Craven House Capital Regulatory News (CRV)

29 Sep 2005 16:47

Medsea Estates Group PLC29 September 2005 For immediate release 29 September 2005 MEDSEA ESTATES GROUP PLC ("Medsea or "the Company") Unaudited Interim Financial Results for the period ended 30 June 2005 CHAIRMAN'S STATEMENT For the six months ended 30 June 2005, the Company reported turnover in theperiod of £5,526,000 compared with £6,893,000 for the same period last year.Pre-tax profit was £179,000 (£1,360,00 profit in 2004). The prime cause of this underperformance was the Board's concentration onexpansion into new areas in order to create opportunities for long-term growth.Certain senior staff delegated to run the day to day business were inadequatefor the task. During the first months of the year, agents were not receiving the high level ofsupport they had received previously. The Board was being supplied withincorrect information, and because of this, a major geographical sector becameinvolved in loss-making 'buy to sell' activities - which have always beenoutside of our policy. 'Hosting' costs escalated, a major agent ceased to trade,and bad selling techniques resulted in the cancellation rate doubling andclosing rates falling. Since the Board has taken back the reins, we have introduced a number of majorchanges. Underperforming staff have gone and been replaced with hand-pickedhighly qualified, experienced personnel. A new sales structure has beenimplemented and an Agent Liaison Officer appointed to support Medsea's UK agentsand recruit new ones. Our successful Euromed operation has now been restructured to further increaseits efficiency. Euromed, which allows us exclusivity with developers andpromoters on certain properties, is already making a positive contribution. Itsfirst contract, the Frondoso Valley development in Murcia is producing a goodrevenue stream and the Group has sold 72 units at an average price of euros185,000. A similar success is being shown by Euromed's second deal, the 7.5million sq ft Torre del Obispo development, also in Murcia. It has sold 96 plotshere, at an average price of euros 120,000. Unfortunately, the revenue fromthese deals comes too late to be included in the Interim figures. We have also launched into the German and Benelux markets through an agreementwith Netherlands based Barka & Boom Real Estates. A recent link with AvantiInternational means that clients will soon be offered the IFA and Travel Agencyservices. Medsea has also just been selected as the only company in its sector to appearon the NHS Trusts' renowned Intranet Directories. This gives the group exclusiveaccess to over 125,000 healthcare professionals. Tighter management, budgetary and forecasting controls are being installed toensure total conformation to the Group's policies and we have just been awardedthe ISO9001:2000 certificate of quality management. I am confident that, despite the disappointing results in the six months to June2005, Medsea Group is now back on track. The Directors have refocused on ourcore activities and instituted a series of innovations which are alreadyproducing results. We believe that these, coupled with the growing success ofnew concepts such as Euromed, will improve future performance. Tony Gatehouse, ChairmanMedsea Estates Group Plc UNAUDITED INTERIM FINANCIAL INFORMATION OF MEDSEA ESTATES GROUP PLC FOR THE SIX MONTHS ENDED 30 JUNE 2005 The unaudited interim financial information for the six months ended 30 June2005 consolidate the results of Medsea Estates Group PLC and all of itssubsidiary undertakings at 30 June 2005. The unaudited interim financial information, which is the responsibility of thedirectors does not constitute statutory accounts within the meaning of Section240 of the Companies Act 1985. CONSOLIDATED PROFIT AND LOSS ACCOUNT 6 months 6 months ended ended 30 June 30 June 2005 2004 (unaudited) (unaudited) Notes £'000 £'000 Turnover 2 5,526 6,893Costs of sales (3,881) (4,782) --------- --------- Gross profit 1,645 2,111Administrative expenses (1,461) (746) --------- --------- Operating profit 184 1,365Interest payable and similar charges (5) (5) --------- --------- Profit on ordinary activities before 179 1,360taxationTaxation (152) (475) --------- --------- Profit on ordinary activities after taxation 27 885Minority Interest (16) - --------- --------- Retained profit for the period 11 885 ========= ========= All results derive from continuing operations of the Group. CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 30 June 30 June 2005 2004 (unaudited) (unaudited) Notes £'000 £'000 Profit for the financial year 11 1,324Foreign exchange loss (219) - --------- ---------Total recognised gains relating to the (208) 1,324period ========= ========= CONSOLIDATED BALANCE SHEET As at 30 As at 30 June June 2005 2004 (unaudited) (unaudited) Notes £000 £000 Fixed assetsTrademarks 3 3 4Negative goodwill - (38) --------- ---------Intangible assets 3 (33)Tangible assets 4 1,151 1,190 91 - --------- --------- 1,245 1,157Current assetsStock 156 -Debtors 5 7,875 5,931Cash at bank and in hand 615 1,246 --------- --------- 8,646 7,177Creditors: amounts falling due within one 6 (4,813) (3,936)year --------- --------- Net current assets 3,833 3,241 --------- --------- Total assets less current liabilities 5,078 4,398 Creditors: amounts falling due in more thanone year 7 (129) (237) Provisions for liabilities and charges 8 (1,097) (871) --------- --------- Net assets 3,852 3,289 ========= ========= Capital and reservesCalled up share capital 9 7,063 3Share premium 22 -Minority interest 17 -Revaluation reserve 92 120Other reserve 163 114Merger reserve (7,058) -Profit and loss account 3,553 3,052 --------- --------- Equity shareholders' funds 3,852 3,289 ========= ========= CONSOLIDATED CASH FLOW STATEMENTS 6 months 6 months ended ended 30 June 30 June 2005 2004 (unaudited) (unaudited) Notes £'000 £'000 Net cash inflow from operating activities 10 (271) 390 Returns on investments and servicing offinanceInterest element of finance lease payments - -Other interest paid (5) (5) --------- --------- Net cash inflow/(outflow) from returns oninvestments and servicing of finance (5) (5) Taxation (29) (162) Capital expenditure and financialinvestmentPurchase of intangible fixed assets - (3)Purchase of tangible fixed assets (76) (165)Proceeds from sale of tangible fixed assets 6 - --------- --------- Net cash flow from capital expenditure andfinancial investment (70) (168) Acquisitions and disposalsNet cash acquired with subsidiary - 274undertaking --------- --------- Net cash flow from acquisitions and - 274disposals Management of liquid resourcesAcquisition of other investments (4) - --------- --------- Net cash flow from management of liquidresources (4) - Cash (outflow)/inflow before financing (379) 329 FinancingRepayment of other loans (110) -Repayment of long term loans (118) (28)Capital element of finance lease payments (4) (13) --------- --------- Net cash inflow/(outflow) from financing (232) (41) --------- --------- (Decrease)/increase in cash in the period (611) 288 ========= ========= 6 months 6 months ended ended 30 June 30 June 2005 2004 (unaudited) (unaudited) Notes £'000 £'000 Reconciliation of net cash flow to movementin net debt(Decrease)/increase in cash in the period (611) 288Cash (inflow)/outflow from increase in netdebt and finance leasing 232 41 --------- --------- Movement in funds in the period (379) 329Opening net funds/(debt) 667 614 --------- --------- Closing net funds 11 288 943 ========= ========= NOTES TO THE INTERIM FINANCIAL INFORMATION 1. Accounting policiesThe interim financial information has been prepared on the basis of theaccounting policies used for the year ended 31 December 2004. The interimfinancial results are unaudited. 2. TurnoverTurnover derives wholly from the principal activity of the Group which iscarried out in Spain. 3. Intangible fixed assets Trademarks £'000CostAs at 1 January 2005 8Additions - ---------As at 30 June 2005 8 --------- AmortisationAs at 1 January 2005 4Charge for the period 1 ---------As at 30 June 2005 5 --------- Net book valueAs at 31 December 2004 3 =========As at 30 June 2005 4 ========= 4. Tangible fixed assets Office Freehold Freehold equipment land and investment and motor buildings properties vehicles Total £'000 £'000 £'000 £'000Cost or valuationAs at 1 January 2005 261 462 585 1,308Additions - - 76 76Exchange gain/(loss) (15) (26) (33) (74)Disposals - - (8) (8) -------- -------- -------- --------As at 30 June 2005 246 436 620 1,302 -------- -------- -------- -------- DepreciationAs at 1 January 2005 15 - 119 134Charge for the period 3 - 24 27Exchange gain/(loss) (1) - (7) (8)Disposals - - (2) (2) -------- -------- -------- --------As at 30 June 2005 17 - 134 151 -------- -------- -------- -------- Net book valueAs at 31 December 2004 246 462 466 1,174 ======== ======== ======== ========As at 30 June 2005 229 436 486 1,151 ======== ======== ======== ======== 5. Debtors As at As at 30 June 30 June 2005 2004 £'000 £'000 Trade debtors 677 840Other debtors 553 215Prepayments and accrued income 6,645 4,876 -------- -------- 7,875 5,931 ======== ========6. Creditors: amounts falling due within one year As at As at 30 June 30 June 2005 2004 £'000 £'000 Bank loans 59 66Other loans 134 -Trade creditors 314 410Corporation tax 239 251Other taxation and social security 336 507Other creditors 215 183Accruals and deferred income 3,516 2,517 -------- -------- 4,813 3,934 ======== ======== 7. Creditors: amounts falling due after more than one year As at As at 30 June 30 June 2005 2004 £'000 £'000 Bank loans 112 237Obligations under finance lease 17 - -------- -------- 129 237 ======== ======== Analysis of loans - amounts repayable:In one year or less, or on demand 59 66Between one and two years 59 72Repayable between 2 and 5 years 53 161 -------- -------- 171 299In more than 5 years, repayable by instalments - 3 -------- -------- 171 302 ======== ======== The bank loans are secured on the freehold investment properties owned by theGroup, are repayable over twelve years by equal monthly instalments (or as thecorresponding properties are sold) and carry interest at 2% above the bank'sbase rate. 8. Provisions for liabilities and charges As at As at 30 June 30 June 2005 2004Deferred taxation: £'000 £'000 Provision at 1 January 1,042 388On acquisition of subsidiary - 274Charge for the period 55 209 -------- --------Provision at 30 June 1,097 871 ======== ======== The provision for deferred taxation consists of the tax effects of timingdifferences in respect of income recognition. 9. Share capital As at As at 30 June 30 June 2005 2004 £'000 £'000Authorised:10,000,000 Ordinary shares of 10 pence each 10,000 3 ======== ======== Issued and fully paid:70,629,412 Allotted, called up and fully paid ordinaryshares of 10m pence each 7,063 3 ======== ======== 10. Reconciliation of operating profit to operating cash flows 6 months 6 months ended ended 30 June 30 June 2005 2004 £'000 £'000 Operating profit 184 1,366Foreign exchange (162) -Depreciation and amortisation 28 6(Increase)/decrease in debtors (375) (1,685)Increase/(decrease) in creditors 81 703(Increase)/decrease in stock (27) - -------- -------- Net cash inflow from operating activities (271) 390 ======== ======== 11. Analysis of changes in net debt 6 months 6 months ended ended 30 June 30 June 2005 2004 £'000 £'000 Cash at bank and in hand 1,229 958Finance leases (29) (13)Other loans (244) -Debt due within one year (57) (57)Debt due after one year (232) (274) -------- -------- Opening net funds/(debt) 667 614 Decrease/(increase) in cash in the period (614) 287(Increase)/decrease in finance leases in the period 4 13Decrease/(increase) in other loans 110(Increase)/decrease in debt due within one year (2) (9)Decrease/(increase) in debt due after one year 120 37 Cash at bank and in hand 615 1,246Finance leases (25) -Other loans (134) -Debt due within one year (59) (66)Debt due after one year (112) (237) -------- -------- Closing net funds 285 943 ======== ======== 12. Financial commitmentsAt 30 June 2005 the Group had annual commitments under non-cancellable operatingleases as set out below: As at As at 30 June 30 June 2005 2004 £000 £000 Land and buildings:Expiring within one year 28 26Expiring in two to five years 14 13 ======== ======== These are not statutory accounts. Copies are available at the registered office,10-13 Lovat Lane,London,EC3R 8DN for a period of 1 month For further information contact: Medsea Estates Group PLC:Tony Gatehouse, Chairman 0034 96 570 40 02andJuan Carlos Rodriguez Martinez, Chief ExecutiveBeaumont Cornish LimitedRoland Cornish/Noelle Greenaway 0207 628 3396 Midas Investment Management Limited: 0161 228 1709Mark SheppardWeber Shandwick Square Mile: 0207 067 0700Terry Garrett/ Alex White This information is provided by RNS The company news service from the London Stock Exchange