Preliminary results year ende

RNS Number : 8177U

Safeland PLC

30 June 2009

 



30 June 2009

SAFELAND PLC

Preliminary results for the year ended 31 march 2009

Chairman's Statement

Market conditions throughout the year have remained difficult and property prices have continued to fall. The Board has looked at the value of the portfolio as at the year end with the assistance of external valuers and has made the decision to write down the Group's trading properties by £4,648,000 (2008:£1,463,000).

This has obviously impacted on the results for the year ended March 31 2009 such that the Group has made a loss before tax of £8,339,000 (2008: £977,000 loss). The resultant loss per share is 51.33p (2008: 3.92p loss per share). Revenue for the year was £15,115,000 compared to £23,567,000 in the prior year. Gearing at the year end was 154% (2008: 110%). Net assets per share at the year end were 63p (2008: 114p).

The Board has also decided to write down the value of the investment in the Managed Workspace Fund by a further £400,000 in addition to the £500,000 that was written off at the time of the Group's unaudited interim results to September 30 2008. The carrying value of this original investment is now £100,000. Notwithstanding this, the Board continues to believe that the value of the underlying properties in this fund will recover over the forthcoming years. Furthermore, it has taken the opportunity since the year end to increase Safeland's stake in the fund to just under 40% by purchasing 50% of the units owned by the largest investor, Babcock & Brown. The other 50% has been purchased by Electra who were also existing investors in the Fund.

This entire year has been one of continued consolidation due to the extremely difficult and unprecedented market conditions. Whilst there is no significant improvement on the horizon, there has been an increase in activity since the year end.

With the continued support of the banks and our professional team, we consider that Safeland is well positioned to take full advantage of any improvement in market conditions as and when they may occur, whilst also assessing opportunities in other areas that have the potential to improve the Company. I therefore, remain optimistic for the long term future.

Raymond Lipman

Chairman

30 June 2009

CONSOLIDATED INCOME STATEMENT

Year ended 31 March 2009

	Note		2009 £'000	2008 £'000
			Unaudited	Audited
Revenue	2		15,115	23,567
Cost of sales   (including amounts written off inventories of £4,648,000 (2008: £1,463,000))			(18,472)	(19,339)
Gross (loss) / profit			(3,357)	4,228
Sales and distribution costs			(464)	(573)
Administrative expenses			(4,114)	(4,022)
Other operating income			758	855
Loss on disposal of property, plant and equipment			(14)	(4)
Gains on revaluation of investment properties			1,295	287
(Loss) / profit on disposal of investment properties			(290)	105
Operating (loss) / profit			(6,186)	876
Share of results of associates - post tax			-	-
Impairment of available-for-sale investments			(900)	-
Impairment of interests in associates			-	(10)
(Loss) / profit before interest			(7,086)	866
Finance income			84	81
Finance costs			(1,337)	(1,924)
Loss  before tax	2		(8,339)	(977)
Tax			(312)	267
Loss for the financial year from continuing operations			(8,651)	(710)
Loss for the period from discontinued operations	3		-	(83)
Loss for the financial year			(8,651)	(793)

CONSOLIDATED INCOME STATEMENT

Year ended 31 March 2009

			2009	2008
			Unaudited	Audited
Loss per share
Continuing operations
Basic loss per share	4		(51.33)p	(3.92)p
Diluted loss per share			(51.33)p	(3.92)p
Continuing and discontinued operations
Basic loss per share			(51.33)p	(4.38)p
Diluted loss per share			(51.33)p	(4.38)p

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

Year ended 31 March 2009

				Note	2009 £'000	2008 £'000
					Unaudited	Audited
Fair value losses on available-for-sale investments					(16)	(102)
Exchange differences on translation of foreign operations					-	(38)
Tax on items taken directly to equity					6	30
Transfer foreign currency translation reserve to income statement					-	45
Net loss recognised directly in equity					(10)	(65)
Loss for the year					(8,651)	(793)
Total recognised income and expense for the year attributable to equity shareholders		7			(8,661)	(858)

CONSOLIDATED BALANCE SHEET

31 March 2009

		Note	2009 £'000		2008 £'000
			Unaudited		Audited
Non-current assets
Property, plant and equipment			2,052		2,177
Investment properties			3,046		2,054
Interests in associates			-		-
Available-for-sale investments			273		1,089
Deferred tax assets			-		104
Total non-current assets			5,371		5,424
Current assets
Trading properties			22,272		33,390
Trade and other receivables			427		2,657
Current tax receivable			-		283
Cash and cash equivalents		6	1,811		813
Total current assets			24,510		37,143
Total assets		2	29,881		42,567
Current liabilities
Bank loans and overdrafts			18,179		19,679
Trade and other payables			572		1,255
Current tax liabilities			15		-
Total current liabilities			18,776		20,934
Non-current liabilities
Bank loans			-		2,301
Deferred tax liabilities			466		146
Total non-current liabilities			466		2,447
Total liabilities		2	19,232		23,381
Net assets			10,649		19,186
Equity
Share capital			843		843
Share premium account			5,351		5,351
Capital redemption reserve			847		847
Share based payment reserve			210		86
Investment revaluation reserve			3		13
Retained earnings			3,395		12,046
Total equity		7	10,649		19,186

CONSOLIDATED CASH FLOW STATEMENT

Year Ended 31 March 2009

			Note			2009 £'000			2008 £'000
						Unaudited			Audited
Operating activities
Net cash inflow from operations			5			5,798			6,724
Interest paid						(1,337)			(1,924)
Tax received / (paid)						416			(542)
Net cash inflow from operating activities						4,877			4,258
Investing activities
Interest received						68			81
Dividends received						16			-
Purchase of investment properties						(511)			(761)
Purchase of property, plant and equipment						(139)			(482)
Purchase of available-for-sale investments						(100)			-
Proceeds from sale of property, plant and equipment						64			278
Proceeds from sale of investment properties						524			967
Cash outflows in respect of subsidiary in voluntary liquidation						-			(358)
Net cash outflow from investing activities						(78)			(275)
Financing activities
New loans						9,439			19,140
Loan repayments						(12,464)			(23,330)
Purchase of own shares						-			(1,160)
Net cash outflow from financing activities						(3,025)			(5,350)
Net increase / (decrease) in cash and cash equivalents in the year						1,774			(1,367)
Cash and cash equivalents at beginning of year						(18)			1,349
Cash and cash equivalents at end of year			6			1,756			(18)

NOTES TO THE PRELIMINARY ANNOUNCEMENT

Year ended 31 March 2009

1.  BASIS OF PREPARATION

The financial information set out in the announcement does not constitute the group's statutory financial statements within the meaning of section 240 of the Companies Act 1985, for the years ended 31 March 2009 or 2008. The statutory financial statements for the year ended 31 March 2009 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 2008 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 and did not contain a statement under s237(2) or (3) of the Companies Act 1985.

This announcement is prepared applying International Financial Reporting Standards as adopted by the European Union and using accounting policies that are consistent with those as stated in the previous year's financial statements. 

This preliminary announcement was approved by the Board of directors on 29 June 2009.

Copies of this announcement are available from the company's registered office at 94-96 Great North Road, London, N2 0NL and on its website, www.safeland.co.uk. The Annual Report and Accounts will be sent to shareholders shortly.

2.  BUSINESS AND GEOGRAPHICAL SEGMENTS

Business segments 

For management purposes, the group was organised into three operating divisions as detailed below:

• property trading, property refurbishment and property investment

• property fund management; and

• self storage

These divisions are the basis on which the group reports its primary segmental information.

The group's self storage subsidiary was placed into voluntary liquidation on 1 October 2007 and this segment has been disclosed as a discontinued operation in the comparative numbers.

Geographical segments

The group's operations are wholly based in the United Kingdom except the self-storage operation which operated in Italy and was placed into voluntary liquidation on 1 October 2007.

No additional segmental disclosure is provided in respect of geographical segments as they are identical to the business segments detailed above.

Year ended 31 March 2009	Property trading, refurbishment and investment	Fund management	Total
	£'000	£'000	£'000
Revenue	14,705	410	15,115
Segment result	(5,594)	(592)	(6,186)
Impairment of available-for-sale investments			(900)
Finance income			84
Finance costs			(1,337)
Loss before tax			(8,339)
Tax			(312)
Loss  for the financial year			(8,651)
Other information
Capital expenditure	139	-	139
Depreciation	156	31	187
Share based payment	-	124	124
Balance sheet
Segment assets	29,400	208	29,608
Available-for-sale investments			273
Total assets			29,881
Segment liabilities	547	25	572
Borrowings			18,179
Deferred tax liabilities			466
Current tax liabilities			15
Total liabilities			19,232

Year ended 31 March 2008	Property  trading, refurbishment  and investment	Self  storage	Fund management	Discontinued operations	Total
	£’000	£’000	£’000	£’000	£’000
Revenue	23,136	225	431	(225)	23,567
Segment result	1,353	(52)	(477)	52	876
Impairment of interests in associates					(10)
Finance income					81
Finance costs					(1,924)
Loss before tax					(977)
Tax					267
Loss for the year from discontinued operations					(83)
Loss for the financial year					(793)
Other information
Capital expenditure	1,208	12	23		1,243
Depreciation	164	-	28		192
Share based payment	-	-	86		86
Balance sheet
Segment assets	38,044	1,593	1,454		41,091
Available-for-sale investments					1,089
Deferred tax asset					104
Current tax recoverable					283
Total assets					42,567
Segment liabilities	1,095	-	160		1,255
Borrowings					21,980
Deferred tax liabilities					146
Total liabilities					23,381

3. DISCONTINUED OPERATIONS

On 1 October 2007, the Group's subsidiary, Espazio SRL was placed into voluntary liquidation and hence all assets and liabilities were deemed to be disposed of on this date. This subsidiary carried out the Group's self storage business. The results of the discontinued operations which have been included within the consolidated income statement, were as follows:

			2009 £'000	2008 £'000
			Unaudited	Audited
Revenue			-	225
Expenses			-	(277)
Finance costs (net)			-	(28)
Loss before tax			-	(80)
Foreign currency translation reserve			-	(45)
Profit on disposal of discontinued operations			-	42
Loss attributable to discontinued operations			-	(83)

Basic loss per share	(0.46)p
Diluted loss per share	(0.46)p

4. LOSS PER SHARE

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

		2009 £'000	2008 £'000
		Unaudited	Audited
Loss for the year from continuing operations		(8,651)	(710)
Loss for the year from discontinued operations		-	(83)
Loss for the year attributable to equity holders of the company		(8,651)	(793)
		2009 '000	2008 '000
		Unaudited	Audited
Weighted average number of ordinary shares for the purposes of basic loss per share		16,851	18,122
Effect of dilutive potential ordinary shares		-	-
Weighted average number of ordinary shares for the purposes of diluted loss per share		16,851	18,122

There is no dilutive effect of potential ordinary shares in 2009 or 2008 as in both instances there is a loss for the year. 

5.   NOTES TO THE CASH FLOW STATEMENT

		2009 £'000	2008 £'000
		Unaudited	Audited
Loss before tax from continuing operations		(8,339)	(977)
Loss before tax from discontinued operations		-	(83)
Adjustments for:
Depreciation of property, plant and equipment		187	192
Loss on sale of property, plant and equipment		14	4
Loss / (profit) on sale of investment properties		290	(105)
Gains on revaluation of investment properties		(1,295)	(287)
Impairment of available-for-sale investments		900	-
Impairment of interests in associates		-	10
Share based payment charge		124	86
Finance costs (net)		1,252	1,871
Changes in working capital:
Decrease in trading properties		11,118	5,363
Decrease in trade and other receivables		2,230	1,136
Decrease in trade and other payables		(683)	(486)
Net cash inflow from operations		5,798	6,724

6.  CASH AND CASH EQUIVALENTS

	2009 £'000	2008 £'000
	Unaudited	Audited
Cash and cash equivalents per balance sheet	1,811	813
Bank overdrafts	(55)	(831)
Cash and cash equivalents per cash flow statement	1,756	(18)

7.  STATEMENT OF CHANGES IN EQUITY

		2009 £'000	2008 £'000
		Unaudited	Audited
1 April 2008		19,186	21,118
Total recognised income and expense for the year		(8,661)	(858)
Purchase of own shares		-	(1,160)
Share based payment charge		124	86
31 March 2009		10,649	19,186

 

END

 

 

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