Interim Results

Sutton Harbour Holdings PLC 23 November 2006 Sutton Harbour Holdings plc ('Sutton Harbour' or the 'Company') Interim Results Chairman's Statement -------------------------------------------------------------------------------- Your Company has continued to grow in the first half of the current year. As I indicated in my statement at the Annual General Meeting, the regeneration sector of the business has made significant advances whilst our transport activities have made a more modest contribution compared with the same period a year ago. During the first six months of the current financial year, your Company has achieved an operating profit of £2.41m, which compares with £2.09m at 30 September last year. This period pre-tax profits are £2.0m (2005: £1.96m) and earnings per share are 5.76p (2005: 5.64p). Your board has decided to pay an interim dividend of 1.5p per share (2005: 1.4p) a 7% increase on the interim dividend paid last year. The dividend will be paid on 5 January 2007 to shareholders on the register on 8 December 2006. Our shares will be quoted ex-dividend on 5 December 2006. I am delighted to report that our plans for the east of Sutton Harbour have moved on significantly. We have been working towards a major landmark development on the site of the former boatyard and have gained planning permission for 101 apartments including affordable accommodation, 31,000 square feet of office space and a further 8,000 square feet of commercial/retail space. I am very pleased to announce that the office space is reserved for the new BBC Multimedia Centre. Construction is expected to start next May. We have submitted a planning application for a major scheme on the harbour's edge in partnership with the Rowe Group. This scheme should also be started next year. The next phase of harbour side development is now in the planning stages and we hope to be submitting a further scheme for planning approval in the coming months. We have completed the Department for Work and Pensions building (DWP) and the tenant has taken occupation. The building will open its doors as a public facility before Christmas. This is the largest city centre office development in Plymouth for some years. We have completed the Penrose affordable housing scheme and we have now secured tenants for the ground floor premises of Shepherd's Wharf and the new DWP building. In addition we are achieving good rental increases elsewhere on our estate. We are also progressing other schemes in the south west consistent with our strategy of expanding the geographical spread of our activities. These, together with other opportunities in Plymouth, should ensure considerable scope for growth in future years. ReSound (Health) Limited, in which your Company holds a 37.2% interest, has now completed the Mount Gould Local Care facility and planning permission has been granted for a health care centre in Cattedown, Plymouth. Work is expected to start on this scheme in Spring 2007. The profit from our Transport sector shows a decline against the comparative period last year. Air Southwest's results have been affected by a number of factors, not least the high fuel price that has prevailed during the reporting period and the after effects of the security alert on 10 August 2006. As a result of a recently completed network review, we will suspend the Bristol-Norwich service to allow us to improve our offering on our more established routes. We have secured an additional Gatwick slot and are using this to increase our services from Newquay giving us five flights a day between Newquay and Gatwick on weekdays. Following the creation of a new 84 berth marina at West Pier and the refurbishment of facilities at Sutton Harbour Marina, our marinas have produced record results and visitor numbers were significantly higher than in previous years. We are now planning to extend and upgrade the marina facilities to the north west end of the harbour in readiness for the 2007/2008 season. Fishing continues to perform steadily and I am pleased to report that Sutton Harbour Fisheries was recently named Fishing Port of the year beating off stiff competition from Brixham and Peterhead. We have recently been re-accredited with the Investors in People Award and I thank our staff for their continued commitment to the Company and for all their hard work. Overall progress in the first half year has been encouraging, notwithstanding a reduced contribution from Transport. Provided the airline industry remains free from external difficulties, the outlook for the rest of the year continues to be good particularly for our regeneration activities. Transport's contribution will remain substantially less than last year. Overall the Group continues to make good progress and we are pleased that our policy of balancing the various strands of our business has justified itself. We remain very confident for the Group's future. Ellen Winser Chairman Group Summarised Profit and Loss Account -------------------------------------------------------------------------------- Note 6 months to 6 months to Year Ended 30 September 30 September 31 March 2006 2005 2006 (unaudited) (unaudited) (audited) £000 £000 £000 * As restated Turnover 2 16,628 14,007 27,218 ----------------------------------- Operating Profit 2 2,414 2,089 3,596 Net Interest 7 (412) (129) (176) ----------------------------------- Profit on Ordinary Activities Before 2,002 1,960 3,420 Taxation Taxation on Profit on 3 Ordinary Activities (300) (294) (552) Deferred Taxation 3 (300) (294) (481) ----------------------------------- Profit on Ordinary Activities After 1,402 1,372 2,387 Taxation Dividends 4 (584) (511) (852) ----------------------------------- Retained Profit 818 861 1,535 ----------------------------------- Earnings per Share 5 5.76p 5.64p 9.80p Diluted Earnings per 5 5.63p 5.60p 9.70p Share * As restated for prior year adjustment - see note 8 Consolidated Summarised Balance Sheet -------------------------------------------------------------------------------- As at As at As at 30 September 30 September 31 March 2006 2005 2006 (unaudited) (unaudited) (audited) £000 £000 £000 * As restated Fixed Assets 48,014 37,901 57,270 ------------------------------------ Current Assets Stock 15,804 7,381 3,145 Debtors 4,575 3,453 4,939 Cash at Bank and in Hand 3 3 4 ------------------------------------ 20,382 10,837 8,088 ------------------------------------ Creditors (due within one year) Bank Loans and Overdraft 9,294 8,701 6,399 Other 3,280 3,618 3,046 Deferred Income 2,743 3,167 4,664 ------------------------------------ (15,317) (15,486) (14,109) ------------------------------------ Net Current Assets/ (Liabilities) comprising Net Current Assets/ 4,200 (4,649) (6,952) (Liabilities) Debtors due after more than one year 865 - 931 ------------------------------------ Net Current Assets/ 5,065 (4,649) (6,021) (Liabilities) ------------------------------------ ------------------------------------ Total Assets Less Current Liabilities 53,079 33,252 51,249 ------------------------------------ Creditors (amounts falling due after more than one year) Secured Bank Loans (11,120) - (10,532) Deferred Income (391) (37) (303) Provisions for Liabilities and Charges Deferred Taxation (2,692) (2,209) (2,396) ------------------------------------ Net Assets 38,876 31,006 38,018 ------------------------------------ Shareholders' Funds 38,876 31,006 38,018 ------------------------------------ * As restated for prior year adjustment - see note 8 Consolidated Summarised Cash Flow Statement -------------------------------------------------------------------------------- 6 months to 6 months to Year Ended 30 September 30 September 31 March 2006 2005 2006 (unaudited) (unaudited) (audited) £000 £000 £000 * as restated Reconciliation of Operating Profit to Net Cash (Outflow)/ Inflow from Operating Activities Operating Profit 2,414 2,089 3,596 Depreciation Charges 306 220 472 Amortisation of Intangible 17 17 35 Assets Amortisation of Grants (2) (3) (5) Loss on Sale of Tangible Fixed Assets 4 - 14 (Increase)/Decrease in (1,313) (2,922) 184 Stock Decrease/(Increase) in 415 341 (1,072) Debtors (Decrease)/Increase in (1,948) (322) 897 Creditors Charge in Relation to Share Based Payment 40 - 23 ------------------------------------ Net Cash (Outflow)/Inflow from Operating Activities (67) (580) 4,144 ------------------------------------ CASH FLOW STATEMENT Net Cash (Outflow)/Inflow from Operating Activities (67) (580) 4,144 Returns on Investment and Servicing of Finance (434) (181) (522) Taxation (33) (151) (465) Capital Expenditure (2,366) (2,019) (13,976) Dividends Paid (584) (511) (852) Financing 1,426 2 11,560 ------------------------------------ (Decrease) in Cash in the period (2,058) (3,440) (111) ------------------------------------ Reconciliation of Net Cashflow to Movement in Net Debt (Decrease) in Cash in the period (2,058) (3,440) (111) New Loans (1,426) - (11,558) Net Debt Brought Forward (16,927) (5,258) (5,258) ------------------------------------ Net Debt Carried Forward (20,411) (8,698) (16,927) ------------------------------------ * As restated for prior year adjustment - see note 8 Consolidated Statement of Total Recognised Gains and Losses ------------------------------------------------------------------------------- 6 months to 6 months to Year Ended 30 September 30 September 31 March 2006 2005 2006 (unaudited) (unaudited) (audited) £000 £000 £000 * as restated Unrealised Surplus on revaluation of properties - - 6,315 Reported profit on Ordinary Activities after Taxation 1,402 1,372 2,387 ----------------------------------------- Total Recognised Gains and Losses since last Reported 1,402 1,372 8,702 ----------------------------------------- * as restated for prior year adjustment - see note 8 Reconciliation of Movements in Shareholders' Funds -------------------------------------------------------------------------------- Note 6 months to 6 months to Year Ended 30 September 30 September 31 March 2006 2005 2006 (unaudited) (unaudited) (audited) £000 £000 £000 * as restated Reported Profit in Group Companies for the Period 1,402 1,372 2,387 Dividends 4 (584) (511) (852) ----------------------------------------- Retained Profit for the 818 861 1,535 Period Revaluation Reserve - - 6,315 Adjustment Charge in Relation to Share Based Payment 40 - 23 Share Issue - 1 1 Premium on Share Issue - 1 1 Opening Shareholders' funds (as restated) + 38,018 30,143 30,143 ----------------------------------------- Closing Shareholders' funds 38,876 31,006 38,018 ----------------------------------------- + Opening Shareholders' funds at 1 April 2005 were originally £29,632,000 before prior year adjustment of £511,000 being dividend restatement. Dividends were restated to comply with FRS21- Events after the balance sheet. * As restated for prior year adjustment - see note 8 Notes to interim report 1. Accounting Basis The Accounts are prepared under the historical cost convention modified to include the revaluation of certain freehold properties and investments. The Accounts are prepared in accordance with applicable accounting standards except where, in the opinion of the Directors, departure is necessary in order to show a true and fair view. The Accounting Policies are consistent with those applied in the Annual Report and Accounts for the year ended 31 March 2006, except that the Group have adopted Financial Reporting Standard 20 Share Based Payment in these interim financial statements. The interim financial statements are not audited. 2. Segmental Analysis 6 months to 6 months to Year Ended 30 September 30 September 31 March 2006 2005 2006 (unaudited) (unaudited) (audited) £000 £000 £000 * as restated Marine activities Turnover 2,836 2,684 4,571 Cost of Sales 2,263 2,140 3,675 -------------------------------------------------------- 573 544 896 Regeneration Turnover 2,023 495 3,097 Cost of Sales 276 91 1,667 -------------------------------------------------------- 1,747 404 1,430 Transport Turnover 11,769 10,828 19,550 Cost of Sales 11,168 9,171 17,427 -------------------------------------------------------- 601 1,657 2,123 Net Operating Expenses (507) (516) (853) -------------------------------------------------------- Operating Profit 2,414 2,089 3,596 -------------------------------------------------------- * As restated for prior year adjustment - see note 8 3. Taxation The Corporation Tax charge represents the provision for taxation on the taxable profits for the period. 6 months to 6 months to Year Ended 30 September 30 September 31 March 2006 2005 2006 (unaudited) (unaudited) (audited) £000 £000 £000 Corporation Tax 300 294 552 Deferred Taxation Provided 300 294 481 ----------------------------------------------- 600 588 1,033 ----------------------------------------------- 4. Dividends 6 months to 6 months to Year Ended 30 September 30 September 31 March 2006 2005 2006 (unaudited) (unaudited) (audited) £000 £000 £000 Final Dividend in respect of the year ended 31 March 2006 of 2.4p (2005 2.1p) 584 511 511 Interim Dividend in respect of the year ended 31 March 2006 of 1.4p - - 341 ----------------------------------------------- 584 511 852 ----------------------------------------------- The interim ordinary dividend of 1.5p (net) per share (2005: 1.4p) totalling £365,130 (2005: £340,788) was approved by the Board of Directors on 22 November 2006. This interim dividend will not be provided against profits until paid and will be paid on 5 January 2007 to Shareholders on the register on 8 December 2006. 5. Earnings per Share Earnings per share have been calculated using the profit for the period of £1,402,000 (2005: £1,372,000) and the 24,342,022 (2005: 24,339,858) average number of ordinary shares in issue excluding those options granted under the SAYE scheme. Diluted Earnings per share uses an average number of 24,916,240 (2005: 24,499,464), ordinary shares in issue which takes account of the outstanding options under the SAYE scheme in accordance with Financial Reporting Standard 14 Earnings per share. 6. Publication of Non-Statutory Accounts The financial information set out in this report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The figures for the year ended 31 March 2006 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain a statement under Section 237(2) of the Companies Act 1985. Copies of this statement are available from the Company's registered office, North Quay House, Sutton Harbour, Plymouth, PL4 0RA. 7. Interest Interest payable in the 6 months to 30 September 2006 is stated after capitalisation of £51,868 (2005: £52,346). 8. Prior Year Adjustment Financial Reporting Standard 20 Share Based Payment became effective for accounting periods starting on or after 1 January 2006. This requires a cost to be applied to the Profit and Loss Account for the value of share options awarded to staff under a Save As You Earn Scheme. The liability has been determined by use of the Black-Scholes Method. The March 2006 comparative for cost of sales has increased by £23,000 as a result of this adjustment with a corresponding reduction in operating profit. There is no adjustment to shareholders' funds on the Balance Sheet as a reserve for this amount has been created. This information is provided by RNS The company news service from the London Stock Exchange

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