C.H. Bailey Plc Regulatory News (BLEY)

22 Sep 2006 07:00

Bailey(C.H.) PLC22 September 2006 C. H. BAILEY PLC CHAIRMAN'S STATEMENT AND FINANCIAL RESULTSYEAR ENDED 31ST MARCH 2006 Overview 2005/6 2004/5 2003/4 2002/3 £ £ £ £ Turnover - continuing operations 11,334,385 6,614,785 4,633,070 3,376,000Increase in turnover % 71.35% 42.77% 37.23% Gross profit - continuing operations 2,371,942 764,697 342,853 20,070Gross profit as % of turnover 20.93% 11.56% 7.40% 0.60% Trading (loss) - continuing operations (1,114,684) (1,394,797) (1,732,055) (1,568,157)Trading (loss) as % of turnover (9.84%) (21.09%) (37.39%) (46.45%) Operating (loss) - continuing operations (1,115.782) (941,088) (977,925) (2,622,000)Operating (loss) as % of turnover (9.85%) (14.23%) (21.11%) (77.67%) Loss per share (15.24p) (9.87p) (19.44p) (29.54p) Financial Highlights •Turnover and gross profit margin increased•Trading loss decreased Restructuring Highlights •Merger of 2 classes of shares finalised•Completion of planned capital restructuring Although disappointed with the financial results, I am encouraged by theunderlying trends such as, the increase in turnover of some £4.7M and increasein the gross profit margin of 81% coupled with a reduction in the trading lossover the previous year. Our forecasts for 2006/7 show further improvements,which I believe can and will be achieved. The company has now completed the planned capital restructuring. This has takenconsiderable time, effort and cost. I am positive that the move to one class ofshare is already providing increased transparency and a more balanced marketplace for the shares. UK Trading These accounts now show the value of the investment in Modular AutomationInternational Limited. For the full year, Modular has traded profitably andthere are encouraging signs for the future. Bay Travel Limited also increasedits profits and both Midway Precision Limited and Specialist Heavy EngineersLimited turned losses into near breakeven positions. However, P&D ElectricalServices Limited unfortunately had further losses, which have impacted on theperformance of the UK trading position. Overseas Trading Although turnover has decreased at the hotel in Malta profits increased as aresult of improved controls. The Maltese Government has finally released the'North Harbour Local Plan' (NHLP), which is the master development plan for thelocal area and discussions with planners have been progressing. We have also metwith third parties, who have shown an interest in either financing anydevelopment or entering into a joint venture. In the most part the NHLP encompasses the outline plan we have submitted to thegovernment planners for the development of the property. This outline plan hasretail, commercial, residential and hotel accommodation of some 38,000 squaremetres. When the necessary planning permits are issued, we will be able toproceed to the next stage of the development. In Tanzania, Beho Beho, the safari camp in the Selous Game Reserve has exceededall forecasts in revenue and occupancy and this year looks to better last year.Mikumi Wildlife Camp and the Oyster Bay Hotel shopping complex have bothincreased revenues and contributed to profits, with Mikumi Wildlife Campincreasing revenues and occupancy by over 20%. During the year, the hotel in Dares Salaam closed for refurbishment and work has now started to demolish the oldfire damaged building in order to clear the site for redevelopment. Balance Sheet You will note that during the course of the year, there has been little changein the balance sheet totals. This is largely due to the trading losses beingoffset by new requirements to carry investments available for sale at marketvalue, as well as the company selling Treasury shares in its open offer toshareholders. Investments For the most part, the investments performed well. The investments are broadlyspread across Bonds, Hedge Funds and Stocks, the value of which continue toincrease despite global market volatility. Future I am encouraged with the current levels of trading. We are continuing to focuson our margins and overheads, following the diversification, repositioning andrestructuring of the group with the aim of returning the group to profitability. Finally, I would like to thank the management, staff and our advisors for theircontinued efforts. Charles H.BaileyChairman21st September 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNTYEAR ENDED 31ST MARCH 2006 2005 2006 Continuing Discontinued Continuing operations operations Total £ £ £ £ Turnover 11,334,385 6,614,785 199,936 6,814,721Cost of sales (8,962,443) (5,850,088) (272,043) (6,122,131) -------------------------------------------------------------Gross profit (loss) 2,371,942 764,697 (72,107) 692,590 Administrative expenses (3,486,626) (2,159,494) (36,149) (2,195,643) -------------------------------------------------------------Trading (loss) (1,114,684) (1,394,797) (108,256) (1,503,053) Investment activities and other income (1,098) 453,709 - 453,709 ------------------------------------------------------------- Operating (loss) (1,115,782) (941,088) (108,256) (1,049,344) ============================Exceptional itemsProfit on disposal of fixed assets - 594,719Restructuring costs (144,340) (284,003) ----------- ----------(Loss) on ordinary activities before interest (1,260,122) (738,628)Interest receivable 21,184 42,583Interest payable (127,743) (171,234) ----------- ----------(Loss) on ordinary activities before taxation (1,366,681) (867,279)Taxation 188,302 73,432 ------------ ----------(Loss) on ordinary activities after taxation (1,178,379) (793,847)Minority interest (50,327) 12,408 ------------ ---------- (Loss) for the financial year (1,228,706) (781,439) ============ ========== Earnings per share from total operating results (15.24p) (9.87p)Earnings per share from continuing operations (15.24p) (12.43p) BALANCE SHEETSAS AT 31ST MARCH 2006 Group Company 2006 2005 2006 2005 (as restated) (as restated) £ £ £ £Fixed AssetsIntangible assets 761,319 857,357 - 7,500Tangible assets 7,512,405 7,358,426 5,698 13,583Investments - - 8,201,632 8,201,632 ------------------------------------------------------------- 8,273,724 8,215,783 8,207,330 8,222,715 -------------------------------------------------------------Current assetsStock and work in progress 402,154 771,957 - -Debtors 4,552,212 2,429,646 3,047,072 2,681,419Investments 2,402,750 2,763,446 931,925 790,146Cash at bank and in hand 279,552 873,718 585,958 726,372 ------------------------------------------------------------- 7,636,668 6,838,767 4,564,955 4,197,937 Credits: amounts falling due within one year 6,064,838 5,372,877 5,205,563 5,935,490 ------------------------------------------------------------- Net current assets (liabilities) 1,571,830 1,465,890 (640,608) (1,737,553) ------------------------------------------------------------- Total assets less current liabilities 9,845,554 9,681,673 7,566,722 6,485,162 Creditors: amount falling due after more than one year 893,444 925,420 - - Provision for liabilities and charges 245,608 102,513 210,488 50,000 -------------------------------------------------------------Net assets 8,706,502 8,653,740 7,356,234 6,435,162 =============================================================Financed by:Capital and reservesCalled up share capital 833,541 4,830,414 833,541 4,830,414Share premium account 609,690 - 609,690 -Capital redemption reserve 5,163,332 1,166,459 5,163,332 1,166,459Investment in own shares (187,528) (274,084) (187,528) (274,084)Revaluation reserve 1,717,035 1,705,051 - -Other reserves 743,143 615,840 - -Investment revaluation reserve 707,854 232,235 309,495 142,955Profit and loss account (771,780) 537,334 627,704 569,418 -------------------------------------------------------------Equity shareholders' funds 8,815,287 8,813,249 7,356,234 6,435,162Minority interest (108,785) (159,509) - - ------------------------------------------------------------- 8,706,502 8,653,740 7,356,234 6,435,162 ============================================================= Net assets per share £1.06 £1.15 CONSOLIDATED CASH FLOW STATEMENTYEAR ENDED 31ST MARCH 2006 2006 2005 £ £ £ £ Net cash (outflow) from operating activities (315,452) (1,422,611) Return on investments and servicing of financeInterest received 21,184 42,583Interest paid (127,743) (171,234) ---------- ---------- (106,559) (128,651) Taxation (6,821) (4,945) Captial expenditure and financial investmentPurchase of tangible fixed assets (358,371) (544,665)Sale of tangible fixed assets 15,257 2,044,054Sale of intangible fixed assets 7,500 - ---------- ---------- (335,614) 1,499,389AcquisitionsPurchase of Modular Automation International Limited - (286,365)Overdraft acquired from Modular Automation International Limited - (385,234)Other goodwill acquired - (55,000) ---------- ---------- - (726,599) ----------- ----------Cash (outflow) before use of liquid resources and financing (764,446) (783,417) Equity dividends paid - - Management of liquid resourcesPurchase of investments (318,083) (1,411,322)Sale of investments 1,048,299 3,196,697Movement in short term deposits 387,822 (395,598) ---------- ----------- 1,118,038 1,389,777FinancingSale of investment in own shares 696,246 (969,825)Directors loans (711,991) 934,594Movement in other loans due within one year (78,732) (79,626)Movement in bank loans due after more than one year (25,536) (68,738)Capital element of finance leases (20,020) 114,920 ---------- ----------- (140,033) (68,675) ----------- ----------Increase in cash in the year 213,559 537,685 =========== ========== This information is provided by RNS The company news service from the London Stock Exchange