C.H. Bailey Plc Regulatory News (BLEY)

22 Dec 2005 11:36

Bailey(C.H.) PLC22 December 2005 INTERIM STATEMENT AND RESULTS 6 months to 6 months to 30th September 2005 30th September 2004 £ £Turnover 5,670,613 3,060,637Operating (loss) ( 309,815) ( 383,555)Loss before tax ( 350,261) ( 410,853)Loss per share ( 0.76p) ( 0.63p) Results for the 6 month period ended 30th September 2005 show a loss of £350,261(2004: loss £410,853). Turnover has increased by £ 2,609,976 (85%), primarilydue to the inclusion from January 2005 of Modular Automation, and operatinglosses have been reduced by £73,740 (19%). We have increased gross profit forthe Group to £1,246,697 (2004: £277,826) however, the operating result has notbenefited, to the same extent as in 2004, from investment income and exchangegains, as these have reduced by £285,000 due to fluctuations in the US dollarand other currencies Whilst the Group results for the period are below our expectations, we arepleased to report that the underlying trading results, for a majority of theGroup's companies, are profitable. Specialist Heavy Engineers, ModularAutomation and St Georges Bay Hotel have all made valuable contributions toGroup and together with Cordura (Tanzania), have beaten their forecasts for theperiod under review. UK Operations Specialist Heavy Engineers sales have increased by approximately 20% and thistogether with greater productivity and further investment has resulted in thisdivision operating profitably. Modular Automation has traded profitably, obtained orders in excess of £3million and re-established itself as one of the market leaders within itsindustry. Every indication is that this improved performance will continue asthe sales pipeline continues to grow and old customers return. Midway Precision continues to operate profitably but sales have not metforecast. Management has identified new markets and are actively following up onnew leads. This new direction has already seen positive results with an increasein enquiries and sales that mean the original forecast for the full year canstill be achieved. P&D Electrical have had a disappointing start to the year. Management have takenthe necessary steps to redirect the company and we are encouraged by theirenergy and efforts that have lead to the introduction of new potential customersand a healthy forward order book. A revised forecast indicates that tradingresults will improve by the year end. Malta Our hotel in Malta continues to contribute to Group. Meetings with Governmentover land and other issues have progressed and we are now closer to resolvingthese long outstanding matters. Discussions with potential developers for themain site have also taken place, but are unlikely to show real progress untilmatters with the authorities have been concluded satisfactorily. Tanzania Beho Beho, our safari camp in the Selous Game Reserve, was recently included inTatler Magazine's 101 best hotels in the World. The camp continues to operatesuccessfully and bookings for the 2006 season are already encouraging. MikumiWildlife Camp has also seen a 20% increase in revenue in spite of increasedcompetition. A refurbishment programme for this camp is being considered so thatit can maintain its position as the market leader in this competitive localmarket. The Oyster Bay Hotel shopping centre remains fully occupied. We are currentlyclearing the site for an office complex development on the land adjacent to theshopping centre, for which planning permission has recently been granted.Negotiations with financiers are progressing and we expect this project willstart in April 2006. Discussions concerning the development of the remainder ofthe Oyster Bay site are also continuing. Investments and Corporate Structure Our investments have performed better than the global markets in which theytrade. In July of this year, the Company successfully sold all the shares held inTreasury through an open offer to existing shareholders - with the excess offerbeing oversubscribed. The Company also announced earlier in the year that it wasconsidering moving to one class of share and the Board will be makingshareholders aware of their proposals in the not too distant future. Conclusion We are seeing the benefits of the restructuring and diversification of the Groupbut the changes made are taking longer than expected to come to fruition.However, I remain confident that further improvements in the Group's resultswill be forthcoming and we intend to continue with the current corporatestrategy as there are signs of growth in all the Group companies and the marketsin which they operate. Charles BaileyChairman and Managing Director 22nd December 2005 UNAUDITED CONSOLIDATED GROUP PROFIT AND LOSS ACCOUNTFor the six months ended 30th September 2005 6 months to 6 months to 30th September 2005 30th September 2004 £ £Turnover - continuing operations acquisitions 2,288,592 -Turnover - continuing operations 3,382,021 2,865,246Turnover - discontinued operations - 195,391 _________ ________Total turnover 5,670,613 3,060,637 Cost of sales ( 4,423,916) ( 2,782,811) _________ ________Gross profit 1,246,697 277,826Administrative expenses ( 1,610,370) ( 854,481) _________ ________Trading (Loss) ( 363,673) ( 576,655)Investment Activities and Other income 53,858 193,100 _________ ________Operating (loss) ( 309,815) ( 383,555) _________ ________ Operating (loss) - continuing operations ( 309,815) ( 27,382)Operating (loss) - discontinued operations - ( 356,173) _________ ________Operating (loss) ( 309,815) ( 383,555) Net interest (payable) ( 40,446) ( 27,298) _________ ________(Loss) on ordinary activities before taxation ( 350,261) ( 410,853) Taxation 21,259 35,456 _________ ________(Loss) on ordinary activities after taxation ( 329,002) ( 375,397) Minority interest ( 22,903) ( 1,373) _________ ________(Loss) for the period ( 351,905) ( 376,770) Dividend Nil Nil _________ ________Retained (loss) for the period ( 351,905) ( 376,770) _________ ________ Earnings per share ( 0.76p) ( 0.63p) UNAUDITED CONSOLIDATED BALANCE SHEET at at 30th September 2005 30th September 2004 £ £ Fixed assetsIntangible assets 805,588 -Tangible assets 7,484,825 8,191,161 _________ ________ 8,290,413 8,189,161Current assetsStocks and work in progress 713,154 207,665Debtors 2,880,890 1,265,619Current investments 2,408,814 3,380,238Cash at bank and in hand 515,815 341,181 _________ _________ 6,518,673 5,194,703CreditorsAmounts falling due within one year 4,930,628 3,238,938 _________ __________ Net current assets 1,588,045 1,955,765 _________ __________ Total assets less current liabilities 9,878,458 10,144,926 CreditorsAmounts falling due after more than one year 386,704 376,476Provision for liabilities and charges 89,054 50,000 _________ __________ Net Assets 9,402,700 9,718,450 _________ __________ Financed by:Capital and reservesCalled up share capital 4,830,414 5,996,873Capital redemption reserve 1,166,459 -Share premium account 553,332 -Revaluation reserves 1,697,856 2,403,084Other Reserves 592,553 528,877Profit and loss account 168,723 753,636 _________ __________ Equity shareholders' funds 9,009,337 9,682,470Minority interest - all equity 393,363 35,980 _________ __________ Net assets 9,402,700 9,718,450 _________ __________ Net assets per share 19.47p 16.21p UNAUDITED CONSOLIDATED CASH FLOW STATEMENTFor the six months ended 30th September 2005 6 months to 6 months to 30th September 2005 30th September 2004 £ £Net cash (outflow) from operating activities ( 83,925) ( 608,834) __________ ___________Return on investments and servicing of finance:Interest received 7,315 5,521Interest paid ( 47,761) ( 32,819) __________ ___________Net cash (outflow) from returns on investmentsand servicing of finance ( 40,446) ( 27,298) __________ ___________ Capital expenditure and financial investment:Purchase of tangible fixed assets ( 252,205) ( 341,908)Sale of tangible fixed assets 18,387 291,940Sale of intangible fixed assets 7,500 - __________ ___________Net cash (outflow) from capital expenditure financial investment ( 226,318) ( 49,968) __________ ___________Cash (outflow) before use of liquid resources and financing ( 350,689) ( 686,100) Purchase of investments ( 67,037) ( 534,842)Sale of investments 171,412 1,325,323Net decrease in short term deposits 451,881 406,397 __________ ___________Net cash inflow from management ofliquid resources 556,256 1,196,878 __________ ___________Financing:Sale of investment in own shares 827,416 -Directors Loans ( 735,666) -(Decrease) in other loans due within one year ( 36,170) ( 103,090)(Decrease) in loans due after more than one year ( 21,506) ( 24,148)Capital element of finance leases 14,569 - __________ ___________Net cash inflow (outflow) from financing 48,643 ( 127,238) __________ ___________Increase in cash in the period 254,210 383,540 UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESFor the six months ended 30th September 2005 6 months to 6 months to 30th September 2005 30th September 2004 £ £Retained (loss) for the period ( 351,905) ( 376,770)Exchange rate adjustments (47,188) (68,243) __________ ___________Total recognised (loss) for period (399,093) (445,013) Sale of investment in own shares 827,416 - __________ ___________Net movement in shareholders' funds 428,323 ( 445,013) __________ ___________ For further information please contact:Charles Bailey, Chairman, C. H. Bailey Plc, Telephone: 01633 262961 Richard Day, Arden Partners Limited, Telephone: 020 7398 1600 22nd December, 2005 This information is provided by RNS The company news service from the London Stock Exchange