2 Aug 2010 07:00
2 August 2010
SAFELAND PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2010
Chairman's Statement
Safeland plc
Chairman's Statement for the year ended 31 March 2010
Market conditions have improved during the second half of the year under review. However, they still remain challenging and it is against this backdrop that the Company announces its results for the year ended 31 March 2010.
The Group has made a loss before tax for the year of £1,025,000 (2009: £8,339,000). The resultant loss per share is 7.2p (2009: 51.3p). Gearing at the year end was 144% (2009: 154%) and Net Assets per Share were 56p (2009: 63p).
As previously announced, the Board has examined the value of the portfolio as at the year end with the assistance of external valuers and the overall effect is an increase in the value of the trading property portfolio of £195,000 (2009: deficit £4,648,000) and investment properties of £666,000 (2009: £1,295,000).
However, due to the continued pressure on the value of industrial property a further £250,000 has been written off the value of the investment held in the Managed Workspace Fund which now stands at £100,000.
Post the year end, shareholders may be aware that the company has agreed to acquire the 50% shareholding in Grafton Insurance Services Limited that was previously held by Leo Insurance Services Plc ("Leo") for a value of £90,000. The consideration was satisfied by the set off against amounts owed by Leo to Safeland. This transaction was approved by the shareholders of Leo Insurance Services at an EGM on 30 July 2010.
Trading remains difficult, but activity is improving, albeit slowly. We continue to enjoy the support of our lenders and our professionals and remain well positioned to take full advantage of improvements in market conditions as they occur.
I therefore remain optimistic of the long term future.
Raymond Lipman
Chairman
2 August 2010
CONSOLIDATED INCOME STATEMENT
Year ended 31 March 2010
|
|
| 2010 £'000 | 2009 £'000 | |
|
|
|
| Unaudited | Audited |
| Revenue |
|
| 11,940 | 15,115 |
|
|
|
|
|
|
| Cost of sales (including amounts written back to inventories of £195k (2009: written off £4,648k)) |
|
| (9,052) | (18,472) |
|
|
|
|
|
|
| Gross profit / (loss) |
|
| 2,888 | (3,357) |
|
|
|
|
|
|
| Sales and distribution costs |
|
| (322) | (464) |
|
|
|
|
|
|
| Administrative expenses |
|
| (3,777) | (4,114) |
|
|
|
|
|
|
| Other operating income |
|
| 645 | 758 |
|
|
|
|
|
|
| Loss on disposal of property plant and equipment |
|
| (102) | (14) |
|
|
|
|
|
|
| Gain on revaluation of investment properties |
|
| 666 | 1,295 |
|
|
|
|
|
|
| Loss on disposal of investment properties |
|
| (9) | (290) |
|
|
|
|
|
|
| Operating loss |
|
| (11) | (6,186) |
|
|
|
|
|
|
| Impairment of available- for- sale investments |
|
| (250) | (900) |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before interest |
|
| (261) | (7,086) |
|
|
|
|
|
|
| Finance income |
|
| 4 | 84 |
| Finance costs |
|
| (768) | (1,337) |
|
|
|
|
|
|
| Loss before tax |
|
| (1,025) | (8,339) |
|
|
|
|
|
|
| Tax |
|
| (188) | (312) |
|
|
|
|
|
|
| Loss for the financial year attributable to equity holders of the parent company |
|
|
(1,213) |
(8,651) |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic loss per share | 2 | (7.20)p | (51.33)p | |
| Diluted loss per share |
|
| (7.20)p | (51.33)p |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 March 2010
|
|
|
| 2010 £'000 | 2009 £'000 | |
|
|
|
|
| Unaudited | Audited |
|
|
|
|
|
|
|
| Loss for the year |
|
|
| (1,213) | (8,651) |
|
|
|
|
|
|
|
| Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value gains / (losses) on available-for-sale investments |
|
|
| 2 | (16) |
|
|
|
|
|
|
|
| Tax on items taken directly to equity |
|
|
| - | 6 |
|
|
|
|
|
| |
|
|
|
|
|
| |
| Other comprehensive income for the year |
|
| 2 | (10) | |
|
|
|
|
|
| |
|
|
|
|
|
| |
| Total comprehensive income for the year attributable to equity holders of the parent company |
|
|
| (1,211) | (8,661) |
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 2010
|
|
|
| 2010 £'000 |
| 2009 £'000 | |
| Non-current assets |
|
|
| Unaudited |
| Audited |
| Property, plant and equipment |
|
|
| 287 |
| 2,052 |
| Investment properties |
|
|
| 3,462 |
| 3,046 |
| Interests in associates |
|
|
| - |
| - |
| Available-for-sale investments |
|
|
| 275 |
| 273 |
|
|
|
|
|
|
|
|
| Total non-current assets |
|
|
| 4,024 |
| 5,371 |
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Trading properties |
|
|
| 20,732 |
| 22,272 |
| Trade and other receivables |
|
|
| 412 |
| 427 |
| Cash and cash equivalents |
|
|
| 434 |
| 1,811 |
|
|
|
|
|
|
|
|
| Total current assets |
|
|
| 21,578 |
| 24,510 |
|
|
|
|
|
|
|
|
| Total assets |
|
|
| 25,602 |
| 29,881 |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Bank loans and overdrafts |
|
|
| 276 |
| 18,179 |
| Trade and other payables |
|
|
| 1,270 |
| 572 |
| Current tax liabilities |
|
|
| - |
| 15 |
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
| 1,546 |
| 18,766 |
|
|
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
|
| Bank loans |
|
|
| 13,757 |
| - |
| Derivative financial instruments |
|
|
| 185 |
| - |
| Deferred tax liabilities |
|
|
| 676 |
| 466 |
|
|
|
|
|
|
|
|
| Total non-current liabilities |
|
|
| 14,618 |
| 466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
| 16,164 |
| 19,232 |
|
|
|
|
|
|
|
|
| Net assets |
|
|
| 9,438 |
| 10,649 |
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
| Share capital |
|
|
| 843 |
| 843 |
| Share premium account |
|
|
| 5,351 |
| 5,351 |
| Capital redemption reserve |
|
|
| 847 |
| 847 |
| Share based payment reserve |
|
|
| 210 |
| 210 |
| Investment revaluation reserve |
|
|
| 5 |
| 3 |
| Retained earnings |
|
|
| 2,182 |
| 3,395 |
|
|
|
|
|
|
|
|
| Total equity attributable to equity holders of the parent company |
|
|
| 9,438 |
| 10,649 |
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 March 2010
|
| Attributable to owners of the parent |
|
| ||||||
|
| Share Capital | Share premium account | Capital redemption reserve | Share based payment reserve | Investment revaluation reserve | Retained earnings | Total equity | ||
|
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||
| Balance at 1 April 2008 | 843 | 5,351 | 847 | 86 | 13 | 12,046 | 19,186 | ||
|
|
|
|
|
|
|
|
| ||
| Comprehensive income |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
| Loss for the year | - | - | - | - | - | (8,651) | (8,651) | ||
|
|
|
|
|
|
|
|
| ||
| Other comprehensive income |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
| Fair value losses on available-for-sale investments | - | - | - | - | (16) | - | (16) | ||
| Tax on items taken directly to equity | - | - | - | - | 6 | - | 6 | ||
|
|
|
|
|
|
|
|
| ||
| Total other comprehensive income | - | - | - | - | (10) | - | (10) | ||
|
|
|
|
|
|
|
|
| ||
| Total comprehensive income | - | - | - | - | (10) | (8,651) | (8,661) | ||
|
|
|
|
|
|
|
|
| ||
| Transactions with owners |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
| Share based payment charge for the year | - | - | - | 124 | - | - | 124 | ||
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
| Balance at 1 April 2009 | 843 | 5,351 | 847 | 210 | 3 | 3,395 | 10,649 | ||
|
|
|
|
|
|
|
|
| ||
| Comprehensive income |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
| Loss for the year | - | - | - | - | - | (1,213) | (1,213) | ||
|
|
|
|
|
|
|
|
| ||
| Other comprehensive income |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
| Fair value gain on available-for-sale investments | - | - | - | - | 2 | - | 2 | ||
|
|
|
|
|
|
|
|
| ||
| Total other comprehensive income | - | - | - | - | 2 | - | 2 | ||
|
|
|
|
|
|
|
|
| ||
| Total comprehensive income | - | - | - | - | 2 | (1,213) | (1,211) | ||
|
|
|
|
|
|
|
|
| ||
| Transactions with owners | - | - | - | - | - | - | - | ||
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
| Balance at 31 March 2010 | 843 | 5,351 | 847 | 210 | 5 | 2,182 | 9,438 | ||
|
|
|
|
|
|
|
|
| ||
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 March 2010
| Note |
|
| 2010 £'000 | 2009 £'000 | |
|
|
|
|
| Unaudited | Audited |
| Operating activities |
|
|
|
|
|
| Net cash generated from operations | 3 |
|
| 1,800 | 5,798 |
| Interest paid |
|
|
| (583) | (1,337) |
| Tax received |
|
|
| 7 | 416 |
|
|
|
|
|
|
|
| Net cash generated from operating activities |
|
|
| 1,224 | 4,877 |
|
|
|
|
|
|
|
| Investing activities |
|
|
|
|
|
| Interest received |
|
|
| 4 | 68 |
| Dividends received |
|
|
| - | 16 |
| Purchase of investment properties |
|
|
| - | (511) |
| Purchase of property, plant and equipment |
|
|
| (155) | (139) |
| Purchase of available for sale investments |
|
|
| (250) | (100) |
| Proceeds from sale of property, plant and equipment |
|
|
| 1,705 | 64 |
| Proceeds from sale of investment properties |
|
|
| 241 | 524 |
|
|
|
|
|
|
|
| Net cash generated/(outflow) from investing activities |
|
|
| 1,545 | (78) |
|
|
|
|
|
|
|
| Financing activities |
|
|
|
|
|
| New loans |
|
|
| 5,300 | 9,439 |
| Loan repayments |
|
|
| (9,667) | (12,464) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash outflow from financing activities |
|
|
| (4,367) | (3,025) |
|
|
|
|
|
|
|
| Net (decrease) / increase in cash and cash equivalents |
|
|
| (1,598) | 1,774 |
| Cash and cash equivalents at beginning of year |
|
|
| 1,756 | (18) |
|
|
|
|
|
|
|
| Cash and cash equivalents at end of year | 4 |
|
| 158 | 1,756 |
|
|
|
|
|
|
|
NOTES TO THE PRELIMINARY ANNOUNCEMENT
Year ended 31 March 2010
1. BASIS OF PREPARATION
The financial information does not constitute statutory financial statements as defined by section 435 of the Companies Act 2006 for the years ended 31 March 2010 or 2009.
The statutory financial statements for the year ended 31 March 2010 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 financial information for the year ended 31 March 2009 is derived from the statutory accounts for that year. The auditor reported on those statutory accounts which have been delivered to 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 237(2) or (3) of the Companies Act 1985.
This announcement is prepared applying International Financial Reporting Standards and IFRIC interpretations (`IFRS') as adopted by the European Union, with those parts of the Companies Act 2006 applicable to companies reporting under IFRS and using accounting policies that are consistent with those as stated in the previous year's financial statements.
The financial information contained within this preliminary announcement was approved by the board on 30 July 2010. 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.
2. LOSS PER SHARE
The calculation of the basic and diluted loss per share is based on the following data:
|
|
| 2010 £'000 | 2009 £'000 |
|
|
| Unaudited | Audited |
|
|
|
|
|
| Loss for the year attributable to equity holders of the company |
| (1,213) | (8,651) |
|
|
|
|
|
|
|
| 2010 '000 | 2009 '000 |
|
|
|
|
|
| Weighted average number of ordinary shares for the purposes of basic loss per share |
|
16,851 |
16,851 |
|
|
|
|
|
| Effect of dilutive potential ordinary shares |
| - | - |
|
|
|
|
|
| Weighted average number of ordinary shares for the purposes of diluted loss per share |
|
16,851 |
16,851 |
|
|
|
|
|
There is no dilutive effect of potential ordinary shares in either 2010 or 2009 as in both instances there is a loss for the year.
3. NOTES TO THE STATEMENT OF CASH FLOWS
|
|
| 2010 £'000 | 2009 £'000 |
|
|
| Unaudited | Audited |
|
|
|
|
|
| Loss before tax |
| (1,025) | (8,339) |
|
|
|
|
|
| Adjustments for: |
|
|
|
| Depreciation of property, plant and equipment |
| 113 | 187 |
| Loss on sale of property, plant and equipment |
| 102 | 14 |
| Loss on sale of investment properties |
| 9 | 290 |
| Gains on revaluation of investment properties |
| (666) | (1,295) |
| Impairment of available for sale investments |
| 250 | 900 |
| Share based payment charge |
| - | 124 |
| Finance costs (net) |
| 764 | 1,252 |
|
|
|
|
|
| Changes in working capital: |
|
|
|
| Decrease in trading properties |
| 1,540 | 11,118 |
| Decrease in trade and other receivables |
| 15 | 2,230 |
| Increase/(decrease) in trade and other payables |
| 698 | (683) |
|
|
|
|
|
| Net cash generated from operations |
| 1,800 | 5,798 |
|
|
|
|
|
4. CASH AND CASH EQUIVALENTS
|
| 2010 £'000 | 2009 £'000 |
|
| Unaudited | Audited |
|
|
|
|
| Cash and cash equivalents per balance sheet | 434 | 1,811 |
| Bank overdrafts | (276) | (55) |
|
|
|
|
| Cash and cash equivalents per cash flow statement | 158 | 1,756 |