21 Jul 2011 07:00
C.H.BAILEY PLC
CHAIRMAN'S STATEMENT AND FINANCIAL RESULTS YEAR ENDED 31ST MARCH 2011
Overview
| 2011 | 2010 | 2009 | 2008 |
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| £ | £ | £ |
Revenue - continuing operations | 4,298,596 | 3,897,260 | 5,369,623 | 5,526,195 |
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Gross profit - continuing operations | 1,063,406 | 781,182 | 681,644 | 912,691 |
Gross profit margin | 24.74% | 20.04% | 12.69% | 16.52% |
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Operating profit (loss) on continuing operations before exceptional items, investment activities and depreciation | 39,830 | (237,573) | (729,683) | (723,294) |
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(Loss) profit for the financial year | (593,320) | 1,104,481 | 276,582 | (2,162,787) |
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(Loss) earnings per share from continuing operations | (7.12p) | 13.25p | 4.53p | (17.77p) |
(Loss) earnings per share from total operations | (7.12p) | 13.25p | 3.38p | (26.40p) |
The Group has made a loss of £593,320 (2010 Profit £1,104,481) for the period under review, due primarily to exchange losses and a write down in one of its investments. This was compensated by an asset sale in Malta and more importantly the fact that the current businesses are trading profitably. The gross profit margin has increased to 25%, which is due to an increase in activity in our UK engineering company as well as our overseas leisure operations increasing their revenues and maintaining and improving their margins respectively.
UK Operations
Bailey Industrial Engineering has increased its turnover by over 50% for the period and has traded profitably for the year under review. The management have explored new markets, retained existing market share and should be congratulated for their efforts, together with the workforce. The future is encouraging with a sales forecast increase of over 20% and current orders maintaining this forecast.
Malta
The hotel has increased its turnover and increased its profit for the year. The car park, which formed part of the hotel complex, that had not been included in the sale of the Main Site (as defined in the circular to shareholders dated 12th October 2009), was sold and reported earlier in the financial year. As regards to the sale for the Main Site, we understand from discussions with the buyer that matters are progressing well.
Tanzania
The economic activity in Tanzania and in Dar es Salaam in particular is very encouraging. The latest development at the Oyster Bay Hotel should commence operation in October this year, which will enhance the strong cash flow streams going forward.
Beho Beho, has seen sales return to pre 2009 levels and the camp has again won the Good Safari Guide award as the best Safari camp in East Africa while retaining its position in the top three in Africa. The staff again must be thanked for their efforts.
Mikumi Wildlife Camp, which caters for the "Visiting Friends & Relative" market and expatriates in Dar es Salaam has seen reduced sales income but remains profitable. We are in the process of refurbishing the camp and have already seen signs of business increasing, which is encouraging.
Current Trading and Outlook
2011/12 will again be a challenging year, but we remain cautiously optimistic. We have already introduced measures to increase sales, reduce costs and overheads and the results of these measures appear to be materialising.
Our company relies on the support and effort of the management, employees, directors and shareholders and I would like to thank everyone for their continued support and effort.
Charles H. Bailey
21st July 2011
CONSOLIDATED INCOME STATEMENT YEAR ENDED 31ST MARCH 2011
2011 | 2010 | ||
£ | £ | ||
Continuing operations | |||
Revenue | 4,298,596 | 3,897,260 | |
Cost of sales | (3,235,190) | (3,116,078) | |
Gross profit | 1,063,406 | 781,182 | |
Profit on the sale of property | 587,859 | 2,013,442 | |
Administrative expenses | (1,386,761) | (1,432,691) | |
Trading profit | 264,504 | 1,361,933 | |
Investment activities and other income | (517,198) | 196,138 | |
Operating (loss) profit | (252,694) | 1,558,071 | |
EBITDA* | (477,368) | (41,435) | |
Depreciation | (363,313) | (414,431) | |
Profit on sale of plant and equipment | 128 | 495 | |
Normalised operating (loss) | (840,553) | (455,371) | |
Profit on sale of property | 587,859 | 2,013,442 | |
Operating (loss) profit | (252,694) | 1,558,071 | |
Finance income | 44,799 | 10,409 | |
Finance costs | (272,035) | (199,758) | |
(Loss) profit before taxation | (479,930) | 1,368,722 | |
Taxation | (106,358) | (241,708) | |
Minority interest | (7,032) | (22,533) | |
(Loss) profit for the financial year | (593,320) | 1,104,481 | |
(Loss) earnings per share from continuing and total operations | (7.12p) | 13.25p | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE TOTAL INCOME AT 31ST MARCH 2011
2011 | 2010 | |
£ | £ | |
(Loss) profit for the financial year | (593,320) | 1,104,481 |
Exchange differences | (10,415) | 119,050 |
Purchase of minority interest | (22,234) | - |
Total comprehensive income for the year | (625,969) | 1,223,531 |
CONSOLIDATED BALANCE SHEETS AT 31ST MARCH 2011
Group | Company | ||||
2011 | 2010 | 2011 | 2010 | ||
£ | £ | £ | £ | ||
Non-current assets | |||||
Property, plant and equipment | 10,727,180 | 10,431,270 | 1,985 | 1,946 | |
Investments in subsidiary undertakings | - | - | 3,147,216 | 3,272,063 | |
Deferred tax asset | 151,868 | 162,278 | 151,868 | 162,278 | |
10,879,048 | 10,593,548 | 3,301,069 | 3,436,287 | ||
Current assets | |||||
Inventory | 29,498 | 31,462 | - | - | |
Trade and other receivables | 1,351,953 | 919,346 | 1,339,451 | 1,562,779 | |
Current asset investments | 1,731,722 | 1,544,853 | 465,805 | 507,380 | |
Cash and cash equivalents | 1,364,541 | 1,886,316 | - | 24 | |
4,477,714 | 4,381,977 | 1,805,256 | 2,070,183 | ||
Current liabilities | |||||
Trade and other payables | (1,755,831) | (1,967,095) | (1,434,999) | (3,102,792) | |
Bank loans and overdrafts | (1,241,666) | (974,888) | (257,869) | (333,835) | |
Other loans | (676,531) | (669,014) | - | - | |
Obligations under finance leases | (14,491) | (26,897) | - | - | |
Provisions | (225,000) | (225,000) | (225,000) | (225,000) | |
(3,913,519) | (3,862,894) | (1,917,868) | (3,661,627) | ||
Net current assets | 564,195 | 519,083 | (112,612) | (1,591,444) | |
Total assets less current liabilities | 11,443,243 | 11,112,631 | 3,188,457 | 1,844,843 | |
Non-current liabilities | |||||
Trade and other payables | (720,431) | (734,178) | - | - | |
Bank loans | (2,893,409) | (1,909,535) | - | - | |
Obligations under finance leases | (2,859) | (10,971) | - | - | |
Deferred tax liabilities | (732,642) | (735,862) | - | - | |
Net assets | 7,093,902 | 7,722,085 | 3,188,457 | 1,844,843 | |
Equity | |||||
Called-up share capital | 833,541 | 833,541 | 833,541 | 833,541 | |
Share premium account | 609,690 | 609,690 | 609,690 | 609,690 | |
Capital redemption reserve | 5,163,332 | 5,163,332 | 5,163,332 | 5,163,332 | |
Translation reserve | 874,630 | 769,123 | - | - | |
Retained earnings | (464,100) | 267,376 | (3,418,106) | (4,761,720) | |
Surplus attributable to the parent's shareholders | 7,017,093 | 7,643,062 | 3,188,457 | 1,844,843 | |
Minority interest | 76,809 | 79,023 | - | - | |
Total equity | 7,093,902 | 7,722,085 | 3,188,457 | 1,844,843 | |
CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 31ST MARCH 2011
2011 | 2010 | |
£ | £ | |
Cash flows from operating activities | ||
Cash generated from operations | (320,553) | 135,895 |
Interest paid - continuing operations | (272,035) | (199,758) |
Overseas tax paid | (85,390) | (251,712) |
Net cash flow from operating activities | (677,978) | (315,575) |
Investing activities | ||
Sale of property, plant and equipment | 609,163 | 2,307,972 |
Deferred income on property sale | - | 734,178 |
Purchase of property, plant and equipment | (1,327,713) | (338,207) |
Sale of investments | 97,109 | 233,089 |
Purchase of investments | (254,997) | (390,723) |
Purchase of minority interest | (30,000) | - |
Interest received | 44,799 | 10,409 |
Net cash flow from investing activities | (861,639) | 2,556,718 |
Financing activities | ||
Movement in bank loans | 1,074,529 | (336,418) |
Movement in directors' loans | (286,039) | 158,521 |
Movement in other loans | 7,517 | 6,875 |
Movement in capital element of finance leases | (20,518) | (36,347) |
Net cash flow from financing activities | 775,489 | (207,369) |
Net (decrease) increase in cash and cash equivalents | (764,128) | 2,033,774 |
Cash and cash equivalents at beginning of year | 911,428 | (1,136,969) |
Exchange differences | (24,425) | 14,623 |
Cash and cash equivalents at end of year | 122,875 | 911,428 |
Reconciliation of net cash flow to movement in net debt in the year | ||
Net (decrease)increase in cash and cash equivalents | (764,128) | 2,033,774 |
Cash outflow from the increase in debt | (1,061,528) | 365,890 |
Movement in net debt during the year | (1,825,656) | 2,399,664 |
Net debt at the beginning of the year | (1,704,989) | (4,252,950) |
Exchange differences | (66,230) | 148,297 |
Net debt at the end of the year | (3,464,415) | (1,704,989) |
STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 31ST MARCH 2011
Called-up share capital | Share premium account | Capital redemption reserve | Translation reserve | Retained earnings | Minority interest | Total | |
£ | £ | £ | £ | £ | £ | £ | |
Group | |||||||
At 31st March 2009 | 833,541 | 609,690 | 5,163,332 | 713,232 | (900,264) | 58,580 | 6,478,111 |
Profit for the financial year | - | - | - | - | 1,104,481 | 22,533 | 1,127,014 |
Exchange differences | - | - | - | 55,891 | 63,159 | (2,090) | 116,960 |
At 31st March 2010 | 833,541 | 609,690 | 5,163,332 | 769,123 | 267,376 | 79,023 | 7,722,085 |
Purchase of minority interest | - | - | - | - | (22,234) | (7,766) | (30,000) |
(Loss) for the financial year | - | - | - | - | (593,320) | 7,032 | (586,288) |
Exchange differences | - | - | - | 105,507 | (115,922) | (1,480) | (11,895) |
At 31st March 2011 | 833,541 | 609,690 | 5,163,332 | 874,630 | (464,100) | 76,809 | 7,093,902 |
Company | |||||||
At 31st March 2009 | 833,541 | 609,690 | 5,163,332 | - | (3,585,517) | - | 3,021,046 |
Loss for the financial year | - | - | - | - | (1,176,203) | - | (1,176,203) |
At 31st March 2010 | 833,541 | 609,690 | 5,163,332 | - | (4,761,720) | - | 1,844,843 |
Profit for the financial year | - | - | - | - | 1,343,614 | - | 1,343,614 |
At 31st March 2011 | 833,541 | 609,690 | 5,163,332 | - | (3,418,106) | - | 3,188,457 |
Notes
1. The financial information contained in this preliminary announcement for the year ended 31 March 2011 has been audited by Walter Hunter & Co Limited and is extracted from the statutory accounts of the Group for that financial year and does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The report of the auditors was (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237 (2) or (3) of the Companies Act 1985.
2. Copies of the 2011 annual report and accounts will be sent to shareholders shortly, and these can be obtained from the Company's registered office or website: www.chbaileyplc.co.uk.
Enquiries:
C H Bailey Plc
Charles Bailey (Tel: 01633 262961)
Bryan Warren
Arden Partners plc
Richard Day (Tel: 020 7614 5932)
Jamie Cameron (Tel: 020 7614 5925)