1 Dec 2008 10:14
SAFELAND PLC
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHS ENDED 30 September 2008
Shareholders will not be surprised that in the current economic climate this has been a period of consolidation for the company with very few transactions taking place.
Against this backdrop I am reporting that for the six months ended September 30 2008 the company made a loss of £2,109,000 compared to a profit of £109,000 for the same period last year.
Turnover in the period was £6,388,000 (2007:£14,318,000) and the resultant earnings per share was a loss of 12.52p (2007: profit 0.58p). Net Asset Value per share has fallen to 102p from 114p as at September 30 2007
During this period there have been no additions to the portfolio within the Managed Workspace Fund thus gross assets under management remains at £60m. However there has been a material softening of yields which will impact on the value of the portfolio and it has therefore been decided to write down the value of the Company's investment by 50% to £500,000
The Board have examined the value of properties currently owned by the company and have written down those properties still owned by Safelandby a total of £138,000 when compared with March 31 2008.
Whilst interest rates have fallen quite sharply recently (particualry since the period end) and with more cuts expected, we do not believe that this will have a material effect on either liquidity or property values in the short term. However, we do see this having an impact in the medium term and we are perfectly placed to take advantage of this at the appropriate time as we continue to enjoy the support of our bankers and professionals.
Raymond Lipman
Chairman
Contacts:
| Paul Davis, Finance Director, Safeland Plc: | 0208 815 1600 |
| John Prior/Tom Griffiths, Arbuthnot Sacurities: | 0207 012 2000 |
SAFELAND PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 September 2008
| Continuing Operations | Notes | Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Neither audited nor reviewed Six months ended 30 September 2007 Restated £'000 | Audited Year ended 31 March 2008 £'000 |
| Revenue | 6,388 | 14,318 | 23,567 | |
| Cost of sales | (5,644) | (11,601) | (19,339) | |
| Gross profit | 744 | 2,717 | 4,228 | |
| Sales and distribution costs | (85) | (313) | (573) | |
| Administrative expenses | (2,001) | (2,014) | (4,022) | |
| Other operating income | 477 | 697 | 855 | |
| Gains on revaluation of investment properties | - | - | 287 | |
| (Loss) / profit on disposal of property, plant and equipment | (1) | 2 | (4) | |
| Profit on disposal of investment properties | - | 121 | 105 | |
| Writedown of available for sale investments | (500) | - | - | |
| Operating (loss) / profit | (1,366) | 1,210 | 876 | |
| Impairment of interests in associates | - | - | (10) | |
| (Loss) / profit before interest | (1,366) | 1,210 | 866 | |
| Finance income | 32 | 30 | 81 | |
| Finance costs | (775) | (899) | (1,924) | |
| (Loss) / profit before tax | (2,109) | 341 | (977) | |
| Tax | - | (149) | 267 | |
| (Loss) / profit for the financial period from continuing operations | (2,109) | 192 | (710) | |
| (Loss) for the financial period from discontinued operations | - | (83) | (83) | |
| (Loss) / profit for the financial period attributable to equity holders of the parent company | (2,109) | 109 | (793) | |
| (Loss) / Earnings per share - Continuing Operations | ||||
| Basic (loss) / earnings per share | 2 | (12.52)p | 1.04p | (3.92)p |
| Diluted (loss) / earnings per share | 2 | (12.52)p | 1.04p | (3.92)p |
| (Loss) / Earnings per share attributable to equity holders of the parent company | ||||
| Basic (loss) / earnings per share | 2 | (12.52)p | 0.58p | (4.38)p |
| Diluted (loss) / earnings per share | 2 | (12.52)p | 0.58p | (4.38)p |
SAFELAND PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 30 September 2008
| Neither audited nor reviewed 30 September 2008 £'000 | Neither audited nor reviewed 30 September 2007 £'000 | Audited 31 March 2008 £'000 | |
| Non-current assets | |||
| Property, plant and equipment | 2,129 | 4,251 | 2,177 |
| Investment properties | 2,560 | 1,007 | 2,054 |
| Interests in associates | - | 10 | - |
| Available-for-sale investments | 714 | 1,134 | 1,089 |
| Deferred tax assets | 104 | 46 | 104 |
| Total non-current assets | 5,507 | 6,448 | 5,424 |
| Current assets | |||
| Trading properties | 33,555 | 31,091 | 33,390 |
| Trade and other receivables | 1,222 | 1,341 | 2,657 |
| Current tax receivable | 257 | - | 283 |
| Cash and cash equivalents | 673 | 1,314 | 813 |
| Total current assets | 35,707 | 33,746 | 37,143 |
| Total assets | 41,214 | 40,194 | 42,567 |
| Current liabilities | |||
| Bank loans and overdrafts | 20,558 | 584 | 19,679 |
| Trade and other payables | 975 | 1,280 | 1,255 |
| Current tax liabilities | - | 479 | - |
| Total current liabilities | 21,533 | 2,343 | 20,934 |
| Non-current liabilities | |||
| Bank loans | 2,389 | 16,616 | 2,301 |
| Deferred tax liabilities | 146 | 103 | 146 |
| Total non-current liabilities | 2,535 | 16,719 | 2,447 |
| Total liabilities | 24,068 | 19,062 | 23,381 |
| Net assets | 17,146 | 21,132 | 19,186 |
| Equity | |||
| Share capital | 843 | 925 | 843 |
| Share premium account | 5,351 | 5,351 | 5,351 |
| Capital redemption reserve | 847 | 765 | 847 |
| Share based payment reserve | 129 | - | 86 |
| Translation reserve | - | (46) | - |
| Investment revaluation reserve | 39 | 29 | 13 |
| Retained earnings | 9,937 | 14,108 | 12,046 |
| Total equity attributable to equity holders of the parent | 17,146 | 21,132 | 19,186 |
SAFELAND PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 September 2008
| Notes | Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Neither audited nor reviewed Six months ended 30 September 2007 Restated £'000 | Audited Year ended 31 March 2008 £'000 | |
| Operating activities | ||||
| Net cash (outflow) / inflow from operations | 4 | (1,275) | 10,217 | 6,724 |
| Interest paid | (608) | (841) | (1,924) | |
| Tax received /(paid) | 26 | (340) | (542) | |
| Net cash (outflow) / inflow from operating activities | (1,857) | 9,036 | 4,258 | |
| Investing activities | ||||
| Interest received | 32 | 30 | 81 | |
| Purchase of investment properties | (509) | (1) | (761) | |
| Purchase of property, plant and equipment | (106) | (134) | (482) | |
| Proceeds from sale of property, plant and equipment | 48 | 101 | 278 | |
| Proceeds from sale of investment properties | 3 | 1,033 | 967 | |
| Cash inflows /(outflows) in respect of subsidiary in voluntary liquidation | 1,278 | - | (358) | |
| Net cash inflow / (outflow) from investing activities | 746 | 1,029 | (275) | |
| Financing activities | ||||
| New loans | 6,988 | 10,292 | 19,140 | |
| Loan repayments | (5,721) | (20,699) | (23,330) | |
| Purchase of own shares | - | - | (1,160) | |
| Net cash inflow / (outflow) from financing activities | 1,267 | (10,407) | (5,350) | |
| Net increase / (decrease) in cash and cash equivalents | 156 | (342) | (1,367) | |
| Cash and cash equivalents at beginning of period | (18) | 1,349 | 1,349 | |
| Cash and cash equivalents at end of period | 138 | 1,007 | (18) | |
SAFELAND PLC
UNAUDITED CONSOLIDATED Statement of RECOGNISED INCOME AND EXPENSE
FOR THE SIX MONTHS ENDED 30 September 2008
| Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Neither audited nor reviewed Six months ended 30 September 2007 £'000 | Audited Year ended 31 March 2008 £'000 | |
| Fair value gains / (losses) on available-for-sale investments | 26 | (56) | (102) |
| Exchange differences on translation of foreign operations | - | (39) | (38) |
| Tax on items taken directly to equity | - | - | 30 |
| Transfer foreign currency translation reserve to income statement | - | - | 45 |
| Net income / (loss) recognised directly in equity | 26 | (95) | (65) |
| (Loss) / profit for the period | (2,109) | 109 | (793) |
| Total recognised income and expense for the period available to equity shareholders | (2,083) | 14 | (858) |
SAFELAND PLC
NOTES TO THE FINANCIAL INFORMATION (UNAUDITED)
1. Basis of preparation and accounting policies
This interim financial information was approved by the Board of Directors on 28 November 2008.
The results for the year ended 31 March 2008 are not statutory accounts within the meaning of s240, Companies Act 1985. Statutory accounts for that period were prepared and filed with the Registrar of Companies and received an unqualified audit report. The results for the six months to 30 September 2008 and 2007 are unaudited and do not constitute the Group's statutory accounts within the meaning of s240 of the Companies Act 1985.
The accounting policies adopted in the preparation of this financial information are consistent with those used in the preparation of the 2008 statutory accounts which were prepared in accordance with applicable International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
2. (Loss) / Earnings per share
| Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Neither audited nor reviewed Six months ended 30 September 2007 £'000 | Audited Year ended 31 March 2008 £'000 | ||
| (Loss) / profit for the period from continuing operations | (2,109) | 192 | (710) | |
| (Loss) for the period from discontinued operations | - | (83) | (83) | |
| (Loss) / profit for the period attributable to equity holders of the company | (2,109) | 109 | (793) | |
| Weighted average number of ordinary shares for the purposes of basic (loss) / earnings per share | 16,851 | 18,501 | 18,122 | |
| Effect of dilutive potential ordinary shares | - | - | - | |
| Weighted average number of ordinary shares for the purposes of diluted (loss) / earnings per share | 16,851 | 18,501 | 18,122 | |
There is no dilutive effect of potential ordinary shares in the six months to September 2008 as there is a loss for the period. The dilution in 2007 arises from the effect of share options. This does not affect the weighted average number of shares in issue for the 6 months ended 30 September 2007 due to the average share price of Safeland plc for that period being below the exercise price of the share options.
| Discontinued operations | Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Neither audited nor reviewed Six months ended 30 September 2007 £'000 | Audited Year ended 31 March 2008 £'000 |
| Basic (loss) / earnings per share | - | (0.46)p | (0.46)p |
| Diluted (loss) / earnings per share | - | (0.46)p | (0.46)p |
3. Dividend
No interim dividend has been declared.
4, Notes to cash flow statement
| Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Neither audited nor reviewed Six months ended 30 September 2007 Restated £'000 | Neither audited nor reviewed Year ended 31 March 2008 £'000 | |
| (Loss) / profit before tax from continuing operations | (2,109) | 341 | (977) |
| (Loss) before tax from discontinued operations | - | (83) | (83) |
| Adjustments for: | |||
| Depreciation of property, plant and equipment | 104 | 85 | 192 |
| Loss / (profit) on sale of property, plant and equipment | 2 | (2) | 4 |
| Profit on sale of investment properties | - | (121) | (105) |
| Gains on revaluation of investment properties | - | - | (287) |
| Profit on sale of subsidiaries | - | (34) | - |
| Impairment of interests in associates | - | - | 10 |
| Share based payment charge | 43 | - | 86 |
| Finance costs (net) | 743 | 893 | 1,871 |
| Other adjustment | (100) | - | - |
| Writedown of available for sale investment | 500 | - | - |
| Operating cash flows before movements in working capital | (817) | 1,079 | 711 |
| Changes in working capital: | |||
| (Increase) / decrease in trading properties | (165) | 8,887 | 5,363 |
| Decrease in trade and other receivables | 157 | 1,022 | 1,136 |
| (Decrease) in trade and other payables | (450) | (771) | (486) |
| Net cash (outflow) / inflow from operations | (1,275) | 10,217 | 6,724 |
5. Copies of this statement are available on the company's website www.safeland.co.uk