PIRI.L Regulatory News (PIRI)

27 Jul 2006 07:00

27 July 2006 Oak Holdings plc (`Oak' or `the Company) Interim Results Oak Holdings plc, the AIM listed property development and consultancy group,announces its results for the six months ended 30 April 2006.Overview * Foundations in place to build a significant property development and consultancy group * Reduced operating loss before exceptional items of ‚£261,555 (2005: ‚£ 643,962) * YES! Project in final stages of outline planning * Rotherham Metropolitan Borough Council voted unanimously in favour of supporting the project * Government Office for Yorkshire and Humberside referred project back to local council for final approval * Potential portfolio of partners for the scheme strengthened with the addition of utility giant, E.ON * Consultancy division performing well with advanced negotiations underway with regards to a number of prospects internationally Chairman's StatementDuring the period under review we have worked extremely hard putting thefoundations in place to build a significant property development andconsultancy group. However, it is really post year end that the results of thislabour have begun to come to fruition so I am including these in the followingstatement.Most significantly, the YES! Project, our ‚£250 million mixed-use leisure schemein South Yorkshire, is now in the final stages of outline planning having beenreferred back by the Government Office for Yorkshire and Humberside toRotherham Metropolitan Borough Council (RMBC) for approval. In tandem with thisour potential portfolio of partners for the scheme has been strengthened withthe addition of utility giant, E.ON, which underpins the project's appeal tomajor international and national operators.Our consultancy division is also performing well with advanced negotiationsunderway with regards to a number of prospects internationally, and anincreased number of opportunities being offered.ResultsI am pleased to report the results for the six months to 30 April 2006. TheCompany made a reduced operating loss before exceptional items of ‚£261,555(2005: ‚£643,962) due to its prudent cost control and the fact that the majorityof costs in advancing the YES! Project through to planning consent, wereincurred in the two previous years. No dividend is being recommended (2005:nil).Current TradingThe YES! ProjectOn 12 May we received notice that RMBC's planning board, had voted unanimouslyin favour of supporting the YES! Project. While this was a major step for us,given the project's size, its greenbelt designation and the local authority'sownership, referral to the Government Office was mandatory and represented aneven greater challenge, since ultimately the potential for a public inquiryexisted. The proposal was referred to the Government Office for Yorkshire andHumberside as planned and we prepared ourselves for a long wait. Two weeks agoon 14 July 2006, some months ahead of our expectations, we were delighted toannounce confirmation that the Government Office had entrusted the localplanning authority of RMBC with responsibility for the planning application.Naturally there is more mileage to go before we can begin constructionincluding securing funding and tenants. However this is a key achievement and avery exciting development for us; it rewards the Company's diligence andpatience and confirms the board's confidence in the project.Additionally, at the beginning of July we signed a Memorandum of Understanding(`MOU') with the major international utility company, E.ON, to collaborate onthe development of the project. E.ON will provide resource and support for thenext stage of the project and will also look to bring sustainable andenvironmentally friendly power solutions to the scheme.The agreement with E.ON follows MOU's signed with other key tenants includingBaydrive Group, which owns the TopGolf Ranges, Sony UK Ltd and Venture XtremeUK Ltd, the specialist extreme sports activity company. We are in advancednegotiations with a number of other partners and major tenants and hope toupdate the market soon on our progress.It is difficult to overstate the significance of this project. Not only will itbring considerable employment to the area, but it will also provide enhancedenvironmental benefits to the whole of South Yorkshire. We believe it willbecome a major attraction for the country, becoming a catalyst for furtherinvestment to the area and the forerunner of a whole new genre of propertyinvestment.Consultancy DivisionThe consultancy division, established to utilise the extensive skills,expertise and contacts of the Directors to offer project consultancy on everyaspect of property development and investment, is gaining momentum. Newcommissions have recently been secured advising on a number of projects both inthe UK and internationally. Discussions continue on other prospects.FundingThe Company previously stated that after receiving `Resolutions to Grant' itwould seek further funding to progress the YES! Project and for working capitalrequirements. The Directors continue to assess the various options availableand will update the market when the most effective financial arrangement hasbeen agreed.ConclusionI am pleased to be able to report that our efforts are finally paying off,giving us renewed confidence to take the Company forward aggressively in thecoming months and to reward our shareholders for their ongoing support.Malcolm SavageChairman27 July 2006Oak Holdings plcProfit and loss accountFor the six months ended 30 April 2006 6 months 6 months 12 months ended ended 30 ended 30 31 October 2005 April 2006 April 2005 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Turnover 34,000 5,526 144,448 Cost of sales - - (126,708) Gross profit (loss) 34,000 5,526 17,740 Operating expenses (295,555) (649,498) (1,072,934) Operating loss (261,555) (643,962) (1,055,194) Interest receivable 5,283 1,931 14,444 Loss on ordinary activities before (256,272) (642,031) (1,040,750)taxation Taxation - - - Retained (loss)/profit for the (256,272) (642,031) (1,040,750)period Basic loss per share (in pence) (0.1p) (0.1p) (0.1p)Oak Holdings plcBalance SheetAs at 30 April 2006 As at 30 As at 30 As at 31 April 2006 April 2005 October 2005 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Intangible fixed assets 10,828,446 10,828,446 10,828,446 Tangible fixed assets - 2,519 889 Investments 2,759 - - 10,831,205 10,830,965 10,829,335 Stock - 121,917 - Debtors 19,432 107,928 20,385 Cash at bank and in hand 176,302 744,310 449,802 Current assets 195,734 974,155 470,187 Creditors falling due within one (221,749) (345,184) (238,305)year Net current assets (26,015) 628,971 231,882 Total assets less current 10,805,190 11,459,936 11,061,217liabilities Creditors falling due after more (180,695) (180,695) (180,695)than one year Net assets 10,624,495 11,279,241 10,880,522 Capital and reserves Called up share capital 7,480,886 7,480,783 7,480,783 Share premium account 2,987,146 2,987,004 2,987,004 Capital redemption reserve 164,667 164,667 164,667 Profit and loss account (5,205,523) (4,550,532) (4,949,251) Merger reserve 5,197,319 5,197,319 5,197,319 Equity shareholders' funds 10,624,495 11,279,241 10,880,552Oak Holdings plcCash Flow StatementFor the six months ended 30 April 2006 6 months 6 months 12 months ended 30 ended 30 ended 31 April 2006 April 2005 October 2005 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Net Cash Outflow from (276,269) (587,233) (894,254) Operating Activities Returns on Investments and Servicing of Finance Net interest received 5,283 1,931 14,444 Capital Expenditure and Financial - - -Investments Investments (2,759) - - Cash Outflow before Financing (273,745) (585,302) (879,810) Financing Proceeds from issue of shares 245 1,135,365 1,135,365 Increase/(Decrease) in Cash (273,500) 550,063 255,555Notes to the Interim Results1 The Group results have been prepared in accordance with the accountingpolices stated in the 2005 annual report. * Turnover for the 12 months ended 31 October 2005 included the property sale at ‚£123,067 of freehold land at Great Haywood, Staffs, previously held for re-sale or potential re-development. * Goodwill arose on the acquisition of Oak Holdings Limited on 1 December 2003 and was attributable primarily to the selection of Oak Holdings Limited by Rotherham Metropolitan Borough Council (RMBC) as preferred developer on the YES! Project, a planned major entertainment and leisure complex. No amortisation of goodwill has arisen as the directors consider that the useful life of the acquired goodwill relates to the realisation of the YES! Project. * The calculation of loss per share is based upon the weighted average number of shares in issue during the period of 748,085,110 (Year ended 31 October 2005 - 707,887,207 and 6 months ended 30 April 2005 - 669,696,179). * The results for the periods to 30 April 2006 and 30 April 2005 are unaudited and do not constitute statutory accounts in accordance with section 240 of the Companies Act 1985. The comparative figures for the year ended 31 October 2005 are an abbreviated version of the full accounts which have been reported on without qualification by the auditors. The auditors however drew attention, in their report on the financial statements for the year ended 31 October 2005, to the value of goodwill being dependent upon being granted planning permission for the YES! Project and the ability to raise development finance and secure tenants for the scheme. They also noted that the Group would need to secure further funds to provide working capital to continue to pursue the scheme. Since the year-end audit report, a major hurdle in the planning process has been overcome with the Government Office's decision `not to interfere' in the process and to refer it back to RMBC for their determination. The financial statements for the year ended 31 October 2005 have been filed with the Registrar of Companies. * No dividend is proposed for the period ended 30 April 2006. * Copies of the interim results will be available to members of the public from the Company's registered office, at 15 Half Moon Street, London W1J 7AT. Further enquiries:Oak Holdings plc (www.oakholdings.co.uk) Mike Hill, Finance Director Tel: 020 7493 5522St Brides Media & Finance Ltd Isabel Crossley Tel: 020 7242 4477ENDOAK HOLDINGS PLC