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Queensborough Hldgs (QSN)

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Tuesday 06 June, 2000

Queensborough Hldgs

Final Results

Queensborough Hldgs PLC
6 June 2000


    Preliminary results of Queensborough for the year ended 31 January 2000


                             CHAIRMAN'S STATEMENT
                                       
1    Recommended cash offer

It  was  announced  today  that  a  committee  of  independent  directors  and
Cloudburst had reached agreement on the terms of a recommended cash offer from
Cloudburst  to  acquire the Company, the details of which are contained  in  a
separate announcement which accompanies this statement.

2    Background

Our  programme  of  divestment of our businesses other than the  core  Holiday
Business  continues apace.  In some instances we anticipate that the  disposal
proceeds will be less than the historic book value of the asset resulting in a
book  loss being incurred.  Whilst in some cases, due to either the timing  or
the  terms of the disposal, the book loss may be offset by a favourable impact
on  the  trading  account  we have nevertheless, made  a  provision  in  these
accounts  for  the maximum anticipated book loss of circa £8  million  on  the
grounds of prudence.

In  my last annual statement I referred to the inability of small UK companies
to  access vital expansion capital by raising equity finance through the issue
of  new  shares at an acceptable price.  The past 12 months have  seen  little
change  in  the  attitude  of the investment community  and  subsequently  the
resulting  downward pressure on our share price has continued to  be  exerted,
the  effect  of  which  has been that throughout the period  our  shares  have
consistently  traded at prices significantly below net asset value  and  as  a
consequence our ability to expand the business remains severely restricted.

The  litigation proceedings relating to our claim for damages caused to us  by
the failure of the purchaser of the Hotel Burstin to complete the transaction,
despite having entered into an unconditional contract to do so, are ongoing.

3    Trading performance

After  adjusting for the leasehold rental costs resulting from  the  sale  and
leaseback  of  three caravan parks which took place in May 1999,  the  Caravan
Park  business produced an 11 per cent. increase in operating profit over last
year  which supports our previous statements that the Company should  continue
to expand and develop this business whenever possible as resources permit.

Whilst  the  French  caravan  hire fleet and pitch letting  business  achieved
target  once again caravan sales failed to meet expectations.  The success  of
the  French operation is wholly dependent upon strong caravan sales, which  we
have  consistently failed to achieve, consequently we have concluded  that  we
should  dispose of all four parks and concentrate the use of our  capital  and
management  resource solely in the UK.  Since the year end, two of the  French
caravan  parks  have  been  sold.  Negotiations  are  currently  ongoing  with
interested  parties  for the remaining two and we anticipate  disposal  taking
place during the season.

Following  the  divestments completed in May 1999, the Day Visitor  Attraction
Division  which now comprises only two theme parks, made a small  contribution
the highlight of which was the performance of the Lightwater Valley theme park
which traded significantly ahead of expectations.

Losses in the Restaurant Division continued and remained at a similar level to
last  year  due  in part to the significant costs incurred in  downsizing  the
management infrastructure which I referred to in my October statement  when  I
informed you that, as an adequate financial return could not be produced  from
a  slow rollout of our Fresco concept, those restaurants should be sold.   The
Fresco restaurants are now closed and on the market.  Romano's Macaroni  Grill
Basildon  continues to operate under the terms of the joint venture  agreement
with our American partner Brinker.


4    Dividends

In  the light of the trading results, the payment of a final dividend will not
be proposed.

I would like to express my sincere thanks to our management team and employees
for  the  flexibility  and  loyalty they continue to demonstrate  during  this
period  of considerable change and I would like to thank our shareholders  for
their continued support.

5    Operating Review

Holiday Division

Caravan Park
          
When  compared on a like-for-like basis, the UK caravan park business produced
an  11  per  cent. increase in operating profit over last year with  sales  of
caravans continuing to exceed our expectations by achieving sales of just over
1,000  units at an average gross margin of £4,100 per unit.  Our caravan  hire
fleet  comprising 773 units also performed well achieving an average occupancy
of  22  weeks at an average tariff of £189 per week as did our bars  operation
which  produced  a  gross turnover of £3.1 million and achieved  an  excellent
gross profit margin of 71 per cent.

Sunnydale Holiday Park, Lincolnshire, the acquisition of which we announced in
August 1999, has now been successfully integrated into the division.

Burstin Holiday Centre

The  improvements completed during the year, principally the refurbishment  of
the  bedrooms  and  the main venues, have, in the opinion  of  the  directors,
significantly improved the level of customer satisfaction.  Nevertheless, as a
result of the downturn in the coach tour market during November, December  and
January  which  was partly offset by additional private client  business,  the
centre produced a shortfall against last year's operating profit.

Day Visitor Attraction Division

The  results for the year are distorted by the seasonal winter losses incurred
by  the four businesses that were sold during the early part of the year.  The
two  remaining  theme  parks,  Lightwater Valley, Yorkshire  and  Pleasurewood
Hills, Suffolk, achieved a combined total of 557,000 visitors during the year.
Lightwater  Valley's refocused marketing strategy resulted  in  that  business
achieving a 31 per cent. profit growth on last year.

Restaurant Division
     
The  results incorporate a downsizing cost of £538,000.  Turnover at  Romano's
Macaroni Grill unit, Basildon, continues to exceed expectations, however,  the
three   Fresco   units   at  Bristol,  Nottingham  and  Manchester   performed
significantly below expectations.

Current Trading and Prospects

Trading  in the first quarter of the current financial year continued in  line
with  directors' expectations.  Since the year end, the sales of  two  of  the
French caravan parks L'Etang Bleu and Camping de Kervel have been completed.

It  is anticipated that by the early part of the season the Company will  have
divested itself of its peripheral leisure units and will be focused solely  on
improving   the   earnings  of  our  core  UK  Caravan  Park  business.    The
Queensborough  Group  continues to provide intensive training  programmes  for
employees  at all levels which the directors believe contribute  to  the  high
standard  of  customer  service that they consider is now  being  consistently
delivered by the business.

The  successful integration of Sunnydale Holiday Park is further  confirmation
of  the Board's strategy to continue to acquire suitable caravan parks in  the
UK whenever possible.

Consolidated Profit and Loss Account
   
                                         Year       Year
                                        ended      ended
                                           31         31
                                      January    January
                                         2000       1999
                                        £000s      £000s
                                                        
Turnover including share of                             
joint venture
Continuing operations                  42,878     41,718
Less share of joint venture              (753)         -
                                       ------     ------
                                       42,125     41,718
Discontinued operations                 1,269        455
                                       ------     ------
Total turnover                         43,394     42,173
                                       ------     ------
                                                        
Operating Profit                                        
Continuing operations                   4,053      4,823
Share of operating loss  in              (273)       (36)
joint venture                           -----      -----
                                        3,780      4,787
Discontinued operations                (2,363)    (2,320)
                                        -----      -----
Total operating profit                  1,417      2,467
                                        -----      -----
                                                        
Non-operating   exceptional items                             
Continuing operations:                                  
Profit   on   disposal   of businesses    497          -
Profit on disposal of fixed assets      1,018          -
Provision for loss on  sale           
of fixed assets                        (5,991)         -
                                        -----      -----
                                       (4,476)         -
Discontinued operations:                                
Provision   for   loss   on
termination of operation               (1,725)         -
                                        -----      -----
                                       (6,201)         -
(Loss)/profit  on  ordinary           
activities before interest             (4,784)     2,467
                                                        
Interest receivable                                     
External                                  239        101
From joint venture                         13          4
                                          252        105
                                                        
Interest payable                                        
Group                                  (2,368)    (3,068)
Share of joint venture                    (10)        (2)
                                       (2,378)    (3,070)
                                        -----      -----
Loss on ordinary activities          
before taxation                        (6,910)      (498)
Tax  on  loss  on  ordinary activities    198       (287)
                                        -----      -----
Loss for the financial year            (6,712)      (785)
Dividends                                (171)      (514)
                                        -----      -----
                                       (6,883)    (1,299)
                                        -----      -----
                                                        
Loss per ordinary share                (5.87)p     (0.68)p                    
Diluted  loss per  ordinary share      (5.87)p     (0.68)p                    
Dividend per ordinary share              0.15p       0.45p



Consolidated Balance Sheet

                                        As at     As at
                                           31        31
                                      January   January
                                         2000      1999
                                        £000s     £000s
                                                       
FIXED ASSETS                                           
Tangible assets                         50,912   68,254
                                        ------   ------
Investments                                  6        6
                                                       
Interest in joint venture                              
 Share of gross assets                     599      310
 Share of gross liabilities               (920)    (348)
                                        ------   ------
 Share of net liabilities                 (321)     (38)
 Loan to joint venture                     621      305
                                                       
                                           300      267
                                        ------   ------
                                           306      273
                                        ------   ------
TOTAL FIXED ASSETS                      51,218   68,527
                                        ------   ------
                                                       
CURRENT ASSETS                                         
Stocks                                   2,565    2,262
Debtors: Amounts due  within one year    2,864    3,323
Debtors:  Amounts due  after            
more than one year                       2,050        -
Cash at bank and in hand                 1,983       82
                                        ------   ------
                                         9,462    5,667
CREDITORS                                              
Amounts  falling due  within one year  (14,130) (21,699)
                                        ------   ------
NET CURRENT LIABILITIES                 (4,668) (16,032)
                                        ------   ------
                                                       
TOTAL  ASSETS  LESS  CURRENT             
LIABILITIES                             46,550   52,495
                                                       
CREDITORS                                              
Amounts  falling  due  after           
more than one year                     (22,462) (20,641)
PROVISION   FOR  LIABILITIES             
AND CHARGES                               (225)    (797)
                                        ------   ------
NET ASSETS                              23,863   31,057
                                        ------   ------
                                                                              
                  
CAPITAL AND RESERVES                                   
Called up share capital                 11,429   11,429
Share premium account                   15,545   15,545
Profit and loss accounts                (3,111)   4,083
                                        ------   ------                      
EQUITY SHAREHOLDERS' FUNDS              23,863   31,057
                                        ------   ------
                                                       


 Consolidated Cash Flow Statement
 
                                               Year       Year
                                              ended      ended
                                                 31         31
                                            January    January
                                               2000       1999
                                              £000s      £000s
                                                   
  Net cash inflow from operating activities   3,550      9,547
                                              -----      -----
  Returns on investments and servicing of                    
  finance
  Interest received                             157        101
  Interest paid                              (2,107)    (2,792)
  Interest element of finance lease rentals    (233)      (233)
                                              -----      -----
  Net cash outflow for returns on investments
  and servicing of finance                   (2,183)    (2,924)
  Taxation                                                    
  Corporation tax paid                         (833)      (111)
  Capital expenditure and financial                    
  investment
  Purchase of tangible fixed assets          (6,106)    (6,896)
  Receipts from sale of tangible fixed assets 7,545        306
  Long term loans made to joint venture        (535)      (305)
                                              -----      -----
  Net  cash  inflow/(outflow) for  capital     
  expenditure and financial investment          904     (6,895)

  Acquisitions and disposals                                  
  Purchase of businesses                          -     (3,908)
  Disposal of businesses                      6,160          -
  Deferred consideration repayment               50          -
                                              -----      -----
  Net cash inflow/(outflow)for    
  acquisitions and disposals                  6,210     (3,908)
                                              -----      -----
  Equity dividends paid                        (514)      (514)
                                              -----      -----
  Cash  inflow/(outflow) before management    
  of liquid resources and financing           7,134     (4,805)
                                              -----      -----
  Management of liquid resources                              
  Increase in cash placed on  short-term  
  deposit                                    (1,983)         -
                                              -----      -----
  Net  cash  outflow  from  management  of  
  liquid resources                           (1,983)         -
                                              -----      -----
  Financing                                                   
  New secured loans                           2,764      4,563
  Loan repayments                            (4,179)    (3,524)
  Payment  of  principal under  finance        
  leases                                       (752)      (526)
  New finance leases and hire purchase          639      1,750
                                              -----      -----
  Net cash (outflow)/inflow from financing   (1,528)     2,263
                                              -----      -----
  Increase/(decrease) in cash in the year     3,623     (2,542)
                                              -----      -----
   
   
Notes to the Preliminary Statement of Annual Results

1.   Abridged Accounts

The financial information does not amount to full accounts within the meaning
of Section 240 of the Companies Act 1985 (as amended).

The figures for 1999 are abridged from the Group's full accounts for that
year.  Those accounts received an unqualified audit report and have been filed
with the Registrar of Companies.

The 2000 figures, which have been audited, will form part of the full Group
accounts which are expected to be filed with the Registrar of Companies in
August 2000.

The  Auditors'  reports for 2000 and 1999 did not contain  a  statement  under
Section  237  (2)  and  (3) of the Companies Act 1989.  This  is  a  statutory
disclosure  concerning the keeping of proper accounting  records  and  returns
from branches as required by the Companies Act 1989

2.   Dividends

                                             2000       1999
                                            £000s      £000s
                                                            
  Dividends on ordinary shares at 0.15p       
  (1999 : 0.45p)                              171        514                  
                                            -----      -----
     


3.   Loss per ordinary share

The  calculation of loss per share on the net basis is based on the  loss  for
the  financial year and on 114,291,756 (1999 : 114,291,756) shares, being  the
weighted  average number of ordinary shares of 10p each in issue  and  ranking
for dividend during the year.

There  is  no difference between loss per share as reported and on  a  diluted
basis, which includes share options outstanding and not yet exercised at  31st
January 2000.

4.   Statement of total recognised gains and losses

                                             2000       1999
                                            £000s      £000s
                                                            
  Loss for the financial year             (6,712)      (785)
                                                            
  Currency translation differences on      
  foreign currency net investments          (419)        206    
                                           -----       -----
  
  Total recognised losses for the year    (7,131)       (579)
                                           -----       -----   



                                                                                
                                                                                
                            

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