Sutton Harbour Holdings Regulatory News (SUH)

26 May 2005 07:00

Sutton Harbour Holdings PLC26 May 2005 Sutton Harbour Holdings plc Preliminary announcement for the year ended March 31st 2005 The AIM listed transport operators, regeneration specialists and harbour group announce record preliminary results for the year ended March 31st 2005 "The group has made significant progress in the last year. Turnover, profits anddividends have increased substantially. We have put in place a number of schemesand projects from which further increases in profits can reasonably be expected.We remain very confident of our future." Ellen Winser, Chairman, Sutton Harbour Holdings plc HIGHLIGHTS - Operating profit up 49% to £2,534,000 (2004; £1,701,000) - Profit Before Tax up 49% to £2,392,000 (2004; £1,604,000) - Earnings per share up 47% to 6.81p (2004; 4.63p adjusted for one for one capitalisation issue August 2004) - Final dividend of 2.1 p per share making total dividend for year of 3.2p per share (2004; 2.75p adjusted for capitalisation issue) - Air Southwest exceeds profit expectations with network load factor of 74% - Major property and regeneration deals signed or in progress - Plymouth Fisheries and Marina showing continued profit growth Please visit our website at www.sutton-harbour.co.ukFull Chairman's Statement and Financial Statements follow. For further information and interviews please contact: Nigel Godefroy, Managing Director 01752 204186Natasha Gadsdon, Finance Director 01752 204186Ken Rees, Binns Winningtons 0117 9200092 Chairman's Statement I am very pleased to announce excellent results and an eighth successiveincrease in total dividends. In my interim statement last autumn, I reportedthat the company had worked to bring a number of regeneration projects to thedelivery stage. During the second half of the year we finalised a number ofprojects and have begun work on new schemes for delivery in the next twofinancial years or so. I also reported that our airline subsidiary, AirSouthwest, had performed well and in the second half year it has continued toexceed our expectations. I am delighted to report to shareholders that Operating Profit is up by 49% to£2,534,000 (2004: £1,701,000). Profit before taxation is also up by 49% to£2,392,000 (2004: £1,604,000). The increase in profitability in this year hasbeen achieved by better than expected results from Air Southwest within thetransport sector of our business. Marine activities have performed steadily withsatisfactory growth in profitability. The lower profits from Regeneration merelyreflect the timing of income recognition rather than any underlying trend. Thetotal tax charge on profits remains close to 30%, with the corporation taxcharge element reduced by the availability of capital allowances on the Dash 8aircraft purchased last autumn. Earnings per share have increased from 4.63p(adjusted for the one for one capitalisation issue in August 2004) to 6.81p, anincrease of 47%. At the half year stage we paid an interim dividend of 1.1p per ordinary share, a22% increase on the interim dividend paid in the previous year. This sharpincrease was partly to narrow the difference between the interim and finaldividend payments. In view of this year's good results a final dividend of 2.1pper ordinary share is proposed which represents an increase of 13.5%. This makesa total dividend of 3.2p (2004: 2.75p per ordinary share adjusted for the onefor one capitalisation issue), a total increase of 16.4%. The final dividendwill be payable on 9 September 2005 to shareholders on the register on 26 August2005. The shares are expected to go ex-dividend on 24 August 2005. In the first full year of trading Air Southwest has performed well and exceededour profit expectations for the period. We carried 228,000 passengers during theyear on our established Newquay-Plymouth-Gatwick route and our newPlymouth-Bristol-Manchester and Bristol-Plymouth-Jersey routes, giving a networkload factor of 74%. In addition to our two leased aircraft, we purchased a Dash8 aircraft last autumn. The availability of the third aircraft significantly cutoperating costs and in the second half of the year we largely avoided having tosub-charter aircraft to cover service and maintenance time of our fleet. InApril 2005, we started new routes: Newquay-Bristol-Leeds, Newquay-Dublin,Newquay-Manchester and Plymouth-Leeds. We purchased a further Dash 8 aircraft inMay 2005 to support these routes, bringing our fleet to four. Occupancy rates onour network of routes continue to be good and we are encouraged by the startmade on our new routes. It was recently reported that the Ministry of Defence plans to 'mothball' RAF StMawgan in 2007. As yet, we do not know how this will affect the civilianfacility of Newquay Cornwall Airport which operates from the same site. We areworking closely with Cornwall County Council and are confident that a wayforward can be found to retain the facility which is so vital to Cornwall and isan important airport in our network. Plymouth City Airport has benefited greatly from a 44% increase in passengernumbers with the new services operated by Air Southwest and by Air Wales. Toaccommodate airport users in more comfort we will be providing a new passengerlounge this summer. The Runway End Safety Area, to comply with Civil AviationAuthority regulations, is now complete. As already announced we recently concluded negotiations with Land SecuritiesTrillium to construct a 57,000 sq ft office close to the harbour which will belet to the Department for Work and Pensions. Construction has already begun onsite with completion scheduled for Spring 2006. Additionally, Barratt Homes areunderway with the construction of 108 flats on the eastern part of the samesite. The regeneration of this Moon Street site is part of the SuttonPartnership scheme run jointly by your company and Plymouth City Council. We are also undertaking a series of developments to the east of the harbourworking with Westbury Homes. The development at Harbour Avenue, which we startedin 2003, is now finished. The Shepherd's Wharf development will be completed inearly 2006. To grow our rent roll we will be purchasing commercial space withinboth these schemes. Finalisation of the Penrose site scheme, to be developed bySignpost Housing Association, is expected shortly and we will soon seek planningpermission for another mixed use development on the eastern side of SuttonHarbour. Construction of the first tranche of schemes by the LIFT company, ReSound(Health) Limited, in which we have a 37.2% interest, is well underway with thefirst healthcare facility due to open in September 2005. Our marine activities, which include Plymouth Fisheries and Sutton HarbourMarina have achieved growth in profitability this year. Landings at PlymouthFishmarket were up by 12% in auction value compared with the previous year andgood visitor numbers to the marina last summer resulted in a welcome boost torevenue. The marina is again full for the 2005/06 season and we have asignificant waiting list for berths. Now that Air Southwest is an established and successful part of our Group, I ampleased to announce that Malcolm Naylor will join the board on 1 June 2005.Malcolm, 57, who joined the Group in 2002, is the Chief Executive of AirSouthwest. He was formerly the Managing Director of Brymon Airways and has heldsenior positions at Kenya Airways and FlyBe. Duncan Godefroy retired as a non-executive director at the end of our financialyear having retired as Managing Director last September. Your board is verygrateful for his advice and assistance during this transitionary period and wewish him all the very best for a long and happy retirement. Many shareholdersshared in our delight when Duncan received an OBE for services to the communityin Plymouth in the January 2005 New Year's Honours, an award richly deserved fora career-long commitment to the regeneration of the city. As the Group grows and its business becomes more complex, the demands on theboard also increase. In recognition of this we decided to commission an externalevaluation of the board and to seek professional advice in identifying andselecting potential additional non-executive directors. This process is nownearing completion and I anticipate being able to announce at least one newnon-executive director within the next few weeks. Our staff numbers have continued to increase and we are most fortunate to employstaff with a diverse range of skills. We are very proud of our staff'sadaptability to the changing needs of the Group and their enthusiasm for our newactivities. The board is most grateful to them for their efforts. In the last year the Group has made significant progress. Not only haveturnover, profits and dividends increased substantially but we have put in placea number of schemes and projects from which further increases in profits canreasonably be expected. We remain very confident of our future. Ellen Winser Chairman Group Profit and Loss Account For the year ended 31 March 2005 2005 2004 £000 £000 ----------- ------------- Turnover 20,479 11,659 Cost of Sales (17,287) (9,233) ----------- ------------- Gross Profit 3,192 2,426 Net Operating Expenses (658) (725) ----------- ------------- Operating Profit 2,534 1,701 ----------- ------------- Profit on Ordinary Activities Before Interest 2,534 1,701 Interest Payable (142) (97) ----------- ------------- Profit on Ordinary Activities Before Taxation 2,392 1,604 Current Taxation (471) (384)Deferred Taxation (266) (97) ----------- ------------- Taxation on Profit on Ordinary Activities (737) (481) ----------- ------------- Profit on Ordinary Activities After Taxation andAttributable to Shareholders 1,655 1,123 Dividends (779) (668) ----------- ------------- Retained Profit for the Year 876 455 =========== ============= Earnings per Ordinary 25p share Basic 6.81p 4.63p* =========== ============= Diluted 6.76p 4.59p* =========== ============= All figures relate to continuing activities.* Adjusted for one for one capitalisation issue. Balance Sheets As at 31 March 2005 THE GROUP THE COMPANY 2005 2004 2005 2004 £000 £000 £000 £000 ------- ------- ------- -------Fixed AssetsIntangible Assets 646 681 - -Tangible Assets 35,404 31,210 - -Investments 70 70 2,217 2,217 ------- --------- ------- -------- 36,120 31,961 2,217 2,217 ------- --------- ------- --------Current AssetsStock 4,406 2,904 - -Debtors 3,793 2,339 7,343 7,248Cash at Bank and in Hand 4 4 8 8 ------- --------- ------- -------- 8,203 5,247 7,351 7,256 ------- --------- ------- -------- Creditors (amounts falling due within oneyear) (12,730) (6,870) (569) (511) ------- --------- ------- -------- Net Current (Liabilities)/ Assets (4,527) (1,623) 6,782 6,745 ------- --------- ------- -------- Total Assets less Current Liabilities 31,593 30,338 8,999 8,962 Creditors (amounts falling due after morethan one year) (46) (67) - - Provision for Liabilities and ChargesDeferred Taxation (1,915) (1,547) - - ------- --------- ------- -------- 29,632 28,724 8,999 8,962 ======= ========= ======= ======== Capital and ReservesCalled Up Share Capital 6,085 3,037 6,085 3,037Share Premium Account 2,796 5,812 2,796 5,812Revaluation Reserve 9,193 9,193 - -Investment Property Revaluation Reserve 6,983 6,983 - -Other Reserves 251 251 - -Profit and Loss Account 4,324 3,448 118 113 ------- --------- ------- -------- Equity Shareholders' Funds 29,632 28,724 8,999 8,962 ======= ========= ======= ======== These financial Statements were approved by the Board of Directors on 25 May2005 and were signed on its behalf by: Ellen WinserChairman Consolidated Cash Flow Statement For the year ended 31 March 2005 2005 2004 £000 £000 ------- -------CASH FLOW STATEMENT Net Cash Inflow from Operating Activities 1,376 4,852 Returns on Investments and Servicing of Finance (196) (175) Taxation (240) (561) Capital Expenditure (4,542) (1,765) Financing 31 - Equity Dividends Paid (717) (607) ------- ----------- (Decrease)/Increase in Cash in the Year (4,288) 1,744 ======= =========== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT (Decrease)/Increase in Cash in the Year (4,288) 1,744 Net Debt at the start of the year (970) (2,714) ------- ----------- Net Debt at the end of the year (5,258) (970) ======= =========== Consolidated Statement of Total Recognised Gains and Losses For the year ended 31 March 2005 2005 2004 £000 £000 ------ ------------ Unrealised surplus on revaluation of properties - 3,146 Reported Profit on Ordinary Activities after Taxation 1,655 1,123 ------ ------------ Total Recognised Gains and Losses relating to the year 1,655 4,269 ------ ------------ Total Gains and Losses recognised since the previous AnnualReport and Financial Statements 1,655 4,269 ====== ============ Note of Consolidated Historical Cost Profits and Losses For the year ended 31 March 2005 2005 2004 £000 £000 ------ ------------ Reported Profit on Ordinary Activities 2,392 1,604 Realisation of property revaluation deficits of previous - (23)years ------ ------------ Historical Cost Profit on Ordinary Activities Before 2,392 1,581Taxation ------ ------------ Historical Cost Profit for the year retained after Taxationand Dividends 876 432 ====== ============ Segmental Analysis For the year ended 31 March 2005 2005 2004 Turnover Cost of Sales Operating Turnover Cost of Sales Operating Profit Profit £000 £000 £000 £000 £000 £000 ------------------------------------ ------------------------------------MarineActivities 3,662 2,717 945 3,226 2,330 896 Regeneration 2,005 712 1,293 3,365 1,601 1,764 Transport 14,812 13,858 954 5,068 5,302 (234) -------- --------- -------- -------- -------- -------- 20,479 17,287 3,192 11,659 9,233 2,426 ======== ========= ======== ========Net OperatingExpenses (658) (725) -------- -------- OperatingProfit 2,534 1,701 InterestPayable (142) (97) ======== ========Profit onOrdinaryActivities 2,392 1,604BeforeTaxation ======== ======== Preliminary announcement extract - Announcement based on draft accounts The financial information set out in the announcement does not constitute theGroup's statutory accounts for the financial periods ended 31 March 2005 or2004. The financial information for the year ended 31 March 2004 is derived fromthe statutory accounts for that period which have been delivered to theRegistrar of Companies. The auditors have reported on the accounts for the yearended 31 March 2004; their report was unqualified and did not contain astatement under section 237(2) or (3) of the Companies Act 1985. The statutoryaccounts for the year ended 31 March 2005 will be finalised on the basis of thefinancial information presented by the directors in this preliminaryannouncement and will be delivered to the Registrar of Companies following theGroup's annual general meeting. This information is provided by RNS The company news service from the London Stock Exchange