Final Results

Sutton Harbour Holdings PLC 25 May 2006 SUTTON HARBOUR HOLDINGS PLC Preliminary Results PROFITING FROM A BALANCED GROWTH STRATEGY The AIM listed transport and regeneration specialist announces record results for the year ended March 31st 2006. 'We anticipate that the company will continue to make steady progress in the current year ... and will continue our strategy of balancing our transport and regeneration activities' Ellen Winser, Chairman, Sutton Harbour Holdings plc HIGHLIGHTS •Operating profit up 43% to £3.61 million ( 2005: £2.53 million ) •Profit before tax up 44% to £3.44 million ( 2005: £2.39 million) •Earnings per share up 45% to 9.9p per share ( 2005: 6.81p per share) •Proposed final dividend 2.4p per share making total for year of 3.8p per share ( 2005: 3.2p) an increase of 18.75% •57,000 sq feet landmark Plymouth office building completed and to be occupied by the Department for Work and Pensions. •Several prestige residential schemes completed; first tranche of primary healthcare facility developments now nearing completion. •A very good year for Air Southwest with passenger numbers rising to a record 286,000 (2005: 228,000); two new aircraft acquired and new routes introduced since year end. Full Chairman's Statement and accounts are attached. Or visit our website: www.sutton-harbour.co.uk For further information or interviews please contact: Nigel Godefroy - Managing Director, Sutton Harbour Holdings plc, 01752 204186 Ken Rees/Paul Vann - Winningtons Financial PR, 0117 9200092 or 07802 466567 Sutton Harbour Holdings plc - Preliminary Results - 25 May 2006 Chairman's Statement During the past year your Company has experienced a period of significant growth. This follows a decade of incremental profit growth and I am delighted to announce an increase in total dividends for the ninth successive year. We are pleased with the growth in profits from regeneration activities, as we continue our strategy to balance this with results from our transport activities, and the success of new routes introduced by Air Southwest have made a significant contribution to good performance. Operating Profit is up 43% to £3.619m (2005: £2.534m), on top of a 49% increase the previous year. Profit before Tax has increased by 44% to £3.443m from £2.392m. In my interim statement I reported a sharp increase in profits following an exceptionally strong performance by Air Southwest over the summer season. We did, however, anticipate a slowdown over the winter months which proved correct and high fuel costs have continued. Going forward, we do not expect new routes to mature as quickly as previous routes we have started and regeneration profits continue to be irregular. Earnings per share have increased from 6.81p per share to 9.90p per share, an increase of 45%. Net assets on the Balance Sheet have increased following an internal revaluation of properties undertaken as at 31 March 2006. An interim dividend of 1.4p per share was paid in January 2006 following announcement of our half year results. Your Board proposes a final dividend of 2.4p making a total dividend of 3.8p per share for the year, an increase of 0.6p per share or 18.75%, compared with last year. The final dividend will be payable on 8 September 2006 to shareholders on the register on 25 August 2006. The shares are expected to go ex-dividend on 23 August 2006. Over the last year we have expanded the regeneration sector of the business which includes property development, property investment and estate management. We have just completed a 57,000 sq ft office building in central Plymouth to be occupied by the Department for Works and Pensions. This has been a major investment for the company which will provide quality covenant rentals. Separate financing for this scheme has been secured. On the adjacent site, the Barratt Homes scheme to construct 109 flats is nearing completion and we will purchase the ground floor space to let to commercial tenants. The Shepherd's Wharf residential development is now complete and the Penrose scheme for affordable homes will be finished this Autumn. The harbourside ground floors of these new developments will also be retained for letting to commercial tenants. We have other schemes to the east of the Sutton Harbour at advanced stages of planning and we are pleased to be working with Exeter City Council on a mixed-use scheme alongside the canal in Exeter. We continue to bid for other regeneration projects in the region and to work with Plymouth City Council on future Sutton Partnership schemes. The first tranche of healthcare facility developments in Plymouth undertaken by ReSound (Health) Limited, of which your Company holds a 37.2% interest, is almost complete. The next tranche of work is awaiting final approval and we hope this will be underway within the current financial year. Additionally, the Company is bidding for other public/private partnership schemes elsewhere in the country and intends to build a portfolio of such investments. Air Southwest has now been trading for two and a half years. Adding to our route network which includes services to Gatwick, Manchester, Jersey and Bristol we started new routes to Leeds and Dublin in March 2005 and both have proved popular in their first year. In the year just ended we carried 286,000 passengers and had a network load factor of 71% (2005: 228,000 passengers, 74% load factor). Following the acquisition of our fifth Dash 8-300 aircraft in March 2006, on 10 April we launched new routes:Newquay- Cardiff-Manchester and Bristol-Norwich. It is too early to report on the performance of these routes but we are mindful of the costs associated with the launch and like many businesses, we are also feeling the effects of rising fuel costs which have not abated yet. Inevitably these various factors will impact on the results of Air Southwest in the current year and there remains uncertainty over the future of RAF St Mawgan, as previously reported. Plymouth City Airport continues to provide facilities to commercial airline operators, the military and private aviation. Air Southwest is currently the only scheduled service commercial operator using the airport following the withdrawal of Air Wales in February 2006. Our Marine Activities continue to provide steady revenues for the group and the facilities have operated at capacity for several years. To accommodate demand and to maintain high standard facilities for berth-holders we have just completed the construction of a new 84 berth marina to the western side of Sutton Harbour and have upgraded the berth-holder amenities. Virtually all the new berths have already been let. With scallop fishing becoming an ever more important fishery to Plymouth, we have been pleased to accommodate a major scalloping business on the fishmarket complex. The sharp increases in fuel price have impacted the fishing industry but Plymouth has maintained its market share with good auction prices supported by the remote electronic auction system and range of services offered to fishermen. Both the turnover and cost of sales from Marine Activities rose sharply during the year reflecting the increased buying and selling prices of fuel. The slight fall in profitability from Marine Activities in the year follows the closure of the boatyard services business, an activity which could no longer be justified on commercial grounds. The underlying profit from this sector shows a small increase. I have previously reported that we had sought professional advice in identifying and selecting potential non-executive directors. Last July, Michael Knight joined the Board and the process was completed following the appointment of Antony Everett on 1 January 2006. Our staff numbers have continued to grow and they have adapted well to the changing size and diversity of the Group. Enthusiasm for the development of our activities was shown in the excellent take up of the new SAYE share option plan offered to staff in December 2005. We are very appreciative of the efforts of all our employees and their commitment to bringing our wide ranging aspirations to fruition. The last two years have been an exciting time for the Company during which time profits have grown very quickly. We have a number of regeneration schemes in the pipeline and we are working to develop our transport activities. We anticipate that the company will continue to make steady progress in the current year, but at a more modest pace as we consolidate that which has recently been achieved. We remain mindful of the business risks inherent in all our activities and will continue our strategy of balancing our transport and regeneration activities to minimise these risks. After two exceptionally strong years the foundations have been laid for continued progress. Your Board remains confident for the group's prospects in the coming year. Ellen Winser Chairman Group Profit and Loss Account for the year ended 31 March 2006 2006 2005 £'000 *£'000 Turnover 27,218 20,479 Cost of Sales (22,769) (17,287) -------- -------- Gross Profit 4,449 3,192 Net Operating Expenses (830) (658) -------- -------- Operating Profit 3,619 2,534 -------- -------- Profit on Ordinary Activities Before Interest 3,619 2,534 Interest Receivable 106 11 Interest Payable (282) (153) -------- -------- Profit on Ordinary Activities 3,443 2,392 Before Taxation Current Taxation (552) (471) Deferred Taxation (481) (266) -------- -------- Taxation on Profit on Ordinary Activities (1033) (737) -------- -------- Profit on Ordinary Activities 2,410 1,655 After Taxation and Attributable to Shareholders Dividends * (852) (718) -------- -------- Retained Profit for the Year 1,558 937 ======== ======== Earnings per Ordinary 25p share (Basic) 9.90p 6.81p Earnings per Ordinary 25p share (Diluted) 9.79p 6.76p All figures relate to continuing activities. * As restated for prior year adjustment. Balance Sheets as at 31 March 2006 THE GROUP THE COMPANY 2006 2005 2006 2005 £'000 *£'000 £'000 *£'000 Fixed Assets Intangible Assets 611 646 - - Tangible Assets 56,584 35,404 - - Investments 75 70 2,217 2,217 -------- -------- -------- ------- 57,270 36,120 2,217 2,217 -------- -------- -------- ------- Current Assets Stock 3,145 4,406 - - Debtors 4,939 3,793 6,893 6,832 Cash at Bank and in Hand 4 4 13 8 -------- -------- -------- ------- 8,088 8,203 6,906 6,840 -------- -------- -------- ------- Creditors (14,109) (12,219) (78) (58) (amounts falling due within one year) -------- -------- -------- ------- Net Current (Liabilities)/ Assets comprising: Net Current (Liabilities)/Assets (6,952) (4,385) 6,057 6,527 Debtors due after more than 931 369 771 255 one year -------- -------- -------- ------- (6,021) (4,016) 6,828 6,782 -------- -------- -------- ------- Total Assets less Current 51,249 32,104 9,045 8,999 Liabilities Creditors (10,835) (46) - - (amounts falling due after more than one year) Provisions for Liabilities (2,396) (1,915) - - and Charges Deferred Taxation ------- -------- -------- ------- 38,018 30,143 9,045 8,999 ======= ======== ======== ======= Capital and Reserves Called Up Share Capital 6,086 6,085 6,086 6,085 Share Premium Account 2,797 2,796 2,797 2,796 Revaluation Reserve 13,056 9,193 - - Investment Property Revaluation Reserve 9,435 6,983 - - Other Reserves 251 251 - - Profit and Loss Account 6,393 4,835 162 118 ------- ------- ------- ------- Equity Shareholders' Funds 38,018 30,143 9,045 8,999 ======= ======= ======= ======= * As restated for prior year adjustment. These Financial Statements were approved by the Board of Directors on 24 May 2006 and were signed on its behalf by: Ellen Winser, Chairman. Consolidated Cash Flow Statement for the year ended 31 March 2006 2006 2005 CASH FLOW STATEMENT £'000 £'000 Net Cash Inflow from Operating Activities 4,144 1,376 Returns on Investments and Servicing of Finance (522) (196) Taxation (465) (240) Capital Expenditure (13,976) (4,542) Equity Dividends Paid (852) (717) Financing 11,560 31 -------- -------- (Decrease) in Cash in the Year (111) (4,288) ======== ======== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT (Decrease) in Cash in the Year (111) (4,288) New loans (11,558) - -------- -------- Movement in net debt in the year (11,669) (4,288) Net Debt at the start of the year (5,258) (970) -------- -------- Net Debt at the end of the year (16,927) (5,258) ======== ======== Consolidated Statement of Total Recognised Gains and Losses for the year ended 31 March 2006 2006 2005 £'000 £'000 Unrealised surplus on revaluation of properties 6,315 - Reported Profit on Ordinary Activities after 2,410 1,655 Taxation --------- ---------- Total Recognised Gains and Losses relating to the 8,725 1,655 year --------- ---------- Total Gains and Losses recognised since the 8,725 1,655 previous Annual Report and Financial Statements ========= ========== Note of Consolidated Historical Cost Profits and Losses for the year ended 31 March 2006 2006 2005 £'000 *£'000 Reported Profit on Ordinary Activities 3,443 2,392 Before Taxation -------- --------- Historical Cost Profit on Ordinary Activities Before 3,443 2,392 Taxation ======== ========= Historical Cost Profit for the year retained after 1,558 937 Taxation and Dividends ======== ========= * As restated for prior year adjustment. Segmental Analysis 2006 2005 Turnover Cost of Sales Operating Turnover Cost of Sales Operating Profit Profit £'000 £'000 £'000 £'000 £'000 £'000 -------- -------- --------- ------- -------- --------- Regeneration 3,097 1,667 1,430 2,005 712 1,293 Transport 19,550 17,427 2,123 14,812 13,858 954 Marine 4,571 3,675 896 3,662 2,717 945 Activities -------- -------- --------- ------- -------- --------- 27,218 22,769 4,449 20,479 17,287 3,192 Net (830) (658) Operating Expenses --------- --------- Operating 3,619 2,534 Profit Net Interest (176) (142) Payable --------- --------- Profit on 3,443 2,392 Ordinary Activities Before Taxation ========= ========= Segmental Analysis has been grouped under three main headings which cover the three principal activities of the group. Marine activities includes Fishing Related and Marine Leisure activities. Regeneration includes Property and related activities. Transport includes Airport Operations and Airline Operations. The financial information set out above does not constitute the Group's statutory accounts for the years ended 31 March 2006 or 2005 but is derived from those accounts. Statutory accounts for 2005 have been delivered to the Registrar of Companies, and those for 2006 will be delivered following the Group's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain statements under section 237 (2) or (3) of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange

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