SAF.L Regulatory News (SAF)

18 Jun 2007 07:00

Safeland PLC18 June 2007 SAFELAND PLC PRELIMINARY RESULTS Safeland plc, the property fund management and property trading group, announcesresults for the year ended 31 March 2007. Financial Highlights: • Revenue of £18.27m (2006: £15.59m) • Profits before tax of £3.69m (2006: £1.15m loss) - inc. £3.57m from Bizspace disposal • EPS of 15.18p (2006: 4.77p loss) • NAV per share of 114p (2006: 111p) • Gearing now stands at 117% Operational Highlights: • 51 transactions completed during the period (2006: 47) with an average lot size of £358,000 (2006: £332,000) • Formation of Safeland Property Unit Trust with Safeland as a UK property manager • £38m invested in multi-let properties to date • Proposal to raise a further £50m of equity for the fund Raymond Lipman, Chairman of Safeland plc, said: "The board have decided to focus their future attention on the fund managementbusiness which has started so successfully. It is this that allows me to lookforward to the future with confidence." Safeland plc Tel: 020 8815 1600Larry Lipman, Managing DirectorPaul Davis, Finance Directorwww.safeland.co.uk Parkgreen Communications Ltd Tel: 020 7479 7933Paul McManus Mob: 07980 541 893paul.mcmanus@parkgreenmedia.com SAFELAND PLC 18 June 2007 Chairman's Statement I am delighted to report a profit for the year to March 31 2007 of £3,691,000compared to a loss for the previous year of £1,151,000. The resultant earningsper share were 15.18p (2006: loss 4.77p). In my last year's statement I advised shareholders of two post balance sheetevents being the group's disposal of its shareholding in both Bizspace Plc andServiced Office Group Plc. This financial year's accounts includes a profit of£3,572,000 in respect thereof. Espazio, the company's Italian self storage business, saw its trading lossescontinue to fall from £472,000 12 months ago to £404,000. During the yearEspazio sold a freehold property in Milan for a profit of £910,000 and now onlyoperates from two centres, one in Rome and one in Milan. As is demonstrated from the figures property trading has once again proveddifficult and has resulted in an operating loss for the year of £58,000 despitea relatively good first six months. During the year under review the group undertook 51 transactions compared to 47in the previous year with an average lot size of £358,000 (2006: £332,000).Revenue for the current period was £18,266,000 compared to £15,588,000 in theyear ended March 31 2006. Gearing at the year end was 117% (2006: 69%). Netassets per share at the year end were 114p as against 111p at the start of theyear. The major event to take place during this financial year was the announcementthat was made on October 20 2006 of the formation of a Property Fund withElectra Partners Europe Limited in which Safeland has invested £1m and Electra£15m and which with bank funding will enable purchases of up to £50m to be made. I am pleased to advise shareholders that to date £38m has been investedprimarily in multi-let properties throughout the UK and I am also delighted thatwe have been able to assemble the same team that were primarily responsible forthe success of Bizspace and in particular Neil Corderey who will be responsiblefor the day to day running of the management vehicle. At the beginning of the year it was recognised that it would not take too longfor the initial fund to be fully invested, and, therefore, CBRE were instructedin January 2007 to raise a further £50m of equity which will enable furtherpurchases of c £150m to be made. Over the past few months presentations havebeen made to potential investors and I hope to be able to make an announcementas to the outcome of this in the next few weeks. With there being no sign on the horizon that conditions for property trading arelikely to improve the board have decided to focus their future attention on thefund management business which has started so successfully. It is this thatallows me to look forward to the future with confidence. Raymond LipmanChairman18 June 2007 CONSOLIDATED INCOME STATEMENT Year ended 31 March 2007 Note 2007 2006 £'000 £'000 Unaudited Audited Revenue 18,266 15,588 Cost of sales (14,394) (13,526) Gross profit 3,872 2,062 Sales and distribution costs (370) (394) Administrative expenses (4,786) (3,770) Other operating income 445 125 Profit on disposal of property, plant and equipment 939 7 Gains on revaluation of investment properties - 391 Profit on disposal of investment properties 156 103 Profit on disposal of subsidiaries 4 192 852 Operating profit / (loss) 448 (624) Share of results of associates - post tax (4) (17) Profit on disposal of available-for-sale investments 3 3,572 - Profit / (loss) before interest 4,016 (641) Finance income 140 285 Finance costs (465) (795) Profit / (loss) before tax 3,691 (1,151) Tax (882) 269 Profit / (loss) for the financial year 2,809 (882) Basic and diluted earnings / (loss) per share 5 15.18p (4.77p) CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE Year ended 31 March 2007 Note 2007 2006 £'000 £'000 Unaudited Audited Fair value gains on available-for-sale 18 2,370investments Exchange differences on translation of foreign 43 (23)operations Tax on items taken directly to equity (5) (706) Net income recognised directly in equity 56 1,641 Transfer to profit on sale of available-for-sale (3,053) -investments Tax on items transferred from equity 751 - Profit / (loss) for the year 2,809 (882) Total recognised income and expense for the year 8 563 759available to equity shareholders CONSOLIDATED BALANCE SHEET 31 March 2007 Note 2007 2006 £'000 £'000 Unaudited AuditedNon-current assets Property, plant and equipment 4,263 6,095Investment properties 1,868 4,632Interests in associates 10 14Available-for-sale investments 1,191 6,544Deferred tax assets 46 290 Total non-current assets 7,378 17,575 Current assetsTrading properties 38,753 16,387Trade and other receivables 2,363 1,408Cash and cash equivalents 7 1,448 1,903 Total current assets 42,564 19,698 Total assets 49,942 37,273 Current liabilitiesBank loans and overdrafts 8,089 11,932Trade and other payables 2,051 1,043Current tax liabilities 541 226 Total current liabilities 10,681 13,201 Non-current liabilitiesBank loans 18,040 2,247Deferred tax liabilities 103 1,254Derivative financial instruments - 16 Total non-current liabilities 18,143 3,517 Total liabilities 28,824 16,718 Net assets 21,118 20,555 EquityShare capital 925 925Share premium account 5,351 5,351Capital redemption reserve 765 765Translation reserve (7) (50)Revaluation reserve 85 2,374Retained earnings 13,999 11,190 Total equity 8 21,118 20,555 CONSOLIDATED CASH FLOW STATEMENT Year Ended 31 March 2007 Note 2007 2006 £'000 £'000 Unaudited Audited Operating activitiesNet cash outflow from operations 6 (26,100) (10,187)Interest paid (481) (830)Tax paid (728) (205)Net cash outflow from operating activities (27,309) (11,222) Investing activitiesInterest received 140 249Purchase of investment properties (776) (412)Purchase of property, plant and equipment (518) (675)Purchase of available-for-sale investments (1,000) (65)Proceeds from sale of property, plant and equipment 2,947 184Proceeds from sale of investment properties 3,696 349Proceeds from sale of available for sale investments 6,890 -Dividends received from available-for-sale investments - 36Disposal of subsidiaries 3,525 7,415 Net cash inflow from investing activities 14,904 7,081 Financing activitiesNew loans 21,513 21,251Loan repayments (9,306) (17,993) Net cash inflow from financing activities 12,207 3,258 Net decrease in cash and cash equivalents in the year (198) (883)Cash and cash equivalents at beginning of year 1,547 2,430 Cash and cash equivalents at end of year 7 1,349 1,547 NOTES TO THE PRELIMINARY ANNOUNCEMENT Year ended 31 March 2007 1. BASIS OF PREPARATION The financial information set out in the announcement does not constitute thegroup's statutory financial statements within the meaning of section 240 of theCompanies Act 1985, for the years ended 31 March 2007 or 2006. The statutoryfinancial statements for the year ended 31 March 2007 will be finalised andsigned on the basis of the financial information presented by the directors inthis preliminary announcement and will be delivered to the Registrar ofCompanies following the company's Annual General Meeting. The financial information for the year ended 31 March 2006 is derived from thestatutory accounts for that year. The auditors reported on those statutoryaccounts which have been delivered to the Registrar of Companies; their reportwas unqualified and did not contain a statement under s237(2) or (3) of theCompanies Act 1985. This announcement is prepared applying International Financial ReportingStandards as adopted by the European Union and using accounting policies thatare consistent with those as stated in the previous year's financial statements. This preliminary announcement was approved by the Board of directors on 15 June2007. Copies of this announcement are available from the company's registered officeat 94-96 Great North Road, London, N2 0NL. The Annual Report and Accounts willbe sent to shareholders shortly. 2. BUSINESS AND GEOGRAPHICAL SEGMENTS Business segments For management purposes, the group is currently organised into two operatingdivisions as detailed below: • property trading, property refurbishment and property investment; and • self-storage These divisions are the basis on which the group reports its primary segmentalinformation. Geographical segments The group's operations are wholly based in the United Kingdom except theself-storage operation which operates in Italy. No additional segmental disclosure is provided in respect of geographicalsegments as they are identical to the business segments detailed above. Property trading, refurbishment and Self-storage Total investment 2007 2006 2007 2006 2007 2006 £'000 £'000 £'000 £'000 £'000 £'000 Unaudited Audited Unaudited Audited Unaudited Audited Revenue 17,828 15,255 438 333 18,266 15,588 Segment result (58) (152) 506 (472) 448 (624) Share of result of associates - post tax (4) (17)Profit on disposal of available-for-sale investments 3,572 - Finance income 140 285Finance costs (465) (795) Profit / (loss) before tax 3,691 (1,151)Tax (882) 269 Profit / (loss) for the financial year 2,809 (882) Balance sheetSegment assets 46,334 26,288 2,361 4,137 48,695 30,425 Interests in associates 10 14Available-for-sale investments 1,191 6,544Deferred tax asset 46 290 Total assets 49,942 37,273 Segment liabilities 27,084 13,736 1,096 1,502 28,180 15,238 Current tax liabilities 541 226Deferred tax liabilities 103 1,254 Total liabilities 28,824 16,718 3. PROFIT ON DISPOSAL OF AVAILABLE-FOR-SALE INVESTMENTS During the year, the group sold its entire shareholdings in Bizspace plc andServiced Office Group plc for cash consideration totalling £6,890,000, whichrealised a profit on disposal in the income statement of £3,572,000. 4. PROFIT ON DISPOSAL OF SUBSIDIARIES One wholly-owned subsidiary of Safeland plc was sold during the year, CFC 24Limited. The undertaking sold did not contribute any pre-tax results to thegroup in the year (2006: £nil). The following table sets out the book value of assets and liabilities disposed. CFC 24 Ltd £'000 Investment properties -Trading properties 3,333 Net assets 3,333Profit on disposal 192 Total Consideration 3,525 Satisfied byCash 3,525 5. EARNINGS / (LOSS) PER SHARE Basic and diluted earnings of 15.18p (2006: loss per share 4.77p) are based onthe profit for the financial year of £2,809,000 (2006: loss of £882,000) and on18,500,530 ordinary shares (2006: 18,500,530 ordinary shares) being the weightedaverage number of shares in issue throughout the year. The calculation of diluted earnings / (loss) per share uses the same earningsfigure and weighted average number of shares as the basic calculation, as thereare no dilutive options or instruments. 6. NOTES TO THE CASH FLOW STATEMENT 2007 2006 £'000 £'000 Unaudited Audited Operating profit / (loss) 448 (624) Adjustments for:Depreciation of property, plant and equipment 342 343Profit on sale of property, plant and equipment (939) (7)Profit on sale of investment properties (156) (103)Gains on revaluation of investment properties - (391)Profit on sale of subsidiaries (192) (852) Operating cash flow before movements in working capital (497) (1,634) Increase in trading properties (25,699) (11,177)(Increase) / decrease in trade and other receivables (955) 3,890Increase / (decrease) in trade and other payables 1,051 (1,266) Net cash outflow from operations (26,100) (10,187) 7. CASH AND CASH EQUIVALENTS 2007 2006 £'000 £'000 Unaudited Audited Cash and cash equivalents per balance sheet 1,448 1,903Bank overdrafts (99) (356) Cash and cash equivalents per cash flow statement 1,349 1,547 8. RECONCILIATION OF CHANGES IN EQUITY 2007 2006 £'000 £'000 Unaudited Audited 1 April 2006 20,555 19,796 Total recognised income and expense for the year 563 759 31 March 2007 21,118 20,555 This information is provided by RNS The company news service from the London Stock Exchange