Your Space PLC
30 September 2005
Your Space Plc
Preliminary Results Announcement
for the year ended 31 March 2005
Your Space Plc ('Your Space' or the 'Company') is pleased to announce its
preliminary results for the year ended 31 March 2005.
• Turnover of £2,671,000 up £88,000 (3.4%)
• Loss for the year before tax £383,000, (2004 loss £179,000).
• Loss per share 0.19p, (2004 0.10p).
• Net asset value of 2.7p per share at the year end.
• Cash balances of £515,000 at 31 March 2005.
• Change in accounting policy results in £845,000 increase in shareholders
• Exceptional amortisation of fixtures and fittings £179,000.
• Development programme in Willenhall and Manchester. New credit facility of
£500,000 secured to complete the projects. Revenue maintained despite
• Submission of planning permission in Manchester for extension to existing
building and development of 7 storey student accommodation block.
• Up to 13,000 sq ft of new space expected to be in circulation by period
ended 31 March 2006.
• Average rent increases of up to 25% in the last quarter.
• Average occupancy at 79%.
• Car park at 23 Mount Street, Manchester also valued at £800,000 resulting
in an increase in shareholders funds
• Group property portfolio re-valued since year end resulting in overall
increase in value of £1,350,000 from £15,662,000 as at 31 March 2005 to a
current value of £17,012,000.
• Revaluation implies increased net assets per share of approximately 26%
from 2.7p to 3.4p and gearing reduced from 66% to 58%
Chairman, Christopher Phillips, commented:
'This year has seen a considerable change in the business. A new management team
has brought fresh impetus and new direction. We have begun to improve the
quality of the office space we provide and are now attracting more tenants as a
result. We continue to develop the range of services we offer and are especially
pleased with the opportunities we have identified to develop the business from
within the existing portfolio of properties.'
For further information please contact:
Your Space Plc Tel: 0207 036 0300
Christopher Phillips, Chairman Tel: 0207 036 0300
Jim Millar, Finance Director Tel: 0207 036 0300
Graham Webster, Zeus Capital Tel: 0207 965 0750
Your Space is pleased to report its results for the year ended 31 March 2005.
In the 12 months to 31 March 2005, turnover was £2,671,000 an increase of
£88,000 (3.4%) from £2,583,000 the previous year.
The company incurred a loss before taxation of £383,000 compared to a restated
loss of £179,000 in 2004.
At the year end the net assets of the company were £5,363,000 or 2.7p per share
(197,775,442 ordinary shares) compared to £4,946,000 (restated) or 2.8p per
share (178,805,571 ordinary shares) at 31 March 2004. During the period the
directors have valued the car park which the company owns at 23 New Mount
Street, Manchester. This has a current value of £800,000. Planning permission
has already been sought to develop the plot into a 7 storey Student
accommodation block and consent is awaited.
Cash balances at 31 March 2005 were £515,000 compared to £850,000 in 2004.
The loss for 2004 has been restated, as the previously reported loss included
negative goodwill which arose in the acquisition of Workspace Northwest Limited
and Falconstate Limited. In accordance with recommended accounting practice (FRS
10 (Amortisation of Goodwill)) this negative goodwill has now been amortised
over a period of 5 years. This has not been accounted for in the past and
therefore the Board has taken the decision to restate the balance sheet for the
relevant previous periods in order to comply with recommended accounting
practice. This change has resulted in a prior year adjustment of £845,000,
resulting in an increase in shareholders funds.
In addition the Directors have written off a balance relating to fixtures and
fittings amounting to an exceptional amortisation in the period of £179,000. The
directors are of the opinion that these adjustments now properly reflect the
value of the assets in the business and enable a more realistic treatment to be
made of such asset classes in the future.
There have been significant changes to the board during the past financial year,
with David Berry resigning as a non-executive of the company on 31 October 2004,
Harvey Soning resigning as Chief Executive and as a director of the Board on
23 November 2004 and Anita Bevan resigning as a director on 31 December 2004.
Abraham Marrache joined the Board as a non-executive director on 1 November
2004. Ray Harris stepped down as Finance Director on January 19 January and
remained on the board as a non-executive director as of that date. Shaun Mealey
was appointed Chief Executive and Seamus Millar appointed as Finance Director on
19th January 2005.
In September this year we appointed Zeus Capital as our adviser and WH Ireland
as our broker we look forward to working with them both in the coming months. I
would like to extend my thanks to John East and Partners for their services over
the past year.
The Board has restructured management and introduced a number of initiatives
aimed at increasing the returns in each business unit and maximising the
profitability of the company.
Set out below is a brief description of trading for each of the business units
within the group.
Clerkenwell: trading in the London business space market was particularly
difficult over the past year as a result of which occupancy levels and income
levels fell well below the previous year. However following a number of new
initiatives and a concerted marketing effort the average occupancy for the final
quarter of the year was 94% and has continued at this level into the present
West Midlands House, Willenhall: achieved an occupancy of 68%. Over the year the
management team undertook a full survey of this building. The company has
commenced refurbishment and expects to increase net lettable space from 31,000
sq ft to 41,000 sq ft.
23 New Mount Street: achieved average occupancy levels of 74%. During the year a
refurbishment program managed by our in-house team has commenced and the net
lettable space has been increased by 6,000 sq ft. We have recently submitted
planning permission for the development of the car park opposite the 23 New
Mount Street building. If consent is granted then we hope to begin the
construction of a 200 bed purpose built student accommodation block, with the
infrastructure at the New Mount Street complex managing the site on completion.
In addition to this planning application we have also submitted plans to
redevelop the New Mount Street building itself. We hope to extend the building
by 14,000 sq ft creating an additional 10,000 sq ft of high quality office
Our building at 85 Frampton Street, London continues to be let to Psion on a
lease expiring 2015.
The management contracts at Shortlands in Hammersmith and with Mountgrange at
Bishopsgate continue to operate and contribute to group income.
In the period since January this year, much has been done to significantly
reduce costs, the benefit of which we anticipate will be shown in the current
financial year. We have reviewed rents and are now confident that true market
rates are being reflected in all new tenancies. Your directors continue to look
for new ways to improve performance and maximise returns. Our short term goal is
to restore the Company to profitability and continue the development of the
buildings in Manchester and Willenhall to increase net asset value.
Following the hard work undertaken to enhance the Group's portfolio of
properties outlined in this statement, the Board believed it appropriate to
revalue the portfolio as the Board was of the opinion that the asset value shown
in the balance sheet materially undervalued the Group's assets. The Board was
also of the opinion that a revaluation would present the opportunity to
renegotiate the Company's banking facilities on more advantageous terms.
Third party surveyor's reports have valued the Company's portfolio of properties
- 23 Mount Street has been valued at £3,600,000 (31 March 2005: £2,600,000).
The car park at 23 Mount Street has been separately valued at £800,000.
- West Midlands House, Willenhall has been valued at £1,750,000 (31 March
- The Bridge, 12-16 Clerkenwell Road, London has been valued at £4,850,000
(31 March 2005: £4,750,000).
- 85 Frampton Street remains in the group portfolio at £5,950,000.
The re-valuation of the property portfolio implies an overall increase in value
of £1,350,000 from £15,662,000 as at 31 March 2005 to a current value of
£17,012,000. The car park at 23 Mount Street, Manchester is also valued at
£800,000 resulting in an increase in shareholders funds. Further, the
revaluation implies increased net assets per share of approximately 26% from
2.7p to 3.4p and gearing reduced from 66% to 58%.
On 6 September 2005, the Board approved proposals relating to the consolidation
of the issued ordinary share capital of the Company and providing authority to
the Directors to effect market purchases of shares by the Company (together the
'Proposals'). The Board will be seeking the consent of shareholders to the
Proposals at the next annual general meeting of the Company.
I would like to thank the directors who have left the company for their
contributions to the development of Your Space and commend the executive
directors and the employees for their achievements and efforts to optimise the
performance of the Company during a difficult year of transition. I believe
shareholders can look forward with optimism to what should be an exciting year
for the development of Your Space.
The accounts for the period ended 31st March 2005 will be despatched to
shareholders on Friday the 30th September.
Christopher R L Phillips
Non Executive Chairman
Consolidated Profit and Loss account
For the year ended 31 March 2005
Note 2005 2004
Turnover 2,671 2,583
Operating expenses (2,313) (2,100)
Operating profit 358 483
Interest receivable 12 23
Interest payable (753) (685)
Loss on ordinary activities before taxation (383) (179)
Taxation - 7
Retained loss for the financial period (383) (172)
Loss per share
Basic and diluted loss per ordinary share 1 0.19 0.10
The profit and loss account has been prepared on the basis that all operations
are continuing operations.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Note 2005 2004
Loss for the financial year (383) (172)
Unrealised surplus on revaluation of
investment properties 800 68
Total recognised gain/(loss) for the year 417 (104)
Prior year adjustment 2 845
Total recognised gains and losses since
last annual report 1,262
Consolidated Balance Sheet
Group Group Company Company
2005 2004 2005 2004
£'000 £'000 £'000 £'000
Negative goodwill - (211) - -
Tangible assets 15,662 15,082 - -
Investments - - 3,118 3,118
15,662 14,871 3,118 3,118
Debtors 399 406 3,147 2,744
Cash at bank and in hand 515 850 326 341
914 1,256 3,473 3,085
Creditors: amounts falling due
within one year (1,754) (1,416) (1,604) (734)
Net current assets/(liabilities) (840) (160) 1,869 2,351
Total assets less current liabilities 14,822 14,711 4,987 5,469
Creditors: amounts falling due
after more than one year (9,459) (9,765) - -
Total assets less liabilities 5,363 4,946 4,987 5,469
Capital and reserves
Called up share capital 1,978 1,978 1,978 1,978
Share premium account 4,489 4,489 4,489 4,489
Revaluation reserve 192 (608) - -
Profit and loss account (1,296) (913) (1,480) (998)
Equity shareholders' funds 5,363 4,946 4,987 5,469
Note 2005 2005 2004 2004
£'000 £'000 £'000 £'000
Net cash inflow from operating activities a
Return on investments and servicing of finance
Interest received 12 23
Interest payable (753) (729)
Net cash outflow from returns on investments and
servicing for finance (741) (706)
Taxation - -
Capital expenditure and financial investment
Payments to acquire tangible assets (29) (333)
Net cash outflow from capital expenditure (29) (333)
Net cash outflow before management of liquid
resources and financing
Issue of ordinary share capital - 637
New bank loan - 300
Repayment of bank loan (208) (268)
Repayment of convertible debt - (924)
Net cash inflow from financing (208) (255)
Decrease in cash in the year b (419) (851)
a. Reconciliation of operating profit to net cash inflow from operating
Operating profit 358 483
Depreciation 249 78
Amortisation (211) (205)
Increase in debtors 7 (59)
Increase in creditors 156 146
Net cash inflow from operating activities 559 443
b. Analysis of changes in cash and cash equivalents during the years
At 1 April Non-cash 31 March
2004 Cash flow movements 2005
£'000 £'000 £'000 £'000
Cash at bank 850 (335) - 515
Bank overdraft - (84) - (84)
850 419 - 431
Bank loans (10,005) 208 - (9,797)
(10,005) 208 - (9,797)
Net debt (9,155) (211) (9,366)
c. Reconciliation of net cash flow to movement in net debt
Decrease in cash in the year (419) (851)
Cash outflow from decrease in net debt 208 892
Change in net debt resulting from cash flows (211) 41
Non cash movement in net debt - 263
Movements in debt in the year (211) 304
Opening net debt (9,155) (9,459)
Closing net debt (9,366) (9,155)
Notes to the preliminary announcement
1. Loss per share
The calculation of the basic loss per share is based on the loss after tax of
£383,000 (2004: restated £179,000) and on 197,775,442 (2004: 178,805,571)
ordinary shares being the weighted average number of ordinary shares in issue
during the period.
There is no dilutive effect of warrants and options due to the fair price of the
shares during the period being less than the exercisable price of those warrants
2. Prior year adjustment
During the year the directors have identified that the negative goodwill
included in the accounts did not relate to the properties acquired, they have
therefore changed their accounting policy in respect of negative goodwill and
this is now amortised over a period of 5 years. This change in accounting policy
has resulted in a prior year adjustment of £845,000, resulting in an increase in
The directors are not proposing the payment of a dividend in respect of the year
ended 31 March 2005.
4. Publication of non-statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
The consolidated balance sheet at 31 March 2004 and the consolidated profit and
loss account, consolidated cash flow statement and associated notes for the year
then ended have been extracted from the Group's financial statements. Those
financial statements have not yet been delivered to the Registrar of Companies,
nor have the auditors reported on them.
5. Report and Accounts
A copy of the Report and Accounts will be sent to shareholders on 30 September
2005 and will be available from the Company's registered office.
Your Space PLC
Chris Phillips/Jim Millar Tel: 020 7036 0300
Graham Webster Tel: 0207 965 0750
Alex Clarkson Tel: 0161 831 1512
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