TIDMSAF
RNS Number : 9205O
Safeland PLC
24 August 2017
The announcement below submitted under RNS Number: 7167N has now
been replaced with the diluted earnings per share for the year
ended 31 March 2017 corrected from 11.69p to 8.42p on the Condensed
Consolidated Income Statement.
All other details remain unchanged.
The full amended text is shown below.
Safeland plc
("Safeland", the "Company" or the "Group")
Final Results for the Year Ended 31 March 2017
Managing Director's Statement
Key Achievements
I am pleased to report on another successful year for the
Company, albeit that the year to 31 March 2017 saw lower levels of
turnover and profitability than the preceding year.
In the year to 31 March 2016, we were able to pay an interim
dividend of 1.5p per share, and although there was no interim
dividend this year, we are pleased to continue the trend of
distributing a share of profits to our shareholders by recommending
a final dividend of 1p per share (2016: nil) to be paid on 29
September 2017 to shareholders on the register on 25 August
2017.
Having sold 31 residential units in Wimbledon during the
preceding year, the Company subsequently sold the long leasehold
ground rents of the development in the year to 31 March 2017,
exiting a successful transaction at the site.
We completed the refurbishment of a substantial detached
freehold house in London N2, the acquisition of which was announced
in my statement last year, and I am delighted that the sale of the
house was completed profitably.
Last year's statement announced the planning permission obtained
for the conversion into apartments of a hotel in Muswell Hill,
London N10 which had been owned and operated by the Group. Trading
at the hotel ceased in August 2016 and in September 2016 we
commenced construction work to provide basement car parking and 8
one-bed flats, 8 two-bed flats and 2 three-bed flats. We remain on
course to complete the building work towards the end of 2017, as
announced in our interim results to 30 September 2016. Revenue from
the hotel in 2017 has been shown as discontinued operations in the
income statement.
Other property transactions completed by the Company in the year
to 31 March 2017 included the purchase and sale of properties in
New Barnet, Herts; East Finchley, London N2; Wembley, Middlesex;
and on a site near our head office in Hampstead Garden Suburb,
London N2.
Continuing the theme of purchasing our own shares - in the prior
financial year there had been two such transactions totalling
1,290,800 shares - this financial year we made a further two
buy-backs, totalling 193,000 shares. The directors continued to
consider that the acquisition and cancellation of these shares
would enhance the value of the remaining shares in issue.
Since the balance sheet date, the Company has taken advantage of
opportunities to acquire for cancellation several further tranches
of shares, totalling another 275,000 shares.
Financial Results
Group revenue for the year to 31 March 2017 of GBP12.9 million
comprised sales of development properties, rental income,
management fees and (for part of the year) revenue from the Muswell
Hill hotel, but was below the GBP21.1 million reported for the
preceding year, in which there was more activity.
Gross profit of GBP2.46 million was below the GBP7.1 million for
the year to 31 March 2016, and operating profit declined too, from
GBP5.8 million to GBP1.9 million, reflecting my statement at the
half-year that we are extremely selective on transactions until the
outlook on the economy in general and the property sector
specifically, show signs of strengthening.
Further indicating our cautious views and reduced activity,
trading stock has decreased in value from GBP14.8 million at 31
March 2016 to GBP9.3 million at 31 March 2017. The Statement of
Financial Position shows gearing at 31 March 2017 of 12%, reduced
from 45% at 31 March 2016.
I am pleased to report that our net asset value (NAV) rose from
GBP17.7 million (equivalent to 114 pence per share) at 31 March
2016, to GBP19.9 million (equivalent to 129 pence per share) at 31
March 2017. This is a 13% increase, albeit that for the second
consecutive year there were fewer shares in issue at the year-end
than 12 months previously, as a result of the buybacks and
cancellation referred to above.
Due to the fall in the share price over the course of the
financial year, total shareholder returns for the year decreased by
2.7% (2016: 16% increase).
Outlook
I repeat the statement in the most recent interims and 2016's
full-year results, that the market appears to us to be constrained
by an economic outlook which in turn is affected by political
conditions in the UK, in the EU, and worldwide, which I believe
have combined to create a more cautious environment.
This is not stopping us from adding value to the Company's
existing stock through planning or development, and we remain
confident that our skills will enable us to make selective
acquisitions and profitable disposals.
Larry Lipman
Managing Director
10 August 2017
Enquiries
Safeland plc +44 (0) 20 8815 1600
Larry Lipman, Managing Director
Stockdale Securities (Nominated Adviser
and Broker)
Tom Griffiths +44 (0) 20 7601 6139
For more information visit: www.safeland.co.uk
Condensed Consolidated Income Statement
Year Ended 31 March 2017
Note 2017 2016
GBP'000 GBP'000
Revenue
Continuing 3 12,695 20,268
Discontinued 3 277 848
-------- --------
12,972 21,116
Cost of sales (10,517) (14,003)
-------- --------
Gross profit 2,455 7,113
Administrative expenses (1,721) (1,287)
Gain on revaluation of investment properties 459 42
Profit/(loss) on disposal of investment
property 694 (33)
Dividend from investment 5 9
Share of results of associate 31 27
-------- --------
Operating profit 1,923 5,871
-------- --------
Operating profit - continuing 1,877 5,800
Operating profit - discontinued 46 71
-------- --------
1,923 5,871
-------- --------
Finance income 554 520
Finance costs (448) (334)
-------- --------
Profit before tax 2,029 6,057
Tax 293 (1,522)
-------- --------
Profit for the financial year attributable
to owners of the parent company 2,322 4,535
======== ========
Basic earnings per share 4 14.93p 27.95p
Diluted earnings per share 4 8.42p 15.45p
Earnings per share - discontinued activities 4 0.03p 0.04p
Condensed Consolidated Statement of Comprehensive Income
Year ended 31 March 2017
2017 2016
GBP'000 GBP'000
Profit for the year 2,322 4,535
-------- --------
Other comprehensive income
Fair value losses on available-for-sale
financial assets (30) (139)
Other comprehensive income for the
year, net of tax (30) (139)
-------- --------
Total comprehensive income for the
year attributable to owners of the
parent company 2,292 4,396
======== ========
Condensed Consolidated Statement of Financial Position
31 March 2017
Note 2017 2016
GBP'000 GBP'000
Non-current assets
Property, plant and equipment 1,885 1,904
Investment properties 6 1,182 1,123
Investment in associate 127 121
Available-for-sale investments 802 832
Trade and other receivables 8 - 8,503
-------- --------
Total non-current assets 3,996 12,483
-------- --------
Current assets
Trading properties 7 9,348 14,838
Trade and other receivables 8 9,209 381
Cash and cash equivalents 5,280 2,988
-------- --------
Total current assets 23,837 18,207
-------- --------
Total assets 27,833 30,690
-------- --------
Current liabilities
Bank loans and overdrafts 9 7,639 -
Trade and other payables 232 495
Corporation tax payable - 1,450
-------- --------
Total current liabilities 7,871 1,945
-------- --------
Non-current liabilities
Bank loans 9 - 10,927
Deferred income tax liabilities 32 72
-------- --------
Total non-current liabilities 32 10,999
-------- --------
Total liabilities 7,903 12,944
-------- --------
Net assets 19,930 17,746
======== ========
Equity
Share capital 768 778
Share-based payment reserve 354 354
Investment revaluation reserve (82) (52)
Capital redemption reserve 75 65
Retained earnings 18,815 16,601
-------- --------
Total equity attributable to owners
of the parent company 19,930 17,746
======== ========
Condensed Consolidated Statement of Changes in Equity
31 March 2017
Share Capital Share-based Investment Retained Total
Capital redemption payment revaluation earnings equity
reserve reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ----------- ------------ --------- --------
Balance at 1
April 2015 843 - 486 87 13,338 14,754
Comprehensive
income
Profit for the
year - - - - 4,535 4,535
Revaluation of
available-for-sale
investments - - - (139) - (139)
Total comprehensive
income - - - (139) 4,535 4,396
-------- ----------- ----------- ------------ --------- --------
Transactions
with owners
Share-based payment
charge for the
year - - (132) - - (132)
Dividend paid - - - - (529) (529)
Purchase of own
shares (65) 65 - - (743) (743)
-------- ----------- ----------- ------------ --------- --------
Total transactions
with owners (65) 65 (132) - (1,272) (1,404)
-------- ----------- ----------- ------------ --------- --------
Balance at 31
March 2016 778 65 354 (52) 16,601 17,746
-------- ----------- ----------- ------------ --------- --------
Comprehensive
income
Profit for the
year - - - - 2,322 2,322
Revaluation of
available-for-sale
investments - - - (30) - (30)
-------- ----------- ----------- ------------ --------- --------
Total comprehensive
income - - - - 2,322 2,292
-------- ----------- ----------- ------------ --------- --------
Transactions
with owners
Share-based payment
charge for the
year - - - - - -
Purchase of own
shares (10) 10 - - (108) (108)
-------- ----------- ----------- ------------ --------- --------
Total transactions
with owners (10) 10 - - (108) (108)
-------- ----------- ----------- ------------ --------- --------
Balance at 31
March 2017 768 75 354 (82) 18,815 19,930
-------- ----------- ----------- ------------ --------- --------
Condensed Consolidated Statement of Cash Flows
Year ended 31 March 2017
2017 2016
GBP'000 GBP'000
Operating activities
Cash inflow from operations 6,523 2,321
Interest paid (406) (292)
Corporation tax paid (1,464) (1,695)
-------- --------
Net cash inflow from operating activities 4,653 334
-------- --------
Investing activities
Interest received 1 1
Purchase of property, plant and equipment (143) (105)
Purchase of available-for-sale investments - (664)
Distributions from associate 25 33
Other dividends received 6 5
Proceeds from sale of investment properties 1,094 1,637
Proceeds from sale of property, plant and equipment 94 82
-------- --------
Net cash generated from investing activities 1,077 989
-------- --------
Financing activities
Purchase of own share capital (108) (743)
Dividends paid to equity shareholders - (529)
New loans 2,001 3,742
Loan repayments (5,331) (1,259)
Net cash (used in)/generated from financing
activities (3,438) 1,211
-------- --------
Net increase in cash and cash equivalents 2,292 2,534
Cash and cash equivalents at beginning of year 2,988 454
Cash and cash equivalents at end of year 5,280 2,988
======== ========
Notes
31 March 2017
1. Basis of preparation
On 10 August 2017, the Directors approved this announcement for
publication. Copies of this announcement are available from the
Company's registered office at 1a Kingsley Way, London, N2 0FW and
on its website, www.safeland.co.uk. The Annual Report and Accounts
will be sent to shareholders in due course and will be available on
the Company's website, www.safeland.co.uk. The financial
information presented above does not constitute statutory financial
statements as defined by section 435 of the Companies Act 2006 for
the year ended 31 March 2017. The financial information for the
year ended 31 March 2016 has been derived from the Group's
statutory accounts for that year, as filed with the Registrar of
Companies.
The financial information for the year ended 31 March 2017 is
derived from the statutory financial statements for that year,
prepared under IFRS, upon which the auditors have reported. The
audit report was unqualified, did not include references to matters
to which the auditor drew attention by way of emphasis without
qualifying their report and did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006. The statutory
financial statements for the year ended 31 March 2017 will be
delivered to the Registrar of Companies following the Company's
Annual General Meeting.
The accounting policies applied in this announcement are
consistent with those of the annual financial statements for the
year ended 31 March 2016, as described in those annual financial
statements.
2. Significant Accounting Policies
Revenue
Revenue is stated net of VAT and comprises rental income,
proceeds from sales of trading properties, fees, commissions and
other income.
Sales of trading properties are recognised on completion of a
contract. This reflects the point of transfer of risk and rewards
when trading property is sold.
Rental income from investment and trading properties leased out
under operating leases is recognised in the Income Statement on a
straight-line basis over the term of the lease. Contingent rents
which comprise turnover rents are recognised as income in the
periods in which they are earned. Rent reviews are recognised when
such reviews have been agreed with tenants. Lease incentives are
recognised as an integral part of the net consideration for the use
of the property and amortised on a straight-line basis over term of
lease, or the period to the first tenant break, if shorter.
Hotel revenue comprised revenues from overnight hotel
accommodation, banqueting facility hire and sales of food and
beverages. All revenue was recognised when the service was
provided. The hotel closed and ceased to trade on 3 August
2016.
Other fees in relation to property management are recognised on
a straight-line basis over the term of management contracts.
Investment properties
Investment properties are those properties that are held either
to earn rental income or for capital appreciation or both.
Investment properties are measured and stated at fair value in the
statement of financial position. Valuation surpluses and deficits
arising in the year are included in profit or loss.
The gain or loss arising on the disposal of a property is
determined as the difference between the sales proceeds and the
fair value of the asset at the beginning of the period and is
recognised in the income statement.
Investment properties may be freehold properties or leasehold
properties. For leasehold properties that are classified as
investment properties, the associated leasehold obligations, if
material, are accounted for as finance lease obligations.
Trading properties
Properties held for development and resale are classified as
trading properties and are shown at the lower of cost and net
realisable value. Cost comprises purchase price, acquisition costs
and direct expenditure.
3. Operational Segments
All activities are based in the United Kingdom.
The segmental information of the Group's results for the year
ended 31 March 2017 was as follows:
Property Hotel Property Property Total
trading Operation Management investment GBP'000
GBP'000 (1) GBP'000 GBP'000
GBP'000
-------- ---------- ----------- ----------- ---------
Revenue 12,480 277 - 215 12,972
Cost of sales (10,286) (231) - - (10,517)
-------- ---------- ----------- ----------- ---------
Gross profit 2,194 46 - 215 2,455
Profit on disposal
of investment properties - - - 694 694
Gain on revaluation
of investment properties - - - 459 459
Share of profit of
associate - - 31 - 31
Operating profit before
administration expense 2,194 46 31 1,368 3,639
-------- ---------- ----------- -----------
Administrative expenses (1,721)
Dividend from investments 5
Finance income 554
Finance costs (448)
Profit before tax 2,029
=========
Property Hotel Property Property Unallocated Total
Trading Operation Management investment GBP'000 GBP'000
GBP'000 (1) GBP'000 GBP'000
GBP'000
-------- ---------- ----------- ----------- ------------ ---------
Segment assets 18,456 - - 1,182 8,195 27,833
Segment liabilities (7,639) - - - (264) (7,903)
-------- ---------- ----------- ----------- ------------ ---------
Net assets 10,817 - - 1,182 7,931 19,930
-------- ---------- ----------- ----------- ------------ ---------
Capital expenditure - - - - 5 5
-------- ---------- ----------- ----------- ------------ ---------
Depreciation - - - - 81 81
-------- ---------- ----------- ----------- ------------ ---------
(1) The hotel business ceased to operate with effect from 3
August 2016 and has been closed permanently. The property is
currently being refurbished into 18 apartments.
The segmental information of the Group's results for the year
ended 31 March 2016 was as follows:
Property Hotel Property Property Total
Trading Operation Management investment GBP'000
GBP'000 GBP'000 GBP'000 GBP'000
-------- ---------- ----------- ----------- ---------
Revenue 20,110 848 17 141 21,116
Cost of sales (13,226) (777) - - (14,003)
-------- ---------- ----------- ----------- ---------
Gross profit 6,884 71 17 141 7,113
Dividend from associate - - 13 - 13
Share of profit
of associate - - 23 - 23
Operating profit
before administration
expense 6,884 71 53 141 7,158
-------- ---------- ----------- -----------
Administrative expenses (1,287)
Dividends from investments 9
Finance income 520
Finance costs (334)
---------
Profit before tax 6,057
=========
Property Hotel Property Property Unallocated Total
Trading Operations Management investment GBP'000 GBP'000
GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ----------- ----------- ------------ ---------
Segment assets 23,342 496 - 1,123 5,729 30,690
Segment liabilities (10,927) (219) - - (1,798) (12,944)
-------- ----------- ----------- ----------- ------------ ---------
Net assets 12,415 277 - 1,123 3,931 17,746
-------- ----------- ----------- ----------- ------------ ---------
Capital expenditure - - - - 105 105
-------- ----------- ----------- ----------- ------------ ---------
Depreciation - - - - 85 85
-------- ----------- ----------- ----------- ------------ ---------
4. Earnings per Share
The calculation of the basic and diluted earnings per share is
based on the following data:
2017 2016
GBP'000 GBP'000
Profit for the year attributable to equity
holders of the company 2,322 4,535
======== ========
2017 2016
Number Number
Weighted average number of ordinary shares
for the purposes of basic earnings per share
(continued and discontinued) 15,555,095 16,224,288
Effect of dilutive potential ordinary shares 12,042,793 13,138,490
----------- -----------
Weighted average number of ordinary shares
for the purposes of diluted earnings per share 27,597,888 29,362,778
=========== ===========
5. Dividends
The Directors recommend a final dividend of 1 pence per share
(2016: nil). During the year, no interim dividend was paid (2016:
1.5 pence per share).
6. Investment Properties
2017 2016
GBP'000 GBP'000
Fair value
At 1 April 1,123 2,693
Disposal of properties in the year (400) (1,612)
Increase in fair value during the year 459 42
-------- --------
At 31 March 1,182 1,123
======== ========
The fair value of the investment properties at 31 March 2017
comprises freehold properties of GBP725,000 (2016: GBP665,000) and
long leasehold properties of GBP457,000 (2016: GBP458,000). The
leasehold and freehold investment property have been classified
within level 3 of the fair value hierarchy (unobservable
inputs).
The investment properties consist of residential property
located in North London and have been valued by the Directors. The
methodology to value these properties is to compare historical
comparable market transactions less a percentage reduction to
reflect the limitations of restrictive tenancies. Based on
valuations at 31 March 2017, if the percentage reduction was 5%
higher or lower and all other variables were held constant, the
Group's net profit would increase or decrease immaterially.
The Group has pledged investment properties with a carrying
value of GBP1,182,000 (2016: GBP1,110,000) to secure banking
facilities granted to the Group.
The fair value of the Group's investment properties at 31 March
2017 had been arrived at on the basis of market value as defined in
the Apportionment and Valuation Manual of the Royal Institution of
Chartered Surveyors.
7. Trading Properties
2017 2016
GBP'000 GBP'000
Properties for resale 9,348 14,838
======== ========
Trading properties are properties acquired or developed and held
for sale and are shown at the lower of cost or net realisable
value. The cost of trading properties are those costs directly
associated with the acquisition and development of a specific site.
Net realisable value is the estimated selling price in the ordinary
course of business less estimated costs to completion and the
estimated costs necessary to make the sale.
8. Trade and Other Receivables
2017 2016
GBP'000 GBP'000
Trade receivables 80 31
Other receivables 9,122 8,847
Prepayments and accrued income 7 6
-------- --------
9,209 8,884
======== ========
Current 9,209 381
Non-current - 8,503
-------- --------
9,209 8,884
======== ========
The directors consider that the carrying amount of trade and
other receivables is no less than their fair value. Of the other
receivables, GBP9,058,000 (2016: GBP8,503,000) is deferred
consideration on the sale of the Chandos Tennis Club and no amounts
are beyond their due date.
9. Bank Loans
FALLING DUE WITHIN ONE YEAR 2017 2016
GBP'000 GBP'000
Bank loans 7,670 -
Unamortised borrowing costs (31) -
--------- ---------
7,639 -
--------- ---------
FALLING DUE AFTER MORE THAN ONE YEAR 2017 2016
GBP'000 GBP'000
Bank loans - 11,000
Unamortised borrowing costs - (73)
- 10,927
========= =========
2017 2016
GBP'000 GBP'000
The borrowings are repayable as follows:
In the second to fifth years - 11,000
======== ========
All of the Group's bank loans and overdrafts disclosed above
comprise borrowings in sterling. The bank loans are secured on
investment and trading properties owned by the Group totalling
GBP10,288,000 (2016: GBP15,948,000).
The Group has a GBP12,500,000 (2016: GBP12,500,000) revolving
credit facility with Lloyds Bank plc ("the Bank"), secured on
certain properties owned by the Group, which is due to expire on 9
December 2017. The facility is based on LIBOR plus a fixed margin.
The Group has entered into discussions with the Bank to renew the
facility and has received a letter of intent from the bank. A
notional amount of GBP5,000,000 (2016: GBP5,000,000) has been
capped at 3%.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUMGRUPMGGC
(END) Dow Jones Newswires
August 24, 2017 07:24 ET (11:24 GMT)
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