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Final Results

21 Jul 2011 07:00

RNS Number : 7601K

Bailey(C.H.) PLC

21 July 2011

C.H.BAILEY PLC

CHAIRMAN'S STATEMENT AND FINANCIAL RESULTS YEAR ENDED 31ST MARCH 2011

Overview

	2011	2010	2009	2008
		£	£	£
Revenue - continuing operations	4,298,596	3,897,260	5,369,623	5,526,195

Gross profit - continuing operations	1,063,406	781,182	681,644	912,691
Gross profit margin	24.74%	20.04%	12.69%	16.52%

Operating profit (loss) on continuing operations before exceptional items, investment activities and depreciation	39,830	(237,573)	(729,683)	(723,294)

(Loss) profit for the financial year	(593,320)	1,104,481	276,582	(2,162,787)

(Loss) earnings per share from continuing operations	(7.12p)	13.25p	4.53p	(17.77p)
(Loss) earnings per share from total operations	(7.12p)	13.25p	3.38p	(26.40p)

The Group has made a loss of £593,320 (2010 Profit £1,104,481) for the period under review, due primarily to exchange losses and a write down in one of its investments. This was compensated by an asset sale in Malta and more importantly the fact that the current businesses are trading profitably. The gross profit margin has increased to 25%, which is due to an increase in activity in our UK engineering company as well as our overseas leisure operations increasing their revenues and maintaining and improving their margins respectively.

UK Operations

Bailey Industrial Engineering has increased its turnover by over 50% for the period and has traded profitably for the year under review. The management have explored new markets, retained existing market share and should be congratulated for their efforts, together with the workforce. The future is encouraging with a sales forecast increase of over 20% and current orders maintaining this forecast.

Malta

The hotel has increased its turnover and increased its profit for the year. The car park, which formed part of the hotel complex, that had not been included in the sale of the Main Site (as defined in the circular to shareholders dated 12th October 2009), was sold and reported earlier in the financial year. As regards to the sale for the Main Site, we understand from discussions with the buyer that matters are progressing well.

Tanzania

The economic activity in Tanzania and in Dar es Salaam in particular is very encouraging. The latest development at the Oyster Bay Hotel should commence operation in October this year, which will enhance the strong cash flow streams going forward.

Beho Beho, has seen sales return to pre 2009 levels and the camp has again won the Good Safari Guide award as the best Safari camp in East Africa while retaining its position in the top three in Africa. The staff again must be thanked for their efforts.

Mikumi Wildlife Camp, which caters for the "Visiting Friends & Relative" market and expatriates in Dar es Salaam has seen reduced sales income but remains profitable. We are in the process of refurbishing the camp and have already seen signs of business increasing, which is encouraging.

Current Trading and Outlook

2011/12 will again be a challenging year, but we remain cautiously optimistic. We have already introduced measures to increase sales, reduce costs and overheads and the results of these measures appear to be materialising.

Our company relies on the support and effort of the management, employees, directors and shareholders and I would like to thank everyone for their continued support and effort.

Charles H. Bailey

21st July 2011

CONSOLIDATED INCOME STATEMENT YEAR ENDED 31ST MARCH 2011

	2011	2010
	£	£

Continuing operations
Revenue	4,298,596	3,897,260
Cost of sales	(3,235,190)	(3,116,078)
Gross profit	1,063,406	781,182

Profit on the sale of property	587,859	2,013,442
Administrative expenses	(1,386,761)	(1,432,691)
Trading profit	264,504	1,361,933

Investment activities and other income	(517,198)	196,138
Operating (loss) profit	(252,694)	1,558,071

EBITDA*	(477,368)	(41,435)
Depreciation	(363,313)	(414,431)
Profit on sale of plant and equipment	128	495
Normalised operating (loss)	(840,553)	(455,371)
Profit on sale of property	587,859	2,013,442
Operating (loss) profit	(252,694)	1,558,071

Finance income	44,799	10,409
Finance costs	(272,035)	(199,758)
(Loss) profit before taxation	(479,930)	1,368,722
Taxation	(106,358)	(241,708)
Minority interest	(7,032)	(22,533)
(Loss) profit for the financial year	(593,320)	1,104,481

(Loss) earnings per share from continuing and total operations	(7.12p)	13.25p
	(7.12p)	13.25p

CONSOLIDATED STATEMENT OF COMPREHENSIVE TOTAL INCOME AT 31ST MARCH 2011

	2011	2010
	£	£

(Loss) profit for the financial year	(593,320)	1,104,481
Exchange differences	(10,415)	119,050
Purchase of minority interest	(22,234)	-
Total comprehensive income for the year	(625,969)	1,223,531

CONSOLIDATED BALANCE SHEETS AT 31ST MARCH 2011

	Group		Company
	2011	2010	2011	2010
	£	£	£	£
Non-current assets
Property, plant and equipment	10,727,180	10,431,270	1,985	1,946
Investments in subsidiary undertakings	-	-	3,147,216	3,272,063
Deferred tax asset	151,868	162,278	151,868	162,278
	10,879,048	10,593,548	3,301,069	3,436,287
Current assets
Inventory	29,498	31,462	-	-
Trade and other receivables	1,351,953	919,346	1,339,451	1,562,779
Current asset investments	1,731,722	1,544,853	465,805	507,380
Cash and cash equivalents	1,364,541	1,886,316	-	24
	4,477,714	4,381,977	1,805,256	2,070,183
Current liabilities
Trade and other payables	(1,755,831)	(1,967,095)	(1,434,999)	(3,102,792)
Bank loans and overdrafts	(1,241,666)	(974,888)	(257,869)	(333,835)
Other loans	(676,531)	(669,014)	-	-
Obligations under finance leases	(14,491)	(26,897)	-	-
Provisions	(225,000)	(225,000)	(225,000)	(225,000)
	(3,913,519)	(3,862,894)	(1,917,868)	(3,661,627)
Net current assets	564,195	519,083	(112,612)	(1,591,444)
Total assets less current liabilities	11,443,243	11,112,631	3,188,457	1,844,843
Non-current liabilities
Trade and other payables	(720,431)	(734,178)	-	-
Bank loans	(2,893,409)	(1,909,535)	-	-
Obligations under finance leases	(2,859)	(10,971)	-	-
Deferred tax liabilities	(732,642)	(735,862)	-	-
Net assets	7,093,902	7,722,085	3,188,457	1,844,843
Equity
Called-up share capital	833,541	833,541	833,541	833,541
Share premium account	609,690	609,690	609,690	609,690
Capital redemption reserve	5,163,332	5,163,332	5,163,332	5,163,332
Translation reserve	874,630	769,123	-	-
Retained earnings	(464,100)	267,376	(3,418,106)	(4,761,720)
Surplus attributable to the parent's shareholders	7,017,093	7,643,062	3,188,457	1,844,843
Minority interest	76,809	79,023	-	-
Total equity	7,093,902	7,722,085	3,188,457	1,844,843

CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 31ST MARCH 2011

	2011	2010
	£	£

Cash flows from operating activities
Cash generated from operations	(320,553)	135,895
Interest paid - continuing operations	(272,035)	(199,758)
Overseas tax paid	(85,390)	(251,712)
Net cash flow from operating activities	(677,978)	(315,575)

Investing activities
Sale of property, plant and equipment	609,163	2,307,972
Deferred income on property sale	-	734,178
Purchase of property, plant and equipment	(1,327,713)	(338,207)
Sale of investments	97,109	233,089
Purchase of investments	(254,997)	(390,723)
Purchase of minority interest	(30,000)	-
Interest received	44,799	10,409
Net cash flow from investing activities	(861,639)	2,556,718

Financing activities
Movement in bank loans	1,074,529	(336,418)
Movement in directors' loans	(286,039)	158,521
Movement in other loans	7,517	6,875
Movement in capital element of finance leases	(20,518)	(36,347)
Net cash flow from financing activities	775,489	(207,369)

Net (decrease) increase in cash and cash equivalents	(764,128)	2,033,774
Cash and cash equivalents at beginning of year	911,428	(1,136,969)
Exchange differences	(24,425)	14,623
Cash and cash equivalents at end of year	122,875	911,428



Reconciliation of net cash flow to movement in net debt in the year
Net (decrease)increase in cash and cash equivalents	(764,128)	2,033,774
Cash outflow from the increase in debt	(1,061,528)	365,890
Movement in net debt during the year	(1,825,656)	2,399,664
Net debt at the beginning of the year	(1,704,989)	(4,252,950)
Exchange differences	(66,230)	148,297
Net debt at the end of the year	(3,464,415)	(1,704,989)

STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 31ST MARCH 2011

	Called-up share capital	Share premium account	Capital redemption reserve	Translation reserve	Retained earnings	Minority interest	Total
	£	£	£	£	£	£	£
Group
At 31st March 2009	833,541	609,690	5,163,332	713,232	(900,264)	58,580	6,478,111
Profit for the financial year	-	-	-	-	1,104,481	22,533	1,127,014
Exchange differences	-	-	-	55,891	63,159	(2,090)	116,960
At 31st March 2010	833,541	609,690	5,163,332	769,123	267,376	79,023	7,722,085
Purchase of minority interest	-	-	-	-	(22,234)	(7,766)	(30,000)
(Loss) for the financial year	-	-	-	-	(593,320)	7,032	(586,288)
Exchange differences	-	-	-	105,507	(115,922)	(1,480)	(11,895)
At 31st March 2011	833,541	609,690	5,163,332	874,630	(464,100)	76,809	7,093,902
Company
At 31st March 2009	833,541	609,690	5,163,332	-	(3,585,517)	-	3,021,046
Loss for the financial year	-	-	-	-	(1,176,203)	-	(1,176,203)
At 31st March 2010	833,541	609,690	5,163,332	-	(4,761,720)	-	1,844,843
Profit for the financial year	-	-	-	-	1,343,614	-	1,343,614
At 31st March 2011	833,541	609,690	5,163,332	-	(3,418,106)	-	3,188,457

Notes

1. The financial information contained in this preliminary announcement for the year ended 31 March 2011 has been audited by Walter Hunter & Co Limited and is extracted from the statutory accounts of the Group for that financial year and does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The report of the auditors was (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237 (2) or (3) of the Companies Act 1985.

2. Copies of the 2011 annual report and accounts will be sent to shareholders shortly, and these can be obtained from the Company's registered office or website: www.chbaileyplc.co.uk.

Enquiries:

C H Bailey Plc

Charles Bailey (Tel: 01633 262961)

Bryan Warren

Arden Partners plc

Richard Day (Tel: 020 7614 5932)

Jamie Cameron (Tel: 020 7614 5925)

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR EASXEAELFEFF

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