SAF.L Regulatory News (SAF)

19 August 2013

Safeland Plc

("Safeland" or the "Company")

Audited final results for the year end 31 March 2013

Chairman's Statement

The year to 31 March 2013 has been a busy one for Safeland plc. The Board has continued to acquire short term development opportunities in the North London area whilst advancing the existing development property portfolio towards completion and onward sale.

Planning permission is progressing for the Chandos Tennis Club and we await the outcome of the planning application. During the year to 31 March 2013 the valuation of this property increased by £225,000 to £4,175,000.

In general, London property values have stopped declining since the recession started in 2007 and Safeland can confidently look forward to an upturn in activity. Now that the market has stabilized, we believe we are in an excellent position to generate future returns for shareholders.

Following the opening of the first hostel by our joint venture 'Safestay', we have been satisfied with the first year's trading to 30 June 2013. Additional suitable sites are proving difficult to identify but we are confident that the brand is capable of expansion.

Financial highlights

In October 2012, we agreed terms for a new three year revolving credit facility of £12.5m with our principal lender to provide Safeland with the necessary cashflow and leverage to finance future opportunities. The Group entered into derivative financial instruments to fix or cap interest rates of 58% of the loan outstanding at the year end to mitigate future interest rate risk.

The statement of financial position has strengthened significantly during the year with gearing of 65% as at 31 March 2013 (2012: 80%).

Of our two key performance indicators, net asset value per share was up 14% at 57p (2012: 50p) and total shareholder return was 6.1% (2012: 6.5%). The positive result on the two KPIs adds to the confidence shareholders can have that the Group is making progress in an improving market.

The quarterly loan covenant report in April 2013 to the principal lenders has the Loan to value at 33% against the Group covenant of 65%.

Nature and effect of misappropriated monies

In October and November 2012, the Company announced the discovery of a series of fraudulent transactions. The aggregate amount of the sums lost to the Company through fraudulent transactions was approximately £1.525m. Of that sum, approximately £1.2m related to the financial year ended 31 March 2012 with the balance relating to the financial year ended 31 March 2013.

The Company has to date recovered £1.3m and the Board is continuing to pursue outstanding monies.

The losses discovered are significant and the Board concluded that the financial statements as originally issued for the year ended 31 March 2012 were subject to material error. Accordingly the Group's financial statements for the year ended 31 March 2013 comparative figures have been restated to reflect the loss of funds. Details of the restatements are set out in note 2. Funds misappropriated, funds recovered and applicable legal fees are treated as a net income of £809,000 in the current financial period.

In October 2012, the previous auditors resigned as a result of an unmanageable conflict of interest. They were replaced with Grant Thornton UK LLP in November 2012.

Board appointment

In January 2013 we were joined by Colin Stone who, for the previous six years, was the financial controller for the London property developer Quintain Estates and Development plc. In May 2013 the Group appointed Colin to the Board as finance director.

Outlook

We believe that Safeland is in a strong position to move forward as the market improves, but also has the necessary resources, expertise and strategies to minimise the impact of any sudden unexpected market volatility.

Raymond LipmanChairman

16 August 2013

The Annual Report and Accounts will be sent to shareholders shortly and will be available today on the Company's website, www.safeland.co.uk.

Enquiries:

Safeland plc

Larry Lipman, Managing Director

Colin Stone, Finance Director

Tel: 020 8815 1600

 www.safeland.co.uk

Westhouse Securities Limited

Tom Griffiths

T: 020 7601 6100

Consolidated Income Statement

Year ended 31 March 2013

The revenue and operating result for the year is derived from continuing operations in the United Kingdom.

Consolidated Statement of Comprehensive Income

Year ended 31 March 2013

Consolidated Statement of Financial Position

31 March 2013

 Consolidated Statement of Changes in Equity

31 March 2013

Consolidated Statement of Changes in Equity

31 March 2013

Consolidated Statement of Cashflows

Year ended 31 March 2013

NOTES

1. BASIS OF PREPARATIOn

On 16 August 2013, the Directors approved this preliminary announcement for publication. Copies of this announcement are available from the Company's registered office at 1a Kingsley Way, London, N2 0FW and on its website, www.safeland.co.uk. The Annual Report and Accounts will be sent to shareholders in due course and will be available on the Company's website, www.safeland.co.uk.The financial information presented above does not constitute statutory financial statements as defined by section 435 of the Companies Act 2006 for the years ended 31 March 2013 or 31 March 2012.

The financial information for the year ended 31 March 2013 is derived from the statutory financial statements for that year, prepared under IFRS, upon which the auditors have reported. The audit report was unqualified, did not include references to matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The statutory financial statements for the year ended 31 March 2013 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

The financial information for the year ended 31 March 2012 is derived from the statutory financial statements for that year, prepared under IFRS, upon which the auditors have reported and have been filed with the Registrar of Companies. The audit report was unqualified, did not include references to matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The accounting policies applied in this announcement are consistent with those of the annual financial statements for the year ended 31 March 2012, as described in those annual financial statements.

As mentioned in the Chairman Statement and note 2 below, the comparative figures for the year ended 31 March 2012 have been restated.

2. Restatement of financial statements to include the discovery of misappropriated funds

Basic earnings/(loss) per share 2.93p (1.07p)

Diluted earnings/(loss) per share 2.77p (1.07p)

3. Earnings per share

The calculation of the basic and diluted earnings/(loss) per share is based on the following data:

There is no dilutive effect of potential ordinary shares for 2012 as there is a loss for the year.

4. investment properties

The fair value of the investment properties at 31 March 2013 comprises freehold properties of £4,440,000 (2012: £4,215,000) and long leasehold properties of £578,000 (2012: £578,000).

The directors do not consider the fair value of the Group's lease obligations associated with its long leasehold investment properties to be material to the financial statements. As a result, no finance lease obligations are included in the statement of financial position at 31 March 2012 or 2013.

The Group has pledged investment properties with a carrying value of £4,998,000 (2012: £4,773,000) to secure banking facilities granted to the Group.

The fair value of the Group's investment properties at 31 March 2013 has been arrived at on the basis of market value as defined in the Apportionment and Valuation Manual of the Royal Institution of Chartered Surveyors. The valuations were performed by:

The directors have valued investment properties which were externally valued in the prior year. The directors have adopted valuations prepared by Cushman and Wakefield dated 17th October 2012.

5. TRADING PROPERTIES

The Group has pledged properties for resale with carrying value of £7,268,000 (2012: £10,227,000) to secure banking facilities granted to the Group.

Properties for resale were reviewed for impairment as at 31 March 2013 and as a result there was an impairment of £nil (2012: impairment of £49,000) and this impairment expense is included within cost of sales in the income statement.

The net realisable value of the Group's trading properties at 31 March 2013 has been ascertained using valuations calculated on the basis of market value as defined in the Apportionment and Valuation Manual of the Royal Institution of Chartered Surveyors. Each property is stated at the lower of cost and net realisable value. The valuations were performed by:

6. Notes to the cash flow statement