PIRI.L Regulatory News (PIRI)

28 Jul 2005 06:00

28 July 2005 Oak Holdings plc (`Oak' or `the Company') Interim Results Oak Holdings plc, the AIM-listed property development company, announces itsresults for the six months ended 30 April 2005.Overview: * Significantly progressed YES! Project in South Yorkshire * Support of major leisure operators including Sony and Venue Solutions, Baydrive Group and Venture Xtreme UK Ltd * Appointed internationally renowned architects CZWG and Holder Mathias * Strong political and local support * Outline planning application submitted in January - consent expected by the end of 2005 * Consultancy division looks promising with a number of opportunities being progressed * Loss before exceptional items of ‚£642,030 (2004: ‚£353,610) on a turnover of ‚£5,526 (2004: ‚£1,267) in line with the Board's expectations * As at 30 April 2005, the Group had net assets of ‚£11,279,241 (including goodwill of ‚£10,828,446) and cash of ‚£744,310 * Sufficient working capital to take the YES! Project through to planning consent if management's expectations of timetable are realised Chairman's StatementThis has been a busy period for the Company during which we have significantlyprogressed our major development, the YES! Project, in South Yorkshire. We areencouraged by the support of major leisure operators and in particular Sony,who are now keen to be associated with the project. We are also optimisticabout our consultancy division's prospects and anticipate it making a growingcontribution to revenues in the year ahead.ResultsI am pleased to report the results for the six months to 30 April 2005. In linewith the Board's expectations we made a loss before exceptional items of ‚£642,030 (2004: ‚£353,610), on a turnover of ‚£5,526 (2004: ‚£1,267). The majorpart of this loss stems from expenditure on professional fees in relation tothe YES! Project, which are not capitalised. These expenditures are withinplanned forecast levels and have significantly moved the project forward. As at30 April 2005, the Group had net assets of ‚£11,279,241 (including goodwill of ‚£10,828,446) and cash of ‚£744,310.The Directors do not propose the payment of a dividend (2004: ‚£Nil).TradingI am pleased to report a period of high activity in which significant progresshas been made on the YES! Project, our ‚£270 million covered, mixed-use leisurescheme located on a 327 acre ex-coalfield site adjoining the Rother ValleyCountry Park in Rotherham.We are now working with a number of key anchor tenants including BaydriveGroup, which owns the TopGolf courses, and Venture Xtreme UK Ltd, thespecialist sports activity company. We have also signed a Memorandum ofUnderstanding with Sony United Kingdom Ltd and Venue Solutions to provide stateof the art, innovative entertainment facilities at the scheme.Furthermore, the Company has appointed internationally renowned architects CZWGand Holder Mathias to design the project. The innovative and striking designhas been well received by the architectural press and will be a landmark forthe region.During the period efforts have been focussed on harnessing political and localsupport for the project such that we are now in a strong position to secureplanning approval. The outline planning application was submitted in Januaryand the Directors anticipate that outline consent will be obtained by the endof 2005. This should enable the development to be completed early 2009.The Company is also actively promoting its consultancy division whichcapitalises on the extensive skills and expertise of the management team tooffer project consultancy on every aspect of property investment management anddevelopment for discerning clients. As part of our expansion in this area werecently appointed a new development executive who has valuable internationalexperience.Now that firm foundations are in place, this division of the business lookspromising. A considerable number of consultancy opportunities are beingprogressed which we hope will come to fruition soon and boost revenue in 2005/2006. As announced on 1 July, further progress was made when we signedconsultancy agreements to advise on two major themed leisure parks in the UK -Shakespeare's World near Banbury, Oxon and Outlaw's Kingdom near Mansfield.In April at the time of the preliminary results announcement, we successfullyraised ‚£1.1 million, net of expenses, through a share placing. The Directorsbelieve that the Company now has sufficient working capital, together withanticipated consultancy income, to take the YES! Project through to planningconsent on the revised programme.With a rapidly growing international reputation in the leisure, retail andhotel sectors, a number of opportunities are now being offered to the Company.Each of these will be carefully analysed and your Board views the future withoptimism and is looking forward to fully maximising the Oak brand.Malcolm Savage28 July 2005Oak Holdings plcProfit and loss accountFor the six months ended 30 April 2005 6 months 6 months 12 months ended 30 ended 30 ended 31 April 2005 April 2004 October 2004 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Turnover- continuing activities 5,526 - - - discontinued activities - 70,629 102,611 Cost of sales - (69,362) (98,269) Gross profit (loss) 5,526 1,267 4,342 Operating expenses (649,487) (371,933) (729,984) Operating loss - continuing (639,170) (371,933) (729,984) - discontinued (4,791) 1,267 4,342 (643,961) (370,666) (725,642) Interest receivable 1,931 17,056 23,882 Loss on ordinary activities before (642,030) (353,610) (701,760)taxation Taxation - - - Retained (loss)/profit for the (642,030) (353,610) (701,760)period Basic loss per share (in pence) (0.1p) (0.1p) (0.1p)Oak Holdings plcBalance SheetAs at 30 April 2005 As at 30 As at 30 As at 31 April 2005 April 2004 October 2004 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Intangible fixed assets 10,828,446 10,828,446 10,828,446 Tangible fixed assets 2,519 129,245 4,150 10,830,965 10,957,691 10,832,596 Stock 121,917 25,116 126,708 Debtors 107,928 35,387 21,011 Cash at bank and in hand 744,310 475,782 194,247 Current assets 974,155 536,285 341,966 Creditors falling due within one (345,184) (179,222) (207,960)year Net current assets 628,971 357,063 134,006 Total assets less current 11,459,936 11,314,754 10,966,602liabilities Creditors falling due after more (180,695) (180,695) (180,695)than one year Net assets 11,279,241 11,134,059 10,785,907 Capital and reserves Called up share capital 7,480,782 6,539,483 6,539,483 Share premium account 2,987,004 2,792,939 2,792,939 Capital redemption reserve 164,667 164,667 164,667 Profit and loss account (4,550,531) (3,560,349) (3,908,501) Merger reserve 5,197,319 5,197,319 5,197,319 Equity shareholders' funds 11,279,241 11,134,059 10,785,907Oak Holdings plcCash Flow StatementFor the six months ended 30 April 2005 6 months 6 months 12 months ended 30 ended 30 ended 31 April 2005 April 2004 October 2004 (audited) (unaudited) (unaudited) ‚£ ‚£ ‚£ Net Cash Outflow from (587,232) (421,566) (706,371) Operating Activities Returns on Investments and Servicing of Finance Net interest received 1,931 17,056 23,882 Capital Expenditure - (1,064) (4,620) Acquisitions Bank overdraft acquired with - (20,478) (20,478)subsidiary Costs of acquisition - (310,509) (310,509) Cash Outflow before Financing (585,301) (736,561) (1,018,096) Financing Repayment of Loans - (25,624) (25,624) Proceeds from issue of shares 1,135,364 3,566 3,566 Increase/(Decrease) in Cash 550,063 (758,619) (1,040,154)Notes to the Interim Results1 The Group results have been prepared in accordance with the accountingpolices stated in the 2004 annual report. * Discontinued operations relate to the realisation of the Group's former narrow boat and timeshare operations. * 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 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 669,696,179 (Year ended 31 October 2004 - 612,837,889 and 6 months ended 30 April 2004 - 571,877,331). * The results for the periods to 30 April 2005 and 30 April 2004 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 2004 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 2004, to the inherent uncertainties with regards to the planning application for the YES! Project and the impact that any failure to obtain planning consent within the anticipated timescale would have on the carrying value of goodwill and the ability of the Group to continue as a going concern. The financial statements for the year ended 31 October 2004 have been filed with the Registrar of Companies. * No dividend is proposed for the period ended 30 April 2005. * 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. Contacts:Malcolm Savage/ Oak Holdings plc Tel: 020 7493 5522Michael HillIsabel Crossley St Brides Media & Finance Ltd Tel: 020 7242 4477ENDOAK HOLDINGS PLC