C.H. Bailey Plc Regulatory News (BLEY)

27 Sep 2007 07:01

Bailey(C.H.) PLC27 September 2007 CHAIRMAN'S STATEMENT AND FINANCIAL RESULTSYEAR ENDED 31ST MARCH 2007 2006/7 2005/6 2004/5 2003/4 £ £ £ £Turnover - continuing operations 11,021,082 9,821,783 6,614,785 4,633,070Increase in turnover % 12.21% 48.48% 42.77% 37.23% Gross profit - continuing operations 2,839,115 2,425,675 764,697 342,853Gross profit as % of turnover 25.76% 24.70% 11.56% 7.40% Trading (loss) - continuing operations (538,727) (908,089) (1,394,797) (1,732,055)Trading (loss) as % of turnover (4.89%) (9.25%) (21.09%) (37.39%) Operating (loss) - continuing operations (69,932) (876,949) (941,088) (977,925)Operating (loss) as % of turnover (0.63%) (8.93%) (14.23%) (21.11%) Loss per share (7.57p) (15.24p) (9.87p) (19.44p) Financial Highlights • Turnover and gross profit margin increased• Trading loss decreased• Improved sales and order intake by all continuing operating divisions Restructuring Highlights • Disposal of P&D Electrical Services Limited UK Operations I reported in my interim statement to 30 September 2006 that the turnover of ourengineering division had increased. This trend has continued and I can reportthat the turnover of this division has increased by 13.9% on the previous yearto £8,614,869, with significantly improved margins. The division has had a slowfirst quarter in 2007/8 but has subsequently seen increased orders and turnover.We are therefore confident that the improvement achieved in 2006/7 will besustained in the current year. During the year, following a detailed review, the board took the decision todispose of the subsidiary, P&D Electrical Services Limited and to concentrate inthe UK on the core activity of engineering. As announced in April 2007, thissubsidiary was sold to PDACA Limited with the group taking a 25% shareholding inthis company. Malta Our hotel in Malta continues to operate profitably and talks are continuing withthe relevant authorities with regard to the further development of the hotel. Wehope that with the peak tourist season coming to an end, there will besignificant progress and we will continue to keep shareholders updated. Tanzania Beho Beho and Mikumi Wildlife Camp continue to consolidate their position andreputation in the international tourist market. Occupancy, turnover andcontributions to group are improving and we are considering rebuilding Mikumiand the refurbishment of Beho Beho in order to maintain their market share. Final building permits came through in December 2006 for the development at theOyster Bay Hotel complex. Contractors were appointed in early 2007 and it isanticipated that the hotel will reopen its doors in November 2007 with theremainder of the development completed by May 2008. Demand for the hotel, with the proposed new service it will offer is veryencouraging and the number of tourist arrivals continues to grow in Tanzania. Weare confident that on completion, the development will achieve high occupancy. Investments Our fund managers have continued to increase the value of the investmentportfolio. However, the results for the year have been affected by currencyfluctuations especially the US$. We believe that, following the recent marketadjustment, there will be a more stable period, which will allow further growth. Adoption of International Financial Reporting Standards ("IRFS") The Group will adopt IFRS for the first time in its interim report for the sixmonths to 30th September 2007. Preparations for this change are currently inhand. Mr Tom C Bishop I am very sad to report that Mr Tom Bishop who, for very many years, was aDirector of the Group died on the 29th August following a short illness. Tom hadresigned as a Board member earlier this year and had for many years offered theGroup, his wisdom and advice and had always made a valuable contribution. Hewill be sadly missed by his son Brian and family and those of us, who had theprivilege of knowing him and valued his support, encouragement and wonderfulsense of humour. New Board appointment We recently announced the appointment of David Orchard to the board as anexecutive director. David is a certified accountant with the group's ModularAutomation subsidiary. I am confident that he will make a significantcontribution to the further development of our business. Current trading and outlook Despite the loss for the year, the underlying trends are good, with increasedturnover and margins. We remain positive and believe the group is moving in theright direction. But for the loss on the discontinued operation and adverseexchange fluctuations the group would be reporting that it is profitable. The trading performance of all our businesses continues to improve and the groupwill endeavour to achieve further growth and increased efficiencies, to betterthe overall results. With the disposal of P&D Electrical Services we are nowable to concentrate on our core businesses and every indication is that both ourengineering and leisure divisions are competitive in stable and growing markets. As always I must thank the management, staff and our advisers for theircontinued support and contributions to our group. Charles H.BaileyChairman27th September 2007www.CHBaileyplc.co.uk CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 31ST MARCH 2007 2007 2006 Continuing Discountinued Continuing Discontinued operations operations Total operations operations Total £ £ £ £ £ £ Turnover 11,021,082 1,715,507 12,736,589 9,821,783 1,512,602 11,334,385 Cost of Sales (8,181,967) (1,889,176) (10,071,143) (7,396,108) (1,566,335) (8,962,443) ----------------------------------------------------------------------------------Gross profit (loss) 2,839,115 (173,669) 2,665,446 2,425,675 (53,733) 2,371,942 Administrative expenses (3,377,842) (308,616) (3,686,458) (3,333,764) (185,100) (3,518,864) ----------------------------------------------------------------------------------Trading (loss) (538,727) (482,285) (1,021,012) (908,089) (238,833) (1,146,922) Investment activities and other income 468,795 - 468,795 31,140 - 31,140 ---------------------------------------------------------------------------------- Operating (loss) (69,932) (482,285) (552,217) (876,949) (238,833) (1,115,782) ---------------------------- -------------------------Exceptional items Restructuring costs - (144,340) ----------- -----------(Loss) on ordinary activities before interest (552,217) (1,260,122)Interest receivable 15,767 21,184Interest payable (120,395) (127,743) ----------- -----------(Loss) on ordinary activities before taxation (656,845) (1,366,681)Taxation 55,456 188,302 ----------- -----------(Loss) on ordinary activities after taxation (601,389) (1,178,379)Minority interest (18,545) (50,327) ----------- -----------(Loss) for the financial year (619,934) (1,228,706) =========== =========== Earnings per share from total operating results (7.57p) (15.24)pEarnings per share from continuing operations (1.68p) (12.28p) BALANCE SHEETSAS AT 31ST MARCH 2007 Group Company 2007 2006 2007 2006 £ £ £ £Fixed Assets Intangible assets 672,781 761,319 - - Tangible assets 7,789,287 7,512,405 5,313 5,698 Investments - - 7,702,342 8,201,632 ---------------------------------------------------- 8,462,068 8,273,724 7,707,655 8,207,330 ----------------------------------------------------Current assets Stock and work in progress 180,584 402,154 - - Debtors 5,115,348 4,552,212 2,870,057 3,047,072 Investments 1,865,615 2,402,750 980,930 931,925 Cash at bank and in hand 244,047 279,552 52,742 585,958 ---------------------------------------------------- 7,405,594 7,636,668 3,903,729 4,564,955 Creditors: amounts falling due within one year (6,157,160) (6,064,838) (5,097,361) (5,205,563) ---------------------------------------------------- Net current assets (liabilities) 1,248,434 1,571,830 (1,193,632) (640,608) ---------------------------------------------------- Total assets less current liabilities 9,710,502 9,845,554 6,514,023 7,566,722 Creditors: amount falling due after more than one year (1,337,592) (893,444) - -Provision for liabilities and charges (135,505) (245,608) (119,500) (210,488) ----------------------------------------------------Net assets 11,183,599 10,984,606 6,633,523 7,777,210 ====================================================Financed by:Capital and reserves 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 Investment in own shares (187,528) (187,528) (187,528) (187,528) Revaluation reserve 1,668,527 1,717,035 - - Other reserves 716,663 743,143 - - Investment revaluation reserve 636,352 707,854 375,420 309,495 Profit and loss account (1,112,051) (771,780) (399,932) 627,704 ----------------------------------------------------Equity shareholders' funds 8,328,526 8,815,287 6,394,523 7,356,234Minority interest (91,121) (108,785) - - ---------------------------------------------------- 8,237,405 8,706,502 6,394,523 7,356,234 ==================================================== Net assets per share £1.01 £1.06 CONSOLIDATED CASH FLOW STATEMENTYEAR ENDED 31ST MARCH 2007 2007 2006 £ £ £ £ Net cash (outflow) from operating activities (728,876) (315,452) Return on investments and servicing of finance Interest received 15,767 21,184 Interest paid (120,395) (127,743) ----------- ---------- (104,628) (106,559)Taxation (5,542) (6,821)Captial expenditure and financial investment Purchase of tangible fixed assets (724,843) (358,371) Sale of tangible fixed assets 600 15,257 Sale of intangible fixed assets - 7,500 ----------- ---------- (724,243) (335,614)Acquisitions and disposals Investment in associated undertaking (100,000) - ----------- ----------Cash (outflow) before use of liquid resources and financing (1,663,289) (764,446) Equity dividends paid - - Management of liquid resources Purchase of investments (600,430) (318,083) Sale of investments 1,803,375 1,048,299 Movement in short term deposits 452,560 387,822 ----------- ---------- 1,655,505 1,118,038Financing Sale of investment in own shares - 696,246 Directors' loans (201,571) (711,991) Movement in other loans due within one year (82,319) (78,732) Movement in bank loans due after more than one year 420,961 (25,536) Capital element of finance leases 47,420 (20,020) ----------- ---------- 184,491 140,033 ---------- ----------Increase in cash in the year 176,707 213,559 ========== ========== This information is provided by RNS The company news service from the London Stock Exchange