17 Aug 2012 09:00
17 August 2012
Safeland Plc
("Safeland" or the "Company")
Preliminary results for the year ended 31 March 2012
CHAIRMAN'S STATEMENT
I am pleased to report that in the year ended 31 March 2012 the Group made a profit before taxation of £705,000 (2011: £965,000 loss).
The principal rise in value relates to the Chandos Tennis Club in Golders Green which is a property the Company has owned for some time. An independent valuation has increased its value by just over £1m due toa detailed review of development opportunities.
Planning permission has been applied for, however, Shareholders should be aware that in the event that no permission is forthcoming, then it is likely that the valuation will fall substantially. Announcements will be made regarding progress.
The remainder of the portfolio has been appraised in part by external valuers, and the remainder by the Board. The overall effect is that the trading portfolio has been reduced by £49,000 (2011: £576,000) and the investment portfolio increased by £1,355,000 (2011: decreased by £24,000).
I have previously advised Shareholders that our involvement in the Managed Workspace Fund ceased as of 7 July 2011 when the portfolio was sold to a third party. As a result no further losses will accrue from this activity.
In April 2011, Safeland entered into a Joint Venture agreement with the Moorfield Group to open and operate a chain of hostels called Safestay. The first such centre in Southwark opened on 28 June 2012. Early indications of bookings are very encouraging. A number of other potential sites are being investigated.
The market conditions remain as challenging as they have been for the last number of years and your Board continues to be very selective in the purchases they make, with a focus on carrying out small developments in North London. I am pleased to advise that this strategy is proving to be successful with a number of completed units sold profitably since the year end.
This together with the Safestay Joint Venture and the support of our bankers gives me some confidence for the future.
Raymond LipmanChairman
16 August 2012
CONSOLIDATED INCOME STATEMENT
| Note |
| 2012
£'000 | 2011
£'000 |
|
|
|
|
|
Revenue |
|
| 14,335 | 10,370 |
|
|
|
|
|
Cost of sales |
|
| (12,916) | (9,866) |
|
|
|
|
|
Gross profit |
|
| 1,419 | 504 |
|
|
|
|
|
Sales and distribution costs |
|
| (304) | (255) |
|
|
|
|
|
Administrative expenses |
|
| (2,168) | (2,929) |
|
|
|
|
|
Directors' emoluments forgone |
|
| - | 1,877 |
|
|
|
|
|
Other operating income |
|
| 794 | 476 |
|
|
|
|
|
Profit on disposal of property, plant and equipment |
|
| 20 | - |
|
|
|
|
|
Gain / (loss) on revaluation of investment properties |
|
| 1,355 | (24) |
|
|
|
|
|
Gain on disposal of investment properties |
|
| - | 5 |
|
|
|
|
|
|
|
|
|
|
Operating profit / (loss) |
|
| 1,116 | (346) |
|
|
|
|
|
Share of loss of joint venture |
|
| (8) | - |
|
|
|
|
|
Share of results of associate |
|
| 36 | 27 |
|
|
|
|
|
Impairment of available-for-sale investments |
|
| (60) | (100) |
|
|
|
|
|
Loss on disposal of available-for-sale investments |
|
| - | (50) |
|
|
|
|
|
Finance income |
|
| 10 | 27 |
|
|
|
|
|
Finance costs |
|
| (389) | (523) |
|
|
|
|
|
Profit / (loss) before tax |
|
| 705 | (965) |
|
|
|
|
|
Tax |
|
| (212) | - |
|
|
|
|
|
Profit / (loss) for the financial year attributable to owners of the parent company |
|
|
493 |
(965) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings / (loss) per share | 2 |
| 2.93p | (5.73)p |
Diluted earnings / (loss) per share | 2 |
| 2.77p | (5.73)p |
|
|
|
|
|
The revenue and operating result for the year is derived from continuing operations in the United Kingdom.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
| Note | 2012 £'000 | 2011 £'000 | ||
|
|
|
|
|
| |
Profit / (loss) for the year |
|
|
| 493 | (965) | |
|
|
|
|
|
| |
Other comprehensive income |
|
|
|
|
| |
|
|
|
|
|
| |
Fair value (losses) /gains on available-for-sale investments |
|
|
| (10) | 12 | |
|
|
|
|
|
| |
Tax on items taken directly to equity |
|
|
| 3 | (3) | |
|
|
|
|
| ||
|
|
|
|
| ||
Other comprehensive (losses) / income for the year |
|
| (7) | 9 | ||
|
|
|
|
| ||
|
|
|
|
| ||
Total comprehensive income / (loss) for the year attributable to owners of the parent company |
|
|
| 486 | (956) | |
|
|
|
|
|
| |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Note | 2012 £'000 | 2011 £'000 | ||
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
|
| 252 | 214 |
Investment properties |
|
|
| 4,793 | 3,438 |
Investment in joint ventures |
|
|
| - | - |
Investments in associates |
|
|
| 153 | 117 |
Available-for-sale investments |
|
|
| 52 | 122 |
|
|
|
|
|
|
Total non-current assets |
|
|
| 5,250 | 3,891 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Trading properties |
|
|
| 10,249 | 19,256 |
Trade and other receivables |
|
|
| 1,616 | 763 |
Cash and cash equivalents |
| 4 |
| 457 | 386 |
|
|
|
|
|
|
Total current assets |
|
|
| 12,322 | 20,405 |
|
|
|
|
|
|
Total assets |
|
|
| 17,572 | 24,296 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Bank loans and overdrafts |
|
|
| 7,190 | 427 |
Trade and other payables |
|
|
| 432 | 427 |
Derivative financial instruments |
|
|
| 21 | - |
|
|
|
|
|
|
Total current liabilities |
|
|
| 7,643 | 854 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Bank loans |
|
|
| - | 14,172 |
Derivative financial instruments |
|
|
| - | 109 |
Deferred income tax liabilities |
|
|
| 888 | 679 |
|
|
|
|
|
|
Total non-current liabilities |
|
|
| 888 | 14,960 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
| 8,531 | 15,814 |
|
|
|
|
|
|
Net assets |
|
|
| 9,041 | 8,482 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
|
|
| 843 | 843 |
Share premium account |
|
|
| 5,351 | 5,351 |
Capital redemption reserve |
|
|
| 847 | 847 |
Share based payment reserve |
|
|
| 73 | 100 |
Investment revaluation reserve |
|
|
| 7 | 14 |
Retained earnings |
|
|
| 1,920 | 1,327 |
|
|
|
|
|
|
Total equity attributable to owners of the parent company |
|
|
| 9,041 | 8,482 |
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Attributable to owners of the parent | ||||||
| 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 |
|
|
|
|
|
|
|
|
Balance at 1 April 2010 | 843 | 5,351 | 847 | 210 | 5 | 2,182 | 9,438 |
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the year | - | - | - | - | - | (965) | (965) |
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value gains on available-for-sale investments | - | - | - | - | 12 | - | 12 |
Tax on items taken directly to equity | - | - | - | - | (3) | - | (3) |
|
|
|
|
|
|
|
|
Total other comprehensive income | - | - | - | - | 9 | - | 9 |
|
|
|
|
|
|
|
|
Total comprehensive income | - | - | - | - | 9 | (965) | (956) |
|
|
|
|
|
|
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer to retained earnings | - | - | - | (110) | - | 110 | - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 March 2011 | 843 | 5,351 | 847 | 100 | 14 | 1,327 | 8,482 |
|
|
|
|
|
|
|
|
| Attributable to owners of the parent | ||||||
| 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 |
|
|
|
|
|
|
|
|
Balance at 1 April 2011 | 843 | 5,351 | 847 | 100 | 14 | 1,327 | 8,482 |
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year | - | - | - | - | - | 493 | 493 |
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value impairment on available-for-sale investments |
- |
- |
- |
- |
(10) |
- |
(10) |
Tax on items taken directly to equity | - |
| - | - | 3 | - | 3 |
|
|
|
|
|
|
|
|
Total other comprehensive income | - | - | - | - | (7) | - | (7) |
|
|
|
|
|
|
|
|
Total comprehensive income | - | - | - | - | (7) | 493 | 486 |
|
|
|
|
|
|
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share based payment charge for the year | - | - | - | 73 | - | - | 73 |
Transfer to retained earnings | - | - | - | (100) | - | 100 | - |
|
|
|
|
|
|
|
|
Balance at 31 March 2012 | 843 | 5,351 | 847 | 73 | 7 | 1,920 | 9,041 |
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS
Note | 2012 £'000 | 2011 £'000 | |
|
|
|
|
Operating activities |
|
|
|
Cash generated from operations | 3 | 8,024 | 46 |
Interest paid |
| (477) | (600) |
|
|
|
|
Net cash generated / (outflow) from operating activities |
| 7,547 | (554) |
|
|
|
|
Investing activities |
|
|
|
Interest received |
| 7 | 24 |
Dividends received |
| 3 | 3 |
Purchase of property, plant and equipment |
| (175) | (40) |
Purchase of interest in joint ventures |
| (8) | - |
Purchase of interest in associate |
| - | (90) |
Proceeds from sale of property, plant and equipment |
| 106 | 22 |
Proceeds from sale of investment properties |
| - | 6 |
Proceeds from sale of available for sale investments |
| - | 15 |
|
|
|
|
Net cash outflow from investing activities |
| (67) | (60) |
|
|
|
|
Financing activities |
|
|
|
New loans |
| 900 | 8,155 |
Loan repayments |
| (7,882) | (7,740) |
|
|
|
|
|
|
|
|
Net cash (outflow) / generated from financing activities |
| (6,982) | 415 |
|
|
|
|
Net increase / (decrease) in cash and cash equivalents |
| 498 | (199) |
|
|
|
|
Cash and cash equivalents at beginning of year | 4 | (41) | 158 |
|
|
|
|
Cash and cash equivalents at end of year | 4 | 457 | (41) |
|
|
|
|
NOTES TO THE PRELIMINARY RESULTS
1. BASIS OF PREPARATION
On 16 August 2012, 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 2012 or 31 March 2011.
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. 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 2012 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
The financial information for the year ended 31 March 2011 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 2011, as described in those annual financial statements.
2. EARNINGS / (LOSS) PER SHARE
The calculation of the basic and diluted loss per share is based on the following data:
|
| 2012 £'000 | 2011 £'000 |
|
|
|
|
|
|
|
|
Profit / (loss) for the year attributable to equity holders of the company |
|
493 |
(965) |
|
|
|
|
|
| 2012 '000 | 2011 '000 |
|
|
|
|
Weighted average number of ordinary shares for the purposes of basic earnings/(loss) per share |
|
16,851 |
16,851 |
|
|
|
|
Effect of dilutive potential ordinary shares: |
|
|
|
Share options |
| 938 | - |
|
|
|
|
Weighted average number of ordinary shares for the purposes of diluted earnings/(loss) per share |
|
17,789 |
16,851 |
|
|
|
|
There is no dilutive effect of potential ordinary shares in 2011 as there was a loss for the year.
3. NOTES TO THE CASH FLOW STATEMENT
|
| 2012 £'000 | 2011 £'000 |
|
|
|
|
Profit / (loss) before tax |
| 705 | (965) |
|
|
|
|
Adjustments for: |
|
|
|
Depreciation of property, plant and equipment |
| 51 | 91 |
Profit on sale of property, plant and equipment |
| (20) | - |
Profit on sale of investment properties |
| - | (5) |
(Gain) / loss on revaluation of investment properties |
| (1,355) | 24 |
Impairment of available for sale investments |
| 60 | 100 |
Loss on sale of available for sale investments |
| - | 50 |
Finance costs |
| 389 | 496 |
Share of results of associate |
| (36) | (27) |
Share of loss in joint venture |
| 8 | - |
Finance income |
| (10) | - |
Share-based payment charge |
| 73 | - |
|
|
|
|
Changes in working capital: |
|
|
|
Decrease in trading properties |
| 9,007 | 1,476 |
Increase in trade and other receivables |
| (853) | (351) |
Increase / (decrease) in trade and other payables |
| 5 | (843) |
|
|
|
|
Cash generated from operations |
| 8,024 | 46 |
|
|
|
|
4. CASH AND CASH EQUIVALENTS
| 2012 £'000 | 2011 £'000 |
|
|
|
Cash and cash equivalents per balance sheet | 457 | 386 |
Bank overdrafts | - | (427) |
|
|
|
Cash and cash equivalents per cash flow statement | 457 | (41) |
|
|
|
For further information please contact:
Safeland plc | T: 020 8815 1600 |
Paul Davis, Finance Director |
Westhouse Securities Limited | T: 020 7601 6100 |
Tom Griffiths |