RNS Number:7085L
Sutton Harbour Holdings PLC
30 May 2003
SEVENTH YEAR OF CORE PROFITS GROWTH
FOR SUTTON HARBOUR HOLDINGS
Sutton Harbour Holdings Plc, the Aim listed operator of Plymouth's historic
harbour and
Plymouth City Airport reports strong pre-tax profits for the year ended 31 March
2003
"I am delighted to report another successful year for the company, with
underlying profit before tax up by 9.5% to #1.54 million"
Ellen Winser, Chairman, Sutton Harbour Holdings Plc.
HIGHLIGHTS
* Turnover up 16.7%to #9.57 million (2002 #8.20 million)
* Underlying Pre-tax profits up 9.5% to #1.54 million (2002: #1.41million
excluding profits on property disposal)
* Adjusted earnings per share up 15% to 8.92p (2002: 7.76p excluding
profit on disposal of property)
* Total Dividend per share 5p ( up 4.2% on 2002)
* The Group is in an advanced stage of negotiations with British Airways
CitiExpress over the transfer of Gatwick routes and slots to the new
subsidiary, Air Southwest Limited
FULL TEXT OF CHAIRMAN'S STATEMENT AND ACCOUNTS FOLLOW
Or visit our website: www.sutton-harbour.co.uk
For further information please contact
Duncan Godefroy, Managing Director 01752 204186
Nigel Godefroy, Finance Director and MD Designate 01752 204186
Ken Rees, Winningtons 0117 317 9477 or 07802 466567
Deborah Clark, Deborah Clark and Associates ref. Air Southwest Limited 01872
276276
Chairman's Statement
In this past year the Company has completed negotiations on a major phase of
harbour-side development and has made significant inroads into planned future
stages of that development. It has also recorded its most successful year in
marina berthing and has seen an improvement in fishing related income in the
second half of the year. Certain developments in the aviation industry have
continued to present their challenges, but our undampened enthusiasm has driven
us to look for innovative ways for the Company to turn these to our advantage.
We recognise that future growth using our regeneration and development skills
will need to come from projects away from the harbour-side area and we have been
active in our search for opportunities both in Plymouth and further afield.
Profit before taxation of #1,543,000 shows little change on the #1,587,000
achieved last year, but last year's total included a #178,000 profit on the
disposal of property whereas this year's total is all from trading activity.
Underlying profits have therefore grown by a most satisfactory 9.5%. Earnings
per share are, like profit before tax, virtually unchanged at 8.92p per share
compared with 9.22p per share last year, but adjusted earnings per share, which
ignore last year's profit on disposal, have increased by 15% from 7.76p to
8.92p.Your Board is pleased to recommend a final dividend of 3.2p per share
making a total dividend for the year of 5p per share, a 4.2% increase on last
years total dividend of 4.8p per share. This will leave #476,000 to transfer to
reserves (2002: #537,000). The dividend will be payable on 12 September 2003 to
shareholders on the register on 29 August 2003. The shares are expected to go
ex-dividend on 27 August 2003.
I reported last year on the cuts by British Airways CitiExpress to services from
Plymouth City Airport. The effect of these cuts is reflected in the reduced
profits this year from airport operations.
The Company is now in advanced discussions with British Airways CitiExpress
about taking over the Plymouth and Newquay Gatwick routes. We have set up a
wholly owned subsidiary, Air Southwest Limited, to facilitate the smooth
transfer of the Gatwick routes and slots subject to the discussions being
satisfactorily concluded. These discussions follows the decision by British
Airways CitiExpress to discontinue operating these routes from October 2003 as
part of it's own 'size and shape restructuring'. Shareholders will be kept
informed as matters progress.
In the last year the Company has succeeded in attracting Air Wales to Plymouth
City Airport and they now operate a popular daily service to Dublin and Cork and
a newly introduced service to Jersey. As already reported our contract to
manage Newquay Cornwall Airport ended on 31 March 2003.
We have long known the limitations at Plymouth City Airport, that it is situated
amidst a residential area and that its runway is too short to accommodate
anything larger than a Dash 8. With the Government preparing a White Paper on
the future of aviation in the UK, we submitted the Company's proposal to build a
new airport just to the east of Plymouth. Our objective was not only to
safeguard and promote our own business, but very importantly to maintain a good
transport facility for both inward tourism and the region's population. We
currently await further news on the outcome of studies into aviation needs in
the South West, but it is fair to say that a new airport is definitely a
visionary project for the longer term. In the meantime the Company has received
confirmation that the South West of England Regional Development Agency will
fund runway and safety area improvements at the existing airport.
After two years in planning, negotiating and gaining final approvals, the
Company concluded the first phase Harbour East regeneration with a payment
received during the year. This phase will provide a landmark mixed-use
development on the North East quayside of the harbour, and contractors are
already on site. Following on from this, the Company is making good progress
towards achieving the second phase, another mixed-use development.
Although it is too early to report news on any other property related projects
at present, the Company is undertaking a number of regeneration consultancy
assignments. We have also identified new opportunities for certain public/
private regeneration initiatives within the region.
As previously reported to shareholders, the non-executive directors have,
following a thorough search and numerous interviews, selected Nigel Godefroy to
succeed Duncan Godefroy when he retires next year. Duncan has been with the
Company for over 40 years, 30 of them as our Managing Director, a remarkable
achievement. Nigel will bring to the position more than a decade of hands-on
experience with the Company, the last seven years as our Finance Director.
The past year has seen much change as the Company evolves to have a higher
profile in the region and its proposals are well documented in the regional, and
often national, press. I thank our staff for their continued dedication and
support in what are exciting but sometimes turbulent times. I am particularly
encouraged that the Company has been re-accredited with the 'Investors in
People' standard and that many of our staff continue to invest in shares in the
Company and the SAYE scheme.
Our objectives for the forthcoming year are to reach the next milestone with our
harbour-side regeneration schemes, to work hard to secure our region's vital air
links and to maintain the vibrancy that our fishing and marine leisure
businesses bring to Plymouth.
Ellen Winser
Chairman
30 May 2003
Group Profit and Loss Account
for the year ended 31 March 2003
2003 2002
#000 #000
Turnover 9,572 8,201
Cost of sales (7,051) (5,862)
Gross profit 2,521 2,339
Net operating expenses (868) (614)
Operating profit 1,653 1,725
Profit on ordinary activities before interest 1,653 1,725
Interest payable (110) (138)
Profit on ordinary activities before taxation 1,543 1,587
Current taxation (228) (154)
Deferred taxation (232) (313)
Taxation on profit on ordinary activities (460) (467)
Profit on ordinary activities after taxation and attributable to shareholders 1,083 1,120
Dividends (607) (583)
Retained profit for the year 476 537
Earnings per ordinary 25p share
Basic 8.92p 9.22p
Deduct profit on sale of property - (1.46p)
Adjusted 8.92p 7.76p
Diluted 8.83p 9.14p
Diluted Adjusted 8.83p 7.69p
All figures relate to continuing activities.
Balance Sheets
31 March 2003
THE GROUP THE COMPANY
2003 2002 2003 2002
#000 #000 #000 #000
Fixed assets
Tangible assets 28,291 27,866 - -
Investments 70 63 2,217 2,217
28,361 27,929 2,217 2,217
Current assets
Stock 2,431 964 - -
Debtors 1,804 1,727 7,188 7,177
Cash at bank and in hand 3 3 8 6
4,238 2,694 7,196 7,183
Creditors
(amounts falling due within one year) (5,938) (4,641) (448) (431)
Net current (liabilities) / assets (1,700) (1,947) 6,748 6,752
Total assets less current liabilities 26,661 25,982 8,965 8,969
Creditors
(amounts falling due after more than one year) (88) (117) - -
Provisions for liabilities and charges
Deferred taxation (1,450) (1,218) - -
25,123 24,647 8,965 8,969
Capital and reserves
Called up share capital 3,037 3,037 3,037 3,037
Share premium account 5,812 5,955 5,812 5,812
Revaluation reserve 8,638 8,638 - -
Investment property revaluation reserve 4,369 4,369 - -
Other reserves 251 108 - -
Profit and loss account 3,016 2,540 116 120
Equity shareholders' funds 25,123 24,647 8,965 8,969
Consolidated Cash Flow Statement
For the year ended 31 March 2003
2003 2002
#000 #000
CASH FLOW STATEMENT
Net cash inflow from operating activities 662 1,884
Returns on investments and servicing of finance (181) (160)
Taxation (155) (118)
Capital expenditure (605) (420)
Equity dividends paid (595) (559)
(Decrease)/increase in cash in the year (874) 627
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in net debt in the year (874) 627
Net debt at the start of the year (1,840) (2,467)
Net debt at the end of the year (2,714) (1,840)
Consolidated Statement of Total Recognised Gains and Losses
For the year ended 31 March 2003
2003 2002
#000 #000
Unrealised surplus on revaluation of properties - 1,546
Reported profit on ordinary activities after taxation 1,083 1,120
Total recognised gains and losses relating to the year 1,083 2,666
Prior year adjustments made last year - deferred tax - (905)
Total gains and losses recognised since the previous annual report and financial
statements 1,083 1,761
The cumulative effect of the prior year adjustment is #905,000 (2002: #905,000)
Note of Consolidated Historical Cost Profits and Losses
For the year ended 31 March 2003
2003 2002
#000 #000
Reported profit on ordinary activities before taxation 1,543 1,587
Realisation of property revaluation gains of previous years - 70
Historical cost profit on ordinary activities before taxation 1,543 1,657
Historical cost profit for the year retained after taxation and dividends 476 607
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