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Probus Estates PLC (PBE)

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Tuesday 24 September, 2002

Probus Estates PLC

Interim Results

Probus Estates PLC
24 September 2002





                              PROBUS ESTATES PLC

                      ('Probus Estates' or 'the Company')



               Interim results for six months ended 30 June 2002



                          Chairman's Interim Statement



Interim Results



For the six month period to 30 June 2002 the Group's turnover was €10,205,000
(2001: €10,668,000).  The Group incurred a loss after taxation of €1,357,000
(2001: €823,000), after accounting for goodwill amortisation of €276,000 (2001:
€271,000).  The comparative figures for the six months ended 30 June 2001 have
been restated in euros having originally been published in pounds sterling.



Casino de Mallorca



The principal cause of the Group loss was the Paladium show.  This area has been
loss making for some time and management took steps during the period to improve
profitability and attendance.  Unfortunately lower visitor numbers to Mallorca
in the period have continued to impact on the results from this activity.
However, the core gaming activity of the casino remains profitable.  Management
is reviewing the actions to be taken imminently to eliminate the losses on the
Paladium show in the future and to make the non-gaming activities of the casino
profit generating.



The possible opening of branch casinos remains on the agenda in our discussions
with the local authority but it is unlikely that approval will be given before
2003.  I have previously told you about the possibility of developing a hotel on
the casino site.  We are continuing to look at the development options and have
widened their ambit in order to make the most of the land that has high
development potential.



Santa Ponsa



As I forecast in my annual statement in May we have now completed a number of
sales of units at Santa Ponsa and further sales are likely to be completed
shortly.  The project is now complete and we have now contracted to sell 36% of
the total space, and let a further 9%.  Because no sales were  legally completed
by 30 June 2002 the profit from these sales will be included in the second half
of the year.  The property market in Mallorca is less strong than it was but we
are confident that the quality, appearance and location of the development will
mean that the remaining units will be sold or let over the next 12 months.



Dutch Commercial Property



Although the Group intends to invest in additional commercial property no
further acquisitions were made during the period.  The Dutch portfolio continues
to perform well and makes a significant contribution to Group results.



Can Vinyes



We have continued to work on development proposals on this two million square
metre site at Gava near Barcelona.  In order to maximise the benefit from
development and meet the long-term development expectations of the local
authority we have amended the original proposals to allow for more villa plots
and more, but smaller, condominiums.  This will allow the condominium
construction to proceed in more stages in order to match supply and demand.  We
submitted the Spanish equivalent of an application for outline planning consent
(a 'plan parcial') at the end of July.  We expect that negotiation of this
application might take a further 12 months.



Outlook



We believe that the stemming of the losses at the Paladium and the completion of
the development at Santa Ponsa and the profits from its sales will mark a
turning point in the performance of the Group.  We also believe that future
profits from the casino gaming can be improved.  In the longer term, in addition
to the better performance of the overall casino operation, the Group can look
forward to the development of its real estate prospects for further improvement.
  Management is also looking at ways to reduce the significant cost of financing
in the Group.





Lars-Erik Magnusson

Chairman

24 September 2001




PROBUS ESTATES PLC



                                                       Consolidated profit and loss account
                                                       For the six months ended 30 June 2002


                                                     Unaudited            Unaudited              Audited
                                                    Six months           Six months            12 months
                                                    to 30.6.02           to 30.6.01          to 31.12.01
                                      Notes €000                   €000                             €000

Turnover

Continuing operations                     1 10,205                 10,668               21,778

Cost of sales                               (9,397)                (8,765)              (17,993)
Gross profit                                808                    1,903                3,785

Administrative expenses                     (1,424)                (1,809)              (3,529)

Operating (loss)/ profit
Continuing operations                     1 (616)                  94                   256

Interest receivable                         18                     141                  107
Interest payable                            (734)                  (1,013)              (2,350)

Loss on ordinary activities               2 (1,332)                (778)                (1,987)
before taxation

Taxation                                    (25)                   (45)                 (6)

Loss on ordinary activities after           (1,357)                (823)                (1,993)
taxation


Loss per share                              €(0.0029)              €(0.0018)            €(0.0043)






                               PROBUS ESTATES PLC



                           Consolidated balance sheet

                               As at 30 June 2002




                                              Unaudited           Unaudited              Audited
                                                30.6.02             30.6.01             31.12.01
                                                   €000                €000                 €000

Fixed assets
Goodwill                                10,054              10,562              10,330
Tangible assets
Investment properties                   34,762              29,498              34,762
Other land and buildings                24,724              25,052              24,724
Other tangible fixed assets             4,226               2,109               3,787
                                        73,766              67,221              73,603

Current assets
Stock                                   166                 179                 144
Work in progress                        66,638              6,387               62,488
Debtors                                 3,738               3,450               2,715
Cash at bank and in hand                1,430               808                 1,565
                                        71,972              10,824              66,912

Creditors
Amounts falling due within one year     (55,119)            (10,175)            (52,963)

Net current assets                      16,853              649                 13,949

Total assets less current liabilities   90,619              67,870              87,552

Creditors
Amounts falling due after one year

Convertible loan notes                  (11,850)            -                   (11,850)
Other creditors                         (40,062)            (30,188)            (36,237)
                                        (51,912)            (30,188)            (48,087)
Net assets                              38,707              37,682              39,465



Capital and reserves
Called up share capital                 63,885              63,322              63,622
Share premium account                   33,384              31,671              33,022
Revaluation reserve                     315                 315                 315
Profit and loss account                 (58,877)            (57,626)            (57,494)

Equity shareholders' funds              38,707              37,682              39,465

Net assets per share                    €0.079              €0.083              €0.084




                               PROBUS ESTATES PLC



                           Group Cash Flow Statement

                     For the six months ended 30 June 2002




                                                            Unaudited         Unaudited           Audited
                                                           Six months        Six months         12 months
                                                           to 30.6.02        to 30.6.01       to 31.12.01
                                                  Notes          €000              €000              €000

Cash (outflow)/ inflow from operating                   (898)             1,047             (20,296)
activities

Returns on investments and servicing of
finance
Interest received                                       18                141               107
Interest and early redemption fees paid                 (3,559)           (1,015)           (2,741)

Net cash outflow from returns on investments
and servicing of finance                                (3,541)           (874)             (2,634)

Taxation
Corporate tax paid                                      (25)              (44)              (44)

Capital expenditure and financial investment
Purchase of investment properties                       -                 -                 (5,264)
Additions to other land and buildings                   -                 (155)             -
Purchase of other tangible fixed assets                 (512)             (399)             (2,247)

Net cash outflow from capital expenditure
and financial investment                                (512)             (554)             (7,511)

Acquisitions and disposals
Repayment of shareholders' loans on                     -                 (4,884)           (4,884)
acquisition
Acquisition of subsidiary undertakings                  -                 (2,271)           (33,371)

Net cash outflow from acquisitions and                  
disposals                                               -                 (7,155)           (38,255)

Cash outflow before financing                           (4,976)           (7,580)           (68,740)

Financing

Issue of ordinary share capital                         625               -                 1,651
Loans advanced/(repaid)                                 2,939             (1,490)           61,421
Net cash inflow/(outflow) from financing:               3,564             (1,490)           63,072





Decrease in cash                                    2,3 (1,412)           (6,090)           (5,668)


Notes





1.                  Segmental information


                                                         Unaudited        Unaudited           Audited
                                                        Six months       Six months         12 months
                                                        to 30.6.02       to 30.6.01       to 31.12.01
                                                             €'000            €'000             €'000
Turnover

Property                                                     1,518            1,187             2,728
Leisure                                                      8,687            9,481            19,050
                                                            10,205           10,668            21,778

Operating  (loss)/profit

Property                                                     1,220            1,048             2,027

Leisure                                                    (1,357)            (119)             (107)

Group                                                        (479)            (835)           (1,664)

                                                             (616)               94               256








2.         Reconciliation of net cash flow to movement in net debt


                                                      Unaudited            Unaudited              Audited
                                                     Six months           Six months            12 months
                                                     to 30.6.02           to 30.6.01          to 31.12.01
                                                          €'000                €'000                €'000

Decrease in cash in the period                (1,412)               (6,090)              (5,668)
Cash (outflow) / inflow from increase in debt (2,939)               1,490                (61,421)
Change in net debt arising from cash flows    (4,351)               (4,600)              (67,089)
Exchange differences                          -                     (332)                335
Movement in net debt in the period            (4,351)               (4,932)              (66,754)
Net debt at start of period                   (86,359)              (20,754)             (19,805)

Net debt at period end                        (90,910)              (25,686)             (86,559)






3.         Analysis of net debt


                                              At 1.1.02        Cash flow        At 30.6.02
                                                  €'000            €'000             €'000

Cash at bank and in hand                  1,565             (135)            1,430
Bank overdraft                            -                 (1,277)          (1,277)
Debt due within one year                  (46,695)          1,545            (45,150)
Debt due after one year                   (41,429)          (4,484)          (45,913)
                                          (86,559)          (4,351)          (90,910)



4.         Loss per share has been calculated on the basis of a weighted average
number of ordinary shares in issue during the period of 474,453,649.  The share
options outstanding have no dilutive effect on earnings per share.



5.         The financial information for the period ended 31 December 2001 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 2002 have not been audited. Where the presentation of the
financial statements has been amended in the current period the presentation of
the comparative figures has been amended accordingly. Financial Reporting
Standard 19 (Deferred Tax) has been adopted during the period but has had no
material effect on the financial statements previously presented.






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

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