SAF.L Regulatory News (SAF)

26 Jun 2006 07:01

Safeland PLC26 June 2006 SAFELAND PLC Year Ended 31 March 2006 Chairman's Statement The year ended 31 March 2006 is the first that we have prepared accounts underIFRS and this adoption has necessitated a restatement of comparative figures.For this year I am reporting that Safeland made a loss before tax of £1,151,000(2005: restated profit £1,842,000) and that the resultant earnings per share wasa loss of 4.77p (2005: restated profit 6.32p). Net assets per share at the yearend were 111p compared with 107p as restated as at 31 March 2005. Over the past few years I have consistently advised you of the difficultconditions prevailing within the property trading market. These conditionscontinued to be apparent during the year under review and there is little signof them abating. In accordance with IFRS the loss as stated above is after property revaluationgains of £391,000 (2005: £99,000) which now appear on the face of the IncomeStatement. The loss also includes a loss of £536,000 (2005: £628,000) fromEspazio, the Italian self storage company. During the year under review the company undertook 47 transactions compared to60 in the previous year with an average lot size of £332,000 (2005: £472,000).Revenue for the current year was £15,588,000 compared to £28,456,000 in the yearended 31 March 2005. Gearing at the year end was 69% (2005: 53%). Post the balance sheet date Safeland has announced that it has sold its 12.5%stake in Serviced Office Group plc. The sale of this stake produced proceeds of£867,000 and a profit on disposal of £133,000. It has also recently been announced that subject to shareholder approvalSafeland intends to accept the offer made by Highcross (Bugatti) Ltd for theentire issued share capital of Bizspace Plc in which we hold a 7.85% stake.Provided this offer goes unconditional Safeland will receive just over £6m incash with a resultant profit on disposal of £3.6m. Both of these investmentsare stated at fair value in the balance sheet and the relevant tax is providedfor. Trading during the first three months has been satisfactory and I am contentwith the stock we hold at present. We remain in a very strong financialposition to take advantage of opportunities as they become available andcontinue to enjoy excellent relationships with both our banks and professionaladvisors. Raymond Lipman Chairman CONSOLIDATED INCOME STATEMENT Year ended 31 March 2006 Note 2006 2005 £'000 £'000 Unaudited Audited Revenue 2 15,588 28,456Cost of sales (13,526) (23,975)Gross profit 2,062 4,481Sales and distribution costs (394) (625)Administrative expenses (3,770) (3,528)Other operating income 132 333Gains on revaluation of investment properties 391 99Profit on disposal of investment properties 103 476Profit on disposal of subsidiaries 3 852 1Operating (loss)/profit (624) 1,237Share of results of associates - post tax (17) (74)Profit on disposal of available-for-sale investments - 1,201(Loss)/profit before interest (641) 2,364Finance income 285 234Finance costs (795) (756)(Loss)/profit before tax 2 (1,151) 1,842Tax 269 (629)(Loss)/profit for the financial year (882) 1,213Basic and diluted (loss)/earnings per share 5 (4.77p) 6.32p CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE Year ended 31 March 2006 Note 2006 2005 £'000 £'000 Unaudited Audited Fair value gains on available-for-sale investments 2,370 1,104 Exchange differences on translation of foreign (23) (27)operations Tax on items taken directly to equity (706) (76) Net income recognised directly in equity 1,641 1,001 Transfer to profit on sale of available-for-sale - (797)investmentsTax on items transferred from equity - 141(Loss)/profit for the year (882) 1,213 Total recognised income and expense for the year available to equity shareholders 8 759 1,558 CONSOLIDATED BALANCE SHEET Year Ended 31 March 2006 Note 2006 2005 £'000 £'000 Unaudited AuditedNon-current assetsProperty, plant and equipment 6,095 5,940Investment properties 4,632 4,305Interests in associates 14 36Available-for-sale investments 6,544 4,104Deferred tax assets 290 - Total non-current assets 17,575 14,385 Current assetsTrading properties 16,387 11,543Trade and other receivables 1,408 5,448Cash and cash equivalents 7 1,903 2,440 Total current assets 19,698 19,431 Total assets 37,273 33,816 Current liabilitiesBank loans and overdrafts 11,932 813Trade and other payables 1,043 2,286Current tax liabilities 226 650 Total current liabilities 13,201 3,749 Non-current liabilitiesBank loans 2,247 9,762Deferred tax liabilities 1,254 458Derivative financial instruments 16 51 Total non-current liabilities 3,517 10,271 Total liabilities 16,718 14,020 Net assets 20,555 19,796 EquityShare capital 925 925Share premium account 5,351 5,351Capital redemption reserve 765 765Translation reserve (50) (27)Retained earnings 13,564 12,782 Total equity 8 20,555 19,796 CONSOLIDATED CASH FLOW STATEMENT Year Ended 31 March 2006 Note 2006 2005 £'000 £'000 Unaudited AuditedOperating activitiesNet cash (outflow)/inflow from operations 6 (10,187) 1,621Interest paid (830) (820)Tax (paid)/received (205) 107 Net cash (outflow)/inflow from operatingactivities (11,222) 908 Investing activitiesInterest received 249 185Purchase of investment properties (412) (1,689)Purchase of property, plant and equipment (675) (660)Purchase of available-for-sale investments (65) -Proceeds from sale of property, plant andequipment 184 215Proceeds from sale of investment properties 349 1,940Proceeds from sale of available-for-sale -investments 3,259Dividends received from available-for-sale 36investments 49Disposal of subsidiaries 7,415 52 Net cash inflow from investing activities 7,081 3,351 Financing activitiesProceeds from issue of share capital - 50Purchase of own shares - (760)New loans 21,251 17,394Loan repayments (17,993) (20,311) Net cash inflow/(outflow) from financingactivities 3,258 (3,627) Net (decrease)/increase in cash and cashequivalents (883) 632Cash and cash equivalents at beginning of 2,430 1,798year Cash and cash equivalents at end of year 7 1,547 2,430 NOTES TO THE PRELIMINARY ANNOUNCEMENT Year ended 31 March 2006 1. BASIS OF PREPARATION The financial information set out in the announcement does not constitute thecompany's statutory financial statements within the meaning of section 240 ofthe Companies Act 1985, for the years ended 31 March 2006 or 2005. Thestatutory financial statements for the year ended 31 March 2006 will befinalised and signed on the basis of the financial information presented by thedirectors in this preliminary announcement and will be delivered to theRegistrar of Companies following the company's Annual General Meeting. The financial information for the year ended 31 March 2005 is derived from thestatutory accounts for that year as restated for the adoption of IFRS. Theauditors reported on those statutory accounts which have been delivered to theRegistrar of Companies; their report was unqualified and did not contain astatement under s237(2) or (3) of the Companies Act 1985. This announcement is prepared on the basis of the accounting policies publishedon 12 December 2005 within the 2005 IFRS restatement and the interim financialstatements for the period ended 30 September 2005. This preliminary announcement was approved by the Board of directors on 23 June2006. 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 investment Self-storage Total 2006 2005 2006 2005 2006 2005 £'000 £'000 £'000 £'000 £'000 £'000 Unaudited Audited Unaudited Audited Unaudited Audited Revenue 15,255 28,263 333 193 15,588 28,456 Segment result (88) 1,865 (536) (628) (624) 1,237 Share of result of associates - (17) (74)post taxProfit on disposal ofavailable-for-sale investment - 1,201Finance income 285 234Finance costs (795) (756) (Loss)/profit before tax (1,151) 1,842Tax 269 (629) (Loss)/profit for the financial (882) 1,213year Balance sheetSegment assets 26,578 25,355 4,137 4,321 30,715 29,676 Interests in associates 14 36Available-for-sale investments 6,544 4,104 Total assets 37,273 33,816 Segment liabilities 14,434 11,779 1,502 2,165 15,936 13,944 Deferred tax liabilities 782 76 Total liabilities 16,718 14,020 3. PROFIT ON DISPOSAL OF SUBSIDIARIES Three wholly-owned subsidiaries of Safeland plc were sold during the year,Argentwood Limited, Harvestglen Properties Limited and CFC 26 Limited. None ofthe subsidiary undertakings sold contributed any pre-tax results to the group inthe year (2005: £nil). The following table sets out the book value of assets and liabilities disposed. Argentwood Harvestglen CFC 26 Limited Properties Limited Total £'000 Limited £'000 £'000 £'000Investment properties 230 - - 230Trading properties - 4,977 1,356 6,333 Net assets 230 4,977 1,356 6,563Profit/(loss) on disposal (5) 823 34 852 225 5,800 1,390 7,415Satisfied byCash 225 5,800 1,390 7,415 4. EQUITY DIVIDENDS The company demerged seven subsidiaries during the year ended 31 March 2005representing 90% of the ordinary share capital of each company. No interim cashdividend has been paid or final dividend declared in either year. 5. (LOSS)/EARNINGS PER SHARE Basic and diluted loss of 4.77p (2005: earnings per share 6.32p) are based onthe loss for the financial year of £882,000 (2005: profit of £1,213,000) and on18,500,530 ordinary shares (2005: 19,207,059 ordinary shares) being the weightedaverage number of shares in issue throughout the year. The calculation of diluted (loss)/earnings 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 2006 2005 £'000 £'000 Unaudited AuditedOperating (loss)/profit (624) 1,237 Adjustments for:Depreciation of property, plant and equipment 343 269Profit on sale of property, plant and equipment (7) (16)Profit on sale of investment properties (103) (476)Gains on revaluation of investment properties (391) (99)Profit on sale of subsidiaries (852) (1) Changes in working capital:(Increase)/decrease in trading properties (11,177) 1,457Decrease/(increase) in trade and other receivables 3,890 (1,218)(Decrease)/increase in trade and other payables (1,266) 468 Net cash (outflow)/inflow from operations (10,187) 1,621 7. CASH AND CASH EQUIVALENTS 2006 2005 £'000 £'000 Unaudited AuditedCash and cash equivalents per balance sheet 1,903 2,440Bank overdrafts (356) (10) Cash and cash equivalents per cash flow statement 1,547 2,430 8. RECONCILIATION OF CHANGES IN EQUITY 2006 2005 £'000 £'000 Unaudited Audited1 April 2005 19,796 19,270Issue of share capital - 50Purchase of own shares - (760) 19,796 18,560Total recognised income and expense for the year 759 1,558 20,555 20,118Dividends - (322) 31 March 2006 20,555 19,796 This information is provided by RNS The company news service from the London Stock Exchange