2 Dec 2010 07:00
SAFELAND PLC
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 September 2010
CHAIRMAN'S STATEMENT
As a result of trading conditions remaining difficult during the interim period for the six months ended 30 September 2010 I am reporting a loss for this period of £1,288,000 (2009: loss of £897,000).
The resultant loss per share is 7.64p (2009: loss per share of 5.32p) and the Net Asset Value per Share is 48p compared to 56p as at 31 March 2010. The board has considered the Group Assets and does not consider that there is a need for any write downs at this time. The Board will not be proposing an interim dividend.
Since the period end there has not been any sign of an improvement in market conditions however Safeland remains well positioned to take advantage of any opportunities as they arise.
Raymond Lipman
Chairman
Contacts:
Paul Davis, Finance Director, Safeland Plc: 0208 815 1600
Ben Wells/Tom Griffiths, Arbuthnot Securities Limited: 0207 012 2000
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 September 2010
Continuing Operations
Notes | Neither audited nor reviewed Six months ended 30 September 2010 £'000 | Neither audited nor reviewed Six months ended 30 September 2009 £'000 | Audited Year ended 31 March 2010 £'000 |
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Revenue | 7,188 | 6,156 | 11,940 |
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Cost of sales | (6,515) | (4,780) | (9,052) |
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Gross profit | 673 | 1,376 | 2,888 |
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Sales and distribution costs | (146) | (145) | (322) |
Administrative expenses | (1,654) | (2,206) | (3,777) |
Other operating income | 179 | 350 | 645 |
Loss on disposal of property, plant and equipment | (1) | (2) | (102) |
Gain on revaluation of investment properties | - | - | 666 |
Gain/(loss) on disposal of investment properties | 5 | (7) | (9) |
Loss on disposal of investments | (50) | - | - |
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Operating loss | (994) | (634) | (11) |
Impairment of available for sale investments | - | - | (250) |
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Loss before interest | (994) | (634) | (261) |
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Finance income | 23 | 17 | 4 |
Finance costs | (317) | (280) | (768) |
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Loss before tax | (1,288) | (897) | (1,025) |
Tax | - | - | (188) |
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Loss for the financial period attributable to equity holders of the parent company |
(1,288) |
(897) |
(1,213) |
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Other comprehensive income, net of tax | |||
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Fair value gains on available for sale investments | - | 2 | 2 |
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Total comprehensive income for the period attributable to equity holders of the parent company |
(1,288) |
(895) |
(1,211) |
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Loss per share attributable to equity holders of the parent company | |||
Basic loss per share 2 | (7.64)p | (5.32)p | (7.20)p |
Diluted loss per share 2 | (7.64)p | (5.32)p | (7.20)p |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 September 2010
| Neither audited nor reviewed 30 September 2010 £'000 | Neither audited nor reviewed 30 September 2009 £'000 |
Audited 31 March 2010 £'000 |
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Non-current assets |
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Property, plant and equipment | 211 | 1,923 | 287 |
Investment properties | 3,462 | 2,796 | 3,462 |
Available-for-sale investments | 300 | 525 | 275 |
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Total non-current assets | 3,973 | 5,244 | 4,024 |
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Current assets |
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Trading properties | 20,231 | 18,955 | 20,732 |
Trade and other receivables | 319 | 429 | 412 |
Cash and cash equivalents | 442 | 794 | 434 |
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Total current assets | 20,992 | 20,178 | 21,578 |
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Total assets | 24,965 | 25,422 | 25,602 |
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Current liabilities |
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Bank loans and overdrafts | 378 | 14,439 | 276 |
Trade and other payables | 2,134 | 678 | 1,270 |
Current tax liabilities | - | 23 | - |
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Total current liabilities | 2,512 | 15,140 | 1,546 |
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Non-current liabilities |
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Bank loans | 13,481 | - | 13,757 |
Derivative financial instruments | 146 | - | 185 |
Deferred tax liabilities | 676 | 466 | 676 |
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Total non-current liabilities | 14,303 | 466 | 14,618 |
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Total liabilities | 16,815 | 15,606 | 16,164 |
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Net assets | 8,150 | 9,816 | 9,438 |
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Equity |
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Share capital | 843 | 843 | 843 |
Share premium account | 5,351 | 5,351 | 5,351 |
Capital redemption reserve | 847 | 847 | 847 |
Share based payment reserve | 210 | 272 | 210 |
Investment revaluation reserve | 5 | 5 | 5 |
Retained earnings | 894 | 2,498 | 2,182 |
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Total equity attributable to equity holders of the parent Company |
8,150 |
9,816 |
9,438 |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 September 2010
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Notes | Neither audited nor reviewed Six months ended 30 September 2010 £'000 | Neither audited nor reviewed Six months ended 30 September 2009 £'000 | Audited Year ended 31 March 2010 £'000 |
Operating activities |
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Net cash generated from operations | 4 | 580 | 2,959 | 1,800 |
Interest paid |
| (356) | (280) | (583) |
Tax received |
| - | 8 | 7 |
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Net cash inflow from operating activities |
| 224 | 2,687 | 1,224 |
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Investing activities |
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Interest received |
| 23 | 17 | 4 |
Purchase of property, plant and equipment |
| - | (154) | (155) |
Purchase of available for sale investments |
| (90) | (250) | (250) |
Proceeds from sale of property, plant and equipment |
| 4 | 180 | 1,705 |
Proceeds from sale of investment properties |
| 6 | 250 | 241 |
Proceeds from sale of available for sale investments |
| 15 | - | - |
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Net cash (outflow) / inflow from investing activities |
| (42) | 43 | 1,545 |
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Financing activities |
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New loans |
| 6,005 | 1,000 | 5,300 |
Loan repayments |
| (6,281) | (4,694) | (9,667) |
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Net cash outflow from financing activities |
| (276) | (3,694) | (4,367) |
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Net decrease in cash and cash equivalents |
| (94) | (964) | (1,598) |
Cash and cash equivalents at beginning of period |
| 158 | 1,756 | 1,756 |
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Cash and cash equivalents at end of period |
| 64 | 792 | 158 |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 September 2010
| Share capital £'000 | Share premium account £'000 | Capital redemption reserve £'000 | Share based payment reserve £'000 | Investment revaluation reserve £'000 | Retained earnings £'000 | Total equity £'000 |
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At 1 April 2010 | 843 | 5,351 | 847 | 210 | 5 | 2,182 | 9,438 |
Loss for the period | - | - | - | - | - | (1,288) | (1,288) |
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At 30 September 2010 | 843 | 5,351 | 847 | 210 | 5 | 894 | 8,150 |
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At 1 April 2009 | 843 | 5,351 | 847 | 210 | 3 | 3,395 | 10,649 |
Loss for the period | - | - | - | - | - | (897) | (897) |
Fair value gains on available for sale investments | - | - | - | - | 2 | - | 2 |
Share option charge | - | - | - | 62 | - | - | 62 |
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At 30 September 2009 | 843 | 5,351 | 847 | 272 | 5 | 2,498 | 9,816 |
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At 1 April 2009 | 843 | 5,351 | 847 | 210 | 3 | 3,395 | 10,649 |
Loss for the year | - | - | - | - | - | (1,213) | (1,213) |
Fair value gains on available for sale investments | - | - | - | - | 2 | - | 2 |
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At 31 March 2010 | 843 | 5,351 | 847 | 210 | 5 | 2,182 | 9,438 |
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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
1. Basis of preparation and accounting policies
This interim financial information was approved by the Board of Directors on 1 December 2010.
The results for the year ended 31 March 2010 are not statutory accounts within the meaning of s434 Companies Act 2006. Statutory accounts for that period were prepared and filed with the Registrar of Companies. The results for the six months to 30 September 2010 and 2009 are unaudited and do not constitute the Group's statutory accounts within the meaning of s434 Companies Act 2006.
The accounting policies adopted in the preparation of this financial information are consistent with those expected to be used in the preparation of the 2011 statutory accounts which will be prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and those parts of the Companies Act 2006 that remain applicable to companies reporting under IFRS.
2. Loss per share
| Neither audited nor reviewed Six months ended 30 September 2010 £'000 | Neither audited nor reviewed Six months ended 30 September 2009 £'000 | Audited Year ended 31 March 2010 £'000 | |
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Loss for the period attributable to equity holders of the company |
(1,288) |
(897) |
(1,213) | |
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Weighted average number of ordinary shares for the purposes of basic loss per share |
16,851 |
16,851 |
16,851 | |
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Effect of dilutive potential ordinary shares | - | - | - | |
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Weighted average number of ordinary shares for the purposes of diluted loss per share |
16,851 |
16,851 |
16,851 | |
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There is no dilutive effect of potential ordinary shares in either the six months to September 2010 or 2009 and the year ended 31 March 2010 as in all instances there is a loss for the period.
3. Dividend
No interim dividend has been declared.
4. Notes to cash flow statement
| Neither audited nor reviewed Six months ended 30 September 2010 £'000 | Neither audited nor reviewed Six months ended 30 September 2009 £'000 | Audited Year ended 31 March 2010 £'000 |
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Loss before tax from continuing operations | (1,288) | (897) | (1,025) |
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Adjustments for: |
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Depreciation of property, plant and equipment | 70 | 101 | 113 |
Loss on sale of property, plant and equipment | 1 | 2 | 102 |
(Gain)/ loss on sale of investment properties | (5) | 7 | 9 |
Gain on revaluation of investment properties | - | - | (666) |
Impairment of available for sale investments | - | - | 250 |
Loss on sale of available for sale investments | 50 | - | - |
Share based payment charge | - | 62 | - |
Finance costs (net) | 294 | 263 | 764 |
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Operating cash flows before movements in working capital |
(878) |
(462) |
(453) |
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Changes in working capital: |
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Decrease in trading properties | 501 | 3,317 | 1,540 |
Decrease / (increase) in trade and other receivables | 93 | (2) | 15 |
Increase in trade and other payables | 864 | 106 | 698 |
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Net cash generated from operations | 580 | 2,959 | 1,800 |
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5. Copies of this announcement are available on the company's website www.safeland.co.uk.