was approved by the board on 30 July 2010. Copies of this announcement are available from the company's registered office at 1a Kingsley Way, London, N2 0FW and on its website, www.safeland.co.uk.  The Annual Report and Accounts will be sent to shareholders in due course.

2.         LOSS PER SHARE

The calculation of the basic and diluted loss per share is based on the following data:

 

 

2010

£'000

2009

£'000

 

 

Unaudited

Audited

 

 

 

 

Loss for the year attributable to equity holders of the company

 

(1,213)

(8,651)

 

 

 

 

 

 

 

2010

'000

2009

'000

 

 

 

 

Weighted average number of ordinary shares for the purposes of basic loss per share

 

 

16,851

 

16,851

 

 

 

 

Effect of dilutive potential ordinary shares

 

-

-

 

 

 

 

Weighted average number of ordinary shares for the purposes of diluted loss per share

 

 

16,851

 

16,851

 

 

 

 

 

There is no dilutive effect of potential ordinary shares in either 2010 or 2009 as in both instances there is a loss for the year.

3.       NOTES TO THE STATEMENT OF CASH FLOWS

 

 

2010

£'000

2009

£'000

 

 

Unaudited

Audited

 

 

 

 

Loss before tax

 

(1,025)

(8,339)

 

 

 

 

Adjustments for:

 

 

 

Depreciation of property, plant and equipment

 

113

187

Loss on sale of property, plant and equipment

 

102

14

Loss on sale of investment properties

 

9

290

Gains on revaluation of investment properties

 

(666)

(1,295)

Impairment of available for sale investments

 

250

900

Share based payment charge

 

-

124

Finance costs (net)

 

764

1,252

 

 

 

 

Changes in working capital:

 

 

 

Decrease in trading properties

 

1,540

11,118

Decrease in trade and other receivables

 

15

2,230

Increase/(decrease) in trade and other payables

 

698

(683)

 

 

 

 

Net cash generated from operations

 

1,800

5,798

 

 

 

 

4.         CASH AND CASH EQUIVALENTS


2010

£'000

2009

£'000


Unaudited

Audited




Cash and cash equivalents per balance sheet

434

1,811

Bank overdrafts

(276)

(55)


 

 

Cash and cash equivalents per cash flow statement

158

1,756

 


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