Arko Holdings PLC
21 September 2006
FOR RELEASE AT 0700 0N 21 SEPTEMBER 2006
ANNOUNCEMENT TO THE LONDON STOCK EXCHANGE
Arko Holdings plc ('the Company' or 'Arko')
Interim Results of the Company
for the six months ended 30 June 2006
The Board of Arko announces the Interim Results of the Company for the six
months ended 30 June 2006, which are set out below. These have today been
published and will be despatched to Arko shareholders.
Copies of these financial statements will be available from the offices of
Nabarro Wells & Co. Limited, Saddlers House, Gutter Lane, Cheapside, London EC2V
6HS.
CHAIRMAN'S STATEMENT
I am pleased to report Arko Holdings plc's ('Arko' or 'the Group') results for
the period from 1 January 2006 to 30 June 2006.
FINANCIAL RESULTS
The first half of 2006 showed an improvement in performance in the shipping and
logistics sector, which led to a 32.5% increase in EBITDA, from US$828,000 in
2005 to US$1,097,000 and a 2.4% increase in gross profit margin (2005: 41.3%).
This is as a result of steady growth in terminal operation, in addition to
careful cost control and focus on margins. In the period the Group achieved an
operating profit before goodwill amortisation of US$353,000 (2005: US$1,000) and
a loss before tax of US$408,000 (2005: a loss US$94,000). The corresponding 2005
results did not include a contribution from income generated from the power
plant of US$615,000. Overall, however, the Group has made a loss for the period
of US$944,000 (2005: US$10,000) on ordinary activities after taxation and
minority interest.
The net cash outflow for the period of US$214,000 (2005: outflow of US$162,000)
was impacted by capital expenditure of US$468,000 (2005: US$0), principally on
the acquisition of a quayside crane in the container terminal.
No interim dividend is declared.
SUMMARY AND OUTLOOK
Arko's continued primary focus is to maintain a steady growth in its existing
terminal and shipping logistics business. We anticipate that in the future
capital expenditure will be incurred in the acquisition of equipment and
machinery in the terminal so as to increase the efficiency of service as well as
competitiveness in the market. In fact, the increase both in handling of TEUs of
39.4% and in turnover of 23.2% compared to the same period of last year is
encouraging.
Overall, the Board is optimistic about the prospects for continued growth of
Keen Chance Terminal and we will use our expertise in operating the terminal in
a safe and professional manner. In addition, the Board will consider seriously
the possibility of restructuring the Company's assets in order to strengthen its
position in the shipping and logistics sector. In summary, the Board remains
cautious in its outlook for the year and will continue to evaluate each
opportunity in a prudent manner.
STAFF
The Board would again like to thank all our staff, for the commitment,
professionalism and loyalty that they have shown during the last six months.
Qin Shun Chao
Chairman
20 September 2006
ARKO HOLDINGS PLC
FINANCIAL HIGHLIGHTS
FOR THE SIX MONTHS ENDED 30TH JUNE 2006
(Audited)
(Unaudited) Year ended
Six months ended 31st
30th June December
2006 2005 2005
US$'000 US$'000 US$'000
Turnover 4,741 3,842 8,094
E/(L) BITDA* 1,097 828 (1,608)
Operating profit/(loss) (344) 1 (5,326)
Shareholders' funds and minority interest 59,621 65,523 60,109
*Earnings/ (loss) before interest, tax, depreciation and amortisation.
ARKO HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30TH JUNE 2006
(Audited)
(Unaudited) Year ended
Six months ended 31st
30th June December
2006 2005 2005
US$'000 US$'000 US$'000
Turnover 4,741 3,842 8,094
Cost of sales (2,671) (2,256) (4,783)
Gross profit 2,070 1,586 3,311
Other operating income 635 - 809
Net operating expenses (2,352) (1,585) (7,855)
Operating profit/(loss) before goodwill 353 1 (3,735)
amortisation
Goodwill amortisation (697) - (1,591)
Operating profit/(loss) (344) 1 (5,326)
Interest payable (64) (95) (240)
(Loss) on ordinary activities before (408) (94) (5,566)
taxation
Taxation on profit on ordinary activities (163) (50) (184)
(Loss) on ordinary activities after (571) (144) (5,750)
taxation
Minority interest (373) 134 (158)
Loss for the financial period (944) (10) (5,908)
Loss per share (US cents)
Basic (0.0477) 0.00 (0.2985)
Diluted (0.0477) 0.00 (0.2985)
ARKO HOLDINGS PLC
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
AS AT 30TH JUNE 2006
(Audited)
(Unaudited) Year ended
Six months ended 31st
30th June December
2006 2005 2005
US$'000 US$'000 US$'000
LOSS FOR THE FINANCIAL PERIOD (944) (10) (5,908)
Currency translation gains and losses on
foreign currency net investment (82) - (247)
TOTAL RECOGNISED GAINS AND LOSSES (1,026) (10) (6,155)
FOR THE PERIOD
ARKO HOLDINGS PLC
CONSOLIDATED BALANCE SHEET
AS AT 30TH JUNE 2006
(Audited)
(Unaudited) As at
As at 30th June 31st
December
2006 2005 2005
US$'000 US$'000 US$'000
FIXED ASSETS
Intangible assets 22,110 24,201 22,807
Tangible fixed assets 33,603 35,272 33,879
Investment in associate 12 12 12
55,725 59,485 56,698
CURRENT ASSETS
Stocks 73 271 144
Debtors 8,086 12,843 8,810
Cash at bank and in hand 439 259 653
8,598 13,373 9,607
CREDITORS
Amounts falling due within one year (1,974) (4,495) (3,494)
NET CURRENT ASSETS 6,624 8,878 6,113
TOTAL ASSETS LESS CURRENT LIABILITIES 62,349 68,363 62,811
CREDITORS
Amounts falling due after more than one (2,728) (2,840) (2,702)
year
NET ASSETS 59,621 65,523 60,109
CAPITAL AND RESERVES
Called up equity share capital 14,922 14,922 14,922
Share premium 15,662 15,662 15,662
Merger reserve 26,043 26,043 26,043
Profit and loss account (11,768) (4,597) (10,742)
Other reserve 1,846 1,276 1,681
EQUITY SHAREHOLDERS' FUNDS 46,705 53,306 47,566
MINORITY INTEREST 12,916 12,217 12,543
59,621 65,523 60,109
ARKO HOLDINGS PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30TH JUNE 2006
Six months ended Year ended
30th June 31st
December
2006 2005 2005
US$'000 US$'000 US$'000
NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES 576 (17) 1,548
RETURNS ON INVESTMENTS AND SERVICING
OF FINANCE
Interest paid (64) (95) (240)
TAXATION (284) (50) (163)
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Payments to acquire tangible fixed assets (468) - (390)
Receipts from sale of tangible fixed assets - - 566
(468) - 176
NET CASH (OUTFLOW)/INFLOW
BEFORE FINANCING (240) (162) 1,321
FINANCING
Capital element of finance lease rental - - (2)
payments
Increase/(decrease) in bank and other 3 - (1,089)
borrowings
Increase in advances from fellow investors 23 - 2
(DECREASE)/INCREASE IN CASH ( 214) (162) 232
RECONCILIATION OF OPERATING PROFIT/(LOSS)
TO NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES
Operating profit/(loss) (344) 1 (5,326)
Amortisation 697 - 1,591
Depreciation 744 826 2,131
Decrease/(increase) in stocks 71 (7) 119
Decrease/(increase) in debtors 724 (75) 3,958
Decrease in creditors (1,398) (356) (428)
Gain on disposal of fixed assets - - (4)
Exchange adjustments 82 (406) (493)
576 (17) 1,548
ARKO HOLDINGS PLC
NOTES TO THE ACCOUNTS (UNAUDITED)
FOR THE SIX MONTHS ENDED 30TH JUNE 2006
1. BASIS OF PREPARATION
The Interim Report is unaudited and does not constitute statutory accounts
within the meaning of Section 240 of the Companies Act 1985. The statutory
accounts for 2005, which were prepared under UK GAAP, have been delivered to the
Registrar of Companies. The auditors' opinion on these accounts was unqualified
and did not contain a statement made under Section 237(2) or Section 237(3) of
the Companies Act 1985.
The accounting policies applied are consistent with those used in the financial
statements for the year ended 31st December 2005.
2. TURNOVER
(Audited)
(Unaudited) Year ended
Six months ended 31st
30th June December
2006 2005 2005
US$'000 US$'000 US$'000
Turnover comprises:
Terminals and shipping logistics 4,732 3,842 8,077
Trading and others 9 - 17
4,741 3,842 8,094
3. LOSS PER SHARE
The calculation of loss per share is based on the loss of US$944,000 (31st
December 2005: loss of US$5,908,000 and 30th June 2005: loss of US$10,000)
divided by the weighted average number of shares in issue during the period. The
weighted average number of shares is 1,978,895,097 shares (year ended 31st
December 2005: 1,978,895,097 and six months ended 30th June 2005: 1,978,895,000
shares).
4. DIVIDENDS
The directors do not recommend the payment of any dividend.
5. PRINCIPAL SUBSIDIARY COMPANIES
At 30th June 2006, the company held 100% of the ordinary shares of Arko Offshore
Holdings Limited, a company incorporated in the British Virgin Islands ('BVI'),
whose principal activity was that of a holding company. Arko Offshore Holdings
Limited had the following subsidiary undertakings:
Equity
attributable
Name to the group Principal Place of
activities incorporation
Arko Energy Limited 100% Investment holding British Virgin
Islands
Arko Consultants Limited 100% Providing British Virgin
management Islands
services
Arko Pacific Limited 100% Investment holding British Virgin
Islands
Long Prosperity 100% Investment holding Republic of
Industrial Seychelles
Limited*
Arko Silicon (Hubei) 100% Dormant People's Republic of
Limited *
China
Sanko Mineral Limited * 100% Sub-letting of British Virgin
yachts, Islands
ships and vessels
Arko Logistics Limited * 100% Providing Hong Kong
logistics
and related
services
Arko Satellite Limited * 100% Dormant British Virgin
Islands
Arko Terminal Limited 100% Investment holding Republic of
('ATL')* Seychelles
Changzhou Power 59.2% Operating a People's Republic of
Development coal-fired
Company Limited * thermal power China
plant
Keen Chance Terminal (GZ) 40% Investing in and People's Republic of
Company Limited * operation of a China
terminal and
providing
logistics
services
Fujian Sanko Mining 70% Dormant People's Republic of
Limited *
China
*held by a subsidiary of Arko Offshore Holdings Limited
This information is provided by RNS
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