Preliminary Results - year ended 31 March 2011

RNS Number : 0088K

Safeland PLC

08 July 2011

 



8 July 2011

 

SAFELAND PLC

 

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2011

Chairman's Statement

In my statement that accompanied the 2010 Accounts I mentioned that trading had started to improve in the second half of that year, but unfortunately this did not continue into the year under review.

I am therefore reporting a loss for the year of £965,000 (2010: loss of £1,025,000). The resultant loss per share is 5.7p (2010: loss of 7.2p). Gearing at the year end was 168% (2010: 144%) and Net Assets per Share were 50p (2010: 56p).

In September 2009, the Board informed each executive director that they had to forgo a proportion of their salary to take into consideration the market conditions and in the event that the Group returned to a sustained profitable position, the forgone salary would be paid and the former salary reinstated. Unfortunately, conditions have not improved and, therefore, the Board informed the executive directors that the amounts in question will not be made good under any circumstances and, therefore, an accrual for these monies in the sum of £1,877,000 has been reversed as at 31 March 2011.  There will be no further salary reviews until market conditions will allow.

There is, however, a recognition that the executive directors need to be incentivised to ensure that the Group does return to profit as soon as possible and, therefore, it is proposed that share options will be granted to the executive directors.  Further details will be included in the notice of the forthcoming Annual General Meeting.

As is the usual custom, a proportion of the property portfolio has been valued externally with the remainder being valued by the Board.  The result is that the trading portfolio has been reduced by £576,000 (2010: increase £195,000) and the investment portfolio has been reduced by £24,000 (2010: increase £666,000).

During the course of the year, Safeland completed the purchase of the 50% interest in Grafton Insurance Services Limited. Shareholders may also be aware that post the year end, Safeland entered into a joint venture with the Moorfield Group to develop and operate a chain of Hostels under the name Safestay, initially in London and then across the rest of the UK.  Building work is about to commence on the first of these in Southwark and we are all very excited by this new project.

Shareholders will also be aware that we have continued to write down our investment value in the Managed Workspace Fund. As it has continued to suffer both in terms of performance and value, the decision was therefore taken to exit from this altogether and to that end the portfolio was sold on 7 July 2011.

In terms of property trading, we do continue to do profitable deals, but volume is limited and, due to the volatility in the market, we are very selective in the transactions we enter into.

I am, however, very pleased with our current property portfolio and we do continue to enjoy the support of our lenders and professional team so this, coupled with the new venture in Safestay, gives me confidence for the long term future.

Raymond Lipman

Chairman

8 July 2011

 

CONSOLIDATED INCOME STATEMENT

Year ended 31 March 2011

			2011 £'000	2010 £'000
			Unaudited	Audited
Revenue			10,370	11,940
Cost of sales (including amounts written off inventories of £576k (2010: written back £195k))			(9,866)	(9,052)
Gross profit			504	2,888
Sales and distribution costs			(255)	(322)
Administrative expenses			(1,052)	(3,777)
Other operating income			476	645
Loss on disposal of property plant and equipment			-	(102)
(Loss) / gain on revaluation of investment properties			(24)	666
Gain / (loss) on disposal of investment properties			5	(9)
Operating loss			(346)	(11)
Share of results of associate			27	-
Impairment of available- for- sale investments			(100)	(250)
Loss on disposal of investments			(50)	-
Loss before interest			(469)	(261)
Finance income			27	4
Finance costs			(523)	(768)
Loss before tax			(965)	(1,025)
Tax			-	(188)
Loss for the financial year attributable to equity holders of the parent company			(965)	(1,213)
Basic loss per share	2		(5.73)p	(7.20)p
Diluted loss per share			(5.73)p	(7.20)p

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 March 2011

					2011 £'000	2010 £'000
					Unaudited	Audited
Loss for the year					(965)	(1,213)
Other comprehensive income
Fair value gains on available-for-sale investments					12	2
Tax on items taken directly to equity					(3)	-
Other comprehensive income for the year					9	2
Total comprehensive income for the year attributable to equity holders of the parent company					(956)	(1,211)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 March 2011

				2011 £'000		2010 £'000
Non-current assets				Unaudited		Audited
Property, plant and equipment				214		287
Investment properties				3,438		3,462
Interests in associates				117		-
Available-for-sale investments				122		275
Total non-current assets				3,891		4,024
Current assets
Trading properties				19,256		20,732
Trade and other receivables				763		412
Cash and cash equivalents				386		434
Total current assets				20,405		21,578
Total assets				24,296		25,602
Current liabilities
Bank loans and overdrafts				427		276
Trade and other payables				427		1,270
Total current liabilities				854		1,546
Non-current liabilities
Bank loans				14,172		13,757
Derivative financial instruments				109		185
Deferred tax liabilities				679		676
Total non-current liabilities				14,960		14,618
Total liabilities				15,814		16,164
Net assets				8,482		9,438
Equity
Share capital				843		843
Share premium account				5,351		5,351
Capital redemption reserve				847		847
Share based payment reserve				100		210
Investment revaluation reserve				14		5
Retained earnings				1,327		2,182
Total equity attributable to equity holders of the parent company				8,482		9,438

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended 31 March 2011

	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 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 1 April 2010	843	5,351	847	210	5	2,182	9,438
Comprehensive income
Loss for the year	-	-	-	-	-	(965)	(965)
Other comprehensive income
Fair value gain on available-for-sale investments	-	-	-	-	12	-	12
Tax on items taken directly to equity	-	-	-	-	(3)	-	(3)
Total other comprehensive income	-	-	-	-	9	-	9
Total comprehensive income	-	-	-	-	9	(965)	(956)
Transactions with owners
Share based payment charge for the year	-	-	-	(110)	-	110	-
Balance at 31 March 2011	843	5,351	847	100	14	1,327	8,482

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

Year ended 31 March 2011

	Note		2011 £'000	2010 £'000
			Unaudited	Audited
Operating activities
Net cash generated from operations	3		46	1,800
Interest paid			(600)	(583)
Tax received			-	7
Net cash (outflow)/ generated from operating activities			(554)	1,224
Investing activities
Interest received			24	4
Dividends received			3	-
Purchase of property, plant and equipment			(40)	(155)
Purchase of available for sale investments			(90)	(250)
Proceeds from sale of property, plant and equipment			22	1,705
Proceeds from sale of investment properties			6	241
Proceeds from sale of available for sale investments			15	-
Net cash (outflow)/ generated from investing activities			(60)	1,545
Financing activities
New loans			8,155	5,300
Loan repayments			(7,740)	(9,667)
Net cash generated/ (outflow) from financing activities			415	(4,367)
Net decrease in cash and cash equivalents			(199)	(1,598)
Cash and cash equivalents at beginning of year			158	1,756
Cash and cash equivalents at end of year	4		(41)	158

NOTES TO THE PRELIMINARY ANNOUNCEMENT

Year ended 31 March 2011

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 2011 or 2010.

The statutory financial statements for the year ended 31 March 2011 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 2010 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 7 July 2011. 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 and will be available on the Company's website, www.safeland.co.uk.

2.        LOSS PER SHARE

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

		2011 £'000	2010 £'000
		Unaudited	Audited
Loss for the year attributable to equity holders of the company		(965)	(1,213)

		2011 '000	2010 '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 2011 or 2010 as in both instances there is a loss for the year.

 3.      NOTES TO THE STATEMENT OF CASH FLOWS

		2011 £'000	2010 £'000
		Unaudited	Audited
Loss before tax		(965)	(1,025)
Adjustments for:
Depreciation of property, plant and equipment		91	113
Loss on sale of property, plant and equipment		-	102
(Profit)/loss on sale of investment properties		(5)	9
Loss/(gains) on revaluation of investment properties		24	(666)
Impairment of available for sale investments		100	250
Loss on sale of available for sale investments		50	-
Finance costs (net)		496	764
Share of results of associate		(27)	-
Changes in working capital:
Decrease in trading properties		1,476	1,540
(Increase)/decrease in trade and other receivables		(351)	15
(Decrease)/increase in trade and other payables		(843)	698
Net cash generated from operations		46	1,800

4.         CASH AND CASH EQUIVALENTS

	2011 £'000	2010 £'000
	Unaudited	Audited
Cash and cash equivalents per balance sheet	386	434
Bank overdrafts	(427)	(276)
Cash and cash equivalents per cash flow statement	(41)	158

 

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