Strip Tinning Regulatory News (STG)

25 Apr 2005 07:00

Solitaire Group PLC25 April 2005 25 April 2005 Solitaire Group Plc Solitaire is a leading national provider of property management services Preliminary results for the year ended 31 December 2004 "Another busy and exciting year" • Turnover - increased by 33 per cent. to £9.1 million • Profit before tax amortisation and exceptional costs - up 30 per cent to 2.7 million • Earnings per share before amortisation and exceptional costs - up 21 percent to 38.3p • Organic growth - from the management of new-build properties continues to increase strongly • Forward visibility - The number of new developments where the group has contracts to manage, and will receive income in future years, continues to grow apace • Freehold Managers PLC - (which was acquired in September 2003) provided its first full year's contribution to the group and was in line with expectations • New regional office - Southampton regional office opened at the start of 2005 to manage fast expanding business in the South and South West of England George Brutton, Chairman of Solitaire Group Plc, commented: "I am very pleased to report another busy and exciting year for Solitaire withturnover and pre-tax profits significantly increased. This success is driven bythe continued organic growth from our property management operations and alsothe inclusion for the first time of a full year's income from Freehold ManagersPLC. We are trading in line with our expectations and I look forward to anothersuccessful year" For further information:Graham Shapiro, Joint Managing Tel: 020 8364 8497DirectorSolitaire Group PlcTarquin Edwards / Chris Steele 07879 458 364 / 07979 604 687 orBinns & Co PR Tel: 020 7786 9600 Chairman's statement I am very pleased to report another busy and exciting year for Solitaire withturnover and pre-tax profits significantly increased. This success is driven bythe continued organic growth from our property management operations and also bythe inclusion for the first time of a full year's contribution from FreeholdManagers PLC (FMP). Results Turnover increased by 32.8 per cent to £9.1 million (2003: £6.9 million) andincludes 12 months contribution from FMP (2003: 3 months). The operating profit for the year ended 31 December 2004, before writing offexceptional costs, goodwill amortisation and interest, increased by 37.7 percent to £3.1 million (2003: £2.3 million). Exceptional costs include a provisionof £70,000 for future costs relating to Moss Kaye Pembertons' move to newoffices and a small transfer to reserves of £3,000 relating to the current andfuture exercise of share options necessary under UITF 17. Accordingly, after exceptional costs, interest and goodwill amortisation,pre-tax profits were up by £503,000 or 29.9 per cent to £2.2 million (2003: £1.7million) and earnings per share under FRS 14 were up by 19.7 per cent to 28.5p(2003: 23.8p). Adjusted earnings per share, before exceptional costs, goodwillamortisation and after interest were 38.3p (2003: 31.6p) up 21.2 per cent. The board is recommending the payment of an increased final dividend of 8.7p(2003: 8.0p) per share making a total for the year of 12.3p (2003: 11.3p), anincrease of 8.8 per cent over 2003. The final dividend will be paid on 29 June2005 to shareholders on the register on 6 May 2005. Business development FMP was acquired towards the end of 2003 and has shown encouraging and steadydevelopment in line with the board's expectations. In addition, the group'spipeline of property management business has increased again to record levels.Income from this pipeline of new developments will only commence when thedevelopments are completed and sold by the developers over the next 18 months totwo years. Our contracted future management business is substantial and theboard recognises the need for continual investment to support this growth andalso to comply with the requirements of the Commonhold & Leasehold Reform Act2002. With this in mind we continue to monitor our costs closely and endeavourto keep a proper balance between income and expenditure. During 2004 we extended the office space we occupy at our head office in Barnetand also at our branch office in Leicester to deal with the increase in businesswe have experienced. Just after the year end we opened a new regional office in Southampton to manageour fast expanding portfolio of properties in the South and South West ofEngland. We have had a presence in the South and South West of England andparticularly on the South Coast for quite some time now, and the opening of ourSouthampton office reflects the growth in new business which we have experiencedand our desire to better serve our developer clients and residents in this area.Based on our experience with our other regional office in Leicester, it isexpected that this new office will attract substantial inflows of newinstructions. Both Pembertons Residential (Pembertons) and Moss Kaye Pembertons (MKP) hadoutgrown their existing accommodation and I am pleased to report that in January2005 they acquired new offices in Swiss Cottage, London which will enable themto grow their business over the coming years. People The continuing growth of our core property management business has led to anincrease in staff to support the needs of both residents and our developerclients. We continue to seek out appropriately qualified and motivated people towhom we provide appropriate training wherever necessary. Current trading and prospects The progress made by our property management operations during 2004 has beenexcellent with a major increase in both revenues and in the new businesspipeline and in the absence of an unforeseen deterioration in the volume ofresidential sales by our developer clients, we look forward to our propertymanagement business continuing to achieve steady growth during 2005. Inaddition, we anticipate that FMP will continue to provide strong core support togroup earnings. As in previous years we continue to look for acquisitions that will provideincreased shareholder value and which will integrate with our existing corebusinesses. We are, however, focused on organic growth and continue to invest inall our businesses on an ongoing basis. I am pleased to report that current trading is in line with our expectations andI look forward to another successful year. George Brutton FRICS Chairman25 April 2005 Consolidated profit and loss accountYear ended 31 December 2004 2003 Notes £'000 £'000 Turnover 9,105 6,855 Operating expensesExternal fees and commissions 325 209Other administration expenses 5,680 4,395 3,100 2,251Amortisation of goodwill 410 189Exceptional costs 2 73 177 Operating profit 2,617 1,885 Net interest paid (432) (203) Profit on ordinary activities before taxation 2,185 1,682 Taxation on ordinary activities 784 567 Profit on ordinary activities after taxation 1,401 1,115 Dividends 3 609 552 Retained profit for the year 792 563 Basic and diluted earnings per share 4 28.5p 23.8pAdjustment for amortisation 8.3p 4.0pAdjustment for exceptional costs 1.5p 3.8p Adjusted earnings per share 4 38.3p 31.6p Consolidated statement of total recognised gains and losses 2004 2003 £'000 £'000 Profit for the year 1,401 1,115Revaluation of freehold reversions 2,000 - Total recognised gains for the year 3,401 1,115 All amounts relate to continuing activities. Consolidated balance sheet31 December Group Company 2004 2003 2004 2003 £'000 £'000 £'000 £'000 Fixed assetsIntangible assets 7,149 7,554 - -Tangible assetsOffice equipment 485 464 - -Freehold land and buildings 261 261 - -Freehold reversions 16,014 12,743 - -Investments - - 9,527 9,522 16,760 13,468 9,527 9,522 23,909 21,022 9,527 9,522 Current assetsDebtors 4,051 2,447 5,803 4,021Cash and deposits 391 681 - - 4,442 3,128 5,803 4,021 Creditors: amounts fallingdue within one yearBorrowings 2,299 1,573 1,968 1,247Other liabilities 2,336 1,942 983 938 4,635 3,515 2,951 2,185Net current (liabilities) / (193) (387) 2,852 1,836assets Total assets less current 23,716 20,635 12,379 11,358liabilities Creditors: amounts fallingdue after more than oneyearBorrowings 6,460 5,467 5,462 4,455Other liabilities 610 1,550 610 1,550 7,070 7,017 6,072 6,005Provisions for liabilitiesand chargesDeferred taxation 20 - - - Net Assets 16,626 13,618 6,307 5,353 Capital and reservesCalled-up share capital 495 489 495 489Share premium account 3,825 3,615 3,825 3,615Revaluation reserve 8,731 6,731 - -Profit and loss account 3,575 2,783 1,987 1,249 Equity shareholders' funds 16,626 13,618 6,307 5,353 Consolidated cash flow statementYear ended 31 December 2004 2003 £'000 £'000 Cash flow from operating activities 2,033 1,720 Returns on investments and servicing of financeInterest received 21 12Interest paid (453) (215) Net cash outflow from returns on investment and (432) (203)servicing of finance UK corporation tax (801) (636) Capital expenditure and financial investmentOffice equipment (239) (380)Purchase of freehold reversions (1,303) (1,004)Disposal of freehold reversions 32 - Net cash outflow from capital expenditure and (1,510) (1,384)financial investment Deferred consideration of acquisition of (779) (3,056)subsidiaryEquity dividends paid (570) (497) Cash outflow before use of liquid resources and (2,059) (4,056)financing Management of liquid resources and financingFinancing 1,128 4,581 (Decrease) / increase in cash in the year (931) 525 2004 2003Reconciliation of net cash flow to movement in £'000 £'000net debt (Decrease) / increase in cash in the year (931) 525Cash inflow from increased debt (1,078) (4,416) Movement in net debt (2,009) (3,891)Non cash deferred taxation provision (20) -Opening net debt (6,359) (2,468) Closing net debt (8,388) (6,359) SOLITAIRE GROUP Plc Notes 1 Basis of preparation The results and balance sheet incorporate the audited results of Solitaire Group Plc and all its subsidiaries made up to 31 December 2004 and have been prepared on a basis consistent with the audited financial statements for the year ended 31 December 2003. 2 Exceptional costs Exceptional items include a provision of £70,000 for future costs relating to Moss Kaye Pembertons' move to new offices and a transfer to reserves of £3,000 relating to the current and future exercise of share options necessary under UITF 17. Some of these costs are not an allowable expense in the calculation of the tax charge for the year. 3 Dividends During the year the company paid an interim dividend of 3.6p (2003: 3.3p) per share. The company has proposed a final dividend of 8.7p (2003: 8.0p) per share making a total of 12.3p (2003: 11.3p) for the year. 4 Earnings per share The calculation of earnings per share for the year ended 31 December 2004 is based on earnings of £1,401,000 (2003: £1,115,000) and a weighted average number of shares in issue of 4,913,523 (2003: 4,686,880). There is no significant difference between basic and diluted earnings per share in 2004 and 2003. The adjusted earnings per share are based on the profits for the year after tax adjusted for amortisation of goodwill and development costs and exceptional costs. 5 Results The results for the year ended 31 December 2004 have been extracted from the audited financial statements, which will shortly be sent to shareholders and filed with the Registrar of Companies. The auditor's report on these accounts was unqualified. This information is provided by RNS The company news service from the London Stock Exchange