NTA.L Regulatory News (NTA)

29 Nov 2005 13:11

Northacre PLC29 November 2005 NORTHACRE PLC INTERIM REPORT SIX MONTHS TO 31ST AUGUST 2005 OverviewNorthacre continues to maintain its position as the premium brand in thebusiness of developing high quality residential schemes in prime landmarkCentral London locations. Financial ResultsTurnover for the period was £1,584,000 (2004 - £1,309,000) with gross profit of£941,000 (2004 - £792,000). Pre-tax loss was £345,000 (2004 - £929,000) beforeamortisation of goodwill with a basic loss per share of 4.3 pence (2004 - loss6.87 pence). The Board is not declaring an interim dividend Operational ReviewDuring the period under review the operating subsidiaries have generally seen amodest improvement in fee income. Further measures implemented by the Board havereduced the level of operating overhead. Some new appointments have been securedby both the Architectural and Interior Design teams. There remains one unsold show apartment by Lifestyles Interiors at KINGSChelsea. We expect to receive our profit share entitlement and bonus fee uponthe sale of this last unit. At the Phillimores (QEC) there remains four unsold apartments. We are confidentthat with some recent improved sales activity receipt of our sales overageentitlement should take place by the end of the financial year to February 2006 The refusal decision given by the Planning Inspectorate in respect of the PublicInquiry on our Vicarage Gate scheme is particularly disappointing. We continueto be hopeful of securing a residential scheme in the medium to long term. With a revised planning consent now in place at 44-46 Park Street work hascommenced on site for creating 6 large Mayfair apartments due for completion inOctober 2006. In conjunction with our new JV partners at Minerva Plc, completion of the Odeonsite acquisition on Kensington High Street took place on 25th November 2005.This new development opportunity generates further income to the Group forDevelopment Management and Architectural fees. Enquiries : Northacre Plc Tel : (020) 7349 8000 John Hunter Chief ExecutiveManish Santilale Finance Director Summarised Consolidated Profit and Loss Account (Unaudited) Note 6 Months to 6 Months to Year ended 31.8.2005 31.8.2004 28.2.2005 Unaudited Unaudited Audited £'000 £'000 £'000 Turnover 3 1,584 1,309 2,812 Cost of sales (643) (517) (1,367) --------- ---------- ---------- Gross Profit 941 792 1,445 Administrative expenses 4 (1,964) (2,174) (3,612) Other operating income 21 10 31 --------- ---------- ---------- Operating Loss (1,002) (1,372) (2,136) Share of loss from associatedundertakings - - (12) --------- ---------- ---------- Loss on Ordinary Activitiesbefore Interest and InvestmentIncome (1,002) (1,372) (2,148) Dividends received 40 40 70 Interest (net) (14) (228) (365) --------- ---------- ---------- Loss on Ordinary Activitiesbefore Taxation (976) (1,560) (2,443) Taxation 5 - - - --------- ---------- ---------- Retained Loss for the Period 7 (976) (1,560) (2,443) ========= ========== ========== Basic loss per ordinary share 8 (4.30)p (6.87)p (10.76)p Fully diluted loss perordinary share (4.30)p (6.68)p (10.76)p Summarised Consolidated Balance Sheet (Unaudited) Note 31.8.2005 31.8.2004 28.2.2005 Unaudited Unaudited Audited £'000 £'000 £'000Fixed AssetsIntangible assets 9,459 10,720 10,090Tangible assets 20 2,907 31Investments 34 47 34Investment in joint venture 965 920 965 --------- ---------- ---------- 10,478 14,594 11,120 --------- ---------- ---------- Current AssetsStock and work in progress 21 62 183Debtors 773 678 495Cash at bank and in hand - 208 110 --------- ---------- ---------- 794 948 788 Creditors: Amounts falling duewithin one year 6 (5,189) (5,700) (4,849) --------- ---------- ---------- Net Current Liabilities (4,395) (4,752) (4,061) --------- ---------- ----------Total Assets less CurrentLiabilities 6,083 9,842 7,059 Creditors: Amounts falling dueafter more than one year - (1,830) - Provisions for Liabilities andCharges - (70) - --------- ---------- ----------Net Assets 6,083 7,942 7,059 ========= ========== ========== Capital and ReservesShare capital 568 568 568Share premium account 17,449 17,449 17,449Profit and loss account (11,934) (10,075) (10,958) --------- ---------- ----------Shareholders' Funds 7 6,083 7,942 7,059 ========= ========== ========== Summarised Consolidated Cash Flow Statement (Unaudited) 6 Months to 6 Months to Year ended 31.8.2005 31.8.2004 28.2.2005 Note Unaudited Unaudited Audited £'000 £'000 £'000 Net Cash Outflow from OperatingActivities 9 (306) (1,551) (352) Returns on Investments andServicing of FinanceInterest received 2 2 67Interest paid (16) (230) (432)Interest element of finance lease - - -rentalsDividends received 40 40 70 --------- ---------- ---------- Net Cash Inflow/(Outflow) fromReturns onInvestments and Servicing ofFinance 26 (188) (295) --------- ---------- ---------- TaxationCorporation tax paid - - - --------- ---------- ---------- Capital Expenditure and FinancialInvestmentSale of property - - 2,850Purchase of other tangible assets - (4) (7)Sale of other tangible assets - 1 - --------- ---------- ---------- Net cash (outflow)/inflow forcapital expenditure - (3) 2,843 --------- ---------- ---------- Acquisitions and DisposalsInvestment in joint venture - (50) (95)Proceeds on disposal of - - -investment in joint venture --------- ---------- ---------- Cash (Outflow)/Inflow beforeManagement of LiquidResources and Financing - (50) (95) --------- ---------- ---------- FinancingCapital element of finance leaserentals - (16) (16)Increase/(decrease) in debt - 1,830 - --------- ---------- ---------- Net cash inflow/(outflow) frommanagementof liquid resources and financing - 1,814 (16) --------- ---------- ---------- (Decrease)/Increase in Cash inthe 10 (280) 22 2,085Period ========= ========== ========== Notes to the Unaudited Interim Financial Statements for the period ended 31stAugust 2005 1 Accounting PoliciesThe interim financial statements have been prepared on the basis of theaccounting policies set out in the 2005 Northacre PLC Annual Report. Going ConcernThe company and group meet their day to day working capital requirements partlythrough monies loaned from the Northacre Plc Directors Retirement and DeathBenefit Scheme and partly from the group's bankers. These facilities have beenrenewed during the period and are expected to remain in place for the forseeablefuture. The directors have prepared detailed cash flow projections for the period ended31st August 2006 making prudent assumptions about the levels and timing ofincome and expenditure. These projections show that the group can operate withinthe available facilities in the light of the changes mentioned above. On thisbasis the directors consider it appropriate to prepare these interim financialstatements on a going concern basis. 2 Financial InformationThe financial information contained in this document does not constitutestatutory accounts within the meaning of section 240 of the Companies Act 1985.The comparative figures for the financial period ended 31st August 2004 havebeen extracted from the company's interim report for that financial period. Thestatutory accounts for the period ended 28th February 2005 have been given anunqualified audit report and have been filed with the Registrar of Companies. 3 Turnover The group's turnover has been analysed by principal activity as follows: 6 Months to 6 Months to Year ended 31.8.2005 31.8.2004 28.2.2005 £'000 £'000 £'000Development management 496 111 451Interior design 677 989 1,898Architect design 411 209 463 --------- ---------- ---------- 1,584 1,309 2,812 ========= ========== ========== 4 Administrative ExpensesThe administrative expenses of £1,963,973 (6 months to 31st August 2004:£2,173,108) include amortisation of goodwill of £630,604 (6 months to 31stAugust 2004: £630,604). 5 TaxationThere is no taxation charge due to the availability of losses. 6 Creditors due within one year 31.8.2005 31.8.2004 28.2.2005 Unaudited Unaudited Audited £'000 £'000 £'000Bank loans and overdrafts 170 2,161 -Trade creditors 531 784 397Social security and other taxes 378 471 307Other creditors 3,407 1,547 3,439Accruals and deferred income 703 737 706 --------- ---------- ---------- 5,189 5,700 4,849 ========= ========== ========== 7 Shareholders' Funds The reconciliation of movements in shareholders' funds is as follows: £'000Shareholders' funds at 1st March 2005 7,059Retained loss for the period (976) ----------Shareholders' funds at 31st August 2005 6,083 ========== 8 Earnings Per ShareThe basic loss per share has been calculated on the loss on ordinary activitiesafter tax of £975,793 (2004 - £1,559,892) and on the weighted average number ofshares in issue in the six months to 31st August 2005 of 22,713,644 (2004 -22,713,644). The fully diluted loss per share has been calculated on the loss on ordinaryactivities after tax (as adjusted for convertible loan stock) of £975,793 (2004- £1,559,824) and on the weighted average number of shares in issue in the sixmonths to 31st August 2005 (as adjusted for the dilutive effect of optionstreated as exercisable at the period end) of 22,713,644 (2004 - 23,360,553). 9 Reconciliation of Operating Loss to Net Cash Flowfrom Operating Activities 6 Months to 6 Months to Year ended 31.8.2005 31.8.2004 28.2.2005 £'000 £'000 £'000Group operating loss (1,002) (1,372) (2,136)Depreciation 11 15 29Decrease in work in progress 162 135 14(Increase) in debtors (278) (288) (104)Increase /(decrease) in creditors 170 (672) 568Amortisation of goodwill 631 631 1,261Profit on disposal of fixed assets - - 16 --------- ---------- ----------Net cash outflow from operatingactivities (306) (1,551) (352) 10 Reconciliation of Net Cash Flow to Movement in Net Debt 6 Months to 6 Months to Year ended 31.8.2005 31.8.2004 28.2.2005 £'000 £'000 £'000(Decrease)/Increase in cash in theperiod (280) 22 2,085Cash (inflow)/outflow resulting from(increase)/decrease in debt and leasefinancing - (1,814) 16Net debt at start of period (950) (3,051) (3,051) --------- ---------- ----------Net debt at end of period (1,230) (4,843) (950) ========= ========== ========== 11 Analysis of changes in Net Debt At Cash At 1.3.2005 Flow 31.8.2005 £'000 £'000 £'000Cash at bank and in hand 110 (110) -Bank loans and overdrafts - (170) (170) ---------- (280) ----------Debt due within one year (1,060) - (1,060)Finance leases - - -Debt due after more than one year - - - --------- ---------- ---------- (950) (280) (1,230) ========= ========== ========== 12 DividendsThe directors do not recommend the payment of an interim dividend. 13 Other Information The interim statement was approved by the directors on 28th November 2005 A copy of the interim statement will be posted to shareholders and madeavailable to the public for a period of 14 days from today at the company'sregistered office: 48 Old Church Street, London SW3 5BY. Independent Review Report to Northacre PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 31st August 2005 which comprises the consolidated profitand loss account, the consolidated balance sheet, the consolidated cash flowstatement and the related notes. We have read the other information contained inthe interim report and considered whether it contains any apparent misstatementsor material inconsistencies with the financial information. This report is made solely to the company in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other thanthe company, for our review work, for this report, or for the conclusions wehave formed. Directors' Responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The ListingRules of the London Stock Exchange require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. Review Work Performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board. A review consists principally of makingenquiries of group management and applying analytical procedures to thefinancial information and underlying financial data and based thereon, assessingwhether the accounting policies and presentation have been consistently appliedunless otherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with AuditingStandards and therefore provides a lower level of assurance than an audit.Accordingly we do not express an audit opinion on the financial information. Review Conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31st August 2005. Kingston SmithChartered Accountants Devonshire House60 Goswell RoadLondon EC1M 7AD 28th November 2005 This information is provided by RNS The company news service from the London Stock Exchange