7 Dec 2009 07:00
SAFELAND PLC
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 September 2009
CHAIRMAN'S STATEMENT
Since my statement that accompanied the accounts for the year ended 31 March 2009 there has been an improvement in market conditions and we are starting to identify a number of potential trading opportunities. However, this is very much a recent improvement and, as such, has had no effect on these results for the six months ended 30 September 2009.
I am therefore reporting a loss in the first half of £897,000 (2008: loss of £2,109,000). The resultant loss per share is 5.32p (2008: loss per share 12.52p) and the Net Asset Value per share is 58p compared to 63p as at 31 March 2009. The Board has reviewed the assets of the Group and does not consider that there is a need for any further write downs at this time. The Board does not declare an interim dividend.
In addition to constantly looking for trading opportunities, we have also put in place a number of cost cutting exercises. These include moving our head office to smaller premises in Hampstead Garden Suburb and disposing of our old offices in East Finchley.
Whilst I have mentioned that there has recently been an overall improvement in market conditions, the Board believes that this is unlikely to have a material impact on the Group's results until the year ending 31 March 2011. Safeland retains the support ofits banks and professionals and is therefore well positioned to take advantage of these changes as they occur and I therefore look forward to the future with confidence.
Raymond Lipman
Chairman
Contacts:
Paul Davis, Finance Director, Safeland Plc: 0208 815 1600
John Prior/Tom Griffiths, Arbuthnot Securities Limited: 0207 012 2000
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 September 2009
| Continuing Operations | Notes | Neither audited nor reviewed Six months ended 30 September 2009 £'000 | Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Audited Year ended 31 March 2009 £'000 |
| Revenue | 6,156 | 6,388 | 15,115 | |
| Cost of sales | (4,780) | (5,644) | (18,472) | |
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| Gross profit/(loss) | 1,376 | 744 | (3,357) | |
| Sales and distribution costs | (145) | (85) | (464) | |
| Administrative expenses | (2,206) | (2,001) | (4,114) | |
| Other operating income | 350 | 477 | 758 | |
| Loss on disposal of property, plant and equipment | (2) | (1) | (14) | |
| Gain on revaluation of investment properties | - | - | 1,295 | |
| Loss on disposal of investment properties | (7) | - | (290) | |
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| Operating loss | (634) | (866) | (6,186) | |
| Impairment of available for sale investments | - | (500) | (900) | |
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| Loss before interest | (634) | (1,366) | (7,086) | |
| Finance income | 17 | 32 | 84 | |
| Finance costs | (280) | (775) | (1,337) | |
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| Loss before tax | (897) | (2,109) | (8,339) | |
| Tax | - | - | (312) | |
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| Loss for the financial period attributable to equity holders of the parent company | (897) | (2,109) | (8,651) | |
| Other comprehensive income, net of tax | ||||
| Fair value gains/ (losses) on available for sale investments | 2 | 26 | (10) | |
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| Total comprehensive income for the period attributable to equity holders of the parent company | (895) | (2,083) | (8,661) | |
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| Loss per share attributable to equity holders of the parent company | ||||
| Basic loss per share | 2 | (5.32)p | (12.52)p | (51.33)p |
| Diluted loss per share | 2 | (5.32)p | (12.52)p | (51.33)p |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 September 2009
| Neither audited nor reviewed 30 September 2009 £'000 | Neither audited nor reviewed 30 September 2008 £'000 | Audited 31 March 2009 £'000 | |
| Non-current assets | |||
| Property, plant and equipment | 1,923 | 2,129 | 2,052 |
| Investment properties | 2,796 | 2,560 | 3,046 |
| Available-for-sale investments | 525 | 714 | 273 |
| Deferred tax assets | - | 104 | - |
| Total non-current assets | 5,244 | 5,507 | 5,371 |
| Current assets | |||
| Trading properties | 18,955 | 33,555 | 22,272 |
| Trade and other receivables | 429 | 1,222 | 427 |
| Current tax receivable | - | 257 | - |
| Cash and cash equivalents | 794 | 673 | 1,811 |
| Total current assets | 20,178 | 35,707 | 24,510 |
| Total assets | 25,422 | 41,214 | 29,881 |
| Current liabilities | |||
| Bank loans and overdrafts | 14,439 | 20,558 | 18,179 |
| Trade and other payables | 678 | 975 | 572 |
| Current tax liabilities | 23 | - | 15 |
| Total current liabilities | 15,140 | 21,533 | 18,766 |
| Non-current liabilities | |||
| Bank loans | - | 2,389 | - |
| Deferred tax liabilities | 466 | 146 | 466 |
| Total non-current liabilities | 466 | 2,535 | 466 |
| Total liabilities | 15,606 | 24,068 | 19,232 |
| Net assets | 9,816 | 17,146 | 10,649 |
| Equity | |||
| Share capital | 843 | 843 | 843 |
| Share premium account | 5,351 | 5,351 | 5,351 |
| Capital redemption reserve | 847 | 847 | 847 |
| Share based payment reserve | 272 | 129 | 210 |
| Investment revaluation reserve | 5 | 39 | 3 |
| Retained earnings | 2,498 | 9,937 | 3,395 |
| Total equity attributable to equity holders of the parent Company | 9,816 | 17,146 | 10,649 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 September 2009
| Notes | Neither audited nor reviewed Six months ended 30 September 2009 £'000 | Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Audited Year ended 31 March 2009 £'000 | |
| Operating activities | ||||
| Net cash inflow from operations | 4 | 2,959 | 103 | 5,798 |
| Interest paid | (280) | (608) | (1,337) | |
| Tax received | 8 | 26 | 416 | |
| Net cash inflow / (outflow) from operating activities | 2,687 | (479) | 4,877 | |
| Investing activities | ||||
| Interest received | 17 | 32 | 68 | |
| Dividends received | - | - | 16 | |
| Purchase of investment properties | - | (509) | (511) | |
| Purchase of property, plant and equipment | (154) | (106) | (139) | |
| Purchase of available for sale investments | (250) | (100) | (100) | |
| Proceeds from sale of property, plant and equipment | 180 | 48 | 64 | |
| Proceeds from sale of investment properties | 250 | 3 | 524 | |
| Net cash inflow / (outflow) from investing activities | 43 | (632) | (78) | |
| Financing activities | ||||
| New loans | 1,000 | 6,988 | 9,439 | |
| Loan repayments | (4,694) | (5,721) | (12,464) | |
| Net cash (outflow) / inflow from financing activities | (3,694) | 1,267 | (3,025) | |
| Net (decrease) / increase in cash and cash equivalents | (964) | 156 | 1,774 | |
| Cash and cash equivalents at beginning of period | 1,756 | (18) | (18) | |
| Cash and cash equivalents at end of period | 792 | 138 | 1,756 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 September 2009
| 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 | |
| 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 |
| At 30 September 2009 | 843 | 5,351 | 847 | 272 | 5 | 2,498 | 9,816 |
| At 1 April 2008 | 843 | 5,351 | 847 | 86 | 13 | 12,046 | 19,186 |
| Loss for the period | - | - | - | - | - | (2,109) | (2,109) |
| Fair value gains on available for sale investments | - | - | - | - | 26 | - | 26 |
| Share option charge | - | - | - | 43 | - | - | 43 |
| At 30 September 2008 | 843 | 5,351 | 847 | 129 | 39 | 9,937 | 17,146 |
| At 1 April 2008 | 843 | 5,351 | 847 | 86 | 13 | 12,046 | 19,186 |
| Loss for the year | - | - | - | - | - | (8,651) | (8,651) |
| Fair value losses on available for sale investments | - | - | - | - | (10) | - | (10) |
| Share option charge | - | - | - | 124 | - | - | 124 |
| At 31 March 2009 | 843 | 5,351 | 847 | 210 | 3 | 3,395 | 10,649 |
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 7 December 2009.
The results for the year ended 31 March 2009 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 2009 and 2008 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 2010 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.
The presentation of the primary financial statements has been modified in order to comply with IAS 1 (revised). This revised standard has no impact on the reported results or financial position of the group.
2. Loss per share
| Neither audited nor reviewed Six months ended 30 September 2009 £'000 | Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Audited Year ended 31 March 2009 £'000 | |
| Loss for the period attributable to equity holders of the company | (897) | (2,109) | (8,651) |
| Weighted average number of ordinary shares for the purposes of basic loss per share | 16,851 | 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 | 16,851 |
There is no dilutive effect of potential ordinary shares in either the six months to September 2009 or 2008 as in both 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 2009 £'000 | Neither audited nor reviewed Six months ended 30 September 2008 £'000 | Audited Year ended 31 March 2009 £'000 | |
| Loss before tax from continuing operations | (897) | (2,109) | (8,339) |
| Adjustments for: | |||
| Depreciation of property, plant and equipment | 101 | 104 | 187 |
| Loss on sale of property, plant and equipment | 2 | 2 | 14 |
| Loss on sale of investment properties | 7 | - | 290 |
| Gains on revaluation of investment properties | - | - | (1,295) |
| Impairment of available for sale investments | - | 500 | 900 |
| Share based payment charge | 62 | 43 | 124 |
| Finance costs (net) | 263 | 743 | 1,252 |
| Operating cash flows before movements in working capital | (462) | (717) | (6,867) |
| Changes in working capital: | |||
| Decrease / (increase) in trading properties | 3,317 | (165) | 11,118 |
| (Increase) / decrease in trade and other receivables | (2) | 1,435 | 2,230 |
| Increase / (decrease) in trade and other payables | 106 | (450) | (683) |
| Net cash inflow from operations | 2,959 | 103 | 5,798 |
5. Copies of this announcement are available on the company's website www.safeland.co.uk.