ABBY.L Regulatory News (ABBY)

10 Jul 2008 07:00



ABBEY PLC

Preliminary Statement for the year ended 30 April 2008

The Board of Abbey plc reports a profit of €16.8 million before taxation against €45.3 million the previous year. After a tax charge of €4.7 million the Group made a profit of €12.1 million reflecting earnings per share of 42.93 cents. Group operating profits during the year were €15.1 million against €43.7 million the previous year. The profits have been materially impacted by an impairment charge of €20.6 million against land and work in progress arising from the depressed trading conditions. This represented circa 11% of the gross inventory as at 30 April. Whilst we believe these impairments are prudent based on current market conditions, if the market significantly deteriorates further write-downs may be needed in future.

Dividends of 36 cents per share, absorbing €10.1 million were paid during the year. Further to the authority granted at the Extraordinary General Meeting on 19 November 2007 the company has completed the share repurchase program under the resolution granted, of 4,342,531 ordinary shares at a total cost of €25,452,000.

Our housebuilding operations completed 716 sales (UK 467; Ireland 249) with a turnover of €159.2 million generating an operating profit of €10.5 million. UK trading over the period as a whole was satisfactory, however, the trading environment became steadily more difficult as the year progressed. In Ireland a good result was achieved as sales made in early 2007 were completed. A noticeable upturn in sales at the start of 2008 faded towards the end of the period. We enter the current year with a forward order book sufficient to maintain reasonable trading in the very short term. During the last two months market conditions have continued to deteriorate and current sales rates are at very low levels in line with generally reported market conditions. In the circumstances it is likely the housing division will deliver materially fewer houses this year. In Prague building is now quite advanced on our first phase in Slivenec. Forward sales have been achieved and we are hopeful of a useful contribution to our figures this year.

At the year end the Group owned and controlled land with the benefit of planning permission for the supply of 2,300 plots. In view of the current trading environment the Group's landbank will likely decline this year.

M & J reported operating profits of €2.8 million on a turnover of €20.6 million. In addition, a further gain of €1.3 million resulted from the disposal of an M&J property. This was an encouraging outturn and May was also a good month. In recent weeks the first signs of slowing activity have been seen and inevitably more difficult trading will be encountered during the year.

Rental income arising primarily from the letting of surplus space of Group property was €499,000.

At the year end shareholder funds stood at €207.9 million representing €8.44 per share whilst net cash balances stood at €39.8 million.

Shareholders should carefully note the exchange rates used for this statement. The profit and loss statement uses the average exchange rate for the year of 100 cents:- STG 71.98p. The balance sheet uses the ratio prevailing on 30th April of 100 cents: STG 78.63p.

In recent weeks trading conditions have deteriorated noticeably. The rate and depth of the current slowdown in activity is outside our experience. It seems clear that the source of the difficulty is the dramatic contraction of the mortgage market. Unless conditions markedly improve, which seems unlikely in the short term, a wrenching adjustment lies ahead. Future prospects will be governed (amongst other factors) by the ability of the Group to avail of opportunities to buy land on advantageous terms. In these circumstances sensibly maximising the cash resources at the disposal of the Group is essential and, therefore, the Board will not recommend a dividend for consideration at the Annual General Meeting in October.

On behalf of the Board

CHARLES H GALLAGHER

CHAIRMAN

10 July 2008

 

 

ABBEY plc
Group Income Statement
30 April 2008
				Note		30/04/2008		30/04/2007
						€'000		€'000
Revenue						180,334		192,201
Cost of sales
- normal						(132,881)		(135,492)
- impairment charge on land				3		(20,599)		-
Gross profit						26,854		56,709
Administrative expenses						(13,228)		(13,034)
Gain on property disposal				3		1,306		-
Share of joint venture profit before taxation						144		-
Operating profit						15,076		43,675
Finance income						1,818		1,609
Finance costs						(100)		(12)
Profit on ordinary activities before  taxation						16,794		45,272
Income tax expense				4		(4,713)		(10,883)
Profit attributable to equity  shareholders of the parent						12,081		34,389
Earnings per share - basic				5		42.93	c	118.13	c
Earnings per share - diluted				5		42.93	c	118.13	c

ABBEY plc
Group Consolidated Statement of Changes in Equity
	For the year ended 30 April 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 2007	9,270	13,321	8,673	3,113	1,517	209,159	245,053
	Foreign currency translation	-	-	(757)	-	(14,356)	-	(15,113)
	Reduction in revaluation surplus	-	-	(187)	-	-	187	-
	Actuarial gain on group defined
	benefit pension obligations	-	-	-	-	-	2,012	2,012
	Deferred tax liability relating to
	actuarial gain on Group defined benefit pension obligation	-	-	-	-	-	(517)	(517)
	Purchase of company shares	(1,389)	-	-	1,389	-	(25,452)	(25,452)
	Total income and expense for the year recognised directly in equity
	year directly recognised in equity	(1,389)	-	(944)	1,389	(14,356)	(23,770)	(39,070)
	Profit for the year	-	-	-	-	-	12,081	12,081
	Total income and expense for theyear	(1,389)	-	(944)	1,389	(14,356)	(11,689)	(26,989)
	Dividends paid	-	-	-	-	-	(10,124)	(10,124)
	At 30 April 2008	7,881	13,321	7,729	4,502	(12,839)	187,346	207,940
	For the year ended 30 April 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 2006	9,495	13,321	9,557	2,888	-	191,234	226,495
	Foreign currency translation	-	-	111	-	1,517	-	1,628
	Reduction in revaluation surplus	-	-	(995)	-	-	-	(995)
	Actuarial gain on group defined
	benefit pension obligations	-	-	-	-	-	465	465
	Deferred tax liability relating to
	actuarial gain on Group defined benefit pension obligation
	benefit pension obligation	-	-	-	-	-	(140)	(140)
	Purchase of company shares	(225)	-	-	225	-	(6,360)	(6,360)
	Total income and expense for the year recognised directly in equity
	year directly recognised in equity	(225)	-	(884)	225	1,517	(6,035)	(5,402)
	Profit for the year	-	-	-	-	-	34,389	34,389
	Total income and expense for the year	(225)	-	(884)	225	1,517	28,354	28,987
	Dividends paid	-	-	-	-	-	(10,429)	(10,429)
	At 30 April 2007	9,270	13,321	8,673	3,113	1,517	209,159	245,053

  

  

ABBEY plc
GROUP BALANCE SHEET
at 30 April 2008
				30/04/2008			30/04/2007
ASSETS				€'000			€'000
Non-current assets
Property, plant and equipment				31,785			36,079
Investment property				2,392			2,392
Investment in joint venture				2,512			2,398
Investments				6			7
Pension benefit obligations				3,988			2,433
				40,683			43,309
CURRENT ASSETS
Trade and other receivables				10,168			13,135
Inventories				168,086			232,721
Cash and cash equivalents				39,807			32,095
				218,061			277,951
NET CURRENT ASSETS				258,744			321,260
LIABILITIES
Current liabilities
Trade and other payables				(45,557)			(65,948)
Tax liabilities				(304)			(4,532)
Provisions				(2,120)			(2,562)
				(47,981)			(73,042)
NET CURRENT ASSETS				170,080			204,909
TOTAL ASSETS LESS
CURRENT LIABILITIES
Non-current liabilities
Deferred taxation				(2,751)			(3,025)
Provisions				(72)			(140)
				(2,823)			(3,165)
TOTAL LIABILITIES				(50,804)			(76,207)
NET ASSETS				207,940			245,053
EQUITY
Equity attributable to equity holders of the parent
Issued capital				7,881			9,270
Share premium				13,321			13,321
Revaluation reserve				7,729			8,673
Other reserves
- Capital redemption reserve fund				4,502			3,113
- Currency translation				(12,839)			1,517
Retained earnings				187,346			209,159
TOTAL EQUITY				207,940			245,053
TOTAL EQUITY AND LIABILITIES				258,744			321,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

ABBEY plc
GROUP CONSOLIDATED CASH FLOW STATEMENT
30 April 2008
								30/04/2008	30/04/2007
								€'000	€'000
Cash flows from operating activities
Profit before tax								16,650	45,272
Adjustments to reconcile profit before tax
to net cash flows
Non cash:
Depreciation								7,060	7,108
Other non cash items								94	(170)
Movement in pension benefit asset								(28)	647
Impairment charge on land								20,599	-
Profit on disposal of property, plant and equipment								(2,846)	(1,482)
Finance income								(1,818)	(1,609)
Finance costs								100	12
Working capital adjustments:
Decrease (increase) in inventories								29,604	(19,061)
Decrease (increase) in trade and other receivables								1,671	(4,998)
Decrease in creditors and provisions								(15,685)	(27,651)
Income taxes paid								(8,948)	(11,283)
Net cash flow from operating activities								46,453	(13,215)
Cash flows from investing activities
Purchase of plant, property and equipment								(9,346)	(10,892)
Sale of plant, property and equipment								5,338	3,233
Finance income								1,818	1,609
Net cash outflow from investing activities								(2,190)	(6,050)
Cash flows from financing activities
Cost of share buy-backs								(25,452)	(6,360)
Equity dividends paid								(10,124)	(10,429)
Finance costs								(100)	(12)
Net cash outflow from financing activities								(35,676)	(16,801)
Net increase (decrease) in cash and
cash equivalents								8,587	(36,066)
Cash and cash equivalents at start of year								32,095	67,745
Net foreign exchange differences								(875)	416
Cash and cash equivalents at end of year								39,807	32,095

ABBEY plc

NOTES TO THE PRELIMINARY STATEMENT

30 APRIL 2008

1. Basis of Preparation

The preliminary statement is prepared, including the comparative figures, in accordance with EU endorsed International Financial Reporting Standards ("IFRSs), International Financial Reporting Interpretations Committee ("IFRIC") and in accordance with the rules of the Irish Enterprise Exchange ("IEX") and the Alternative Investment Market ("AIM"). The financial information relating to Abbey plc and its subsidiaries included within this statement for the year ended 30 April 2008 does not comprise full group accounts as referred to in Regulation 40 of the European Communities (Companies: Group Accounts) Regulations 1992, copies of which are required by that Act to be annexed to the company's annual return. The auditors have made reports without qualification under Section 193 of the Irish Companies Act, 1990 in respect of all such financial statements.

 

2. Segmental Information  Turnover, cost of sales and operating profit 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 segment information.
		--Building and Property Development---				Plant Hire		Property Rental	Unallocated	GROUP
		Ireland	United Kingdom		Czech Republic	United Kingdom		Ireland and United Kingdom
		€'000	€'000		€'000	€'000		€'000	€'000	€'000
	30 April 2008
	Turnover	64,467	94,747		-	20,621		499	-	180,334
	Operating (loss) profit	(4,989)	15,878		(390)	4,078		499	-	15,076
	(Loss) profit before taxation	(3,973)	12,659		(359)	3,363		391	-	12,081
	Net assets	107,606	55,269		13,932	27,942		2,293	898	207,940
	30 April 2007
	Turnover	59,471	111,111		-	21,144		475	-	192,201
	Operating profit	16,529	24,513		(361)	2,519		475	-	43,675
	Profit before taxation	14,726	17,703		(331)	1,816		475	-	34,389
	Net assets	114,007	88,198		10,158	29,838		2,293	559	245,053

  

ABBEY plc
NOTES TO THE PRELIMINARY STATEMENT
30 April 2008
3. Exceptional items
							30/04/2008		30/04/2007
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							20,599		-
Over the last number of months the Group have closely
monitored the carrying value of our land inventories
in Ireland and the United Kingdom as a result of uncertain
market conditions and a weakening sales environment.
Arising from these considerations we estimate that the
original cost of certain development sites have suffered
an impairment.
Gain on disposal of property							1,306		-
During the year a gain resulted from the disposal of a
property vested under a Compulsory Purchase order.
As such this gain is not indicative of a trend in financial
performance.
4. Taxation on profit on ordinary activities							30/04/2008		30/04/2007
							€'000		€'000
The tax charge based on the profit on ordinary
activities comprises:
Irish Corporation Tax at 12.50%
Current							(350)		2,190
United Kingdom Corporation Tax at 29.84% (2007:30%)
Current							5,486		8,669
Total current corporation tax							5,136		10,859
Deferred tax							(423)		24
Income tax expense							4,713		10,883

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 28,139,295 (2007: 29,109,967) and to the profit on ordinary activities after taxation amounting to €12,081,000 (2007: €34,389,000).

The total number of ordinary shares in issue at the year end is 24,626,992 (2007: 28,969,523).

ENDFR UUUPCMUPRGMB