Probus Estates PLC
27 September 2001
PROBUS ESTATES PLC
('Probus Estates' or 'the Company')
Interim results for six months ended 30 June 2001
Chairman's Interim Statement
Interim Results
For the six-month period to 30th June 2001, the Group's turnover was £
6,471,000 (2000: £911,000). The Group incurred a loss after taxation of £
500,000 (2000: £527,000), after accounting for exchange losses of £110,000 and
goodwill amortisation of £165,000. The decline in the value of the Euro
against the Pound over the period has been detrimental to your Company and a
further currency translation loss of £1,182,000 was reflected in reserves.
Since 30th June 2001 there has been some recovery in the Euro exchange rate,
and therefore in the net asset value of the Group.
Acquisitions
During the period, as already reported in my last statement, we purchased a
mixed retail and residential development in Santa Ponsa in Mallorca. This
development is proceeding within budget and is currently ahead of schedule.
Completion is therefore expected in the first quarter of 2002. We are
planning to sell individual units rather than letting them, as some of those
tenants with whom we already have leases have expressed an interest in buying.
We expect to make a satisfactory return on these sales.
We have continued with our policy of acquiring commercial property in the
Netherlands and purchased an office building in the town of Dordrecht for
approximately £2.9 million in July. This acquisition was funded by the issue
of shares in Probus Estates at 5.5p, together with mortgage finance. The
building is fully let and provides a good return.
Casino de Mallorca
We are now approaching the first anniversary of our acquisition of Casino de
Mallorca. For the six months to 30th June 2001 the Casino's win was 6.5%
ahead of budget and ahead of the win for the same period in 2000. As
intended, we have increased our spending on marketing and development and
therefore the net result was less than that for the six months to 30th June
2000. The operations of Calaxada, which manages the Paladium, restaurants and
other facilities at the Casino, continue to be loss making. The management are
implementing plans to increase the volume of business with a view to making
Calaxada profitable.
Refurbishment of the entrance hall of the Casino has recently been completed
thereby improving access to the slot machine area. The Casino is now open in
the afternoons and a free bus service has been introduced in order to attract
more visitors from nearby resort areas. Work has also started on
refurbishment of the beach club which, from 2002, should have a positive
effect on the level of business that can be done on the site as well as
increasing the value of the property.
The coach drivers' strike during the summer has had an adverse effect on
tourism to Mallorca generally and may therefore affect the results for the
second half of the year. We also recognise that worldwide tourism may be
affected by the recent terrorist attacks in the United States. However,
visitors to the Casino from the USA account for a very small proportion of
total visitors.
Outlook
It is clear to the Directors that in order for shareholder value to be further
enhanced, the Group needs to achieve a greater degree of critical mass than
currently exists. The Directors are aware of a number of opportunities to
achieve this, which are being actively examined. We hope to be able to update
shareholders before the end of the year.
Lars-Erik Magnusson
Chairman
27 September 2001
ENQUIRIES:
Probus Estates PLC
Lars-Erik Magnusson, Chairman Tel: 00 31 20 669 7032
Patrick Browning, Finance Director Tel: 020 7479 7020
College Hill Tel: 020 7457 2020
Archie Berens Email: [email protected]
PROBUS ESTATES PLC
Consolidated profit and loss account
For the six months ended 30 June 2001
Unaudited Unaudited Audited
Six Six 12 months
months months
to to to
30.6.01 30.6.00 31.12.00
Notes £000 £000 £000
Turnover
Continuing operations 6,471 160 3,341
Discontinued operations - 751 751
1 6,471 911 4,092
Cost of sales (5,317) (227) (2,657)
Gross profit 1,154 684 1,435
Administrative expenses (1,098) (1,048) (2,140)
Operating profit / (loss)
Continuing operations 56 (249) (590)
Discontinued operations - (115) (115)
56 (364) (705)
Loss on sale of fixed assets - (30) (30)
Profit on sale of properties - - 466
Interest receivable 86 117 189
Cost of finance (615) (250) (604)
Loss on ordinary activities before 2 (473) (527) (684)
taxation
Taxation (27) - -
Loss on ordinary activities after (500) (527) (684)
taxation
Equity minority interest - 46 46
Loss attributable to equity (500) (481) (638)
shareholders
Loss per share (0.11p) (0.28p) (0.28p)
PROBUS ESTATES PLC
Consolidated Balance Sheet
As at 30 June 2001
Unaudited Unaudited Audited
30.6.01 30.6.00 31.12.00
£000 £000 £000
Fixed assets
Goodwill 6,334 - 6,499
Tangible assets
Investment properties 17,690 3,661 18,539
Other land and buildings 15,024 34 15,149
Other tangible fixed assets 1,264 17 1,278
40,312 3,712 41,465
Investments - - 283
Current assets
Property development under construction 3,830 - -
Stock 107 - 88
Debtors 2,069 2,544 1,244
Cash at bank and in hand 485 4,523 4,368
6,491 7,067 5,700
Creditors
Amounts falling due within one year (6,102) (493) (19,514)
Net current assets 389 6,574 (13,814)
Total assets less current liabilities 40,701 10,286 27,934
Creditors
Amounts falling due after one year (18,103) (2,482) (3,575)
22,598 7,804 24,359
Capital and reserves
Share capital 44,075 41,271 44,075
Share premium 20,235 7,620 20,235
Revaluation reserve 198 - 198
Profit and loss account (41,910) (41,087) (40,149)
Equity shareholders' funds 22,598 7,804 24,359
Net assets per share 5.00p 4.5p 5.4p
PROBUS ESTATES PLC
Group Cash Flow Statement
For the six months ended 30 June 2001
Unaudited Unaudited Audited
Six Six 12
months months months
to to to
30.6.01 30.6.00 31.12.00
Notes £000 £000 £000
Cash inflow / (outflow) from operating 2,002 (387) 3,050
activities
Returns on investments and servicing of
finance
Interest received 86 117 189
Interest and early redemption fees paid (615) (250) (604)
Net cash outflow from returns on
investments and servicing of finance (529) (133) (415)
Taxation
Corporate tax paid (27) - -
Capital expenditure and financial
investment
Purchase of investment properties - (5,169) (15,385)
Additions to other land and buildings (94) - (4)
Sale and purchase of other investments - (30) (313)
Purchase of other tangible fixed assets (242) - (1)
Net cash outflow from capital
expenditure and financial investment (336) (5,199) (15,703)
Acquisitions and disposals
Net cash disposed of with subsidiary - - 991
undertaking
Disposal of subsidiary undertakings - 559 559
Acquisition of subsidiary undertakings (4,296) - (4,422)
Net cash acquired 542 - -
Net cash inflow / (outflow) from
acquisitions and disposals (3,754) 559 (2,872)
Cash outflow before use of liquid
resources and financing (2,644) (5,160) (15,940)
Financing
Debt due within one year:
New loans advanced - - -
Repayment of amounts borrowed - - -
Debt due after more than one year:
New loans advanced - 2,482 13,079
Repayment of amounts borrowed (894) - -
(894) 2,482 13,079
Decrease in cash 4,5 (3,538) (2,678) (2,861)
Notes
1. Turnover
Unaudited Unaudited Audited
Six months Six months 12 months
to 30.6.01 to 30.6.00 to 31.12.00
£'000 £'000 £'000
Continuing operations -Net rental 718 160 768
income
Leisure activities 5,753 - 2,573
6,471 160 3,341
Discontinued operations - Aviemore - 751 751
Turnover 6,471 911 4,092
2. Loss before taxation from Group activities
Total
Operations
£'000
Turnover 6,471
Cost of sales (5,317)
Gross profit 1,154
Administrative expenses (1,098)
Operating loss 56
Interest receivable 86
Total finance cost (615)
Loss on ordinary activities before taxation (473)
3. Reconciliation of net cash flow to movement in net debt
Unaudited Unaudited Audited
Six months Six months 12 months
to 30.6.01 to 30.6.00 to
31.12.00
£'000 £'000 £'000
(Decrease) in cash in the period (3,538) (2,678) (2,861)
Cash (outflow) / inflow from increase in 894 (2,482) (13,079)
debt
Change in net debt arising from cash (2,644) (5,160) (15,940)
flows
Loans disposed of with subsidiaries - 4,458 4,458
Loans acquired with subsidiaries - - (3,704)
Exchange differences (314) - -
Movement in net debt in the period (2,958) (702) (15,186)
Net debt at start of period (12,446) 2,740 2,740
Net debt at period end (15,404) (2,038) (12,446)
4. Analysis of net debt
At Cash Exchange At
1.1.01 flow Differences 30.6.01
£'000 £'000 £'000 £'000
Cash at bank and in 4,368 (3,569) (314) 485
hand
Bank overdraft (31) 31 - -
Debt due within one (16,783) 15,422 - (1,361)
year
Debt due after one - (14,528) - (14,528)
year
(12,446) (2,644) (314) (15,404)
5. Earnings per share has been calculated on the issued number of
ordinary shares in issue during the period of 452,193,418. The share options
outstanding have no dilutive effect on earnings per share.
6. The financial information for the period ended 31 December 2000 is
abridged. The full accounts on which the auditors gave an unqualified report
have been filed with the Registrar of Companies. The figures for the six
months ended 30 June 2001 have not been audited.
