Sutton Harbour Holdings Regulatory News (SUH)

25 May 2006 07:02

Sutton Harbour Holdings PLC25 May 2006 SUTTON HARBOUR HOLDINGS PLC Preliminary Results PROFITING FROM A BALANCED GROWTH STRATEGY The AIM listed transport and regeneration specialist announces record results for the year ended March 31st 2006. "We anticipate that the company will continue to make steady progress in thecurrent year ... and will continue our strategy of balancing our transport andregeneration activities" Ellen Winser, Chairman, Sutton Harbour Holdings plc HIGHLIGHTS •Operating profit up 43% to £3.61 million ( 2005: £2.53 million ) •Profit before tax up 44% to £3.44 million ( 2005: £2.39 million) •Earnings per share up 45% to 9.9p per share ( 2005: 6.81p per share) •Proposed final dividend 2.4p per share making total for year of 3.8p per share ( 2005: 3.2p) an increase of 18.75% €57,000 sq feet landmark Plymouth office building completed and to be occupied by the Department for Work and Pensions. •Several prestige residential schemes completed; first tranche of primary healthcare facility developments now nearing completion. •A very good year for Air Southwest with passenger numbers rising to a record 286,000 (2005: 228,000); two new aircraft acquired and new routes introduced since year end. Full Chairman's Statement and accounts are attached. Or visit our website: www.sutton-harbour.co.uk For further information or interviews please contact: Nigel Godefroy - Managing Director, Sutton Harbour Holdings plc, 01752 204186 Ken Rees/Paul Vann - Winningtons Financial PR, 0117 9200092 or 07802 466567 Sutton Harbour Holdings plc - Preliminary Results - 25 May 2006 Chairman's Statement During the past year your Company has experienced a period of significantgrowth. This follows a decade of incremental profit growth and I am delighted toannounce an increase in total dividends for the ninth successive year. We arepleased with the growth in profits from regeneration activities, as we continueour strategy to balance this with results from our transport activities, and thesuccess of new routes introduced by Air Southwest have made a significantcontribution to good performance. Operating Profit is up 43% to £3.619m (2005: £2.534m), on top of a 49% increasethe previous year. Profit before Tax has increased by 44% to £3.443m from£2.392m. In my interim statement I reported a sharp increase in profitsfollowing an exceptionally strong performance by Air Southwest over the summerseason. We did, however, anticipate a slowdown over the winter months whichproved correct and high fuel costs have continued. Going forward, we do notexpect new routes to mature as quickly as previous routes we have started andregeneration profits continue to be irregular. Earnings per share have increasedfrom 6.81p per share to 9.90p per share, an increase of 45%. Net assets on theBalance Sheet have increased following an internal revaluation of propertiesundertaken as at 31 March 2006. An interim dividend of 1.4p per share was paid in January 2006 followingannouncement of our half year results. Your Board proposes a final dividend of2.4p making a total dividend of 3.8p per share for the year, an increase of 0.6pper share or 18.75%, compared with last year. The final dividend will be payableon 8 September 2006 to shareholders on the register on 25 August 2006. Theshares are expected to go ex-dividend on 23 August 2006. Over the last year we have expanded the regeneration sector of the businesswhich includes property development, property investment and estate management.We have just completed a 57,000 sq ft office building in central Plymouth to beoccupied by the Department for Works and Pensions. This has been a majorinvestment for the company which will provide quality covenant rentals. Separatefinancing for this scheme has been secured. On the adjacent site, the BarrattHomes scheme to construct 109 flats is nearing completion and we will purchasethe ground floor space to let to commercial tenants. The Shepherd's Wharf residential development is now complete and the Penrosescheme for affordable homes will be finished this Autumn. The harbourside groundfloors of these new developments will also be retained for letting to commercialtenants. We have other schemes to the east of the Sutton Harbour at advanced stages ofplanning and we are pleased to be working with Exeter City Council on amixed-use scheme alongside the canal in Exeter. We continue to bid for otherregeneration projects in the region and to work with Plymouth City Council onfuture Sutton Partnership schemes. The first tranche of healthcare facility developments in Plymouth undertaken byReSound (Health) Limited, of which your Company holds a 37.2% interest, isalmost complete. The next tranche of work is awaiting final approval and we hopethis will be underway within the current financial year. Additionally, theCompany is bidding for other public/private partnership schemes elsewhere in thecountry and intends to build a portfolio of such investments. Air Southwest has now been trading for two and a half years. Adding to our routenetwork which includes services to Gatwick, Manchester, Jersey and Bristol westarted new routes to Leeds and Dublin in March 2005 and both have provedpopular in their first year. In the year just ended we carried 286,000passengers and had a network load factor of 71% (2005: 228,000 passengers, 74%load factor). Following the acquisition of our fifth Dash 8-300 aircraft inMarch 2006, on 10 April we launched new routes:Newquay- Cardiff-Manchester andBristol-Norwich. It is too early to report on the performance of these routesbut we are mindful of the costs associated with the launch and like manybusinesses, we are also feeling the effects of rising fuel costs which have notabated yet. Inevitably these various factors will impact on the results of AirSouthwest in the current year and there remains uncertainty over the future ofRAF St Mawgan, as previously reported. Plymouth City Airport continues to provide facilities to commercial airlineoperators, the military and private aviation. Air Southwest is currently theonly scheduled service commercial operator using the airport following thewithdrawal of Air Wales in February 2006. Our Marine Activities continue to provide steady revenues for the group and thefacilities have operated at capacity for several years. To accommodate demandand to maintain high standard facilities for berth-holders we have justcompleted the construction of a new 84 berth marina to the western side ofSutton Harbour and have upgraded the berth-holder amenities. Virtually all thenew berths have already been let. With scallop fishing becoming an ever moreimportant fishery to Plymouth, we have been pleased to accommodate a majorscalloping business on the fishmarket complex. The sharp increases in fuel pricehave impacted the fishing industry but Plymouth has maintained its market sharewith good auction prices supported by the remote electronic auction system andrange of services offered to fishermen. Both the turnover and cost of sales from Marine Activities rose sharply duringthe year reflecting the increased buying and selling prices of fuel. The slightfall in profitability from Marine Activities in the year follows the closure ofthe boatyard services business, an activity which could no longer be justifiedon commercial grounds. The underlying profit from this sector shows a smallincrease. I have previously reported that we had sought professional advice in identifyingand selecting potential non-executive directors. Last July, Michael Knightjoined the Board and the process was completed following the appointment ofAntony Everett on 1 January 2006. Our staff numbers have continued to grow and they have adapted well to thechanging size and diversity of the Group. Enthusiasm for the development of ouractivities was shown in the excellent take up of the new SAYE share option planoffered to staff in December 2005. We are very appreciative of the efforts ofall our employees and their commitment to bringing our wide ranging aspirationsto fruition. The last two years have been an exciting time for the Company during which timeprofits have grown very quickly. We have a number of regeneration schemes in thepipeline and we are working to develop our transport activities. We anticipatethat the company will continue to make steady progress in the current year, butat a more modest pace as we consolidate that which has recently been achieved.We remain mindful of the business risks inherent in all our activities and willcontinue our strategy of balancing our transport and regeneration activities tominimise these risks. After two exceptionally strong years the foundations havebeen laid for continued progress. Your Board remains confident for the group'sprospects in the coming year. Ellen Winser Chairman Group Profit and Loss Account for the year ended 31 March 2006 2006 2005 £'000 *£'000 Turnover 27,218 20,479 Cost of Sales (22,769) (17,287) -------- --------Gross Profit 4,449 3,192 Net Operating Expenses (830) (658) -------- --------Operating Profit 3,619 2,534 -------- --------Profit on Ordinary Activities Before Interest 3,619 2,534 Interest Receivable 106 11 Interest Payable (282) (153) -------- --------Profit on Ordinary Activities 3,443 2,392Before Taxation Current Taxation (552) (471) Deferred Taxation (481) (266) -------- --------Taxation on Profit on Ordinary Activities (1033) (737) -------- --------Profit on Ordinary Activities 2,410 1,655After Taxation and Attributableto Shareholders Dividends * (852) (718) -------- --------Retained Profit for the Year 1,558 937 ======== ======== Earnings per Ordinary 25p share (Basic) 9.90p 6.81pEarnings per Ordinary 25p share (Diluted) 9.79p 6.76p All figures relate to continuing activities.* As restated for prior year adjustment. Balance Sheets as at 31 March 2006 THE GROUP THE COMPANY 2006 2005 2006 2005 £'000 *£'000 £'000 *£'000 Fixed Assets Intangible Assets 611 646 - -Tangible Assets 56,584 35,404 - -Investments 75 70 2,217 2,217 -------- -------- -------- ------- 57,270 36,120 2,217 2,217 -------- -------- -------- ------- Current Assets Stock 3,145 4,406 - -Debtors 4,939 3,793 6,893 6,832Cash at Bank and in Hand 4 4 13 8 -------- -------- -------- ------- 8,088 8,203 6,906 6,840 -------- -------- -------- ------- Creditors (14,109) (12,219) (78) (58)(amounts falling due within oneyear) -------- -------- -------- ------- Net Current (Liabilities)/Assets comprising: Net Current(Liabilities)/Assets (6,952) (4,385) 6,057 6,527Debtors due after more than 931 369 771 255one year -------- -------- -------- ------- (6,021) (4,016) 6,828 6,782 -------- -------- -------- ------- Total Assets less Current 51,249 32,104 9,045 8,999Liabilities Creditors (10,835) (46) - -(amounts falling due after morethan one year) Provisions for Liabilities (2,396) (1,915) - -and Charges Deferred Taxation ------- -------- -------- ------- 38,018 30,143 9,045 8,999 ======= ======== ======== ======= Capital and Reserves Called Up Share Capital 6,086 6,085 6,086 6,085Share Premium Account 2,797 2,796 2,797 2,796Revaluation Reserve 13,056 9,193 - -Investment Property Revaluation Reserve 9,435 6,983 - -Other Reserves 251 251 - -Profit and Loss Account 6,393 4,835 162 118 ------- ------- ------- ------- Equity Shareholders' Funds 38,018 30,143 9,045 8,999 ======= ======= ======= ======= * As restated for prior year adjustment. These Financial Statements were approved by the Board of Directors on 24 May2006 and were signed on its behalf by: Ellen Winser, Chairman. Consolidated Cash Flow Statement for the year ended 31 March 2006 2006 2005CASH FLOW STATEMENT £'000 £'000 Net Cash Inflow from Operating Activities 4,144 1,376Returns on Investments and Servicing of Finance (522) (196)Taxation (465) (240)Capital Expenditure (13,976) (4,542)Equity Dividends Paid (852) (717)Financing 11,560 31 -------- -------- (Decrease) in Cash in the Year (111) (4,288) ======== ======== RECONCILIATION OF NET CASH FLOW TOMOVEMENT IN NET DEBT (Decrease) in Cash in the Year (111) (4,288) New loans (11,558) - -------- --------Movement in net debt in the year (11,669) (4,288) Net Debt at the start of the year (5,258) (970) -------- --------Net Debt at the end of the year (16,927) (5,258) ======== ======== Consolidated Statement of Total Recognised Gains and Losses for the year ended 31 March 2006 2006 2005 £'000 £'000 Unrealised surplus on revaluation of properties 6,315 - Reported Profit on Ordinary Activities after 2,410 1,655Taxation --------- ----------Total Recognised Gains and Losses relating to the 8,725 1,655year --------- ----------Total Gains and Losses recognised since the 8,725 1,655previous Annual Report and Financial Statements ========= ========== Note of Consolidated Historical Cost Profits and Losses for the year ended 31 March 2006 2006 2005 £'000 *£'000 Reported Profit on Ordinary Activities 3,443 2,392Before Taxation -------- ---------Historical Cost Profit on Ordinary Activities Before 3,443 2,392Taxation ======== =========Historical Cost Profit for the year retained after 1,558 937Taxation and Dividends ======== =========* As restated for prior year adjustment. Segmental Analysis 2006 2005 Turnover Cost of Sales Operating Turnover Cost of Sales Operating Profit Profit £'000 £'000 £'000 £'000 £'000 £'000 -------- -------- --------- ------- -------- --------- Regeneration 3,097 1,667 1,430 2,005 712 1,293Transport 19,550 17,427 2,123 14,812 13,858 954Marine 4,571 3,675 896 3,662 2,717 945Activities -------- -------- --------- ------- -------- --------- 27,218 22,769 4,449 20,479 17,287 3,192 Net (830) (658)Operating Expenses --------- ---------Operating 3,619 2,534Profit Net Interest (176) (142)Payable --------- ---------Profit on 3,443 2,392OrdinaryActivities BeforeTaxation ========= ========= Segmental Analysis has been grouped under three main headings which cover thethree principal activities of the group. Marine activities includes FishingRelated and Marine Leisure activities. Regeneration includes Property andrelated activities. Transport includes Airport Operations and AirlineOperations. The financial information set out above does not constitute the Group'sstatutory accounts for the years ended 31 March 2006 or 2005 but is derived fromthose accounts. Statutory accounts for 2005 have been delivered to theRegistrar of Companies, and those for 2006 will be delivered following theGroup's Annual General Meeting. The auditors have reported on those accounts;their reports were unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange