Preliminary results for the year ended 31 March 12

RNS Number : 2460K

Safeland PLC

17 August 2012

Safeland Plc

("Safeland" or the "Company")

Preliminary results for the year ended 31 March 2012

CHAIRMAN'S STATEMENT

I am pleased to report that in the year ended 31 March 2012 the Group made a profit before taxation of £705,000 (2011: £965,000 loss).

The principal rise in value relates to the Chandos Tennis Club in Golders Green which is a property the Company has owned for some time. An independent valuation has increased its value by just over £1m due toa detailed review of development opportunities.

Planning permission has been applied for, however, Shareholders should be aware that in the event that no permission is forthcoming, then it is likely that the valuation will fall substantially. Announcements will be made regarding progress.

The remainder of the portfolio has been appraised in part by external valuers, and the remainder by the Board. The overall effect is that the trading portfolio has been reduced by £49,000 (2011: £576,000) and the investment portfolio increased by £1,355,000 (2011: decreased by £24,000).

I have previously advised Shareholders that our involvement in the Managed Workspace Fund ceased as of 7 July 2011 when the portfolio was sold to a third party. As a result no further losses will accrue from this activity.

In April 2011, Safeland entered into a Joint Venture agreement with the Moorfield Group to open and operate a chain of hostels called Safestay. The first such centre in Southwark opened on 28 June 2012. Early indications of bookings are very encouraging. A number of other potential sites are being investigated.

The market conditions remain as challenging as they have been for the last number of years and your Board continues to be very selective in the purchases they make, with a focus on carrying out small developments in North London. I am pleased to advise that this strategy is proving to be successful with a number of completed units sold profitably since the year end.

This together with the Safestay Joint Venture and the support of our bankers gives me some confidence for the future.

Raymond Lipman
Chairman

16 August 2012

CONSOLIDATED INCOME STATEMENT

	Note	2012 £'000	2011 £'000

Revenue		14,335	10,370

Cost of sales		(12,916)	(9,866)

Gross profit		1,419	504

Sales and distribution costs		(304)	(255)

Administrative expenses		(2,168)	(2,929)

Directors' emoluments forgone		-	1,877

Other operating income		794	476

Profit on disposal of property, plant and equipment		20	-

Gain / (loss) on revaluation of investment properties		1,355	(24)

Gain on disposal of investment properties		-	5


Operating profit / (loss)		1,116	(346)

Share of loss of joint venture		(8)	-

Share of results of associate		36	27

Impairment of available-for-sale investments		(60)	(100)

Loss on disposal of available-for-sale investments		-	(50)

Finance income		10	27

Finance costs		(389)	(523)

Profit / (loss) before tax		705	(965)

Tax		(212)	-

Profit / (loss) for the financial year attributable to owners of the parent company		493	(965)



Basic earnings / (loss) per share	2	2.93p	(5.73)p
Diluted earnings / (loss) per share	2	2.77p	(5.73)p

The revenue and operating result for the year is derived from continuing operations in the United Kingdom.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Note	2012 £'000	2011 £'000

Profit / (loss) for the year		493	(965)

Other comprehensive income

Fair value (losses) /gains on available-for-sale investments		(10)	12

Tax on items taken directly to equity		3	(3)


Other comprehensive (losses) / income for the year		(7)	9


Total comprehensive income / (loss) for the year attributable to owners of the parent company		486	(956)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Note	2012 £'000	2011 £'000
Non-current assets
Property, plant and equipment		252	214
Investment properties		4,793	3,438
Investment in joint ventures		-	-
Investments in associates		153	117
Available-for-sale investments		52	122

Total non-current assets		5,250	3,891

Current assets
Trading properties		10,249	19,256
Trade and other receivables		1,616	763
Cash and cash equivalents	4	457	386

Total current assets		12,322	20,405

Total assets		17,572	24,296

Current liabilities
Bank loans and overdrafts		7,190	427
Trade and other payables		432	427
Derivative financial instruments		21	-

Total current liabilities		7,643	854

Non-current liabilities
Bank loans		-	14,172
Derivative financial instruments		-	109
Deferred income tax liabilities		888	679

Total non-current liabilities		888	14,960


Total liabilities		8,531	15,814

Net assets		9,041	8,482

Equity
Share capital		843	843
Share premium account		5,351	5,351
Capital redemption reserve		847	847
Share based payment reserve		73	100
Investment revaluation reserve		7	14
Retained earnings		1,920	1,327

Total equity attributable to owners of the parent company		9,041	8,482

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Attributable to owners of the parent
	Share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Share based payment reserve £'000	Investment revaluation reserve £'000	Retained earnings £'000	Total equity £'000

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 gains 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

Transfer to retained earnings	-	-	-	(110)	-	110	-


Balance at 31 March 2011	843	5,351	847	100	14	1,327	8,482

		Attributable to owners of the parent
	Share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Share based payment reserve £'000	Investment Revaluation reserve £'000	Retained earnings £'000	Total equity £'000

Balance at 1 April 2011	843	5,351	847	100	14	1,327	8,482

Comprehensive income

Profit for the year	-	-	-	-	-	493	493

Other comprehensive income

Fair value impairment on available-for-sale investments	-	-	-	-	(10)	-	(10)
Tax on items taken directly to equity	-		-	-	3	-	3

Total other comprehensive income	-	-	-	-	(7)	-	(7)

Total comprehensive income	-	-	-	-	(7)	493	486

Transactions with owners

Share based payment charge for the year	-	-	-	73	-	-	73
Transfer to retained earnings	-	-	-	(100)	-	100	-

Balance at 31 March 2012	843	5,351	847	73	7	1,920	9,041

CONSOLIDATED STATEMENT OF CASH FLOWS

	Note	2012 £'000	2011 £'000

Operating activities
Cash generated from operations	3	8,024	46
Interest paid		(477)	(600)

Net cash generated / (outflow) from operating activities		7,547	(554)

Investing activities
Interest received		7	24
Dividends received		3	3
Purchase of property, plant and equipment		(175)	(40)
Purchase of interest in joint ventures		(8)	-
Purchase of interest in associate		-	(90)
Proceeds from sale of property, plant and equipment		106	22
Proceeds from sale of investment properties		-	6
Proceeds from sale of available for sale investments		-	15

Net cash outflow from investing activities		(67)	(60)

Financing activities
New loans		900	8,155
Loan repayments		(7,882)	(7,740)


Net cash (outflow) / generated from financing activities		(6,982)	415

Net increase / (decrease) in cash and cash equivalents		498	(199)

Cash and cash equivalents at beginning of year	4	(41)	158

Cash and cash equivalents at end of year	4	457	(41)

NOTES TO THE PRELIMINARY RESULTS

1. BASIS OF PREPARATION

On 16 August 2012, the Directors approved this preliminary announcement for publication. 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.The financial information presented above does not constitute statutory financial statements as defined by section 435 of the Companies Act 2006 for the years ended 31 March 2012 or 31 March 2011.

The financial information for the year ended 31 March 2012 is derived from the statutory financial statements for that year, prepared under IFRS, upon which the auditors have reported. 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 498 (2) or (3) of the Companies Act 2006. The statutory financial statements for the year ended 31 March 2012 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

The financial information for the year ended 31 March 2011 is derived from the statutory financial statements for that year, prepared under IFRS, upon which the auditors have reported and have been filed with 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 498 (2) or (3) of the Companies Act 2006.

The accounting policies applied in this announcement are consistent with those of the annual financial statements for the year ended 31 March 2011, as described in those annual financial statements.

2. EARNINGS / (LOSS) PER SHARE

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

	2012 £'000	2011 £'000


Profit / (loss) for the year attributable to equity holders of the company	493	(965)

	2012 '000	2011 '000

Weighted average number of ordinary shares for the purposes of basic earnings/(loss) per share	16,851	16,851

Effect of dilutive potential ordinary shares:
Share options	938	-

Weighted average number of ordinary shares for the purposes of diluted earnings/(loss) per share	17,789	16,851

There is no dilutive effect of potential ordinary shares in 2011 as there was a loss for the year.

3. NOTES TO THE CASH FLOW STATEMENT

	2012 £'000	2011 £'000

Profit / (loss) before tax	705	(965)

Adjustments for:
Depreciation of property, plant and equipment	51	91
Profit on sale of property, plant and equipment	(20)	-
Profit on sale of investment properties	-	(5)
(Gain) / loss on revaluation of investment properties	(1,355)	24
Impairment of available for sale investments	60	100
Loss on sale of available for sale investments	-	50
Finance costs	389	496
Share of results of associate	(36)	(27)
Share of loss in joint venture	8	-
Finance income	(10)	-
Share-based payment charge	73	-

Changes in working capital:
Decrease in trading properties	9,007	1,476
Increase in trade and other receivables	(853)	(351)
Increase / (decrease) in trade and other payables	5	(843)

Cash generated from operations	8,024	46

4. CASH AND CASH EQUIVALENTS

	2012 £'000	2011 £'000

Cash and cash equivalents per balance sheet	457	386
Bank overdrafts	-	(427)

Cash and cash equivalents per cash flow statement	457	(41)