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Queensborough Hldgs (QSN)

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Friday 08 October, 1999

Queensborough Hldgs

Interim Results

QUEENSBOROUGH HOLDINGS PLC
8 October 1999
                                                                              
                          Queensborough Holdings Plc
                                       
             Interim Results for the six months ended 31 July 1999

Highlights

*    Turnover up 8.0% to £23.9 million
*    Profit before tax £1.1 million
*    Earnings per share up 50% to 1.10p
*    Dividend held at 0.15p
*    Holiday division operating profit up 14% to £3.3 million
*    Restaurant division refocus on Romano's Macaroni Grill

Kevin Leech, Chairman, comments:
'The Holiday Division, the core business of the company, continues to provide
significant potential growth for the company and the Board is committed to
continue to improve market share through the successful development and
acquisition of businesses in this sector.'

Enquiries:
Philip Mason, Chief Executive:  Queensborough Holdings PLC

Piers Hooper, Hudson Sandler Limited

Telephone:0171 796 4133 on Friday 8 October 1999 only, thereafter
01703 601155

             Interim Results for the six months ended 31 July 1999

Chairman's Statement

The trading result for the six months to 31 July 1999 reflects the continuing
excellent performance of the UK caravan parks.  It is supportive of our
recently announced acquisition of Sunnydale Holiday Park in Lincolnshire and
our stated commitment to develop and acquire additional caravan parks in the
United Kingdom when availability and resources permit.

I reported in April of this year that, due to the enforced change of strategy
relating to the Restaurants Division, the reason for which I have previously
advised you in detail, we would need to downsize the management infrastructure
of the Division to one more appropriate to our current capacity.  I can now
inform you that following the review undertaken as part of that exercise the
Board has determined that a slow rollout of the Fresco concept will not
produce an adequate financial return.  Consequently the concept should not be
developed further and the existing units should be sold to allow the reduced
Divisional management team to concentrate on maximising value from the very
successful Romano's Macaroni Grill concept which we operate under a joint
venture agreement with our American partner Brinker and which continues to
exceed all expectations.  The downsizing exercise has now been completed and
the cost thereof is incorporated in the current results.

Trading Performance

The trading performance of the Holiday Division continues to exceed
expectations recording an operating profit of £3.3 million which is 14% ahead
of last year.  This has been assisted by the introduction of three caravan
sales centres of excellence which has increased volume by 23% and average
gross margins by 11% and by the fact that the holiday letting income business
is 24% ahead of last year's performance in spite of later booking trends.  The
Hotel Burstin's first half results are marginally below expectation due to
slower bookings performance in the early part of the year, however the August
figures were ahead of target.

The Day Visitor Attractions Division which is now comprised of two theme
parks, Lightwater Valley, Ripon, and Pleasurewood Hills, Lowestoft, is showing
a reduction on cumulative year on year trading, principally due to the
financial effect of the divestment programme.  The Lightwater Valley result,
however, reflects an increase in admission numbers of 8% and operating profit
of 55%.  Pleasurewood Hills which opened a month later than last year is
currently 11% down on admission numbers.

Turnover at the Restaurants Division's first Romano's Macaroni Grill unit at
Basildon is well ahead of target.  However, the trading losses of the division
have increased from £0.3 million to £1.4 million, due to a combination of the
initial trading losses of the recently opened Fresco units and the cost of
downsizing previously referred to.

Interest payable was marginally lower than last year at £1.2 million.

Current Trading

The August trading results for the Holiday Division and the Day Visitor
Attractions Division were as targeted.

Future Prospects

The Holiday Division, the core business of the company, continues to provide
significant potential growth for the company and the Board is committed to
continue to improve market share through the successful development and
acquisition of businesses in this sector.

Dividend

I am pleased to announce an interim dividend of 0.15p (1998: 0.15p).

Litigation - Hotel Burstin

I have previously informed you in detail of the damage 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.  The damages,
which resulted from our having to abort the acquisition of 46 restaurants, are
considerable and we intend to pursue recovery thereof from the purchaser, a
company jointly owned by Fordgate Limited and Dunstone Management Limited.

Queensborough was induced to enter into the Sale and Leaseback as a result of
certain statements made by Fordgate and Dunstone (and in particular one of
Fordgate's directors, Mr Moises Gertner).  Queensborough has been advised that
the statements made by Fordgate, Dunstone and Mr Gertner were actionable mis-
statements.  Proceedings against Fordgate, Dunstone and Mr Gertner are
presently being drafted and we expect these to be issued and served within the
next month.

Appreciation

I would like to pay tribute to the tremendous commitment and dedication that
our management team and employees have given to the business throughout this
period of change and also thank our shareholders for their continuing support.

K R Leech
Chairman
8 October 1999

Consolidated Profit and Loss Account
For the half year to 31 July 1999

                             6 months 6 months 12 months
                                ended    ended     ended
                              31.7.99  31.7.98   31.1.99
                          (unaudited)(unaudited)(audited)
                                £'000    £'000     £'000

Turnover including share of
 joint venture
Continuing operations          24,227   22,142    42,173
Less: share of joint venture    (312)        -         -
                           ------------------------------
Total turnover                 23,915   22,142    42,173
Cost of sales                (11,207) (10,069)  (14,844)
                           ------------------------------
Gross profit                   12,708   12,073    27,329
Administrative expenses      (11,309)  (9,503)  (23,696)
Exceptional administrative
 expenses                       (484)        -   (1,130)
Total administrative
 expenses                    (11,793)  (9,503)  (24,826)
                           ------------------------------
Operating profit
Continuing operations
 Holiday division               3,348    2,947     6,164
 Day visitor attractions
  division                      (184)      447       811
 Restaurants division         (1,465)    (308)   (2,320)
 Parent company                 (784)    (516)   (2,152)
                          -------------------------------
                                  915    2,570     2,503
Share of operating loss in
 joint venture                  (122)        -      (36)
                           ------------------------------
Total operating profit            793    2,570     2,467
Profit on disposal of day
 visitor attractions              250        -         -
Profit on disposal of fixed
 assets                         1,277        -         -
                           ------------------------------
Profit on ordinary
 activities before interest     2,320    2,570     2,467
Interest receivable
 External                          55        -       101
 From joint venture                 5        -         4
                            -----------------------------
                                   60        -       105
Interest payable
 Group                        (1,270)  (1,475)   (3,068)
 Share of joint venture           (2)        -       (2)
                           ------------------------------
                              (1,272)  (1,475)   (3,070)
                           ------------------------------
Profit/(loss) on ordinary
 activities before taxation     1,108    1,095     (498)
Tax on profit/(loss) on 
 ordinary activities              151    (266)     (287)
                           ------------------------------
Profit/(loss) for the period    1,259      829     (785)
Dividends                       (171)    (171)     (514)
                           ------------------------------
Retained profit/(loss) for
 the period                     1,088      658   (1,299)
                           ------------------------------
Earnings/(loss) per ordinary
 share                           1.10p    0.73p   (0.68)p
Diluted earnings/(loss) per
 ordinary share                  1.10p    0.73p   (0.68)p
                           ------------------------------
Dividend per ordinary share      0.15p    0.15p    0.45p
                               ======   ======    ======

Consolidated Statement of Total Recognised Gains & Losses
For the half year to 31 July 1999

                             6 months 6 months 12 months
                                ended    ended     ended
                              31.7.99  31.7.98   31.1.99
                          (unaudited)(unaudited)(audited)
                                £'000    £'000     £'000

Profit/(loss) for the period    1,259      829     (785)
Currency translation differences
 on foreign currency
 net investments                   77       98       206
                           ------------------------------
Total recognised gains and
 losses for the period          1,336      927     (579)
                               ======   ======    ======
Consolidated Balance Sheet
As at 31 July 1999

                              31.7.99  31.7.98   31.1.99
                          (unaudited)(unaudited)(audited)
                                £'000    £'000     £'000

FIXED ASSETS
Tangible assets                56,309   67,700    68,254
                           ------------------------------
Investments                         6       58         6
Interest in joint venture
Share of gross assets             764        -       310
Share of gross liabilities      (926)        -     (348)
Reclassification to provisions    162        -        38
                           ------------------------------
TOTAL INVESTMENTS                   6       58         6
                           ------------------------------
                               56,315   67,758    68,260

CURRENT ASSETS
Stocks                          2,365    3,009     2,262
Debtors                         7,663    3,882     3,628
Cash at bank and in hand        5,321      220        82
                           ------------------------------
                               15,349    7,111     5,972

CREDITORS
Amounts falling due within
 one year                    (16,904) (17,859)  (21,699)
                           ------------------------------
NET CURRENT LIABILITIES       (1,555) (10,748)  (15,727)
                           ------------------------------

TOTAL ASSETS LESS CURRENT
 LIABILITIES                   54,760  57,010    52,533

CREDITORS
Amounts falling due after
 more than one year          (21,553) (23,502) (20,641)
PROVISION FOR LIABILITIES
 AND CHARGES                    (985)    (602)    (835)
                           ------------------------------
NET ASSETS                     32,222   32,906   31,057
                           ------------------------------
CAPITAL AND RESERVES
Called up share capital        11,429   11,429    11,429
Share premium account          15,545   15,545    15,545
Profit and loss account         5,248    5,932     4,083
                           ------------------------------
EQUITY SHAREHOLDERS' FUNDS     32,222   32,906    31,057
                               ======   ======    ======

Consolidated Cash Flow Statement
For the half year to 31 July 1999
                             6 months 6 months 12 months
                                ended    ended     ended
                              31.7.99  31.7.98   31.1.99
                          (unaudited)(unaudited)(audited)
                                £'000    £'000     £'000

Net cash inflow from
 operating activities           3,383    5,959     9,511
                           ------------------------------
Returns on investments and
 servicing of finance
Interest received                  55        -       101
Interest paid                 (1,294)  (1,118)   (2,792)
Interest element of finance
 lease rentals                  (150)    (115)     (233)
                           ------------------------------
Net cash outflow from returns
 on investments and
 servicing of finance         (1,389)  (1,233)   (2,924)
                           ------------------------------
Taxation
Corporation tax (paid)/refunded (524)        9     (111)
                           ------------------------------
Capital expenditure and
 financial investment
Purchase of tangible
 fixed assets                 (2,663)  (4,797)   (6,896)
Receipts from sale of
 tangible fixed assets          7,782      16        306
Long term loans made to
 joint venture                  (395)       -      (305)
Net short term cash flow
 with joint venture               122       -         36
                           ------------------------------
Net cash inflow/(outflow)
 for capital expenditure
 and financial investment       4,846  (4,781)   (6,859)
                           ------------------------------
Acquisitions and disposals
Purchase of businesses              -  (3,908)   (3,908)
Disposal of businesses          4,851        -         -
                           ------------------------------
Net cash inflow/(outflow)
 for acquisitions and
 disposals                      4,851  (3,908)   (3,908)
                           ------------------------------
Equity dividends paid           (343)    (343)     (514)
                           ------------------------------
Cash inflow/(outflow) before
 management of liquid
 resources and financing       10,824  (4,297)   (4,805)
                           ------------------------------
Management of liquid resources
Increase in cash placed
 on short-term deposit        (4,400)        -         -
                           ------------------------------
Net cash outflow from
 management of liquid
 resources                    (4,400)        -         -
                           ------------------------------
Financing
New secured loans               1,250    4,563     4,563
Loan repayments               (3,616)    (721)   (3,524)
Payment of principal under
 finance leases                 (385)    (213)     (526)
New finance leases and hire
 purchase                         882    1,621     1,750
                           ------------------------------
Net cash (outflow)/inflow
 from financing               (1,869)    5,250     2,263
                           ------------------------------
Increase/(decrease)
 in cash in the period          4,555      953   (2,542)
                               ======   ======    ======
Notes to the Financial Statements

1.   Basis

The interim results have been prepared on the basis of accounting policies set
out in the Group's 1999 statutory accounts.  The profit and loss accounts,
balance sheets and cash flow statements as at July 1999 and July 1998 are
unaudited.  The financial information on pages 5 to 10 does not amount to full
accounts within the meaning of Section 240 of the Companies Act 1985 (as
amended).

The profit and loss account, balance sheet and cash flow statement for January
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 auditors' report did not contain a statement
under Section 237(2) or (3) of the Companies Act 1985 (as amended).

Copies of this interim report are being sent to all shareholders and are also
available to the public at the company's registered office, 6 Leylands Park,
Nobs Crook, Colden Common, Winchester, Hampshire SO21 1TH.

2.   Disposals

On 25 May 1999 shareholders approved the sale of five of the Group's day
visitor attractions, namely Needles, Wax Works, World in Miniature, St Agnes
and Cheddar.

Also on 25 May 1999 shareholders approved the sale and leaseback of three of
the Group's caravan park sites at Whitley Bay, New Romney and Dover.

3.   Turnover - Segmental Information
                              6 months  6 months 12 months
                                 ended     ended   ended
                               31.7.99   31.7.98 31.1.99
                                 £'000     £'000   £'000

Class of business - including share of joint ventures
Caravan parks - UK              15,050    12,515  23,675
Caravan parks - France             883       689   1,408
Hotel - UK                       3,112     3,069   6,413
                            ------------------------------
                                19,045    16,273  31,496
Day visitor attractions - UK     4,236     5,680  10,222
Restaurants - UK                   946       189     455
                            ------------------------------
Continuing operations           24,227    22,142  42,173
Less: share of joint venture     (312)         -       -
                            ------------------------------
                                23,915    22,142  42,173
                            ------------------------------

There is no material difference between turnover by origin and by destination

4.   Operating Profit - Segmental Information

Class of business - including share of joint ventures
Caravan parks - UK               2,739     2,268   4,398
Caravan parks - France            (54)      (44)    (88)
Hotel - UK                         663       723   1,854
                            ------------------------------
                                 3,348     2,947   6,164
Day visitor attractions - UK     (184)       447     811
Restaurants - UK               (1,465)     (308) (2,320)
Parent company costs - UK        (784)     (516) (2,152)
                            ------------------------------
Continuing operations              915     2,570   2,503
Less: share of loss of joint
 venture                         (122)         -    (36)
                            ------------------------------
                                   793     2,570   2,467
                            ------------------------------


5.   Dividends

The directors propose the payment of an interim dividend of 0.15p per share
(1998: 0.15p) on 14 December 1999 to shareholders on the register on 19
November 1999.

6.   Earnings per share

                              6 months  6 months      12 months
                                 ended     ended          ended
                               31.7.99   31.7.98        31.1.99

Earnings per share is based on
 average number of shares
 in issue during the period 114,291,756  114,291,756  114,291,756
                       ---------------------------------------------

7.   Year 2000

The group has an information technology steering committee chaired by the
group finance director with a brief to ensure that the group is in a position
to solve all material issues and test solutions relating to Year 2000 risks
and uncertainties.

Surveys and appraisals for all critical in-house computer systems and software
have been completed.  All main bespoke software systems have been, or are
currently being upgraded to be fully compliant and a programme has been set in
place to upgrade standard software in accordance with the requirements on the
manufacturers' declared compliance.  Exposure to problems which may be caused
by failure of supply of goods or services is being investigated and assurance
sought from major suppliers.  It is intended that all essential work on
critical systems will be completed before the end of 1999.  Neither the
revenue nor the capital costs incurred are material.

8.   Post Balance Sheet Events

On 27 August 1999 the company announced that it had acquired the assets and
trade of Sunnydale Holiday Park in Lincolnshire for £1.5 million.


                                                                                                                                                            

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