5 Dec 2008 07:00
ABBEY PLC
Interim Statement for the Six Months Ended 31 October 2008
The Board of Abbey plc reports a loss before taxation of €5.39m which compares with a profit of €18.20m for the corresponding period last year. Losses at the operating level were €5.88m as compared to €17.24m profit at the half way stage last year. Included in these results is an inventory loss arising from land impairment charges of €11.92m. In light of the above the Company will not be paying a dividend.
Our housebuilding division completed 235 sales (UK 169; Ireland 66) with a turnover of €47.16m resulting in an operating loss of €6.63m. Market conditions in both England and Ireland continue to be severely impacted by the prevailing negative sentiment. The outlook for the second half is very dependent on the strength or otherwise of the traditional spring market. A broadly similar level of completions to that achieved in the first half may be attainable. In addition a few completions in Prague subject to the successful completion of legal formalities might contribute to our results. In Prague we have now taken 49 reservations on our project in Slivenec at an average sales price of €244,000.
M & J Engineers, our UK plant hire business, generated operating profits of €496,000 on a turnover of €8.72m. This disappointing result reflects the very sharp fall in trading in the second quarter. The immediate outlook is very weak. Post Christmas trading will determine the prospects for 2009.
Rental income for the period amounted to €247,000.
The Group enjoyed good cashflow during the period and held €35.31m in cash together with €17.01m in short dated Irish government debt at the end of October. The Group expects to generate additional cash in the coming months.
The short term prospects for the Group continue to be poor. The turmoil in the banking markets in both Britain and Ireland make for a difficult backdrop for a business reliant on strong mortgage markets. The recent forecast in Britain of negative net new mortgage lending in 2009 is cause for concern. The aggressive run-off of significant elements of the Northern Rock's loan book this year under the direction of the UK authorities was very damaging. There are, however, some grounds for optimism in the longer term. The substantial falls in interest rates together with the emergence of a stronger banking system should eventually facilitate healthier mortgage markets. Significantly lower house prices than in recent years may stimulate some demand. The Group is in a strong financial position to avail of any improvement in our markets.
Shareholders should carefully note the exchange rates used for this statement. The profit and loss statement uses the average exchange rate for the period of 100 cents: STG 79.10p and 100 cents: CZK 2,437.50h. The balance sheet uses the rate prevailing on 31 October of 100 cents: STG 78.46p and 100 cents: CZK 2,409.70h.
Copies of this statement are available to shareholders and members of the public at the company's registered office, 25/28 North Wall Quay, Dublin 1.
On behalf of the Board
Charles H Gallagher - Chairman
5th December 2008
| ABBEY plc | ||||||||||
| Interim Condensed Consolidated Income Statement |
|
|
|
|
|
| ||||
| 31 October 2008 | ||||||||||
| Unaudited 6 months ended | Unaudited 6 months ended | |||||||||
| Continuing operations | Note | 31/10/2008 | 31/10/2007 | |||||||
| €'000 | €'000 | |||||||||
| Revenue | 56,123 | 108,636 | ||||||||
| Cost of sales | ||||||||||
| - normal | (44,551) | (84,641) | ||||||||
| - impairment charge on land | 3 | (11,917) | - | |||||||
| Gross (loss) profit | (345) | 23,995 | ||||||||
| Administrative expenses | (5,537) | (6,755) | ||||||||
|
|
| |||||||||
| Operating (loss) profit | (5,882) | 17,240 | ||||||||
| Finance income | 490 | 963 | ||||||||
| (Loss) profit on ordinary activities before taxation | (5,392) | 18,203 | ||||||||
| Income tax credit (expense) | 1,457 | (4,012) | ||||||||
| (Loss) profit attributable to equity shareholders of the parent | (3,935) | 14,191 | ||||||||
| (Loss) profit per share - basic | 5 | (15.98) | c | 48.99 | c | |||||
|
|
| |||||||||
| (Loss) profit per share - diluted | 5 | (15.98) | c | 48.99 | c | |||||
|
|
| |||||||||
| ABBEY plc | |||||||||||
| Interim Consolidated Statement of Changes in Equity (unaudited) | |||||||||||
|
| For the six months ended 31 October 2008 | Capital | |||||||||
|
| Attributable to equity holders of the parent | Issued Capital | Share Premium | Revaluation Reserve | Redemption Reserve Fund | Currency Translation | Retained Earnings | Total | |||
|
|
| €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | |||
|
| At 1 May 2008 | 7,881 | 13,321 | 7,729 | 4,502 | (12,839) | 187,346 | 207,940 | |||
|
| |||||||||||
|
| Foreign currency translation | - | - | 10 | - | 75 | - | 85 | |||
|
| |||||||||||
|
| |||||||||||
|
| Total income and expense for the year recognised directly in equity | ||||||||||
|
| period directly recognised in equity | - | - | 10 | - | 75 | - | 85 | |||
|
| |||||||||||
|
| Loss for the period | - | - | - | - | - | (3,935) | (3,935) | |||
|
| |||||||||||
|
| Total income and expense for the period | - | - | 10 | - | 75 | (3,935) | (3,850) | |||
|
| Dividends paid | - | - | - | - | - | - | - | |||
|
| At 31 October 2008 | 7,881 | 13,321 | 7,739 | 4,502 | (12,764) | 183,411 | 204,090 | |||
|
| |||||||||||
|
| |||||||||||
|
| For the six months ended 31 October 2007 | Capital | |||||||||
|
| Attributable to equity holders of the parent | Issued Capital | Share Premium | Revaluation Reserve | Redemption Reserve Fund | Currency Translation | Retained Earnings | Total | |||
|
|
|
€'000
| €'000
| €'000
| €'000
| €'000
| €'000
|
€'000
| |||
|
| At 1 May 2007 | 9,270 | 13,321 | 8,673 | 3,113 | 1,517 | 209,159 | 245,053 | |||
|
| |||||||||||
|
| |||||||||||
|
| Foreign currency translation | - | - | (118) | - | (2,394) | - | (2,512) | |||
|
| |||||||||||
|
| Total income and expense for the year recognised directly in equity | ||||||||||
|
| period directly recognised in equity
| - | - | (118) | - | (2,394) | - | (2,512) | |||
|
| |||||||||||
|
| Profit for the period | - | - | - | - | - | 14,191 | 14,191 | |||
|
| |||||||||||
|
| Total income and expense for the period | - | - | (118) | - | (2,394) | 14,191 | 11,679 | |||
| Dividends paid (note: 4) | - | - | - | - | - | (6,953) | (6,953) | ||||
| At 31 October 2007 | 9,270 | 13,321 | 8,555 | 3,113 | (877) | 216,397 | 249,779 | ||||
| ABBEY plc | |||||||||
| INTERIM CONDENSED CONSOLIDATED BALANCE SHEET |
|
|
|
|
|
| |||
| at 31 October 2008 | Unaudited | Unaudited | Audited | ||||||
| 31/10/2008 | 31/10/2007 | 30/04/2008 | |||||||
| ASSETS | Note | €'000 | €'000 | €'000 | |||||
| Non-current assets | |||||||||
| Property, plant and equipment | 30,921 | 37,270 | 31,785 | ||||||
| Investment property | 2,392 | 2,392 | 2,392 | ||||||
| Investment in joint venture | 2,512 | 2,398 | 2,512 | ||||||
| Investments | 6 | 7 | 6 | ||||||
| Pension benefit obligations | 3,997 | 2,383 | 3,988 | ||||||
| 39,828 | 44,450 | 40,683 | |||||||
| CURRENT ASSETS | |||||||||
| Trade and other receivables | 6,876 | 9,251 | 10,168 | ||||||
| Inventories | 147,426 | 218,275 | 168,086 | ||||||
| Tax assets | 3,106 |
| - | - | |||||
| Financial asset 7 | 17,016 | - | - | ||||||
| Cash and cash equivalents | 35,306 | 50,087 | 39,807 | ||||||
| 209,730 | 277,613 | 218,061 | |||||||
| TOTAL ASSETS | 249,558 | 322,063 | 258,744 | ||||||
| LIABILITIES |
| ||||||||
| Current liabilities | |||||||||
| Trade and other payables | (39,975) | (62,426) | (45,557) | ||||||
| Tax liabilities | - | (3,879) | (304) | ||||||
| Provisions | (2,664) | (2,870) | (2,120) | ||||||
| (42,639) | (69,175) | (47,981) | |||||||
| NET CURRENT ASSETS | 167,091 | 208,438 | 170,080 | ||||||
| TOTAL ASSETS LESS |
| ||||||||
| CURRENT LIABILITIES |
| ||||||||
| Non-current liabilities | |||||||||
| Deferred taxation | (2,757) | (2,971) | (2,751) | ||||||
| Provisions | ( 72) | (138) | (72) | ||||||
| (2,829) | (3,109) | (2,823) | |||||||
| TOTAL LIABILITIES | (45,468) | (72,284) | (50,804) | ||||||
| NET ASSETS | 204,090 | 249,779 | 207,940 | ||||||
| EQUITY |
|
| |||||||
| Equity attributable to equity holders of the parent | |||||||||
| Issued capital | 7,881 | 9,270 | 7,881 | ||||||
| Share premium | 13,321 | 13,321 | 13,321 | ||||||
| Revaluation reserve | 7,739 | 8,555 | 7,729 | ||||||
| Other reserves | |||||||||
| - Capital redemption reserve fund | 4,502 | 3,113 | 4,502 | ||||||
| - Currency translation | (12,764) | (877) | (12,839) | ||||||
| Retained earnings | 183,411 | 216,397 | 187,346 | ||||||
| TOTAL EQUITY | 204,090
|
249,779
| 207,940
| ||||||
| TOTAL EQUITY AND LIABILITIES | 249,558 |
322,063 | 258,744 | ||||||
| ABBEY plc | |||||||||
| INTERIM CONDENSED CONSOLIDATED |
|
|
|
| |||||
| CASH FLOW STATEMENT | |||||||||
| 31 October 2008 | Unaudited | Unaudited | |||||||
| 31/10/2008 | 31/10/2007 | ||||||||
| €'000 | €'000 | ||||||||
| Cash flows from operating activities | |||||||||
| (Loss) profit before tax | (5,392) | 18,203 | |||||||
| Adjustments to reconcile (loss) profit before tax | |||||||||
| to net cash flows | |||||||||
| Non cash: | |||||||||
| Depreciation | 3,166 | 3,685 | |||||||
| Other non cash items | (162) | 305 | |||||||
| Impairment charge on land | 11,917 | - | |||||||
| Profit on disposal of property, plant and equipment | (463) | (947) | |||||||
| Finance income | (490) | (963) | |||||||
| Working capital adjustments: | |||||||||
| Decrease in inventories | 8,838 | 12,140 | |||||||
| Decrease in trade and other receivables | 3,283 | 3,740 | |||||||
| Decrease in creditors and provisions | (5,086) | (2,252) | |||||||
|
| |||||||||
| Income taxes paid | (1,942) | ( 4,662) | |||||||
| Net cash flow from operating activities | 13,669 | 29,249 | |||||||
| Cash flows from investing activities | |||||||||
| Purchase of plant, property and equipment | (2,858) | (6,705) | |||||||
| Sale of plant, property and equipment | 1,070 | 2,113 | |||||||
| Investment in government bonds | (17,016) | - | |||||||
| Finance income | 490 | 963 | |||||||
|
|
| ||||||||
| Net cash outflow from investing activities | (18,314) | (3,629) | |||||||
| Cash flows from financing activities | |||||||||
|
| |||||||||
| Equity dividends paid | - | (6,953) | |||||||
| Net cash outflow from financing activities | - | (6,953) | |||||||
| Net (decrease) increase in cash and | |||||||||
| cash equivalents | (4,645) | 18,667 | |||||||
| Cash and cash equivalents at start of year | 39,807 | 32,095 | |||||||
| Net foreign exchange differences | 144 | (675) | |||||||
| Cash and cash equivalents at end of period | 35,306 | 50,087 | |||||||
ABBEY plc
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
31 October 2008
1. Corporate Information
The interim condensed consolidated financial statements of Abbey plc for the six month period ended 31 October 2008 were authorised for issue in accordance with a resolution of the directors on December 5, 2008. Abbey plc is a limited company incorporated and domiciled in Ireland. The company's shares are listed on the IEX and AIM stock exchanges. The principal activities of the Group are described in note 8.
2. Basis of Preparation of Financial Statements
The interim condensed consolidated financial statements for the six months ended 31 October 2008 have been prepared in accordance with IAS 34 'Interim Financial Reporting'. The interim condensed financial statements do not contain all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements.
| 3. Exceptional item | ||||||
| Unaudited | Unaudited | |||||
| 31/10/2008 | 31/10/2007 | |||||
| Cost of sales | €'000 | €'000 | ||||
| The cost of sales charge for the year is arrived at after charging: | ||||||
| Write down of inventories to net realisable value | 11,917 | - | ||||
The Group has continued to closely monitor the carrying value of its land inventories in Ireland and the United Kingdom as a result of uncertain market conditions and a continuing weakening sales environment. Arising from these considerations we estimate that certain development sites have suffered impairment.
| 4. Dividends | ||||||
| Unaudited | Unaudited | |||||
| 31/10/2008 | 31/10/2007 | |||||
| €'000 | €'000 | |||||
| Dividends on ordinary shares declared and paid during the six month period: | ||||||
| Dividend for 2008: Nil (2007: 24 cents per share) | - | 6,953 | ||||
| Dividends on ordinary shares proposed (not recognised as a liability at 31 October) | ||||||
| Dividend for 2008: Nil (2007: 12 cents per share) | - | 3,476 | ||||
ABBEY plc
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
31 October 2008
5. Earnings per share: basic and diluted
Earnings per share has been calculated by reference to the weighted average number of shares in issue of 24,626,992 (2007: 28,969,523) and to the loss on ordinary activities after taxation amounting to €3,935,000 (2007: profit €14,191,000).
The total number of ordinary shares in issue at the period end is 24,626,992 (2007: 28,969,523).
6. Pensions
The surplus on the pension scheme included in the interim condensed consolidated balance sheet is the amount at the prior year end. No revaluation of assets and liabilities of the scheme has been carried out in the period, and accordingly there is no gain or loss shown in the statement of total recognised gains and losses in respect of the interim period. Actuarial gains and losses for the full year and the surplus/deficit at the end of the year will be presented in the annual financial statements for the year ending 30 April 2009.
| 7. Financial Asset | ||||||
| Unaudited | Unaudited | |||||
| 31/10/2008 | 31/10/2007 | |||||
| €'000 | €'000 | |||||
| Irish government short term bonds | 17,016 | - | ||||
These amounts were disposed of in November 2008 and returned into cash.
ABBEY plc
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
31 October 2008
8. Segmental Information
|
|
| ---Building and Property Development--- | Plant Hire | Property Rental | Unallocated | GROUP | |||
| Ireland | United Kingdom | Czech Republic | United Kingdom | ||||||
Turnover, cost of sales and operating profit (loss) are derived from continuing activities. The Group operates in three markets being Ireland, the United Kingdom and the Czech Republic. The principal activities of the Group are building and property development, plant hire and property rental. These divisions are the basis on which the Group reports its primary segmental information.
|
|
| €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 |
|
| 31 October 2008 |
|
|
|
|
|
|
|
|
| Income Statement Information | |||||||
| Turnover | 17,592 | 29,566 | - | 8,718 | 247 | - | 56,123 | |
| Cost of sales | ||||||||
| - normal | (13,822) | (24,110) | (51) | (6,568) | (44,551) | |||
| - impairment charge on land | (3,443) | (8,474) | - | - | (11,917) | |||
| Administrative expenses | (1,001) | (2,668) | (214) | (1,654) | (5,537) | |||
| Operating (loss) profit | (674) | (5,686) | (265) | 496 | 247 | - | (5,882) | |
| Balance Sheet Information | ||||||||
| Segment assets | 76,885 | 68,797 | 17,065 | 29,578 | 2,393 | - | 194,718 | |
| Segment liabilities | (13,286) | (22,964) | (5,378) | (3,740) | (100) | - | (45,468) | |
| Segment net assets | 63,599 | 45,833 | 11,687 | 25,838 | 2,293 | - | 149,250 | |
| Investment in joint venture | 2,512 | - | - | - | - | - | 2,512 | |
| Investments | - | 6 | - | - | - | - | 6 | |
| Financial asset | 17,016 | - | - | - | - | - | 17,016 | |
| Cash and cash equivalents | 15,092 | 14,240 | 5,440 | 209 | - | 325 | 35,306 | |
| TOTAL NET ASSETS | 98,219 | 60,079 | 17,127 | 26,047 | 2,293 | 325 | 204,090 | |
| Other Segmental Information | ||||||||
| Depreciation | 122 | 97 | - | 2,947 | - | - | 3,166 | |
| Profit on disposal of fixed assets | - | - | - | (463) | - | - | (463) | |
|
Capital expenditure | - | - | - | 2,858 | - | - | 2,858 | |
|
|
|
|
|
|
|
|
| 31 October 2007 |
|
|
|
|
|
| ||||
|
| Income Statement Information | |||||||||
| Turnover | 36,647 | 60,498 | - | 11,265 | 226 | - | 108,636 | |||
| Cost of sales | (27,091) | (49,028) | (23) | (8,499) | (84,641) | |||||
| Administrative expenses | (1,642) | (3,690) | (259) | (1,164) | (6,755) | |||||
|
| ||||||||||
| Operating profit | 7,914 | 7,780 | (282) | 1,602 | 226 | - | 17,240 | |||
|
| Balance Sheet Information | |||||||||
| Segment assets | 114,498 | 103,482 | 11,858 | 37,341 | 2,392 | - | 269,571 | |||
|
| Segment liabilities | (19,831) | (43,482) | (685) | (8,186) | (100) | - | (72,284) | ||
| Segment net assets | 94,667 | 60,000 | 11,173 | 29,155 | 2,292 | - | 197,287 | |||
|
| Investment in joint venture | 2,398 | - | - | - | - | - | 2,398 | ||
| Investments | - | 7 | - | - | - | - | 7 | |||
| Cash and cash equivalents | 14,410 | 32,204 | 783 | 505 | - | 2,185 | 50,087 | |||
|
| TOTAL NET ASSETS | 111,475 | 92,211 | 11,956 | 29,660 | 2,292 | 2,185 | 249,779 | ||
| Other Segmental Information | ||||||||||
| Depreciation | 151 | 105 | - | 3,429 | - | - | 3,685 | |||
| Profit on disposal of fixed assets | (38) | (5) | - | (904) | - | - | (947) | |||
| Capital expenditure | 173 | 189 | - | 6,343 | - | - | 6,705 | |||
Board of Directors
Charles H. Gallagher M.A., MSc.
Brian R. Hawkins BSc (Eng)
Robert N. Kennedy BSc (Econ)
David A. Gallagher B.A., MSc.
J. Roger Humber BSC (Econ), Hon D. Tech
John F. Hogan B. Comm, F.C.A.
Richard J. Shortt
Secretary and Registered Office
David J. Dawson CA
25/18 North Wall Quay
Dublin 1
Financial Diary
Interim Statement
5 December 2008
Preliminary Statement
July 2009
Annual Report
July 2009
Annual General Meeting
October 2009