Red Leopard Holdings Regulatory News (RLH)

28 Jun 2007 13:53

Red Leopard Holdings PLC28 June 2007 RED LEOPARD HOLDINGS PLC Annual Results for Red Leopard Holdings Plc ("Red Leopard" or the "Group") for the year ended 31 December 2006 Chairman's Statement I am pleased to present the financial statements of the Group for the year ended31 December 2006. These have been prepared in accordance with United KingdomGenerally Accepted Accounting Practice but will be restated in the financialstatements for the year ended 31 December 2007 when the Group reports underInternational Financial Reporting Standards. As previously reported, the results comprise those of Red Leopard Holdings Plcand its wholly owned subsidiary Harrell Hotels (Europe) Limited ("Harrell Hotels"). There was no revenue generated in the year from operations. The loss aftertax amounted to £2,822,060 (2005: £320,055). Over the past 2 years we have endeavoured to locate and pursue projectsincluding those referred to in my last Chairman's Statement, suitable forMarriott Courtyard's mainly in the UK. The cost of acquisitions in the current UK hotel market has to date proved toohigh for us to proceed in any of the propositions we have looked at seriously.With regret the directors of the hotel subsidiary, Harrell Hotels, havetherefore come to the conclusion that the market industry in the United Kingdomis such that an economically feasible project is unlikely to be located in thenear future, albeit we are continuing to monitor the position. In view of the inability to forecast profit from the operation in the near termthe Board has decided it would be prudent to write down the asset of the hoteloperation to nil. Although now effectively mothballed, should the economicoutlook change in our favour, the hotel business may well come in to its ownagain from the Group point of view. I would like to take this opportunity to thank all those who worked so hard inHarrell Hotels during this two year period. There has been a change in the Board membership recently as can be seen from theaccounts. Robert Coe and Stephen Thomson have retired from the Board and JohnMay has joined me to implement a new plan for the Group which I will outlinebelow. John is an FCA of many years standing and is a director of a number ofAIM listed, NASDAQ listed and Channel Islands listed companies and has a wideexperience and contacts which I believe will greatly help the company goingforward. We intend to complement the Board in the near term with a strong and experiencednon executive director with building industry knowledge. Your Board has decided to revise the strategy of the Group and de-risk itsoperations by focusing on forming property development joint ventures ("JVs") todevelop residential apartments which are aimed at the mid market price range. We are aiming at sub £250,000 units and even as low as £125,000 units salesvalue to be built geographically in the South and South West of the UKinitially. These joint ventures, one of which is being considered as I report,are to be with specialised property development companies, rather than us actingas principals. We believe that greater opportunities exist for "niche" propertydevelopments, particularly on the residential side and that through "partnering"with these companies we will be able to grow shareholder value more quickly thanotherwise. The write down of our investment in Harrell Hotels has meant we have negativeassets at the balance sheet date but we believe the plan outlined above willrestore the Group to profitability. We have further plans once we haveestablished the track record in this "niche" market which could make the Grouplook significantly healthy in the near term. We expect all JVs we enter into wewill be capable of exiting within 12-18 months. We will announce these JVs asthey are contracted in the normal way. The directors cannot in the circumstances propose any dividends. (2005: £Nil). The directors consider that sufficient cash will be generated from the sale ofInvestments to fund the normal working capital costs of the company and willseek additional finance from a combination of equity and debt to fund thecurrent plan. I look forward to being able to present to you a healthier looking company in mynext annual report. CS Russell Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2006 Year ended 31 15 months ended December 31 December 2006 2005 £ £Administrative expenses (2,830,654) (347,734) OPERATING LOSS BEFORE INTERESTContinuing operations (2,830,654) (192,827)Acquisitions - (154,907) (2,830,654) (347,734)Interest receivable 11,932 27,205)Interest payable (3,398) (26) LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (2,822,060) (320,055)TAX ON LOSS ON ORDINARY ACTIVITIES - - LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (2,822,060) (320,055)RETAINED LOSS BROUGHT FORWARD (320,055) - RETAINED LOSS CARRIED FORWARD (3,142,115) (320,055) Loss per share - basic and diluted (1.15)p (0.15)p There were no recognised gains and losses for 2006 or 2005 other than those included in theprofit and loss account CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2006 2006 2005 £ £ £ £FIXED ASSETSIntangible fixed assets - 2,415,702Tangible fixed assets 839 957Investments - 150,000 839 2,566,659 CURRENT ASSETSDebtors: amounts fallingdue after more than oneyear 50,000 50,000Debtors: amounts falling due 27,615 15,206within one yearInvestments 150,000 -Cash at bank and in hand 169,054 549,802 396,669 615,008 CREDITORS: amounts fallingdue within one year (73,098) (35,197) NET CURRENT ASSETS 323,571 579,811TOTAL ASSETS LESS CURRENT LIABILITIES 324,410 3,146,470CREDITORS: amounts fallingdue after more than oneyear (421,874) (1,250,000) NET (LIABILITIES)/ASSETS (97,464) (1,896,470) CAPITAL AND RESERVESCalled up share capital 492,160 441,198Share premium account 2,552,491 1,775,327Profit and loss account (3,142,115) (320,055) EQUITY SHAREHOLDERS'(DEFICIT)/FUNDS (97,464) 1,896,470 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 Year ended 31 15 months ended December 31 December 2006 2005 £ £Net cash flow from operating activities (1,644,835) (79,628)Returns on investments and servicing of 8,594 27,679financeCapital expenditure and financial 149,605 (151,210)investmentAcquisitions and disposals - (463,564) CASH OUTFLOW BEFORE MANAGEMENT OF LIQUIDRESOURCES AND FINANCING (1,486,636) (666,723)Management of liquid resources (150,000) -Financing 1,250,000 1,216,525 (DECREASE)/INCREASE IN CASH IN THE YEAR (386,636) 549,802 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT/FUNDS FOR THE YEAR ENDED 31 DECEMBER 2006 Year ended 31 15 months ended December 31 December 2006 2005 £ £(Decrease)/Increase in cash in the year (386,636) 549,802Cash outflow from decrease in liquid resources 150,000 -Cash inflow from increase in debt and lease financing (421,874) - MOVEMENT IN NET DEBT IN THE YEAR (658,510) 549,802Net funds at 1 January 2006 549,802 - NET (DEBT)/FUNDS AT 31 DECEMBER 2006 (108,708) 549,802 NOTES TO THE FINANCIAL STATEMENTS 1. Operating Loss The operating loss is stated after charging: Year ended 31 15 months ended December 31 December 2006 2005 £ £Amortisation - intangible fixed assets 125,491 94,118Depreciation of tangible fixed assets -- owned by the company 513 253Auditors' remuneration 8,500 5,000Auditors' remuneration - other services 5,500 5,623Operating lease rentals: - other operating leases 20,370 11,031Exceptional item - impairment loss 2,290,211 - Auditors fees for the company were £8,500(2005: £5,000) 2, Reconciliation of Movement in Shareholders' Funds 2006 2005 £ £GroupOpening shareholders' funds 1,896,470 -Loss for the year (2,822,060) (320,055)Shares issued during the year 50,962 441.198Share premium on shares issued (net of expenses) 777,164 1,775,327 Closing shareholders' (deficit)/funds (97,464) 1,896,470 2006 2005 £ £CompanyOpening shareholders' funds 2,145,083 -Loss for the year (3,086,219) (71,442)Shares issued during the year 50,962) 441,198Share premium on shares issued (net of expenses) 777,164 1,775,327 Closing shareholders' (deficit)/funds (113,010) 2,145,083 The financial information set out above does not constitute the Group'sstatutory accounts for the period ended 31 December 2006 but is derived fromthose accounts. Statutory accounts for 2006 will be delivered to the Registrarof Companies following the Group's annual general meeting. The auditors havereported on those accounts; their report were unqualified and did not containstatements under s237(2) or (3) Companies Act 1985. The Company's head office is at: 233-237 Old Marylebone Road, London NW1 5QT.Copies of the Report and Accounts for the period ended 31 December 2006 arebeing sent to shareholders. Further copies will be available from the Company'sregistered office. For further information, please contact: Clive Russell, Red Leopard Holdings Plc, Tel: 07799 623412 Shane Gallwey, Blue Oar Securities Plc, Tel: 020 7448 4400 Blue Oar Securities Plc was formerly Corporate Synergy Plc and acts as NominatedAdviser & Broker to the Company This information is provided by RNS The company news service from the London Stock Exchange