Final Results

Sutton Harbour Holdings PLC 26 May 2005 Sutton Harbour Holdings plc Preliminary announcement for the year ended March 31st 2005 The AIM listed transport operators, regeneration specialists and harbour group announce record preliminary results for the year ended March 31st 2005 'The group has made significant progress in the last year. Turnover, profits and dividends have increased substantially. We have put in place a number of schemes and projects from which further increases in profits can reasonably be expected. We remain very confident of our future.' Ellen Winser, Chairman, Sutton Harbour Holdings plc HIGHLIGHTS - Operating profit up 49% to Â£2,534,000 (2004; Â£1,701,000) - Profit Before Tax up 49% to Â£2,392,000 (2004; Â£1,604,000) - Earnings per share up 47% to 6.81p (2004; 4.63p adjusted for one for one capitalisation issue August 2004) - Final dividend of 2.1 p per share making total dividend for year of 3.2p per share (2004; 2.75p adjusted for capitalisation issue) - Air Southwest exceeds profit expectations with network load factor of 74% - Major property and regeneration deals signed or in progress - Plymouth Fisheries and Marina showing continued profit growth Please visit our website at www.sutton-harbour.co.uk Full Chairman's Statement and Financial Statements follow. For further information and interviews please contact: Nigel Godefroy, Managing Director 01752 204186 Natasha Gadsdon, Finance Director 01752 204186 Ken Rees, Binns Winningtons 0117 9200092 Chairman's Statement I am very pleased to announce excellent results and an eighth successive increase in total dividends. In my interim statement last autumn, I reported that the company had worked to bring a number of regeneration projects to the delivery stage. During the second half of the year we finalised a number of projects and have begun work on new schemes for delivery in the next two financial years or so. I also reported that our airline subsidiary, Air Southwest, had performed well and in the second half year it has continued to exceed our expectations. I am delighted to report to shareholders that Operating Profit is up by 49% to Â£2,534,000 (2004: Â£1,701,000). Profit before taxation is also up by 49% to Â£2,392,000 (2004: Â£1,604,000). The increase in profitability in this year has been achieved by better than expected results from Air Southwest within the transport sector of our business. Marine activities have performed steadily with satisfactory growth in profitability. The lower profits from Regeneration merely reflect the timing of income recognition rather than any underlying trend. The total tax charge on profits remains close to 30%, with the corporation tax charge element reduced by the availability of capital allowances on the Dash 8 aircraft purchased last autumn. Earnings per share have increased from 4.63p (adjusted for the one for one capitalisation issue in August 2004) to 6.81p, an increase of 47%. At the half year stage we paid an interim dividend of 1.1p per ordinary share, a 22% increase on the interim dividend paid in the previous year. This sharp increase was partly to narrow the difference between the interim and final dividend payments. In view of this year's good results a final dividend of 2.1p per ordinary share is proposed which represents an increase of 13.5%. This makes a total dividend of 3.2p (2004: 2.75p per ordinary share adjusted for the one for one capitalisation issue), a total increase of 16.4%. The final dividend will be payable on 9 September 2005 to shareholders on the register on 26 August 2005. The shares are expected to go ex-dividend on 24 August 2005. In the first full year of trading Air Southwest has performed well and exceeded our profit expectations for the period. We carried 228,000 passengers during the year on our established Newquay-Plymouth-Gatwick route and our new Plymouth-Bristol-Manchester and Bristol-Plymouth-Jersey routes, giving a network load factor of 74%. In addition to our two leased aircraft, we purchased a Dash 8 aircraft last autumn. The availability of the third aircraft significantly cut operating costs and in the second half of the year we largely avoided having to sub-charter aircraft to cover service and maintenance time of our fleet. In April 2005, we started new routes: Newquay-Bristol-Leeds, Newquay-Dublin, Newquay-Manchester and Plymouth-Leeds. We purchased a further Dash 8 aircraft in May 2005 to support these routes, bringing our fleet to four. Occupancy rates on our network of routes continue to be good and we are encouraged by the start made on our new routes. It was recently reported that the Ministry of Defence plans to 'mothball' RAF St Mawgan in 2007. As yet, we do not know how this will affect the civilian facility of Newquay Cornwall Airport which operates from the same site. We are working closely with Cornwall County Council and are confident that a way forward can be found to retain the facility which is so vital to Cornwall and is an important airport in our network. Plymouth City Airport has benefited greatly from a 44% increase in passenger numbers with the new services operated by Air Southwest and by Air Wales. To accommodate airport users in more comfort we will be providing a new passenger lounge this summer. The Runway End Safety Area, to comply with Civil Aviation Authority regulations, is now complete. As already announced we recently concluded negotiations with Land Securities Trillium to construct a 57,000 sq ft office close to the harbour which will be let to the Department for Work and Pensions. Construction has already begun on site with completion scheduled for Spring 2006. Additionally, Barratt Homes are underway with the construction of 108 flats on the eastern part of the same site. The regeneration of this Moon Street site is part of the Sutton Partnership scheme run jointly by your company and Plymouth City Council. We are also undertaking a series of developments to the east of the harbour working with Westbury Homes. The development at Harbour Avenue, which we started in 2003, is now finished. The Shepherd's Wharf development will be completed in early 2006. To grow our rent roll we will be purchasing commercial space within both these schemes. Finalisation of the Penrose site scheme, to be developed by Signpost Housing Association, is expected shortly and we will soon seek planning permission for another mixed use development on the eastern side of Sutton Harbour. Construction of the first tranche of schemes by the LIFT company, ReSound (Health) Limited, in which we have a 37.2% interest, is well underway with the first healthcare facility due to open in September 2005. Our marine activities, which include Plymouth Fisheries and Sutton Harbour Marina have achieved growth in profitability this year. Landings at Plymouth Fishmarket were up by 12% in auction value compared with the previous year and good visitor numbers to the marina last summer resulted in a welcome boost to revenue. The marina is again full for the 2005/06 season and we have a significant waiting list for berths. Now that Air Southwest is an established and successful part of our Group, I am pleased to announce that Malcolm Naylor will join the board on 1 June 2005. Malcolm, 57, who joined the Group in 2002, is the Chief Executive of Air Southwest. He was formerly the Managing Director of Brymon Airways and has held senior positions at Kenya Airways and FlyBe. Duncan Godefroy retired as a non-executive director at the end of our financial year having retired as Managing Director last September. Your board is very grateful for his advice and assistance during this transitionary period and we wish him all the very best for a long and happy retirement. Many shareholders shared in our delight when Duncan received an OBE for services to the community in Plymouth in the January 2005 New Year's Honours, an award richly deserved for a career-long commitment to the regeneration of the city. As the Group grows and its business becomes more complex, the demands on the board also increase. In recognition of this we decided to commission an external evaluation of the board and to seek professional advice in identifying and selecting potential additional non-executive directors. This process is now nearing completion and I anticipate being able to announce at least one new non-executive director within the next few weeks. Our staff numbers have continued to increase and we are most fortunate to employ staff with a diverse range of skills. We are very proud of our staff's adaptability to the changing needs of the Group and their enthusiasm for our new activities. The board is most grateful to them for their efforts. In the last year the Group has made significant progress. Not only have turnover, profits and dividends increased substantially but we have put in place a number of schemes and projects from which further increases in profits can reasonably be expected. We remain very confident of our future. Ellen Winser Chairman Group Profit and Loss Account For the year ended 31 March 2005 2005 2004 Â£000 Â£000 ----------- ------------- Turnover 20,479 11,659 Cost of Sales (17,287) (9,233) ----------- ------------- Gross Profit 3,192 2,426 Net Operating Expenses (658) (725) ----------- ------------- Operating Profit 2,534 1,701 ----------- ------------- Profit on Ordinary Activities Before Interest 2,534 1,701 Interest Payable (142) (97) ----------- ------------- Profit on Ordinary Activities Before Taxation 2,392 1,604 Current Taxation (471) (384) Deferred Taxation (266) (97) ----------- ------------- Taxation on Profit on Ordinary Activities (737) (481) ----------- ------------- Profit on Ordinary Activities After Taxation and Attributable to Shareholders 1,655 1,123 Dividends (779) (668) ----------- ------------- Retained Profit for the Year 876 455 =========== ============= Earnings per Ordinary 25p share Basic 6.81p 4.63p* =========== ============= Diluted 6.76p 4.59p* =========== ============= All figures relate to continuing activities. * Adjusted for one for one capitalisation issue. Balance Sheets As at 31 March 2005 THE GROUP THE COMPANY 2005 2004 2005 2004 Â£000 Â£000 Â£000 Â£000 ------- ------- ------- ------- Fixed Assets Intangible Assets 646 681 - - Tangible Assets 35,404 31,210 - - Investments 70 70 2,217 2,217 ------- --------- ------- -------- 36,120 31,961 2,217 2,217 ------- --------- ------- -------- Current Assets Stock 4,406 2,904 - - Debtors 3,793 2,339 7,343 7,248 Cash at Bank and in Hand 4 4 8 8 ------- --------- ------- -------- 8,203 5,247 7,351 7,256 ------- --------- ------- -------- Creditors (amounts falling due within one year) (12,730) (6,870) (569) (511) ------- --------- ------- -------- Net Current (Liabilities)/ Assets (4,527) (1,623) 6,782 6,745 ------- --------- ------- -------- Total Assets less Current Liabilities 31,593 30,338 8,999 8,962 Creditors (amounts falling due after more than one year) (46) (67) - - Provision for Liabilities and Charges Deferred Taxation (1,915) (1,547) - - ------- --------- ------- -------- 29,632 28,724 8,999 8,962 ======= ========= ======= ======== Capital and Reserves Called Up Share Capital 6,085 3,037 6,085 3,037 Share Premium Account 2,796 5,812 2,796 5,812 Revaluation Reserve 9,193 9,193 - - Investment Property Revaluation Reserve 6,983 6,983 - - Other Reserves 251 251 - - Profit and Loss Account 4,324 3,448 118 113 ------- --------- ------- -------- Equity Shareholders' Funds 29,632 28,724 8,999 8,962 ======= ========= ======= ======== These financial Statements were approved by the Board of Directors on 25 May 2005 and were signed on its behalf by: Ellen Winser Chairman Consolidated Cash Flow Statement For the year ended 31 March 2005 2005 2004 Â£000 Â£000 ------- ------- CASH FLOW STATEMENT Net Cash Inflow from Operating Activities 1,376 4,852 Returns on Investments and Servicing of Finance (196) (175) Taxation (240) (561) Capital Expenditure (4,542) (1,765) Financing 31 - Equity Dividends Paid (717) (607) ------- ----------- (Decrease)/Increase in Cash in the Year (4,288) 1,744 ======= =========== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT (Decrease)/Increase in Cash in the Year (4,288) 1,744 Net Debt at the start of the year (970) (2,714) ------- ----------- Net Debt at the end of the year (5,258) (970) ======= =========== Consolidated Statement of Total Recognised Gains and Losses For the year ended 31 March 2005 2005 2004 Â£000 Â£000 ------ ------------ Unrealised surplus on revaluation of properties - 3,146 Reported Profit on Ordinary Activities after Taxation 1,655 1,123 ------ ------------ Total Recognised Gains and Losses relating to the year 1,655 4,269 ------ ------------ Total Gains and Losses recognised since the previous Annual Report and Financial Statements 1,655 4,269 ====== ============ Note of Consolidated Historical Cost Profits and Losses For the year ended 31 March 2005 2005 2004 Â£000 Â£000 ------ ------------ Reported Profit on Ordinary Activities 2,392 1,604 Realisation of property revaluation deficits of previous - (23) years ------ ------------ Historical Cost Profit on Ordinary Activities Before 2,392 1,581 Taxation ------ ------------ Historical Cost Profit for the year retained after Taxation and Dividends 876 432 ====== ============ Segmental Analysis For the year ended 31 March 2005 2005 2004 Turnover Cost of Sales Operating Turnover Cost of Sales Operating Profit Profit Â£000 Â£000 Â£000 Â£000 Â£000 Â£000 ------------------------------------ ------------------------------------ Marine Activities 3,662 2,717 945 3,226 2,330 896 Regeneration 2,005 712 1,293 3,365 1,601 1,764 Transport 14,812 13,858 954 5,068 5,302 (234) -------- --------- -------- -------- -------- -------- 20,479 17,287 3,192 11,659 9,233 2,426 ======== ========= ======== ======== Net Operating Expenses (658) (725) -------- -------- Operating Profit 2,534 1,701 Interest Payable (142) (97) ======== ======== Profit on Ordinary Activities 2,392 1,604 Before Taxation ======== ======== Preliminary announcement extract - Announcement based on draft accounts The financial information set out in the announcement does not constitute the Group's statutory accounts for the financial periods ended 31 March 2005 or 2004. The financial information for the year ended 31 March 2004 is derived from the statutory accounts for that period which have been delivered to the Registrar of Companies. The auditors have reported on the accounts for the year ended 31 March 2004; their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for the year ended 31 March 2005 will be finalised 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 Group's annual general meeting. This information is provided by RNS The company news service from the London Stock Exchange

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