SAF.L Regulatory News (SAF)

20 Jun 2005 07:00

Safeland PLC20 June 2005 SAFELAND PLC YEAR ENDED 31 MARCH 2005 CHAIRMAN'S STATEMENT I am delighted to report a profit before tax of £2,426,000 (2004: loss£1,037,000) and the resultant earnings per share of 9.38p (2004: loss 5.37p). The profit as reported above constitutes a number of items that I should reportto you. As I mentioned in my interim in November 2004, Safeland Plc tookadvantage of the offer that was made by Erinaceous Plc for the entire sharecapital of Hercules Property Services Plc, and as a result we have sold ourentire shareholding for a profit of £1.2m. Also during this year the provisionthat was made in 2003 against the then value of the shares in Bizspace Plcamounting to £716,000 has been written back, bearing in mind the success of thatcompany and the share price which currently stands at 58p, thus reinstating thevalue of these shares at their original cost. The self storage businesssituated in Italy continues to produce losses which for this year amount to£628,000. The profit, after eliminating the above and the loss before tax of our associateof £43,000, with regard to property trading and the sale of investmentproperties amounts to £1,180,000 which is an extremely satisfying result bearingin mind the continued challenging conditions of our current property market. Gearing at the year end stands at 55% (2004: 76%) and it is not the intention ofthe company to pay a cash dividend at this time. In March 2005, however,Safeland announced a demerger of seven unquoted vehicles whose shares weredistributed as a dividend in specie to our shareholders, three of which, namely,Sagittarius Professional Services Plc, Taurus Storage Plc, Libra Retail Plc,were subsequently admitted to trading on the AIM. During the year the company purchased 1,260,000 of its own shares whichcontributed to an increase in a net asset value per share at the year end of£1.05p compared to 94p in March 2004. In addition during the year under review, Safeland undertook 60 propertytransactions compared with 85 in the previous year, with an average lot size of£472,000 (2004: £230,000). Turnover for the current year is £28,309,000compared to £19,448,000 in the year ended 31 March 2004. Apart from property trading this has been an extremely eventful 12 months withnot only the sale of the Hercules Property Services Plc stake, but also inJanuary 2005 a company now called Service Office Group Plc reversed into tecc-IsPlc, the AIM listed company in which Safeland now holds a 12.5% stake. We arevery comfortable with this investment as we are with our holding in BizspacePlc. We continue to monitor the market very closely and remain in a very strongposition to take advantage of opportunities as they become available. Raymond LipmanChairman CONSOLIDATED PROFIT AND LOSS ACCOUNTYear ended 31 March 2005 Note 2005 2004 £'000 £'000 Unaudited Audited Turnover Group and share of joint venture 28,456 20,764Less: share of joint venture (147) (1,316) Group turnover 2 28,309 19,448 Cost of sales (23,922) (16,893) Gross profit 4,387 2,555 Sales and distribution expenses (625) (546) Administrative expenses (3,477) (3,821) Other operating income 333 209 Group operating profit/(loss) 618 (1,603) Share of operating profit of joint ventures 3 43 771Share of operating loss of associate (71) (98) Total operating profit/(loss) 590 (930) Profit on disposal of fixed assets - investment properties 476 171Profit on disposal of investments 1,201 109Profit on disposal of subsidiaries 4 1 255 Profit/(loss) on ordinary activities before interest and taxation 2,268 (395) Interest receivable and similar income 5 262 304Share of amounts written off investments of associate - (261)Write back amounts previously written off investments 716 -Interest payable and similar charges 6 (820) (685) Profit/(loss) on ordinary activities before taxation 2,426 (1,037) Tax charge on profit/(loss) on ordinary activities (624) (77) Profit/(loss) on ordinary activities after taxation 1,802 (1,114) Equity dividends 7 (322) - Retained profit/(loss) for the financial year 1,480 (1,114) Basic and diluted earnings/(loss) per share 8 9.38p (5.37p) CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESYear ended 31 March 2005 2005 2004 £'000 £'000 Unaudited Audited Profit/(loss) for the financial year 1,802 (1,114)Unrealised surplus on revaluation of investment properties 99 1,323Taxation on valuation surplus realised on sale of investment properties (38) (110)Currency translation differences of foreign currency net investments (27) 31Total recognised gains and losses for the year 1,836 130 NOTE OF HISTORICAL COST PROFITS AND LOSSES 2005 2004 £'000 £'000 Unaudited Audited Profit/(loss) on ordinary activities before taxation 2,426 (1,037)Realisation of property revaluation gains of earlier years 181 412Historical cost profit/(loss) on ordinary activities before taxation 2,607 (625)Historical cost profit/(loss) retained for the year after taxation and dividends 1,623 (812) CONSOLIDATED BALANCE SHEET 31 March 2005 Note 2005 2004 £'000 £'000 Unaudited Audited Fixed assets Intangible assets - goodwill - -Tangible assets 5,940 5,748Investment properties 4,305 3,981Investment in joint ventures Share of gross assets 4,473 4,649 Share of gross liabilities (488) (627) 3,985 4,022Investment in associate - 661Other investments 3,238 3,926 17,468 18,338 Current assets Stocks 11,543 13,409Debtors 3,493 2,649Cash at bank and in hand 2,226 2,212 17,262 18,270 Creditors: amounts falling due within one year (5,565) (4,385) Net current assets 11,697 13,885 Total assets less current liabilities 29,165 32,223 Creditors: amounts falling due after more than one year (9,762) (13,624) 19,403 18,599 Capital and reserves Called up equity share capital 925 985Share premium account 5,351 5,304Capital redemption reserve 765 702Investment property revaluation reserve 1,415 1,497Profit and loss account 10,947 10,111 Equity shareholders' funds 13 19,403 18,599 CONSOLIDATED CASH FLOW STATEMENTYear ended 31 March 2005 Note 2005 2004 £'000 £'000 Unaudited Audited Net cash inflow/(outflow) from operating activities 9 1,477 (8,452)Returns on investment and servicing of finance 10 (506) (318)Taxation 107 (843)Capital expenditure and financial investment 10 3,065 (393)Acquisitions and disposals 10 52 631Cash inflow/(outflow) before financing 4,195 (9,375)Financing 10 (3,627) 6,240Increase/(decrease) in cash 568 (3,135) NOTES TO THE PRELIMINARY ANNOUNCEMENTYear ended 31 March 2005 1. BASIS OF PREPARATION The financial information set out in the announcement does not constitute the company's statutory financial statements within the meaning of section 240 of the Companies Act 1985, for the years ended 31 March 2005 or 2004. The statutory financial statements for the year ended 31 March 2005 will be finalised and signed on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the company's Annual General Meeting. The results for the year ended 31 March 2004 have been extracted from the full statutory financial statements for that year which have been delivered to the Registrar of Companies, on which the auditors have given an unqualified report, and which do not contain a statement under sections 237(2) or (3) of the Companies Act 1985. This announcement is prepared on the basis of the accounting policies as stated in the previous year's financial statements. This preliminary announcement was approved by the Board of directors on 20 June 2005. Copies of this announcement are available from the company's registered office at 94-96 Great North Road, London, N2 0NL. The Annual Report and Accounts will be sent to shareholders shortly. 2. SEGMENTAL INFORMATION 2005 2004 £'000 £'000 Unaudited Audited Group turnover Property trading and refurbishment 28,024 19,116 Investment properties 92 111 Self storage 193 221 28,309 19,448 Profit/(loss) on ordinary activities before taxation Property trading and refurbishment 626 (398) Investment properties 554 211 Self storage (628) (639) Tecc-IS (associate) (43) (320) Profit on disposal of investments 1,201 109 Write back amounts previously written off investments 716 - 2,426 (1,037) Net assets Property trading and refurbishment 13,380 11,753 Investment properties 3,867 3,939 Self storage 2,156 2,246 Tecc-IS (associate) - 661 19,403 18,599 All turnover (by origin and destination), results before taxation and net assets in the current and preceding financial year are derived from activities carried out in the United Kingdom, except for the self storage operation, which operates in Italy, Tecc-IS plc, the associated undertaking, which operates mainly in Israel and the results and net assets of the Brackdale joint venture, which operated in South Africa and contributed £nil (2004: £60,000) to profit before taxation in the year and £nil (2004: £nil) to net assets. The residential property and Brackdale joint ventures are reported within property trading and refurbishment. 3. SHARE OF OPERATING PROFIT OF JOINT VENTURE Share of operating profit of joint venture relates to our residential property joint venture. 4. PROFIT ON DISPOSAL OF SUBSIDIARIES Eight wholly-owned subsidiaries of Safeland plc were disposed of during the year: Pink Affinity Limited was sold and Pisces Property Services Plc, Sagittarius Professional Services Plc, Aries Insurance Services Plc, Libra Retail Plc, Taurus Storage Plc, Secure Ventures (No 6) Plc and Secure Ventures (No 7) Plc ("demerged subsidiaries") were all demerged. None of the subsidiary undertakings disposed of contributed any pre-tax results to the group in the year (2004: £nil). The following table sets out the book value of assets and liabilities disposed. Pink Affinity Limited Demerged subsidiaries £'000 £'000 Stocks 409 - Cash at bank and in hand - 358 Net assets 409 358 Profit on disposal 1 - Retention of minority interest - (36) 410 322 Satisfied by: 410 - Cash Dividend in specie - 322 410 322 5. INTEREST RECEIVABLE AND SIMILAR INCOME 2005 2004 £'000 £'000 Unaudited Audited Income from fixed asset investments 49 94 Bank deposit interest 53 64 Interest on late completion of contracts 14 29 Interest from joint venture 79 41 Other interest receivable 36 26 Group interest receivable 231 254 Share of joint ventures' interest receivable 3 11 Share of associate's interest receivable 28 39 262 304 6. INTEREST PAYABLE AND SIMILAR CHARGES 2005 2004 £'000 £'000 Unaudited Audited Interest on bank overdrafts and loans 733 569 Other interest payable 4 3 Group interest payable 737 572 Share of joint ventures' interest payable 83 113 820 685 7. EQUITY DIVIDENDS As explained in note 4, the company demerged seven subsidiaries by the payment of a dividend in specie representing 90% of the ordinary share capital of each company. No interim cash dividend has been paid or final dividend declared in either year. 8. EARNINGS/(LOSS) PER SHARE Basic and diluted earnings/(loss) per share of 9.38p (2004: loss of 5.37p) are based on the profit for the financial year of £1,802,000 (2004: loss of £1,114,000) and on 19,207,059 ordinary shares (2004: 20,754,333 ordinary shares) being the weighted average number of shares in issue throughout the year. The calculation of diluted earnings/(loss) per share uses the same earnings/(loss) figure and weighted average number of shares as the basic calculation, as the exercise value of all share options was higher than the average share price during the period to date of exercise. 9. RECONCILIATION OF OPERATING PROFIT/(LOSS) TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 2005 2004 £'000 £'000 Unaudited Audited Operating profit/(loss) 618 (1,603) Amortisation of goodwill - 100 Depreciation 269 322 Amounts written off investment properties - 59 (Profit)/loss on sale of fixed assets (16) 42 Decrease/(increase) in stocks 1,457 (8,850) (Increase)/decrease in debtors (1,264) 1,451 Increase in creditors 413 27 Net cash inflow/(outflow) from operating activities 1,477 (8,452) 10. ANALYSIS OF CASH FLOWS 2005 2004 £'000 £'000 Unaudited Audited Returns on investment and servicing of finance Interest received 182 160 Interest paid (737) (572) Dividends received 49 94 (506) (318) Capital expenditure and financial investment Purchase of tangible fixed assets (660) (1,463) Purchase of investment properties (1,689) (742) Disposal of tangible fixed assets 215 344 Disposal of investment properties 1,940 1,004 Disposal of investments 3,259 464 3,065 (393) Acquisitions and disposals Purchase of subsidiary undertaking (net of £12,000 cash acquired) - (88) Purchase of investment in associate - (981) Sale of subsidiary undertaking 410 1,700 Net cash balances demerged with subsidiaries (358) - 52 631 Financing Proceeds from share issue 50 - Purchase of own shares (760) (675) Loan repayments (20,311) (1,184) New loans 17,394 8,099 (3,627) 6,240 11. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT 2005 2004 £'000 £'000 Unaudited Audited Increase/(decrease) in cash in the year 568 (3,135) Cash outflow/(inflow) from decrease/(increase) in debt 2,917 (6,915) Change in net debt resulting from cash flows 3,485 (10,050) Net debt brought forward (11,834) (1,784) Net debt carried forward (8,349) (11,834) 12. ANALYSIS OF NET DEBT At At 31 March 2004 Cash flows 31 March 2005 £'000 £'000 £'000 Audited Unaudited Unaudited Cash at bank and in hand 2,212 14 2,226 Bank overdrafts (564) 554 (10) 1,648 568 2,216 Debt due within one year (660) (143) (803) Debt due after one year (12,822) 3,060 (9,762) (11,834) 3,485 (8,349) 13. RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS 2005 2004 £'000 £'000 Unaudited Audited Profit/(loss) for the financial year 1,480 (1,114) Other recognised gains and losses in the year 34 1,244 Goodwill previously written off to reserves - 95 Shares issued in year 50 - Repurchase of shares (760) (675) Net increase/(reduction) in equity shareholders' funds 804 (450) Opening equity shareholders' funds 18,599 19,049 Closing equity shareholders' funds 19,403 18,599 This information is provided by RNS The company news service from the London Stock Exchange