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Mazaran Leisure PLC (MZR)

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Monday 27 September, 1999

Mazaran Leisure PLC

Interim Results

MAZARAN LEISURE PLC
27 September 1999

                   INTERIM RESULTS FOR THE SIX MONTHS TO
                              31st MAY 1999

CHAIRMAN'S STATEMENT

The period under review marks the transformation of South Country Homes from
a residential property investment company to Mazaran Leisure, a dynamic and
fast expanding health & fitness business with a new management team. Under
these circumstances the results for the six months to 31st May 1999 are not
strictly comparable with the same period a year ago.

Reorganisation and acquisition costs, together with the move to AIM have all
contributed to a pre-tax loss of £554,129 against a loss of £19,626 for the
first six months of 1998. These losses also reflect costs from abortive
acquisitions which have been written off as has the loss incurred through the
sale of the property portfolio. The Board is not declaring a dividend.

In April shareholders approved the changes to the business, as well as the
company's name, and with the acquisition of the management of the Richmond
leisure complex completed Mazaran began seeking further health & fitness
purchases. In May the Morleys Health Club was acquired and will be re-
launched in October following extensive refurbishment.

Since the end of May two further sites have been acquired in Chelmsford and
Brentwood. Both will be refurbished and re-branded as Mazaran Health &
Fitness Clubs. Today we announced the purchase of a further centre in Bristol
for £1.15m cash. This latest acquisition has substantial redevelopment
opportunities and there is planning consent enabling us to expand the centre
by almost two-thirds. On completion of the Bristol club we will own or
operate five centres and take the Group a step further forward to achieving
critical mass in this exciting sector of the leisure market.

Mazaran's new 31st August year end marks the end of the historic position of
the company as a property company. These accounts incorporate the substantial
cost of the change and allow the next accounting period to reflect Mazaran's
move into the leisure market. We now intend to consolidate these acquisitions
into the Mazaran Health & Fitness Club brand, which is becoming a clearly
defined product in the leisure market, while at the same time we continue to
seek further opportunities.

Sandy Anderson 
Chairman

UNAUDITED PROFIT AND LOSS ACCOUNT
for the six months ended 31 May 1999

                                          Unaudited   Unaudited     Audited
                                           6 months    6 months        year
                                             ending      ending    ended 30
                                             31 May      31 May    November
                                               1999        1998        1998
                                                  £           £           £
Turnover
Rental income                                19,632      49,162      87,170
Leisure                                     300,510           -           -
                                            _______     _______     _______
                                            320,142      49,162      87,170
                                            _______     _______     _______
Trading loss                               (205,634)    (26,012)   (216,642)
Listing expenses                           (272,402)          -           -
Revaluation surplus                               -           -      71,300
                                            _______     _______     _______
Operating loss before exceptional item     (478,036)    (26,012)   (145,342)
Loss on disposal of property portfolio      (92,290)          -           -
                                            _______     _______     _______
Operating loss after exceptional item      (570,326)    (26,012)   (145,342)
Interest receivable                          16,197       6,386      11,607
                                            _______     _______     _______
Loss before taxation                       (554,129)    (19,626)   (133,735)
Taxation                                          -       4,121           -
                                            _______     _______     _______
Loss after taxation                        (554,129)    (15,505)   (133,735)
                                            _______     _______     _______

Basic earnings per share                    (4.85)p     (0.19)p     (1.66)p
Diluted earnings per share                  (4.85)p     (0.19)p     (1.66)p
Dividends per share                              0p          0p          0p


NOTES

1. Basis of preparation
The results for the six months ended 31st May 1999 are unaudited. They have
been prepared on a basis consistent with the statutory accounts for the year
ended 30th November 1998 and include the results of the subsidiary company
since its acquisition. The comparative amounts for the year ended 30th
November 1998 do not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985 but have been extracted from the
audited statutory accounts delivered to the Registrar of Companies on which
the Auditors issued an unqualified Report which did not contain a statement
under Section 237(2) or (3) of that Act.

2. Taxation
The interim tax charge is based on the effective tax rate for the full year.

3. Earnings per share
The earnings per share are calculated on the loss after taxation in each
period and on the 8,075,100 shares in issue at the beginning of the period
and the 16,153,740 shares issued in the six months to 31st May 1999.

4. Distribution of Interim Report
Copies of the interim report will be posted to shareholders and are available
from the company at 1210 Parkview, Arlington Business Park, Theale,
Berkshire, RG7 4TY.

BALANCE SHEET
as at 31 May 1999
                                          Unaudited   Unaudited     Audited
                                           6 months    6 months        year
                                             ending      ending    ended 30
                                             31 May      31 May    November
                                               1999        1998        1998
                                                  £           £           £
Fixed assets
Goodwill                                  3,890,583           -           -
Tangible fixed assets                     1,390,696       2,037       3,027
Investment properties                             -   1,034,500     870,500
                                          _________   _________   _________
                                          5,281,279   1,036,537     873,527
                                          _________   _________   _________
Current assets
Debtors                                     166,182       8,668       8,957
Bank                                      2,298,712     167,374     406,997
                                          _________   _________   _________
                                          2,464,894     176,042     415,954
                                          _________   _________   _________
Creditors: amounts falling due
  within one year                          (744,565)    (37,849)   (201,781)
Net current assets                        1,720,329     138,193      214,173
                                          _________   _________   _________
Net assets                                7,001,608   1,174,730   1,087,700
                                          _________   _________   _________

Capital and reserves
Share capital                               484,577     161,502     161,502
Share premium account                     7,339,987   1,236,326   1,236,326
Revaluation reserve                               -     (90,000)    (41,300)
Profit and loss account                    (822,956)   (133,098)   (268,828)
                                          _________   _________   _________
                                          7,001,608   1,174,730   1,087,700
                                          _________   _________   _________

CASH FLOW STATEMENT
for the six months ended 31 May 1999
                                          Unaudited   Unaudited     Audited
                                           6 months    6 months        year
                                             ending      ending    ended 30
                                             31 May      31 May    November
                                               1999        1998        1998
                                                  £           £           £

Net cash outflow from operating activities (696,214)    (14,490)   (103,558)
Returns on investments and
  servicing of finance
    Interest received                        16,197       6,386      11,607
Taxation                                       (268)      2,000      (8,723)
                                          _________   _________   _________
Capital expenditure and
  financial investment
    Payments to acquire tangible
    fixed assets                           (845,476)     (2,037)     (3,336)
    Receipts from sale of
    investment properties                   767,250           -     335,492
    Payments to acquire intangible
    fixed assets                           (414,515)          -           -
                                          _________   _________   _________
                                           (492,741)     (2,037)    332,156
                                          _________   _________   _________
Acquisitions and disposals
    Purchase of subsidiary undertakings  (3,885,900)          -           -
    Net cash acquired with
    subsidiary undertakings                 540,197           -           -
                                          _________   _________   _________
                                         (3,345,703)          -           -
                                          _________   _________   _________
Net cash flow before financing           (4,518,729)     (8,141)    231,482
                                          _________   _________   _________
Financing
    Decrease in debt                        (16,292)          -           -
    Issue of ordinary share capital       6,426,736           -           -
                                           _________   _________   _________
                                          6,410,444           -           -
                                          _________   _________   _________
Increase/(decrease) in cash               1,891,715      (8,141)    231,482
                                          _________   _________   _________


NOTES

Reconciliation of net cash flow
                                          Unaudited   Unaudited     Audited
                                           6 months    6 months        year
                                             ending      ending    ended 30
                                             31 May      31 May    November
                                               1999        1998        1998
                                                  £           £           £

Increase/(decrease) in cash               1,891,715      (8,141)    231,482
Cash at bank brought forward                406,997     175,515     175,515
                                          _________   _________   _________
Cash at bank carried forward              2,298,712     167,374     406,997
                                          _________   _________   _________


Reconciliation of operating loss to net cash outflow from operating
activities

Operating loss                             (478,036)    (26,012)   (214,334)
Revaluation surplus                               -           -     (71,300)
Depreciation charges                          9,433           -         309
Amortisation charges                         56,434           -           -
(Increase)/decrease in debtors             (132,105)      1,331      (1,079)
Increase/(decrease) in creditors           (151,940)     10,191     182,846
                                          _________   _________   _________
                                           (696,214)    (14,490)   (103,558)
                                          _________   _________   _________

Contact:  Mazaran Leisure plc                              Tel: 01189 657765
             Richard Yerbury, Chief Executive

           Baron Phillips Associates                      Tel: 020 7224 1302
              Baron Phillips

                                                                                                                                                

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