Last checked at 30 Sep 2008 07:00
FOR IMMEDIATE RELEASE 30 September 2008
PATHFINDER PROPERTIES PLC
Unaudited Interim Results
for the six months ended 30 June 2008
The Board of Pathfinder announces the results of the Company for the six months ended 30 June 2008, which are set out below. The unaudited interim financial statements for the six months ended 30 June 2008 are being sent to all shareholders. Copies may be obtained from the Company by writing to Pathfinder Properties PLC, 1001 Finchley Road, London NW11 7HB and are available on the Company's website, www.pathfinderplc.com
CHAIRMAN'S STATEMENT
For the six months ended 30 June 2008
Dear Shareholder,
Please find enclosed our half yearly accounts to 30 June 2008.
From my recent correspondence, shareholders are aware that the company has been badly affected by the credit crunch, which has had a dramatic effect on the value of our assets.
I was pleased that the resolution at the recent Extraordinary General Meeting was passed in respect of our assets held at Ilford and Newark. The company is now in the process of carrying out these transfers and although this will lead to a write down, hopefully this will allow the company to ride out the present storm.
Once again I would like to thank everybody involved for all their time and effort to help the company through these difficult times.
Edward Azouz
Chairman
30 September 2008
| CONSOLIDATED INCOME STATEMENT | ||||||||||||
| for the six months ended 30 June 2008 | ||||||||||||
| Unaudited | Unaudited | Audited | ||||||||||
| Notes | 6 months to | 6 months to | Year ended | |||||||||
| 30 June 2008 | 30 June 2007 | 31 Dec 2007 | ||||||||||
| £'000 | £'000 | £'000 | ||||||||||
| REVENUE | ||||||||||||
| Group and share of joint ventures | 2 | 52 | 32 | |||||||||
| less share of joint ventures | - | (17) | (5) | |||||||||
| Group revenue | 2 | 35 | 27 | |||||||||
| Cost of sales | (8,066) | (7) | (7) | |||||||||
| Gross profit | (8,064) | 28 | 20 | |||||||||
| Administrative expenses | (296) | (313) | (741) | |||||||||
| (8,360) | (285) | (721) | ||||||||||
| Other operating income | - | 85 | 88 | |||||||||
| OPERATING (LOSS)/PROFIT BEFORE SHARE OF JOINT VENTURES | (8,360) | (200) | (633) | |||||||||
| Share of operating profits in joint ventures | - | 15 | - | |||||||||
| OPERATING (LOSS)/PROFIT | 3 | (8,360) | (185) | (633) | ||||||||
| Profit on sale of investment properties | - | - | 3 | |||||||||
| Profit on sale of non current investments | - | - | 53 | |||||||||
| (8,360) | (185) | (577) | ||||||||||
| Finance income | 24 | 36 | 50 | |||||||||
| Finance costs | (156) | (337) | (521) | |||||||||
| (LOSS)/PROFIT BEFORE TAXATION | (8,492) | (486) | (1,048) | |||||||||
| Taxation | - | - | 104 | |||||||||
| (LOSS)/PROFIT AFTER TAXATION | (8,492) | (486) | (944) | |||||||||
| Equity minority interests | - | (11) | (7) | |||||||||
| (LOSS)/PROFIT ATTRIBUTABLE TO MEMBERS | (8,492) | (497) | (951) | |||||||||
| (Loss)/profit for the period | 6 | (8,492) | (497) | (951) | ||||||||
| (Loss)/profit per share (basic and diluted) | 10 | (10.62p) | (0.62p) | (1.19p) | ||||||||
The operating loss arises from the Group's continuing operations.
A statement of total recognized gains and losses for the period is given in note 8.
| CONSOLIDATED BALANCE SHEET | ||||||||||||
| As at 30 June 2008 | ||||||||||||
| Unaudited | Unaudited | Audited | ||||||||||
| Notes | 30 June 2008 | 30 June 2007 | 31 Dec 2007 | |||||||||
| £'000 | £'000 | £'000 | ||||||||||
| ASSETS | ||||||||||||
| NON CURRENT ASSETS | ||||||||||||
| Goodwill | 154 | 154 | 154 | |||||||||
| Property, plant and equipment | 14 | 20 | 15 | |||||||||
| Investment in joint ventures | ||||||||||||
| Share of gross assets | 24 | 115 | 23 | |||||||||
| Share of gross liabilities | (23) | (27) | (22) | |||||||||
| 1 | 88 | 1 | ||||||||||
| Investments | - | 152 | - | |||||||||
| TOTAL NON CURRENT ASSETS | 169 | 414 | 170 | |||||||||
| CURRENT ASSETS | ||||||||||||
| Inventories | 7,067 | 13,163 | 14,135 | |||||||||
| Trade and other receivables | 4 | 932 | 916 | 972 | ||||||||
| Deferred tax | 333 | 229 | 333 | |||||||||
| Cash and cash equivalents | 33 | 288 | 926 | |||||||||
| TOTAL CURRENT ASSETS | 8,365 | 14,596 | 16,366 | |||||||||
| TOTAL ASSETS | 8,534 | 15,010 | 16,536 | |||||||||
| LIABILITIES | ||||||||||||
| Current liabilities | ||||||||||||
| Trade and other payables | 195 | 398 | 434 | |||||||||
| Tax payable | - | 217 | - | |||||||||
| Interest bearing loans and borrowings | 4,182 | 3,505 | 3,529 | |||||||||
| 4,377 | 4,120 | 3,936 | ||||||||||
| LIABILITIES: Non current liabilities | ||||||||||||
| Interest bearing loans and borrowings | 2,213 | - | 2,141 | |||||||||
| TOTAL LIABILITIES | 5 | 6,590 | 4,120 | 6,104 | ||||||||
| 1,944 | 10,890 | 10,432 | ||||||||||
| Equity minority interests | (354) | (354) | (350) | |||||||||
| TOTAL NET ASSETS | 1,590 | 10,536 | 10,082 | |||||||||
| EQUITY: CAPITAL & RESERVES | ||||||||||||
| Share capital - issued and fully paid | 7,997 | 7,997 | 7,997 | |||||||||
| Share premium | 1,970 | 1,970 | 1,970 | |||||||||
| Other reserves | 2,647 | 2,647 | 2,647 | |||||||||
| Retained earnings | 6 | (11,024) | (2,078) | (2,532) | ||||||||
| TOTAL EQUITY | 7 | 1,590 | 10,536 | 10,082 | ||||||||
| Net assets per share attributable to ordinary shareholders | 1.99p | 13.17p | 12.60p | |||||||||
| CONSOLIDATED CASH FLOW STATEMENT | ||||||||||||
| for the six months ended 30 June 2008 | Unaudited | Unaudited | Audited | |||||||||
| Notes | 6 months to | 6 months to | Year ended | |||||||||
| 30 June 2008 | 30 June 2007 | 31 Dec 2007 | ||||||||||
| £'000 | £'000 | £'000 | ||||||||||
| Cash flows generated from operating activities 9 | (1,490) | (1,234) | (2,499) | |||||||||
| Interest paid | (156) | (337) | (521) | |||||||||
| Tax paid | - | - | (220) | |||||||||
| Net cash flows from operating activities | (1,646) | (1,571) | (3,240) | |||||||||
| Cash flows from investing activities | ||||||||||||
| Proceeds from sale of investment properties | - | - | 14 | |||||||||
| Proceeds from sale of investments | - | - | 205 | |||||||||
| Interest received | 24 | 36 | 50 | |||||||||
| Purchase of plant and equipment | - | (1) | - | |||||||||
| Dividends received | - | 85 | - | |||||||||
| Net cash flows from investing activities | 24 | 120 | 269 | |||||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from borrowings | 729 | 221 | 2,386 | |||||||||
| Repayments of borrowings | - | - | - | |||||||||
| Minority dividends paid | - | - | (7) | |||||||||
| Net cash flows from financing activities | 729 | 221 | 2,379 | |||||||||
| Net (decrease)/increase in cash and cash equivalents | (893) | (1,230) | (592) | |||||||||
| Cash and cash equivalents at beginning of period | 926 | 1,518 | 1,518 | |||||||||
| Cash and cash equivalents at end of period | 33 | 288 | 926 | |||||||||
NOTES
For the six months ended 30 June 2008
BASIS OF PREPARATION
Pathfinder Properties PLC adopted International Accounting Standards and International Financial Reporting Standards (collectively "IFRS") with effect from 1 January 2006 as adopted by the European Union ("EU") and these interim statements have been prepared on this basis.
The Interim Statements does not constitute statutory financial statements as defined in section 240 of the Companies Act 1985 and have not been audited by the company's auditors, Sedley Richard Laurence Voulters. The financial statements for the year ended 31 December 2007 have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under s.237(2) or (3) of the Companies Act 1985.
2. ACCOUNTING POLICIES
In implementing the transition to IFRS, the group has followed requirements of IFRS 1 "First Time Adoption of International Financial Reporting Standards" which in general requires IFRS accounting policies to be applied fully retrospectively.
| 3. RESULTS FOR THE PERIOD | |||||||
| The Group's turnover arises principally from property development activities. | |||||||
| 4 TRADE AND OTHER RECEIVABLES | ||||||||||||||||||||||||||
| 30 June 2008 | 30 June 2007 | 31 Dec 2007 | ||||||||||||||||||||||||
| £'000 | £'000 | £'000 | ||||||||||||||||||||||||
| Trade | - | - | - | |||||||||||||||||||||||
| Other receivables | 932 | 916 | 972 | |||||||||||||||||||||||
| 932 | 916 | 972 | ||||||||||||||||||||||||
| 5 LIABILITIES | ||||||||||||||||||||||||||
| 30 June 2008 | 30 June 2007 | 31 Dec 2007 | ||||||||||||||||||||||||
| £'000 | £'000 | £'000 | ||||||||||||||||||||||||
| Interest bearing loans and borrowings | 6,395 | 3,505 | 5,670 | |||||||||||||||||||||||
| Tax payable | - | 217 | - | |||||||||||||||||||||||
| Trade and other payables | 195 | 398 | 434 | |||||||||||||||||||||||
| 6,590 | 4,120 | 6,104 | ||||||||||||||||||||||||
| 6 RETAINED EARNINGS | ||||||||||||||||||||||||||
| 6 months to | 6 months to | Year ended | ||||||||||||||||||||||||
| 30 June 2008 | 30 June 2007 | 31 Dec 2007 | ||||||||||||||||||||||||
| £'000 | £'000 | £'000 | ||||||||||||||||||||||||
| Brought forward | (2,532) | (1,581) | (1,581) | |||||||||||||||||||||||
| Retained earnings for the period | (8,492) | (497) | (951) | |||||||||||||||||||||||
| Carried forward at end of period | (11,024) | (2,078) | (2,532) | |||||||||||||||||||||||
| NOTES - continued For the six months ended 30 June 2008 | ||||||||||||||||||||||||||
| 7. EQUITY | ||||||||||||||||||||||||||
| 6 months to | 6 months to | Year ended | ||||||||||||||||||||||||
| 30 June 2008 | 30 June 2007 | 31 Dec 2007 | ||||||||||||||||||||||||
| £'000 | £'000 | £'000 | ||||||||||||||||||||||||
| (Loss)/profit for the period | (8,492) | (497) | (951) | |||||||||||||||||||||||
| Net (decrease)/increase to shareholders equity | (8,492) | (497) | (951) | |||||||||||||||||||||||
| Brought forward | 10,082 | 11,033 | 11,033 | |||||||||||||||||||||||
| Carried forward at end of period | 1,590 | 10,536 | 10,082 | |||||||||||||||||||||||
| 8 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES | ||||||||||||||||||||||||||
| 6 months to | 6 months to | Year ended | ||||||||||||||||||||||||
| 30 June 2008 | 30 June 2007 | 31 Dec 2007 | ||||||||||||||||||||||||
| £'000 | £'000 | £'000 | ||||||||||||||||||||||||
| (Loss)/profit for the period attributable to members | (8,492) | (497) | (951) | |||||||||||||||||||||||
| Total recognised gains and losses relating to the period | (8,492) | (497) | (951) | |||||||||||||||||||||||
| 9 RECONCILIATION OF OPERATING CASH FLOWS | ||||||||||||||||||||||||||
| 6 months to | 6 months to | Year ended | ||||||||||||||||||||||||
| 30 June 2008 | 30 June 2007 | 31 Dec 2007 | ||||||||||||||||||||||||
| £'000 | £'000 | £'000 | ||||||||||||||||||||||||
| Operating loss | (8,360) | (272) | (633) | |||||||||||||||||||||||
| Depreciation | 1 | 1 | 5 | |||||||||||||||||||||||
| Loss on sale of investments | - | - | - | |||||||||||||||||||||||
| Share of operating profits in joint ventures | - | (15) | - | |||||||||||||||||||||||
| Decrease/ (increase) in inventories | 7,068 | (909) | (1,880) | |||||||||||||||||||||||
| Decrease in trade and other receivables | 40 | 96 | 108 | |||||||||||||||||||||||
| (Decrease) in trade and other payables | (239) | (135) | (99) | |||||||||||||||||||||||
| (1,490) | (1,234) | (2,499) | ||||||||||||||||||||||||
| 10 EARNINGS PER SHARE | |||||||||||||||
| The basic loss per share has been calculated on the loss on ordinary activities after tax £8,492,000 | |||||||||||||||
| (30 June 2007 - loss of £497,000 and 31 December 2007 - loss of £951,000) and on 79,971,393 shares (30 June 2007 and 31 December 2007 - 79,971,393 shares) being the weighted average number of shares in issue during the period. There is no difference between basic earnings and fully diluted earnings per share. | |||||||||||||||
| 11. RECONCILIATION OF LOSS AND EQUITY FROM UK GAAP TO IFRS | |||||||||||||||
| There is no difference between the loss or equity reported under previous UK GAAP and IFRS as at | |||||||||||||||
| 30 June 2007 and as at 31 December 2007. | |||||||||||||||
| NOTES - continued For the six months ended 30 June 2008 | |||||||||||||||
| 12. POST BALANCE SHEET EVENTS | |||||||||||||||
| On 15th September 2008, the company's shareholders approved the sale of two properties to an acquisition Vehicle of Gerard Lee, a director of the company and a shareholder of the company. The two development properties will be sold for £4million in total in accordance with independent valuations carried out. The difference between £4 million and the cost to the company of these development properties has been disclosed as a loss under cost of sales in the income statement. | |||||||||||||||
| DIRECTORS AND COMPANY INFORMATION | |||||||||||||||
| Directors | Company number | ||||||||||||||
| Gerry Lee | 2578942 (England and Wales) | ||||||||||||||
| Edward Azouz | |||||||||||||||
| Jeffrey Azouz | Registered office | ||||||||||||||
| John Guy Davies | 1001 Finchley Road | ||||||||||||||
| Victor Lipien | London NW11 7HB | ||||||||||||||
| Secretary | |||||||||||||||
| B A Gemal | |||||||||||||||
| | |||||||||||||||
For further information:
Edward Azouz, Chairman, Pathfinder Properties plc on 020 7603 7495
Gerry Lee, Director, on (020) 8731 0110
Roland Cornish, Beaumont Cornish Limited on 020 7628 3396