Interim Results - Replacement

RNS Number : 5987T
Sutton Harbour Holdings PLC
08 December 2011
 



This is a correction to RNS announcement 5581T. The change is to correct a typographical error in relation to the figure in the Chairman's statement and Highlights page for the operating profit from core activities in the six month period to 30 September 2011.  This figure should read as £2.741m and not £2.471m as inadvertently reported.

 

All other details in the release remain the same. The full text of the amended announcement is set out below:

 

 

 

For immediate release                                                                                        8 December 2011

 

 

Sutton Harbour Holdings plc

Interim results for the half year period to 30 September 2011

 

Sutton Harbour Holdings plc ("Sutton Harbour", "the Company"), the AIM listed regeneration and infrastructure specialist, announces interim results for the six month period to 30 September 2011.

 

HIGHLIGHTS

 

Financial

·      Revenues increased to £6.89m (2010: £4.07m)

·      Operating profit from core activities was £2.74m (2010: £0.90m)*

·      Reported loss before tax of £1.33m (2010: £0.81m) including provision for expected losses in connection with closure of the airport

·      Trading losses of the airport were £674,000 (2010: £342,000)

·      Net assets at end of period of £34.9m (2010: £33.2m)

·      Net assets per share at 30 September 2011 of 55.4p (2010: 52.8p)

*Before administration costs, losses associated with transport operations, revaluation adjustments and one off staff costs

 

Operations

·      Continued focus on growing core businesses whilst managing the exit from loss making or more marginal activities

·      Continuing businesses have performed solidly

Further lettings reduced voids within asset management activity

Good occupancy levels within marinas; Sutton Harbour Fisheries surpasses fish landing records

·      Plymouth City Airport to cease operations by end of 2011

·      Fourth tranche of airport land disposed - £1m on completion and £1.3m early in the New Year

·      Sale of commercial space in Exeter for £400,000

·      Plans to re-configure Sutton Harbour Marinas to accommodate larger vessels

·      Planning application submitted for new 179 berth marina in Millbay area of Plymouth

 

Michael Knight, Chairman, commented: "We have continued with our strategy to reshape the Company and we are now clearly positioned as a marine and waterfront regeneration specialist.  We have a high quality asset base and a demonstrated track record of developing properties in our region and we are committed to delivering further value for shareholders."

 

For further information, please contact: 

Sutton Harbour Holdings plc                                                                           01752 204186

Jason Schofield - Acting Chief Executive

Natasha Gadsdon - Finance Director

 

Arden Partners plc                                                                                            0207 614 5917   

Richard Day

Jamie Cameron

 

Threadneedle Communications                                                                     020 7653 9850

Graham Herring

Terry Garrett

 

Chairman's Statement

 

During the first six months of the year, the Group has continued to implement its strategy to grow the core businesses of the Group, whilst managing the exit from loss making or more marginal activities.  The continuing businesses have performed solidly throughout the period: asset management activity has been successfully focused to reduce voids; the marinas have maintained good occupancy levels and have benefited from the hosting of the Fastnet Race Finish in August 2011; and Sutton Harbour Fisheries has, again, surpassed its fish landing records.  The property markets, however, continue to be weak with provincial areas continuing to experience low activity levels.

 

Against this backdrop of difficult economic conditions, and as previously announced, the Group has achieved completion for disposal of the fourth tranche of airport land, with £1m received upon completion and a further £1.3m receivable early in the New Year. Construction of the associated new link road has continued to make good progress and is expected to be completed by the Summer.  In addition, we also reported that completion has occurred on the sale of commercial space in Exeter for £400,000.  We anticipate achieving further realisations of non-core trading assets in the second half of the year.

 

Having served notice of its intention to cease operations at Plymouth City Airport by the end of 2011, the Group is well advanced in its closure programme. Scheduled commercial services have not operated since the end of July 2011 when the owners of Air Southwest withdrew from the airport.

 

Results and Dividend

The Group achieved an operating profit from core activities of £2.741m (2010: profit £0.902m) before accounting for administration costs, losses associated with transport operations, revaluation adjustments and one off staff costs, demonstrating the strength of the underlying core businesses. The Group sustained a loss before taxation of £1,328,000 (2010: £813,000) for the period, including provision for the expected losses in connection with closure of the airport. The trading losses of the airport for the period of £674,000 (2010: £342,000) are recorded as continuing activities and will be re-classified in the year end results as discontinued activities, once the airport is closed. In addition, the Board has re-assessed the likely recoverability of amounts included in trading stocks in the light of prevailing property market conditions and prospects for economic recovery in the short term. Taking a prudent view, a provision of £970,000, before tax relief of £252,000, has been charged. The loss is also stated after accounting for the fair value deficit on investment property of £380,000 (2010: £45,000).

 

Net assets at 30 September 2011 were £34.9m (30 September 2010: £33.2m) compared to £36.1m as at 31 March 2011 and include the surplus on revaluation of owner-occupied property of £98,000 and also the deficit on mark to market re-measurement of hedging instruments of £312,000 resulting during the six month period. Gearing, expressed as total debt over net assets is 63.0 per cent as at 30 September 2011 (31 March 2011: 58.2 per cent).

 

The Board is not recommending payment of an interim dividend (2010: nil), so as to conserve cash resources whilst the business is being reshaped.

 

Operational Progress

The Group has made steady and encouraging progress in implementing its strategy to improve and extend the core income earning base of the Group and move forward the development of its assets, whilst working to dispose of trading property stock.

 

Further lettings of void space have been achieved, reducing the void rate to 10.9% (31 March 2011: 14.3%), thereby helping to contain costs of maintaining empty properties. The marinas and car parks have traded on par with last year. As we look forward to the 2012/13 marina season we have re-launched the website and have increased marketing activity, to include attendance at the forthcoming London Boat Show, in order to increase our potential customer base of berth-holders and visitors.

 

We have a number of exciting opportunities in our pipeline to develop our future income and value growth. We aim to re-configure part of the Sutton Harbour Marinas to accommodate larger vessels and we have now submitted a planning application for the new 179 berth marina in the Millbay area of Plymouth. This new facility will enable the Group to build on its existing marina operations business and to attract more sailing enthusiasts to some of the best cruising waters that the UK has to offer.

 

The Group has secured the letting of the 705m² (7,585 sq ft) premises on Exeter Street to a gym operator and 577m² (6,212 sq ft) Jamaica House premises to a restaurateur. The Group continues to actively manage the lease renewal process as each falls due.

 

Directors and Staff

Following recent departures from the Group of Non-Executive Directors, Malcolm Pearce and John Heawood, and also of Group Chief Executive, Nigel Godefroy, who stepped down from the Board for personal reasons on 30 September, the Board is currently undertaking the selection process for his successor.  Anthony Everett succeeds John Heawood as Remuneration Committee Chairman.

 

 

All our staff have shown tremendous loyalty to the Group and, in many cases, shouldered additional responsibilities. In addition, the closure of the airport will result in the loss of a further 39 direct jobs, leaving a Group-wide headcount of 42 staff in the property, marine, estate and central functions. This results in a significant reduction in headcount and Group costs, but we are very mindful that the last year has been a difficult period for airport staff, who faced uncertainty over a long period towards ultimate redundancy. On behalf of the Board, I want to thank the airport team for the many years of professional service that they have given.

 

Outlook

The Group is now clearly positioned as a marine and waterfront property specialist, by withdrawing from loss making transport activities. The investment proposition to investors is now much simpler, with the Group now focused on growing its annual revenues whilst achieving profits from specific development projects, as economic conditions permit. The Business has a high quality asset base and a demonstrated track record of developing properties in the region and is committed to delivering further value for shareholders.

 

 

Michael Knight

Chairman

 

 

 

 

 

 

 

 

 

 

Consolidated Income Statement

 


 

 

 

 

Note

6 months to

30 September

2011

(unaudited)

£000

6 months to

30 September

2010

(unaudited)

£000

Year Ended

31 March

2011

(audited)

£000



Revenue

3

6,894

4,071

12,274






Cost of sales


(4,827)

(3,511)

(8,606)






Gross Profit


2,067

560

3,668






Administration expenses


(988)

(969)

(1,404)

Impairment of inventories


(970)

-

-

Other operating income


-

-

37

Other operating expense


(517)

-

-






 

Operating (loss)/profit before fair value adjustments on investment property


 

 

(408)

 

 

(409)

 

 

2,301

Fair value adjustments on investment property

7

(380)

(45)

103

 

Operating (loss)/profit

 

3

 

(788)

 

(454)

 

2,404






Financial income


4

-

1

Financial expense


(544)

(359)

(644)






Net financing costs


(540)

(359)

(643)






Share of loss of associate using equity accounting method


-

-

(50)






(Loss)/profit before tax from continuing operations


(1,328)

(813)

1,711






Taxation on loss/(profit) from continuing operations

4

345

228

244






(Loss)/profit for the period from continuing operations


(983)

(585)

1,955






Loss for the period from discontinued operations

10

-

(8,598)

(8,407)






Loss for the period


(983)

(9,183)

(6,452)









Basic (loss)/earnings per share

6




From continuing operations


(1.56)p

(0.93)p

3.11p

From discontinued operations


- p

(13.66)p

(13.36)p

Diluted (loss)/earnings per share

6




From continuing operations


(1.56)p

(0.93)p

3.11p

From discontinued operations


- p

(13.66)p

(13.36)p

 

 

 

 

 

 

                        

Consolidated Statement of Comprehensive Income

 



6 months to

30 September

2011

(unaudited)

£000

6 months to

30 September

2010

(unaudited)

£000

Year Ended

31 March

2011

(audited)

£000




Loss for the period


(983)

(9,183)

(6,452)





Other comprehensive income/(expense)




Continuing operations:





   Revaluation of property, plant and equipment


98

(119)

66

  Deferred taxation on income and expenses recognised                              directly in the consolidated statement of comprehensive income


 

-

 

-

 

17

   Effective portion of changes in fair value of cash flow hedges


(312)

101

1

Discontinued operations:





   Effective portion of changes in fair value of cash flow hedges



(128)

-






Total other comprehensive (expense)/income


(214)

(146)

84

Total comprehensive expense for the period attributable to equity shareholders


 

(1,197)

 

(9,329)

 

(6,368)

 



Consolidated Balance Sheet

 


 

 

 

 

Note

As at

30 September

2011

(unaudited)

£000

As at

30 September

2010

(unaudited)

£000

As at

31 March

2011

(audited)

£000




Non-current assets





Property, plant and equipment

7

29,744

28,994

29,470

Investment property

7

20,646

20,531

20,828

Investment in associate


43

93

43



50,433

49,618

50,341




Current assets





Inventories


12,457

11,588

13,996

Trade and other receivables


             3,278 

1,925

2,144

Cash and cash equivalents

8

1

220

1

Tax recoverable


112

-

233



15,848

13,733

16,374






Assets of disposal group classified as held for sale


-

5,465

-




Total assets


66,281

68,816

66,715






Current liabilities





Bank borrowings

8

2,463

21,673

1,001

Other interest-bearing loans and borrowings


                   1,516                    

-

1,015

Trade and other payables


1,669

1,684

1,424

Deferred income


832

915

1,481

Deferred government grants


38

-

36

Derivative financial instruments


-

66

-

Provisions for other liabilities and charges

Tax payable

9

2,493

-

1,438

83

2,636

-



9,011

25,859

7,593




Non-current liabilities





Other interest-bearing loans and borrowings


18,000

31

19,000

Deferred government grants


681

668

651

Deferred tax liabilities


3,322

3,568

3,323

Derivative financial instruments


379

-

67



22,382

4,267

23,041






Liabilities of disposal group classified as held for sale


-

5,465

-






Total liabilities


31,393

35,591

30,634




Net assets


34,888

33,225

36,081




Equity and reserves





Share capital                           


15,736

15,736

15,736

Share premium

 

12

12

12

Other reserves

 

13,352

13,336

13,566

Retained earnings

 

5,788

4,141

6,767






Total equity


34,888

33,225

36,081

 

                               

 

 

 

 

Consolidated Statement of Changes in Equity

 


Share capital

Share premium

Revaluation reserve

Merger reserve

Hedging reserve

Retained earnings

TOTAL

 




       ----------Other Reserves----------






£000

£000

£000

£000

£000

£000

£000

 









 

Balance at 1 April 2010

15,736

12

9,679

3,871

(68)

13,903

43,133

 

Comprehensive Income/(expense)








 

Loss for the period

-

-

-

-

(9,183)

(9,183)

 

Other comprehensive income/(expense)







 

Revaluation of property, plant and equipment

 

-

 

-

 

(119)

 

-

 

-

 

-

 

(119)

 

Effective portion of changes in fair value of cash flow hedges

 

-

 

-

 

-

 

-

 

73

 

-

 

73

 

Recycled to Cost of Sales

-

-

-

-

(100)

-

(100)

 

Total other comprehensive expense - period ended 30 September 2010

 

-

 

-

 

(119)

 

-

 

(27)

 

-

 

(146)

 

Total comprehensive expense  - period ended 30 September 2010

 

-

 

-

 

(119)

 

-

 

(27)

 

(9,183)

 

(9,329)

 

Transactions with owners








 

Share-based payments - value of employee services

 

-

 

-

 

-

 

-

 

-

 

50

 

50

 

Dividends

-

-

-

-

-

(629)

(629)

 

Transactions with owners

-

-

-

-

-

(579)

(579)

 

As at 30 September 2010

15,736

12

9,560

3,871

(95)

4,141

33,225

 

Comprehensive income








 

Profit for the period

-

-

-

-

2,731

2,731

 

Other comprehensive income/(expense)







 

Revaluation of property, plant and equipment

 

-

 

-

 

185

 

-

 

-

 

-

 

185

 

Deferred taxation on revaluation of property, plant and equipment

 

-

 

-

 

17

 

-

 

-

 

-

 

17

 

Effective portion of changes in fair value of cash flow hedges

 

-

 

-

 

-

 

-

 

(140)

 

-

 

(140)

 

Recycled to cost of sales

-

-

-

-

168

-

168

 

Total other comprehensive income  - period ended 31 March 2011

 

-

 

-

 

202

 

-

 

28

 

-

 

230

 

Total comprehensive income - period ended 31 March 2011

 

-

 

-

 

202

 

-

 

28

 

2,731

 

2,961

 

Transaction with owners








 

Share-based payments - value of employee services

 

-

 

-

 

-

 

-

 

-

 

(105)

 

(105)

 

Transactions with owners

-

-

-

-

-

(105)

(105)

 

As at 31 March 2011

15,736

12

9,762

3,871

(67)

6,767

36,081

 

Comprehensive income/(expense)








 

Loss for the period

-

-

-

-

(983)

(983)

 

Other comprehensive income/(expense)







 

Revaluation of property, plant and equipment

 

-

 

-

 

98

 

-

 

-

 

-

 

98

 

Effective portion of changes in fair value of cash flow hedges

 

-

 

-

 

-

 

-

 

(312)

 

-

 

(312)

 

Total other comprehensive income/(expense)  - period ended 30 September 2011

 

 

-

 

 

-

 

 

98

 

 

-

 

 

(312)

 

 

-

 

 

(214)

 

Total comprehensive income/(expense) - period ended 30 September 2011

 

-

 

-

 

98

 

-

 

(312)

 

(983)

 

(1,197)

 

Transactions with owners








 

Share-based payments - value of employee services

 

-

 

-

 

-

 

-

 

-

 

4

 

4

 

Transactions with owners

-

-

-

-

-

4

4

 

As at 30 September 2011

15,736

12

9,860

3,871

(379)

5,788

34,888

 

               

Consolidated Cash Flow Statement

 


Note

6 months to

30 September

2011

(unaudited)

£000

6 months to

30 September

2010

(unaudited)

£000

Year Ended

31 March

2011

(audited)

£000

 

Cash (used in)/generated from continuing operating activities

 

 

11

 

 

(386)

 

 

(1,868)

 

 

1,284

Net cash used in discontinued operating activities


-

(3,141)

(3,139)

Cash used in total operating activities


(386)

(5,009)

(1,855)

 

Tax received/(paid)


 

466

 

(22)

 

(81)

 

Net cash generated from/(used in) operating activities


 

 

80

 

 

(5,031)

 

 

(1,936)






Cash flows from investing activities





Proceeds from sale of property, plant and equipment


9

-

1

Disposal of discontinued operations, net of cash


-

(366)

(1,928)

Expenditure on investment in associate


-

(1)

-

Expenditure on investment property


(198)

(25)

(174)

Expenditure on property, plant and equipment


(276)

(336)

(548)

Interest received


4

-

1

Net cash used in investing activities


(461)

(728)

(2,648)






Cash flows from financing activities





Proceeds from new loan


-

-

20,000

Interest paid


(582)

(363)

(801)

Repayment of borrowings


(499)

(11)

(206)

Dividends paid


-

(629)

(629)

Cash flow from financing activities in discontinued operations


 

-

 

(243)

 

(238)

Net cash (used in)/generated from financing activities


 

(1,081)

 

(1,246)

 

18,126

 

Net (decrease)/increase in cash and cash equivalents


 

(1,462)

 

(7,005)

 

13,542

 

Cash and cash equivalents at beginning of period


 

(1,000)

 

(14,542)

 

(14,542)

 

Cash and cash equivalents at end of period

 

8

 

(2,462)

 

(21,547)

 

(1,000)



 

Notes to Interim Report

 

 

1.    General information

 

This consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 March 2011 were approved by the Board of Directors on 14 June 2011 and delivered to the Registrar of Companies.  The report of the auditors on those accounts was unqualified and did not contain any statement under section 498 of the Companies Act 2006.

 

Copies of the Group's financial statements are available from the Company's registered office, North Quay House, Sutton Harbour, Plymouth, PL4 0RA and on the Company's website www.sutton-harbour.co.uk.

 

This consolidated interim financial information has not been audited.

 

2.    Basis of preparation

 

The consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2011, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretation Committee (IFRIC) interpretations as endorsed by the European Union, and those parts of the Companies Acts 2006 as applicable to companies reporting under IFRS.

 

Accounting policies

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

Adoption of new International Financial Reporting Standards

The following new standards, amendments to standards or interpretations are mandatory for the first time for the financial year beginning 1 April 2011, but are not currently relevant for the Group:

 

-       Amendments to IAS 24, 'Related party disclosures' - not applicable to current activity.

-       Amendment to IFRS 1, 'First time adoption' - no impact as the Group has already adopted IFRS for the first time

-       IFRIC 14, 'Prepayments of a minimum funding requirement' - not applicable to current activity.

-       IFRIC 19, 'Extinguishing financial liabilities with equity instruments' - not applicable to current activity.

-       Annual improvements to IFRS 2 'Share based payments' - no impact on current activities.

-       Annual improvements to IAS 32 'Financial instruments: Presentation on classification of rights issues' - not applicable to current activity

-       IFRIC 15 'Arrangements for construction of real estates' - no impact on current activity

 

The following new standards, amendments to standards or interpretations have been issued, but are not effective for the financial year beginning 1 April 2011 and have not been adopted early:

 

-       Amendment to IAS 12 'Income taxes' - not yet endorsed.

-       IFRS 9 'Financial instruments' - no impact on current activities.

 

Accounting estimates and judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

There have been no significant changes to estimates and judgements since the signing of the financial statements for the year ended 31 March 2011.



 

3.  Segment information

 

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. These have changed since 31 March 2011, following the decision to close Plymouth City Airport.

The Board of Directors considers the business from an operational perspective as the Group has only one geographical segment, with all operations being carried out in the United Kingdom.

The Board of Directors considers the performance of the operating segments using operating profit. The segment information provided to the Board of Directors for the reportable segments for the period ended 30 September 2011 is as follows:

 

Business segments:

 


6 months to 30 September 2011

6 months to 30 September

2010

12 months to 31 March

2011


(unaudited)

(unaudited)

(audited)


£000

£000

£000

External revenue:




Marine

2,886

2,469

4,646

Property

882

783

1,621

Regeneration

2,292

-

3,368

Transport

834

819

2,639

Total external revenue = total revenue

6,894

4,071

12,274





Segment operating profit/(loss):




Marine

770

708

1,231

Property

367

344

678





Regeneration prior to fair value adjustment of investment property

 

1,604

 

(150)

 

2,700

Impairment of inventories

(970)

-

(200)

Fair value adjustment on investment property

(380)

(45)

103

Regeneration after fair value adjustment on investment property and impairment of inventories

 

254

 

(195)

 

2,603





Transport

(674)

(342)

(904)






717

515

3,608





Unallocated expenses:




Administrative expenses

(988)

(969)

(1,204)

Other operating expense

(517)

-

-

Group operating (loss)/profit

(788)

(454)

2,404





Financial income

4

-

1

Financial expense

(544)

(359)

(644)

Share of loss of associate

-

-

(50)

Taxation

345

228

244

Transport - discontinued operations

-

(8,598)

(8,407)

Loss for the period

(983)

(9,183)

(6,452)





Assets and liabilities








Segment assets:




Marine

22,999

22,309

22,888

Property

21,966

21,995

21,893

Regeneration

12,250

10,896

13,786

Transport

7,640

7,047

6,411

Transport - assets held for sale

-

5,465

-

Total segment assets

64,855

67,712

64,978

Unallocated assets: Property plant & equipment

                                 Investment in associate

                                Trade & other receivables

545

43

838

329

93

682

427

43

1,267

Total assets

66,281

68,816

66,715





 

 

 

 

 

 

3.  Segment Information (continued)

 

Segment liabilities:




Marine

1,138

950

1,586

Property

2,064

356

281

Regeneration

194

324

199

Transport

1,829

1,188

3,591

Transport - assets held for sale

-

5,465

-

Total segment liabilities

5,225

8,283

5,657

Unallocated liabilities: Bank overdraft & borrowings

                                   Trade & other payables

21,973

873

21,673

1,984

21,001

653

Deferred tax liabilities

3,322

3,651

3,323

Total liabilities

31,393

35,591

30,634

 

Unallocated assets included in total assets and unallocated liabilities included in total liabilities are not split between segments as these items are centrally managed.

 

4. Taxation

 

Continuing Operations

The company has applied an effective tax rate of 26% (2010: 28%) based on management's best estimate of the tax rate expected for the full financial year.

 

Discontinued Operations

In the prior period, the Company applied an effective tax rate of 28% to the trading losses of the discontinued operations.

 

5. Dividends

 


6 months to

30 September

 2011

(unaudited)

£000

6 months to

30 September

2010

(unaudited)

£000

Year Ended

31 March

2011

(audited)

£000



Final Dividend in respect of the year ended 31 March 2011 (31 March 2010)

 

                   -

 

629

 

-

Interim Dividend in respect of the year ended 31 March 2011 (31 March 2010)

-

-

-




-

629                       

-                    

 

The Board of Directors do not propose an interim dividend (2010: nil).

 

6. Earnings per share

 


6 months to

30 September

2011

(unaudited) pence

6 months to

30 September

2010

(unaudited) pence

Year Ended

31 March

2011

(audited) Pence

Continuing operations




Basic earnings per share

(1.56)p

(0.93)p

3.11p

Diluted earnings per share

(1.56)p*

(0.93)p

3.11p*





Discontinued operations




Basic earnings per share

- p

(13.66)p

(13.36)p

Diluted earnings per share

- p*

(13.66)p*

(13.36)p*

 

Basic Earnings per Share:

Basic earnings per share have been calculated using the loss for the period of £983,000 (2010: £585,000) for the continuing operations, and the loss for the period of £nil (2010: £8,598,000) for the discontinued operations. The average number of ordinary shares in issue, excluding those options granted under the SAYE scheme, of 62,943,752 (2010: 62,943,752) has been used in our calculation.

 

Diluted Earnings per Share:

Diluted earnings per share uses an average number of 63,193,851 (2010: 63,514,771) ordinary shares in issue, and takes account of the outstanding options under the SAYE scheme in accordance with IAS 33 'Earnings per share'.

 

* For the 6 months ended 30 September 2011, the year ended 31 March 2011, and the 6 months ended 30 September 2010, there is no adjustment for the effect of all dilutive potential ordinary shares because the exercise prices of the options are greater than the average market price of the shares during the year.

 

7. Property valuation

Freehold land and buildings and investment property have been independently valued by Lambert Smith Hampton as at 30 September 2011 in accordance with the Practice Statements in the Valuations Standards (The Red Book) published by the Royal Institution of Chartered Surveyors. 

 

The basis for determining the property values is as described in the financial statements for the year ended 31 March 2011.

8. Cash and cash equivalents


As at

30 September 2011

(unaudited)

£000

As at

30 September 2010

(unaudited)

£000

As at

31 March 2011

(audited)

£000

Continuing operations:




Cash and cash equivalents per balance sheet

1

220

1

Bank borrowings

(2,463)

(21,673)

(1,001)


(2,462)

(21,453)

(1,000)

Assets/(liabilities) of disposal group classified as held for sale:




Cash and cash equivalents per balance sheet

-

5

-

Bank borrowings

-

(99)

-


-

(94)

-



             

             

Cash and cash equivalents per cash flow statement

(2,462)

(21,547)

(1,000)

 

 

9. Provisions

 


Provision


2011


£000



Balance at 1 April 2010

46



Provisions made during the period

1,392

Provisions used during the period

-



Balance at 30 September 2010

1,438



Provisions made during the period

2,590

Provisions used during the year

(1,392)



Balance at 31 March 2011

2,636



Provisions made during the period

788

Provisions used during the period

(931)



Balance at 30 September 2011

2,493





Non-current

-

Current

2,493




2,493

 

The total provision of £2,493,000 is made up primarily of provisions for airport works, onerous leases, one off staff costs and airport closure costs.

 

 

 

 

 

 

 

 

10. Discontinued operations and assets held for sale

 

Sutton Harbour Holdings plc announced on 25 May 2010 its intention to sell the airline subsidiary, Air South West Limited. Contracts for sale and purchase of the airline were exchanged on 17 September 2010 with Eastern Airways International Limited, with the effective date of control passing being 30 September 2010. The sale was completed on 30 November 2010.

 

The net profit or loss that accrued from 1 October 2010 to 30 November 2010 accrued to Eastern Airways International Limited, in accordance with the terms of the sale and purchase agreement.

 

The results of the airline to 30 September 2010 and loss on disposal (estimated at 30 September 2010, actual at 31 March 2011) are shown below:

 


6 months to

30 September 2011

(unaudited)

£000

6 months to

30 September 2010

(unaudited)

£000

Year Ended

31 March

2011

(audited)

£000





Revenue

-

10,403

10,403





Cost of sales

-

(12,374)

(12,648)





Gross loss

-

(1,971)

(2,245)

Other operating income

-

-

-

Administrative expenses

-

-

-





Operating loss

-

(1,971)

(2,245)





Financial income

-

1

1

Financial expense

-

(5)

(5)





Net financing costs

-

(4)

(4)





Trading loss before tax from discontinued operations

-

(1,975)

(2,249)





Taxation on trading loss from discontinued operations

-

553

561





Trading loss after tax from discontinued operations

-

(1,422)

(1,688)





Pre tax loss on disposal of Air South West Limited

-

(7,176)

(6,719)





Loss after tax from discontinued operations

-

(8,598)

(8,407)

 

 

 

 

 

 

11. Cash flow statements

 


6 months to

30 September 2011

(unaudited)

£000

6 months to

30 September 2010

(unaudited)

£000

Year Ended

31 March 2011

(audited)

£000

Cash flows from operating activities



 

(Loss)/profit for the period

(983)

(585)

1,955

Adjustments for:




Taxation

(345)

(228)

(244)

Financial income

(4)

-

(1)

Financial expense

544

358

644

Fair value adjustments on investment property

380

45

(103)

Depreciation and amortisation

86

89

189

Amortisation of grants

19

(18)

(37)

Impairment of development property

970

-

200

Loss on sale of property, plant and equipment

1

-

7

Equity settled share-based payment expenses

4

12

(55)

Grants received

53

-

-

Cash generated from/(used in) operations before changes in working capital and provisions

 

725

 

(327)

 

2,555

Increase in inventories

(190)

(552)

(456)

Increase in trade and other receivables

(1,134)

(300)

(519)

Increase/(decrease) in trade and other payables

244

(103)

(598)

(Decrease)/Increase in deferred income

(648)

(586)

18

Increase in provisions

617

-

284





Cash (used in)/generated from operations

(386)

(1,868)

1,284

 

 

12. Contingencies

 

On 26 October 2007, the Group entered into an agreement with the BBC to construct a 22,000 sq. ft. office building by a longstop date of December 2012. To date, the Group has not contracted for the construction of this development although it has agreed heads of terms with a developer to deliver a workable scheme, but terms have not been agreed with the BBC. It is not considered appropriate to make any provision in this regard.

 

Since Plymouth City Council agreed, in August 2011, the closure of the airport on 23 December 2011, the Group is obliged to work with the freeholder to obtain best value for the land through alternative use. In addition, the government grants of £804,000 may be subject to claw-back, settled out of the proceeds on the disposal.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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