Nordic Panorama PLC
26 June 2007
Nordic Panorama Plc
Subsidiary Results
Nordic Panorama Plc ('the Company'), the AIM-traded Norwegian leisure resort
operator and developer, is pleased to announce the consolidated full year
results for its wholly owned subsidiaries, Vradal Panorama Eiendom AS ('VPE')
and Vradal Panorama Skisenter AS ('VPS') for the year ended 31 December 2006.
The Company acquired the whole of the issued share capital of both VPE and VPS
on 4 January 2007. As such the 2006 results for VPE and VPS will not be included
in the consolidated final results of the Company for the period ending 31
December 2007. The Company has changed its financial year end from 31 August to
31 December so that the results of the operating subsidiaries can be shown on a
consistent basis and, with that in mind, its interim results will contain the
results of the Company for the 10 months to 30 June 2007 and those of its
operating subsidiaries for the 6 months ended on that date. The consolidated
results for the Company for the period from 1 September 2006 to 31 December 2007
will be announced by 31 March 2008.
Company Highlights
For the year to 31 December 2006 the businesses of VPE and VPS made a net profit
before taxation of £1.76m on revenues of £5.57m. This represents an increase of
7% on the net profit before taxation for 2005 of £1.64m. In 2005 the residual
value and useful economic life of the ski lifts and snow making machines was
reviewed and increased by a further 10 years to 2015. This change in accounting
estimate had an effect of reducing the depreciation charge by £0.43m. Without
this one off adjustment in 2005 the increase in net profit before taxation would
have been 46%.
One of the major contributions to the improved performance for 2006 was the
increase in plot sales which, together with the associated healthy margins, made
a significant impact on the operating result. The main reason for this increase
in plot sales was the opening of the road to the upper part of the mountain.
This development has increased the overall area of the resort and the expansion
should significantly enhance future revenues.
The Company has plans to extend the resort area further and there are currently
a minimum of 560 plots to be sold or developed in the upper part of the
mountain. The construction programme on the upper mountain is well ahead of
schedule with 20 cabins in the process of being completed and plans for further
construction. With its policy of 'building before selling' the Company is
accelerating sales and has managed to increase average selling prices on units
sold by 5-10%. There has been an increase in working capital tied up in
inventories of pre-built cabins and the associated facilities in the upper part
of the mountain. However, as a result of this change in policy, the Company will
benefit in the long term from the increasing price levels and associated higher
margins achieved. The intention is to concentrate on promoting pre-built cabin
sales with a focus on the different varieties of cabins in order to meet market
demand.
The Company plans to increase its marketing spend in 2007, with the emphasis on
taking advertising space on the major real estate portal in Norway and the
online portal of Dagens Naeringsliv (the leading financial newspaper in Norway).
In addition it is planning to distribute brochures to some 300,000 households in
targeted areas in conjunction with a leading real estate broker. There are plans
to rebrand Vradal as a year round destination in co-operation with one of the
leading commercial TV Networks in Norway, whilst also promoting the region to
audiences in Denmark, Sweden and Germany through further agreements with tour
operators.
Vradal's new website www.alpin.no is soon to be launched together with the
Parent Company website www.nordicpanorama.co.uk (not yet introduced). This site
will be promoted heavily to the market for all our activities.
CEO Geir Kjaernes said
'2006 saw a marked improvement on 2005. The initial signs for 2007 have been
very encouraging with strong demand for cabins and plots during the spring. This
augurs well for the peak season from August through to November. Our strategy
remains to provide the infrastructure and facilities that will attract customers
to the resort all year round as we continue to develop.'
Exchange rate used NOK 11.9407 = £1 as at 18 June 2007
For further information please contact:
Nordic Panorama Plc
Geir Kjaernes, CEO + 47 23 133027
Norman Lott, FD 020 7153 4920
HB Corporate 020 7510 8600
Imran Ahmed
Luke Cairns
Cecil Jordaan
Threadneedle Communications 020 7936 9605
Graham Herring
Josh Royston
Consolidated income statement for Vradal Panorama Eiendom AS and Vradal
Skisenter AS for the year ended 31 December 2006
2006 2005
(£'000) (£'000)
Revenue 5,568 5,057
Cost of sales 2,177 2,466
________ ________
Gross Profit 3,391 2,591
Administrative costs 1,437 1,146
Depreciation 113 (266)
________ ________
1,550 880
________ ________
Operating profit before finance costs 1,841 1,711
Finance income 22 13
Finance expense (108) (83)
________ ________
Net finance expense (86) (70)
________ ________
Profit before taxation 1,755 1,641
Taxation 509 462
________ ________
Profit on ordinary activities after taxation 1,246 1,179
________ ________
Consolidated balance sheet at 31 December 2006 for Vradal Panorama Eiendom AS
and Vradal Skisenter AS
2006 2005
(£'000) (£'000)
Assets
Non current assets
Property, plant and equipment 2,334 2,165
Financial assets 1 1
Deferred tax asset 198 5
Other non-current assets 38 9
________ ________
2,571 2,180
Current assets
Inventories 2,394 774
Trade receivables 1,007 597
Other receivables 597 412
Cash and cash equivalents 52 1,285
________ ________
4,050 3,068
________ ________
Total assets 6,621 5,248
________ ________
Equity and liabilities
Capital and reserves
Share capital 33 33
Retained earnings 2,824 1,577
________ ________
Total equity 2,857 1,610
Non current liabilities
Borrowings 1,465 1,468
Deferred tax liabilities 201 183
________ ________
1,666 1,651
Current liabilities
Trade payables 425 311
Borrowings 600 -
Tax liabilities 684 246
Other payables 389 1,430
________ ________
2,098 1,987
________ ________
Total equity and liabilities 6,621 5,248
________ ________
Consolidated cash flow statement for the year ended 31 December 2006 for Vradal
Panorama Eiendom AS and Vradal Skisenter AS
2006 2006 2005 2005
(£'000) (£'000) (£'000) (£'000)
Net cash outflow from operating
activities (Note 3) (1,433) 2,118
Cash flows from investing
activities
Purchase of property, plant and
equipment (282) (305)
Sale of property, plant and
equipment - 39
Purchase of other non-current assets (29) (9)
________ ________
Net cash used in investing
activities (311) (275)
Cash flows from financing
activities
Proceeds from borrowings 600 -
Repayment of borrowings (3) (260)
Interest received 22 4
Interest paid (108) (15)
Dividends to shareholders - (487)
________ ________
Net cash used in financing
activities 511 (758)
________ ________
Net (decrease)/increase in cash and
cash equivalents (1,233) 1,085
Cash and cash equivalents at the
beginning of the year 1,285 200
________ ________
Cash and cash equivalents at the end
of the year 52 1,285
________ ________
Notes to the financial statements
1 General information
The consolidated results for Vradal Panorama Eiendom AS and Vradal Panorama
Skisenter AS has been extracted from the audited accounts of the two companies,
which were produced in accordance with Norwegian GAAP. The financial information
has been converted and presented in accordance with International Financial
Reporting Standards.
2 Property, plant and equipment
In the year ended 31 December 2005 the residual value and the useful economic
life of the ski lifts and snow making machines were reviewed and increased by a
further 10 years to 2015. This change in accounting estimate reduced the
depreciation charge in 2005 by £432,992 and the accumulated depreciation by an
equivalent amount.
3 Cash generated from operations
2006 2005
(£'000) (£'000)
Operating profit 1,842 1,642
Taxation (246) (149)
Depreciation 113 167
Adjustment to depreciation - (433)
Profit on sale of property, plant and equipment - (17)
Changes in working capital
- inventories (1,620) 22
- trade receivables (409) (233)
- other receivables (185) (143)
- trade payables 114 (19)
- other payables (1,042) 1,281
________ ________
Net cash outflow from operating activities (1,433) 2,118
________ ________
The audited accounts of VPE and VPS for the year ended 31 December 2006 are
available from the company's registered office at 7 Cork Street, Mayfair,
London, W1X 1PB.
This information is provided by RNS
The company news service from the London Stock Exchange