Final Results
Comland Commercial PLC
17 August 2007
Comland Commercial PLC - Preliminary Results for the year ended 31 March 2007
Chairman's Statement
I have pleasure in reporting to you on the year ended 31 March 2007.
Results
In the year to 31 March 2007 the turnover of the group was £20.08 million (2006:
£6.35 million). This figure comprises revenue from property disposals. Gross
profit was £6.61million (2006: £0.68 million). Other operating income, which is
primarily rental income, has decreased to £6.05 million (2006: £6.33 million).
Operating profit has increased to £10.84million (2006: £5.06 million). Pre-tax
profit was £9.41 million (2006: £1.95 million) after finance costs of £2.93
million (2006: £3.11 million). No dividend will be paid (2006: £nil).
The above results included the following amounts relating to discontinued
operations: turnover of £366,000 (2006: 731,000), gross profit of £138,000
(2006: £302,000), operating profit of £47,000 (2006: £79,000) and pre-tax profit
of £1,367,000 (2006: loss £79,000).
Property Disposals
Since 31 March 2006 we have disposed of the following properties:
Anglers Court and Chiltern House, Marlow, 14 High Street, Windsor, Market House,
Wokingham and Fairview Industrial Estate, High Wycombe - £17.65 million. As
previously reported these five properties were sold on 22 January 2007 to a
subsidiary of Devonshire Investment Holdings Limited, the party we had
previously been in discussions with regarding the sale of the entire business.
Prospect Court, Farnham Common - £0.77 million. We completed this development on
the site at Prospect House in August 2006. Having let the two retail units we
completed the sale of the four flats in December 2006 and January 2007.
Hollywood Arms, Fulham - £3.85 million. As previously reported we sold the
freehold interest, goodwill and the fixtures and fittings at The Hollywood Arms
on 12 September 2006 to Young and Co's Brewery PLC.
Plover House, Basingstoke - £1.05 million. We sold the three units at Plover
House individually. These were completed in August 2006.
After the year end, as previously reported, we completed the sale of a further
two properties, Red Lion House, High Wycombe and 62 High Street, Marlow for
£11.70 million on 2 April 2007, also to a subsidiary of Devonshire Investment
Holdings Limited.
Acquisitions
Acquisitions during the year ended 31 March 2007 were Bridge Avenue, Maidenhead
and 23-25 High Street, Marlow.
Developments and Planning
With the acquisition of good commercial property opportunities remaining
difficult we have concentrated on our existing development portfolio.
Liston Exchange, Marlow - The construction of this 14,300 square feet town
centre office scheme is progressing well and is due to be completed before the
end of December 2007.
Chariott House, Windsor - As anticipated when we purchased this 14,000 square
feet of office space in the centre of Windsor, the tenant has now vacated. We
are currently in negotiations regarding a dilapidation settlement. We have
commenced the refurbishment of this office. This is due for completion in
October 2007.
Premium House, Farnham Common - We recently obtained a revised planning
permission for a larger retail unit of 3,830 square feet with 2,260 square feet
of office space above. We have pre-let the retail space to a well known
supermarket and have started work on the redevelopment which is due to be
completed before the end of the year.
Bridge Avenue, Maidenhead - The site has been cleared and the development of
6,700 square feet of office space will commence when market conditions improve.
23-25 High Street, Marlow - Having completed this acquisition in January 2007,
we recently gained planning permission for an extension and refurbishment of the
retail and residential space. We have served notice to vacate on the existing
tenant and expect to commence redevelopment upon vacant possession by the end of
the year.
Pound Lane, Marlow - We were granted planning permission for an 8,700 square
feet suite of offices on this prominent site in Marlow in March 2007. We
submitted a revised scheme for a similar sized single office building in May
2007 and await a decision. We hope to commence the construction work on this
site towards the end of the year.
Jacksons Industrial Estate, Bourne End - We have been granted planning
permission for an industrial unit with yard at the end of Jackson's Industrial
Estate. Upon completion of the planning conditions we hope to commence
construction work before the end of the year.
We have a further six schemes either with planning or in the planning process.
The Future
Rising interest rates are starting to have an effect on the commercial property
market. Having significantly reduced our gearing in the last year we are
cautious about the future and have reduced our exposure to risk and will remain
cautious about opportunities until we are confident that interest rates have
peaked.
SJ Crossley
Chairman
17 August 2007
Consolidated Profit & Loss Account
Notes Continuing Discontinued Total Total
2007 2007 2007 2006
£'000 £'000 £'000 £'000
Turnover 4 19,710 366 20,076 6,348
Cost of sales (13,239) (228) (13,467) (5,667)
__________ __________ __________ __________
Gross profit 6,471 138 6,609 681
Administrative expenses (1,727) (92) (1,819) (1,950)
Other operating income 6,050 1 6,051 6,332
__________ __________ __________ __________
Operating profit 10,794 47 10,841 5,063
Loss on disposal of fixed assets - (5)
Profit on disposal of discontinued operations 1,392 -
__________ __________
Profit on ordinary activities before interest 12,233 5,058
Interest receivable and similar income 110 1
Interest payable and similar charges (2,928) (3,113)
__________ __________
Profit on ordinary activities before taxation 9,415 1,946
Tax on profit on ordinary activities (2,816) (577)
__________ __________
Retained profit for the year 6,599 1,369
__________ __________
Basic and diluted earnings per share of
continuing operations 6 122.4p 31.4p
Basic and diluted earnings per share of
discontinued operations 6 22.4p (1.4p)
Basic and diluted earnings per share based on
profit for the year 6 144.8p 30.0p
The accompanying notes are an integral part of this consolidated profit and loss
account.
The Group has no recognised gains or losses other than the results for each
year.
Consolidated Balance Sheet
Notes 2007 2006
£'000 £'000
Fixed assets
Tangible assets 85 2,571
Investments - 92
__________ __________
85 2,663
Current assets
Stocks 55,743 65,581
Debtors 2,230 3,043
Cash at bank and in hand 28,199 24,727
__________ __________
86,172 93,351
Creditors: amounts falling due within one year (64,636) (29,592)
__________ __________
Net current assets 21,536 63,759
__________ __________
Total assets less current liabilities 21,621 66,422
Creditors: amounts falling due after more than one year - (51,400)
__________ __________
Net assets 21,621 15,022
__________ __________
Capital and reserves
Called-up share capital 456 456
Capital redemption reserve 25 25
Other reserves 2,880 2,880
Profit and loss account 18,260 11,661
__________ __________
Equity shareholders' funds 7 21,621 15,022
__________ __________
The accompanying notes are an integral part of this consolidated balance sheet.
Consolidated Cash Flow Statement Notes 2007 2006
£'000 £'000
Net cash inflow from operating activities 8 20,796 5,127
Returns on investments and servicing of finance
- Interest received 110 1
- Interest paid (3,034) (3,059)
__________ __________
Net cash outflow from returns on investments and servicing of finance (2,924) (3,058)
Tax paid (1,624) (972)
Capital expenditure and financial investment
- Payments to acquire tangible fixed assets (20) (142)
- Receipts from sale of tangible fixed assets - 196
- Receipts from sale of discontinued operations 3,845 -
- Receipts from sale of fixed asset investments 71 -
__________ __________
3,896 54
Net cash inflow before financing 20,144 1,151
Financing
- New bank loans 17 2,000
- Repayment of bank loans (16,219) (2,819)
__________ __________
Net cash outflow from financing (16,202) (819)
__________ __________
Increase in cash in the year 9 3,942 332
__________ __________
The accompanying notes are an integral part of this consolidated cash flow
statement.
Notes
1. The accounting policies adopted are consistent with those in the most
recently published set of financial statements for the year ended 31 March 2006.
2. The summarised financial information has been extracted from the
unaudited accounts of the Group for the year ended 31 March 2007. The above
information does not amount to statutory accounts within the meaning of the
Companies Act 1985. Statutory Accounts for the previous financial year ended 31
March 2006 have been delivered to the Registrar of Companies. The auditors'
report on those accounts was unqualified and did not contain any statement under
S237(2) or (3) of the Companies Act 1985. The auditors have not reported on
accounts for the year ended 31 March 2007, nor have any such accounts been
delivered to the Registrar of Companies.
3. Copies of the annual report and accounts will be posted to shareholders
in September 2007 and will be available from the Company's Head Office at Lunar
House, Mercury Park, Wooburn Green, High Wycombe, Bucks, HP10 0HH.
4. Segmental information and analysis of continuing and discontinued
operations:
2007 2006
Property Other Total Property Other Total
Development & Activities Development & Activities
Trading Trading
£'000 £'000 £'000 £'000 £'000 £'000
Turnover 19,710 366 20,076 5,617 731 6,348
__________ __________ __________ __________ __________ __________
Profit/(loss) on ordinary
activities before taxation 8,048 1,367 9,415 2,025 (79) 1,946
__________ __________ __________ __________ __________ __________
Net assets/(liabilities) 21,504 117 21,621 15,227 (205) 15,022
__________ __________ __________ __________ __________ __________
All turnover arises in the United Kingdom.
Other activities comprise the results and net assets of the operations of the
Hollywood Arms public house. The Hollywood Arms contributed turnover of £366,000
(2006: £731,000), profit on ordinary activities before taxation of £1,367,000,
being £1,392,000 due to the sale of tangible fixed assets and a £25,000 trading
loss (2006: £79,000) and had net assets of £117,000 (2006: net liabilities
£205,000).
2007 2006
Continuing Discontinued Total Continuing Discontinued Total
Operations Operations Operations Operations
£'000 £'000 £'000 £'000 £'000 £'000
Turnover 19,710 366 20,076 5,617 731 6,348
Cost of Sales (13,239) (228) (13,467) (5,238) (429) (5,667)
__________ __________ __________ __________ __________ _________
Gross profit 6,471 138 6,609 379 302 681
Administrative expenses (1,727) (92) (1,819) (1,727) (223) (1,950)
Other operating income 6,050 1 6,051 6,332 - 6,332
__________ __________ _________ __________ __________ _________
Operating profit 10,794 47 10,841 4,984 79 5,063
__________ __________ _________ __________ __________ _________
Discontinued operations comprise the results of The Hollywood Arms which was
sold during September 2006.
5. No dividend will be payable in respect of this financial year (2006:
£nil).
6. Earnings per share have been calculated based on a weighted average of
4,556,520 ordinary shares being in issue during the period to 31 March 2007
(4,556,520 ordinary shares during the period to 31 March 2006).
7. The movement in shareholders' funds is analysed as follows:-
2007 2006
£'000 £'000
Shareholders' funds at 1 April 15,022 13,653
Profit for the year 6,599 1,369
__________ __________
Shareholders' funds at 31 March 21,621 15,022
__________ __________
8. Reconciliation of operating profit to net operating cash outflow
2007 2006
£'000 £'000
Operating profit 10,841 5,063
Decrease/(increase) in stocks 9,838 (499)
Decrease in debtors 813 257
(Decrease)/increase in creditors (771) 186
Impairment of fixed asset investments 21 -
Depreciation 54 120
__________ __________
Net cash inflow from operating activities 20,796 5,127
__________ __________
9. Analysis and reconciliation of net debt
31 March Cashflow Other non-cash 31 March
2006 changes 2007
£'000 £'000 £'000 £'000
Cash in hand and at bank 24,727 3,472 - 28,199
Bank overdraft (23,874) 470 - (23,404)
__________ __________ __________ __________
Net cash 853 3,942 - 4,795
Bank loans due within one year (476) 459 (35,657) (35,674)
Bank loans due after one year (51,400) 15,743 35,657 -
__________ __________ __________ __________
Net debt (51,023) 20,144 - (30,879)
__________ __________ __________ __________
2007 2006
£'000 £'000
Increase in cash in the year 3,942 332
Cash inflow from debt financing 16,202 819
__________ __________
Change in net debt resulting from cash flows in the year 20,144 1,151
Net debt at 1 April (51,023) (52,174)
__________ __________
Net debt at 31 March (30,879) (51,023)
__________ __________
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