Sutton Harbour Holdings Regulatory News (SUH)

21 Nov 2005 07:00

Sutton Harbour Holdings PLC21 November 2005 SUTTON HARBOUR HOLDINGS PLC INTERIM RESULTS SUTTON HARBOUR DELIVERS 150% GROWTH IN PRE-TAX PROFITS AT THE HALF YEAR Sutton Harbour Holdings plc, the AIM listed transport and regeneration groupannounces record results and an increased dividend for the six months ended 30th September 2005. "The company has grown quickly in the recent past and we are deliberatelydeveloping a mix of business activities designed to spread risk while providinga platform for yet more growth. Our expectations remain optimistic."Ellen Winser, Chairman, Sutton Harbour Holdings plc. HIGHLIGHTS • Interim Operating Profit up 152% to £2.089 million (2004: £828,000). • Pre-tax profit up 150% to £1.96 million (2004: £783,000). • Earnings per share up 150% to 5.64p per share (2004: 2.26p) • Interim Dividend up 27% to 1.4p per share. • Air Southwest performing strongly with passenger numbers sharply up, new routes opening and a new aircraft being acquired. • Major office building for Department for Work and Pensions now under construction with completion scheduled for Summer 2006. • New healthcare facility built under 'LIFT' public private partnership is now open with other schemes in prospect. • Plymouth Fisheries and Sutton Harbour Marina trading well. Full text of Chairman's statement and accounts tables attachedor visit our website: www.sutton-harbour.co.uk For further information please contact:Nigel Godefroy, Managing Director 01752 204186Natasha Gadsdon, Finance Director 01752 204186Paul Vann/Ken Rees, Winningtons 0117 9200092 or 07802 466567 SUTTON HARBOUR HOLDINGS PLC INTERIM RESULTS Chairman's Statement Your company has continued to grow very quickly both in terms of turnover andprofitability during the first half of the current financial year. Air Southwesthascontributed most to this growth and has traded well during the period. There isgood progress to report on our regeneration projects and we are in the processof bidding for a number of private/public partnership schemes. Our longer termobjective is to achieve a more even balance between our transport andregeneration sectors in order to maintain the overall risk profile of the group. I am pleased to report that operating profit for the first half of the year at£2.089m is up 152% on the £828,000 recorded in the corresponding period a yearago. Pretax profit at £1.96m is also 150% higher (£783,000 in 2004) and earningsper share are 150% ahead of last year (2.26p per share) at 5.64p per share.Total debt has increased because we are financing the cost of the Moon Streetoffice development for the Department for Works and Pensions and have paid foradditional aircraft. Nevertheless total gearing remains relatively modest at28%. Last year we paid a total dividend of 3.2p per share, made up of an interim 1.1pper share and a final of 2.1p per share. Last year's interim was raised by morethan the final in order to reduce the disparity between the two payments and your Board wishes to continue that process. We have therefore decided to pay an interim dividend of 1.4p per share, an increase of 27% on last year's interim dividend, but shareholders should not assume a similar increase in this year's final. The dividend will be paid on 6 January 2006 to shareholders on the register on 9 December 2005. Our shares will be quoted ex-dividend on 7 December2005. The new routes started by Air Southwest in April 2005 have proved successful andgood occupancy rates have held the network load factor at 74%. In the six monthsunder review we have carried 151,000 passengers compared with 103,000 in thesame six months a year ago. Profits from the airline have again exceeded ourinitial expectations in this period. We are inevitably incurring extra fuelcosts as the price of oil remains high and have yet to experience fully thewinter seasonality pattern of our new routes. We are pleased with the progressof the airline business, which has now traded for two years, and we havetherefore decided to acquire another aircraft (making five in all) to operaterecently announced new services including Newquay - Cardiff - Manchester andBristol - Norwich starting in Spring 2006. As I have explained, it is our intention in the longer term to balance theairline's contribution by extending rental incomes and revenues from regeneration projects. We have begun purchasing the ground floor commercial space of our recent harbourside developments which we will rent out and we intend to do the same with other similar projects in progress. The frame of the 57,000 sq ft office building that we are constructing for the Department for Works and Pensions is now at its full eight storey height. Rental income will start when the tenants occupy the building in Summer 2006. We are actively involved in a number of bids for regeneration schemes in the region and are working with Plymouth City Council on future Sutton Partnership schemes. Last month, the first healthcare facility built by ReSound (Health), thePlymouth Local Investment Finance Trust company, was opened. ReSound Health,37.2% owned by your company, also has a £15million local care centre facilityunder construction and is planning future development tranches to follow on. Thelong run, lower risk returns from this type of public/private partnership (PPP)initiative continue to be attractive to your company. We are currently biddingfor other PPP schemes, with bid partners, and intend to create a portfolio ofsuch investments. In doing so, your company will incur bid costs which arechargeable as they arise, but recouped if a bid is successful. We recentlyappointed a specialist in this field to join our regeneration team and who willlead our efforts in these bids. Plymouth Fisheries has traded well in the first half year and we are pleasedthat we have attracted a major scalloping business to base a grading and packingoperation on the complex. We are mindful of the difficulties that high fuelprices have created for our fishing customers, although to date, we have notseen a downturn in trade. The electronic auction system, soon to be linked tothe internet, has supported good prices for Plymouth-landed fish which areessential to cover high fuel costs. The marina continues to be fully occupied and we enjoyed good visitor numbersduring the summer. We are most grateful to our staff who have continued to work hard to meet thecompany's objectives. To encourage sharing of the Group's success we will launcha new Inland Revenue Approved SAYE Scheme after announcement of these results inaccordance with the approval granted at the Annual General Meeting. Employeeswill be invited to participate in a 3, 5 or 7 year scheme. In recent statements I have referred to the evaluation of the Board we have donewith the help of outside consultants. As a result we have identified certainrequirements to strengthen our team and I hope soon to announce the appointmentof an additional non-executive director. During the first half year the Group has achieved excellent growth and hasworked towards the next stages of development of our business activities. We aredeliberately developing a mix of business activities designed to spread riskswhile providing a platform for yet more growth. Our expectations for the future remain optimistic. This interim report was approved by the Board on 21st November 2005. Ellen WinserChairman SUTTON HARBOUR HOLDINGS PLC INTERIM RESULTS Consolidated Summarised Profit and Loss Account 6 months to As restated * As restated * 30 September 6 months to Year Ended 2005 30 September 31 March (unaudited) 2004 2005 £000 (unaudited) (audited) £000 £000 Turnover 14,007 9,929 20,479 ___________________________________________Operating Profit 2,089 828 2,534 Net Interest (129) (45) (142) ___________________________________________Profit on Ordinary 1,960 783 2,392Activities BeforeTaxation Taxation on Profit onOrdinary Activities (294) (118) (471) Deferred Taxation (294) (117) (266) ___________________________________________Profit on OrdinaryActivities After Taxation 1,372 548 1,655 Dividends (511) (449) (717) ___________________________________________Retained Profit 861 99 938 ===========================================Earnings per Share 5.64p 2.26p 6.81pDiluted Earnings per 5.60p 2.24p 6.76pShare * Dividends have been restated to comply with FRS 21 - Events after the balancesheet date. SUTTON HARBOUR HOLDINGS PLC INTERIM RESULTS Consolidated Summarised Balance Sheet As at As restated * As restated * 30 September As at As at 2005 30 September 31 March (unaudited) 2004 2005 £000 (unaudited) (audited) £000 £000 Fixed Assets 37,901 32,910 36,120 ___________________________________________Current AssetsStock 7,381 3,060 4,406Debtors (due within one year) 3,453 2,414 3,793Cash at Bank and in Hand 3 3 4 ___________________________________________ 10,837 5,477 8,203 ___________________________________________Creditors (due within one year)Bank Overdraft 8,701 2,411 5,262Other 3,618 2,446 3,515Deferred Income 3,167 2,537 3,442 ___________________________________________ (15,486) (7,394) (12,219) ___________________________________________Net Current Liabilities (4,649) (1,917) (4,016) ___________________________________________Total Assets less Net 33,252 30,993 32,104Current Liabilities ___________________________________________Deferred Income (37) (57) (46)(due after more than one year) Provisions for Liabilitiesand ChargesDeferred Taxation (2,209) (1,664) (1,915) ___________________________________________Net Assets 31,006 29,272 30,143 ===========================================Shareholders' Funds 31,006 29,272 30,143 =========================================== * The Balance Sheets have been restated to comply with FRS 21 - Events after thebalance sheet date. SUTTON HARBOUR HOLDINGS PLC INTERIM RESULTS Consolidated Summarised Cash Flow Statement 6 months to 6 months to Year Ended 30 September 30 September 31 March 2005 2004 2005 (unaudited) (unaudited) (audited) £000 £000 £000Reconciliation ofOperatingProfit to Net Cash(Outflow)/Inflow fromOperating ActivitiesOperating Profit 2,089 828 2,534Depreciation Charges 220 136 312Loss on Sale of TangibleFixed Fixed - 3 36AssetsAmortisation of 17 17 35Intangible AssetsAmortisation of Grants (3) (3) (2)(Increase) in Stock (2,922) (157) (1,461)Decrease/(Increase) in 341 (75) (1,455)DebtorsIncrease/(Decrease) in (322) (428) 1,377Creditors ___________________________________________Net Cash (Outflow)/ (580) 321 1,376Inflow fromOperating Activities ___________________________________________ CASH FLOW STATEMENTNet Cash (Outflow)/ (580) 321 1,376Inflow fromOperating ActivitiesReturns on Investmentand Servicing of (181) (45) (196)FinanceTaxation (151) (160) (240)Capital Expenditure (2,019) (1,104) (4,542)Dividends Paid (511) 450) (717)Financing 2 - 31 ___________________________________________ (Decrease) in Cash (3,440) (1,438) (4,288)in the period ___________________________________________ Reconciliation of NetCashflow to Movement in Net Debt(Decrease) in Cash (3,440) (1,438) (4,288)in the periodNet Debt Brought Forward (5,298) (970) (970) ___________________________________________ Net Debt Carried Forward (8,698) (2,408) (5,258) =========================================== This information is provided by RNS The company news service from the London Stock Exchange