Preliminary results - year en

RNS Number : 2952Q

Safeland PLC

02 August 2010

 



2 August 2010

SAFELAND PLC

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2010

Chairman's Statement

Safeland plc

Chairman's Statement for the year ended 31 March 2010

Market conditions have improved during the second half of the year under review. However, they still remain challenging and it is against this backdrop that the Company announces its results for the year ended 31 March 2010.

The Group has made a loss before tax for the year of £1,025,000 (2009: £8,339,000). The resultant loss per share is 7.2p (2009: 51.3p). Gearing at the year end was 144% (2009: 154%) and Net Assets per Share were 56p (2009: 63p).

As previously announced, the Board has examined the value of the portfolio as at the year end with the assistance of external valuers and the overall effect is an increase in the value of the trading property portfolio of £195,000 (2009: deficit £4,648,000) and investment properties of £666,000 (2009: £1,295,000).

However, due to the continued pressure on the value of industrial property a further £250,000 has been written off the value of the investment held in the Managed Workspace Fund which now stands at £100,000.

Post the year end, shareholders may be aware that the company has agreed to acquire the 50% shareholding in Grafton Insurance Services Limited that was previously held by Leo Insurance Services Plc ("Leo") for a value of £90,000.  The consideration was satisfied by the set off against amounts owed by Leo to Safeland.  This transaction was approved by the shareholders of Leo Insurance Services at an EGM on 30 July 2010.

Trading remains difficult, but activity is improving, albeit slowly.  We continue to enjoy the support of our lenders and our professionals and remain well positioned to take full advantage of improvements in market conditions as they occur.

I therefore remain optimistic of the long term future.

Raymond Lipman

Chairman

2 August 2010

CONSOLIDATED INCOME STATEMENT

Year ended 31 March 2010

			2010 £'000	2009 £'000
			Unaudited	Audited
Revenue			11,940	15,115
Cost of sales    (including amounts written back to  inventories of £195k                          (2009: written off £4,648k))			(9,052)	(18,472)
Gross profit / (loss)			2,888	(3,357)
Sales and distribution costs			(322)	(464)
Administrative expenses			(3,777)	(4,114)
Other operating income			645	758
Loss on disposal of property plant and equipment			(102)	(14)
Gain on revaluation of investment properties			666	1,295
Loss on disposal of investment properties			(9)	(290)
Operating loss			(11)	(6,186)
Impairment of available- for- sale investments			(250)	(900)
Loss before interest			(261)	(7,086)
Finance income			4	84
Finance costs			(768)	(1,337)
Loss before tax			(1,025)	(8,339)
Tax			(188)	(312)
Loss for the financial year attributable to equity holders of the parent company			(1,213)	(8,651)
Basic loss per share	2		(7.20)p	(51.33)p
Diluted loss per share			(7.20)p	(51.33)p

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 March 2010

				2010 £'000	2009 £'000
				Unaudited	Audited
Loss for the year				(1,213)	(8,651)
Other comprehensive income
Fair value gains / (losses) on available-for-sale investments				2	(16)
Tax on items taken directly to equity				-	6
Other comprehensive income for the year				2	(10)
Total comprehensive income for the year attributable to equity holders of the parent company				(1,211)	(8,661)

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 March 2010

				2010 £'000		2009 £'000
Non-current assets				Unaudited		Audited
Property, plant and equipment				287		2,052
Investment properties				3,462		3,046
Interests in associates				-		-
Available-for-sale investments				275		273
Total non-current assets				4,024		5,371
Current assets
Trading properties				20,732		22,272
Trade and other receivables				412		427
Cash and cash equivalents				434		1,811
Total current assets				21,578		24,510
Total assets				25,602		29,881
Current liabilities
Bank loans and overdrafts				276		18,179
Trade and other payables				1,270		572
Current tax liabilities				-		15
Total current liabilities				1,546		18,766
Non-current liabilities
Bank loans				13,757		-
Derivative financial instruments				185		-
Deferred tax liabilities				676		466
Total non-current liabilities				14,618		466
Total liabilities				16,164		19,232
Net assets				9,438		10,649
Equity
Share capital				843		843
Share premium account				5,351		5,351
Capital redemption reserve				847		847
Share based payment reserve				210		210
Investment revaluation reserve				5		3
Retained earnings				2,182		3,395
Total equity attributable to equity holders of the parent company				9,438		10,649

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended 31 March 2010

	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 2008	843	5,351	847	86	13	12,046	19,186
Comprehensive income
Loss for the year	-	-	-	-	-	(8,651)	(8,651)
Other comprehensive income
Fair value losses on available-for-sale investments	-	-	-	-	(16)	-	(16)
Tax on items taken directly to equity	-	-	-	-	6	-	6
Total other comprehensive income	-	-	-	-	(10)	-	(10)
Total comprehensive income	-	-	-	-	(10)	(8,651)	(8,661)
Transactions with owners
Share based payment charge for the year	-	-	-	124	-	-	124
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 31 March 2010	843	5,351	847	210	5	2,182	9,438

CONSOLIDATED STATEMENT OF CASH FLOWS

Year ended 31 March 2010

	Note			2010 £'000	2009 £'000
				Unaudited	Audited
Operating activities
Net cash generated from operations	3			1,800	5,798
Interest paid				(583)	(1,337)
Tax received				7	416
Net cash generated from operating activities				1,224	4,877
Investing activities
Interest received				4	68
Dividends received				-	16
Purchase of investment properties				-	(511)
Purchase of property, plant and equipment				(155)	(139)
Purchase of available for sale investments				(250)	(100)
Proceeds from sale of property, plant and equipment				1,705	64
Proceeds from sale of investment properties				241	524
Net cash generated/(outflow) from investing activities				1,545	(78)
Financing activities
New loans				5,300	9,439
Loan repayments				(9,667)	(12,464)
Net cash outflow from financing activities				(4,367)	(3,025)
Net (decrease) / increase in cash and cash equivalents				(1,598)	1,774
Cash and cash equivalents at beginning of year				1,756	(18)
Cash and cash equivalents at end of year	4			158	1,756

NOTES TO THE PRELIMINARY ANNOUNCEMENT

Year ended 31 March 2010

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 2010 or 2009.

The statutory financial statements for the year ended 31 March 2010 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 2009 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 30 July 2010. 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.

2.         LOSS PER SHARE

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

		2010 £'000	2009 £'000
		Unaudited	Audited
Loss for the year attributable to equity holders of the company		(1,213)	(8,651)

		2010 '000	2009 '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 2010 or 2009 as in both instances there is a loss for the year.

3.       NOTES TO THE STATEMENT OF CASH FLOWS

		2010 £'000	2009 £'000
		Unaudited	Audited
Loss before tax		(1,025)	(8,339)
Adjustments for:
Depreciation of property, plant and equipment		113	187
Loss on sale of property, plant and equipment		102	14
Loss on sale of investment properties		9	290
Gains on revaluation of investment properties		(666)	(1,295)
Impairment of available for sale investments		250	900
Share based payment charge		-	124
Finance costs (net)		764	1,252
Changes in working capital:
Decrease in trading properties		1,540	11,118
Decrease in trade and other receivables		15	2,230
Increase/(decrease) in trade and other payables		698	(683)
Net cash generated from operations		1,800	5,798

4.         CASH AND CASH EQUIVALENTS

	2010 £'000	2009 £'000
	Unaudited	Audited
Cash and cash equivalents per balance sheet	434	1,811
Bank overdrafts	(276)	(55)
Cash and cash equivalents per cash flow statement	158	1,756

 

END

 

 

FR WGUPUMUPUGAU