RNS Number : 4366I
Stonemartin PLC
19 November 2008
STONEMARTIN plc ("Stonemartin" or "the Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
Stonemartin today announces its interim results for the six months ended 30 September 2008.
HIGHLIGHTS and KEY EVENTS for the half year
* The results include a profit of �6.5 million from the Group relinquishing the management of buildings in Birmingham, Manchester
and Reading
* New Broad Street House occupancy at 30 September 2008 was 87% (31 March 2008: 93%)
* Net cash at 30 September 2008 amounted to �9.2 million, with no debt
* Net assets per share as at 30 September 2008 were 7.9 pence
* Progress continues on potential sale of Stonemartin Corporate Centres Limited ('SCC') and return of cash to shareholders
Graham Ede, Joint Managing Director of Stonemartin, commented:
'If SCC is sold successfully, it is the Board's intention to return cash to shareholders through a solvent liquidation of Stonemartin.'
For further information, please contact:
Graham Ede, Joint Managing Director, Stonemartin plc Tel: 020 7194 7500
Jeff Keating/Simon Brown, Teathers Tel: 020 7131 3000
Reg Hoare/Miranda Good, Smithfield Tel: 020 7360 4900
For more information on Stonemartin plc and New Broad Street House please visit http://www.stonemartin.co.uk and http://www.iodhub.com.
High resolution images are available for the media to view and download free of charge from www.vismedia.co.uk.
STONEMARTIN plc
CHAIRMAN'S STATEMENT
On 17 April 2008 proposals to terminate the management agreements ('Management Agreements') in three of our four buildings, at One
Victoria Square in Birmingham, Peter House in Manchester and Davidson House in Reading were approved at a General Meeting. The results for
the six months ended 30 September 2008 are thus comprised substantially of the consideration from this transaction and the operating profit
of the Group's continuing business and operating subsidiary, Stonemartin Corporate Centres Limited ('SCC'), which manages New Broad Street
House in the City of London.
In my trading statement at the AGM last month, I advised that the Board is now in negotiations with one party for the sale of the
Company's trading subsidiary, Stonemartin Corporate Centres Limited and hopes to conclude an agreement, subject to shareholder approval,
before the end of the year. Progress continues to be made. If the proposed sale is successfully completed, the Board will take immediate
steps to return cash to shareholders as soon as possible. There can, of course, be no guarantee that the sale of the trading subsidiary will
be concluded or that there will be any return of cash to shareholders in the near future.
Financial Highlights
Building management fees amounted to �995,000 (2007: �1,705,000) in the period. The Group made an operating profit of �6,794,000 (2007:
loss of �269,000), which included the net receipt of compensation amounting to �6,477,000 arising from relinquishing the management of the
buildings in Birmingham, Manchester and Reading. The profit before taxation amounted to �7,028,000 (2007: loss of �223,000), producing a
profit per ordinary share of 4.8p (2007: loss of 0.2p).
Net cash balances (inclusive of short term deposits) at 30 September 2008 amounted to �9.2 million (2007: �2.4 million), with no debt.
Trading and Operations
Actual occupancy for the first four months of the period remained robust at 94% but by 30 September had declined to 87% (31 March 2008:
93%) in response to the more difficult trading environment.
Office and conferencing income for the half year was consistent with budget.
Over the period new transactions entered into have been at workstation rates that have remained broadly consistent with budget, a
testimony to the quality of the building and the services delivered.
Conclusion
In the event that the sale of SCC takes place, it is intention of the Board to return cash to shareholders as soon as possible through a
solvent liquidation of the Company.
Richard Mead
Chairman
19 November 2008
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
6 months to 6 months to 12 months to
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
notes (Unaudited) (Unaudited) (Audited)
Revenue 1 9,011 6,498 12,588
Cost of sales (1,889) (5,790) (10,964)
Gross profit 7,122 708 1,624
Administrative expenses (328) (977) (1,761)
Operating profit/(loss) 6,794 (269) (137)
Interest receivable 234 50 105
Interest payable and similar - (4) (2)
charges
Profit/(loss) before taxation 7,028 (223) (34)
Taxation 2 (1,400) - 1,678
Profit/(loss) for the period
from continuing operations 5,628 (223) 1,644
Basic earnings/(loss) per
share for the period and from 3 4.8p (0.2)p 1.4p
continuing operations
Diluted earnings/(loss) per
share for the period and from 3 4.7p (0.2)p 1.4p
continuing operations
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
6 months to 6 months to 12 months to
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
(Unaudited) (Unaudited) (Audited)
Profit /(loss) for the financial 5,628 (223) 1,644
period
Currency translation differences on
foreign currency net investments - (3) (12)
Actuarial gain relating to pension - - 34
scheme
Total recognised gains/(losses)
since the last annual report 5,628 (226) 1,666
CONSOLIDATED BALANCE SHEET
AT 30 SEPTEMBER 2008
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
(Unaudited) (Unaudited) (Audited)
Assets
Non-current assets
Property, plant and equipment 3 345 290
Deferred tax asset 280 - 1,680
Total non-current assets 283 345 1,970
Current assets
Trade and other receivables 1,197 1,453 1,310
Cash and cash equivalents 9,175 2,365 2,806
Total current assets 10,372 3,818 4,116
Total assets 10,655 4,163 6,086
Liabilities
Current liabilities
Trade and other payables (1,414) (2,429) (2,485)
Non-current liabilities
Retirement benefit obligations - (29) -
Total liabilities (1,414) (2,458) (2,485)
Net assets 9,241 1,705 3,601
Equity
Share capital 22,370 22,370 22,370
Share premium 5,017 5,017 5,017
Own shares (60) (73) (73)
Equity reserve (11,000) (11,000) (11,000)
Retained earnings (7,086) (14,609) (12,713)
Equity attributable to equity 9,241 1,705 3,601
holders of the parent
Net assets per share 7.9p 1.5p 3.2p
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
6 months to 6 months to 12 months to
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
Notes (Unaudited) (Unaudited) (Audited)
Net cash inflow/(outflow) from 4 5,859 (328) 66
operating activities
Investing activities
Interest received 234 50 111
Purchase of property, plant - (3) (4)
and equipment
Net cash inflow from investing 234 47 107
activities
Financing activities
Net proceeds from disposal of
property, plant and equipment 276 - -
Net cash inflow from financing 276 - -
activities
Net increase/(decrease) in 6,369 (281) 173
cash and cash equivalents
Cash and cash equivalents at 2,806 2,646 2,646
start of period
Effect of foreign exchange - - (13)
rate changes
Cash and cash equivalents at 9,175 2,365 2,806
end of period
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
Share Capital Share Premium Equity Reserve Revenue Reserve Own Shares Total Equity
�'000 �'000 �'000 �'000 �'000 �'000
At 1 April 2007 22,370 5,017 (11,000) (14,387) (91) 1,909
Net loss for the period - - - (223) - (223)
Share option award adjustments - - - 5 - 5
Other movement - - - (4) 18 14
At 30 September 2007 22,370 5,017 (11,000) (14,609) (73) 1,705
Net profit for the period - - - 1,867 - 1,867
Actuarial gain in pension - - - 34 - 34
scheme
Share option award adjustments - - - 3 - 3
Other movement - - - (8) - (8)
At 31 March 2008 22,370 5,017 (11,000) (12,713) (73) 3,601
Net profit for the period - - - 5,628 - 5,628
Other movement - - - (1) 13 12
At 30 September 2008 22,370 5,017 (11,000) (7,086) (60) 9,241
NOTES TO THE FINANCIAL INFORMATION
1. Analysis of revenue
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
(Unaudited) (Unaudited) (Audited)
Building management fees 995 1,705 3,521
Cost recharges relating to building 1,539 4,774 9,029
management services
Termination of building management 6,477 - -
agreements
Asset management fees - 19 38
Total serviced and managed offices 9,011 6,498 12,588
income
2. Tax on profit/(loss) on ordinary activities
(a) Analysis of tax expense/(credit) in period
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
(Unaudited) (Unaudited) (Audited)
Current Tax:
Corporation tax on profits of the - - 2
current year - Note 3(b)
Deferred Tax:
Origination and reversal of timing 1,400 - (1,680)
differences
Tax on profit on ordinary activities 1,400 - (1,678)
(b) Factors affecting tax expense/(credit) for the period:
The tax assessed for the period is lower than the standard rate of corporation tax in the UK of 28% (2007: 30%). The differences are
explained below:
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
(Unaudited) (Unaudited) (Audited)
Profit/(loss) on ordinary activities 7,028 (223) (34)
before taxation
Profit/(loss) on ordinary activities
at standard rate of 28% (2007:30%) 1,968 (67) (10)
Factors affecting expense/(credit):
Tax effect of tax losses not - - (1,680)
previously recognised
Expenses not deductible 39 74 123
Capital allowances for period in - 17 34
excess of depreciation
(Decrease)/increase in unused tax (285) 8 (71)
losses not recognised
Capital receipt sheltered by group (280) - -
capital losses
Other provision movement (42) (32) (77)
IAS 12 provision adjustment - - 3
Tax expense/(tax credit) 1,400 - (1,678)
2. Tax on profit/(loss) on ordinary activities continued
(c) Deferred tax asset
The deferred tax asset recognised is as set out below:
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
(Unaudited) (Unaudited) (Audited)
Losses (280) - (1,680)
3. Earnings per share
Basic earnings per ordinary share are based upon the earnings/(loss) attributable to ordinary shareholders and are calculated on the
weighted average number of ordinary shares outstanding during the period of 117.1m (March 2008: 117.1m, September 2007: 117.1m).
Diluted earnings per ordinary share are based upon the earnings/(loss) attributable to ordinary shareholders having taken into account
the effect of potential dilutive shares of 118.8m (March 2008: 119.0m, September 2007: 119.5m).
4. Notes to the consolidated cash flow statement
6 months to 6 months to 12 months to
30 September 30 September 31 March
2008 2007 2008
�'000 �'000 �'000
(Unaudited) (Unaudited) (Audited)
Reconciliation of operating
profit/(loss) to net cash
inflow/(outflow) from operating
activities
Operating profit/(loss) 6,794 (269) (137)
Depreciation 6 56 112
Amortisation of LTIP 13 18 18
Loss on disposal of fixed assets 5 - -
Adjustment for share option award - 5 8
Corporation tax provision - - 2
Settlement gain on pension scheme - - 1
Foreign exchange movement (1) (4) -
Operating cash flows before changed 6,817 (194) 4
in working capital
(Increase)/decrease in debtors (126) 164 306
Decrease in creditors (832) (298) (244)
Cash generated by operations 5,859 (328) 66
5. Financial information
The interim financial statements for the six months ended 30 September 2008 have been prepared by the directors on the basis of
accounting policies set out within this announcement. These accounting policies have been applied consistently and in all material respects
throughout the period and the previous year.
The results for the year ended 31 March 2008 do not constitute statutory accounts. The full financial statements for the year ended 31
March 2008, which were prepared under IFRS and which received an unqualified audit report and did not contain a statement under S237(2) or
(3) of the Companies Act, have been filed with the Registrar of Companies.
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