Safeland PLC
26 November 2007
FOR RELEASE 26 NOVEMBER 2007
SAFELAND PLC
INTERIM RESULTS
Safeland plc, the property fund management and property trading group, announces
results for the six months ended 30 September 2007.
Financial Highlights:
• Revenue of £13.32m (H1 06: £12.49m)
• Profits before tax of £0.26m (H1 06: £3.95m - inc. £3.57m from
Bizspace disposal)
• EPS of 0.59p (H1 06: 14.53p including Bizspace disposal profit)
• NAV per share of 114p (H1 06: 114p)
• Gearing now stands at 75%
Operational Highlights:
• Successfully completed equity raising for property unit trust
resulting in the fund when fully invested having an excess of £200m of
property.
• In excess of £53m has been invested in multi-let industrial
properties.
• Continued transition from being a property trader to focussing on
property fund management.
Raymond Lipman, Chairman of Safeland plc, said:
'Recent economic events have seen yields starting to soften and this together
with the 'credit squeeze' could enable Safeland who have tremendous support from
their banks alongside long term credit facilities, to take advantage of
opportunities that may well present themselves both for the fund and for
trading.'
Safeland plc Tel: 020 8815 1600
Larry Lipman, Managing Director
Paul Davis, Finance Director
www.safeland.co.uk
Parkgreen Communications Ltd Tel: 020 7479 7933
Paul McManus Mob: 07980 541 893
paul.mcmanus@parkgreenmedia.com
SAFELAND PLC
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHS ENDED 30 September 2007
I am pleased to report that for the six months ended September 30 2007 the
Company is reporting a profit before taxation of £258,000 compared to £ 3.95m
for the same period last year.
Shareholders should remember that included in last year's profit was £3.57m in
respect of the sale of the Company's shares in Bizspace Plc.
As has been previously stated Espazio, the Italian self storage business has not
been performing as anticipated. It has therefore been decided to terminate this
activity and to place the Italian subsidiary into voluntary liquidation.
Revenue has gone up from £12.5m to £13.3m.. Net asset value per share at
September 30 2007 was 114p identical to September 30 2006. Earnings per share
were 0.59p (2006: 14.53p) and the Company will not be paying a dividend for this
period. Once again the 2006 figure would have included the profit emanating from
the sale of the shares in Bizspace Plc.
The Company during this period has continued its transition from that of
principally being a property trader to focusing on property fund management.
In my statement that accompanied the year end accounts to March 31 2007 I
advised shareholders that earlier in the year CBRE had been instructed to assist
in raising further equity for the property unit trust that was launched as a
joint venture with Electra Partners Europe Ltd in October 2006. I am delighted
to report that in September 2007 the company announced that this exercise had
been successfully completed with Babcock & Brown committing £50m of equity and
Electra a further £5m, thus raising their involvement to £20m. At the same time
bank facilities were also increased by a further £135m. The result of this is
that when fully invested the Fund will have in excess of £200m of property.
Once invested this will facilitate a quality income stream alongside the
property trading transactions. Already, in excess of £53m has been invested in
multi-let industrial properties, which is the main focus of the Fund.
Recent economic events have seen yields starting to soften and this together
with the 'credit squeeze' could enable Safeland who have tremendous support from
their banks alongside long term credit facilities, to take advantage of
opportunities that may well present themselves both for the fund and for
trading.
I therefore look forward to the future with confidence.
Raymond Lipman
Chairman
November 26 2007
SAFELAND PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 September 2007
Neither Neither
audited nor audited nor
reviewed reviewed Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
Notes £'000 £'000 £'000
Revenue 13,318 12,490 18,266
Cost of sales (10,410) (10,048) (14,394)
Gross profit 2,908 2,442 3,872
Sales and distribution costs (313) (160) (370)
Administrative expenses (2,298) (2,404) (4,786)
Other operating income 697 231 445
Profit on disposal of property, plant and equipment 2 - 939
Profit on disposal of investment properties 121 165 156
Profit on disposal of subsidiaries 34 192 192
Operating profit 1,151 466 448
Share of results of associate - post tax - - (4)
Profit on disposal of available-for-sale investments - 3,571 3,572
Profit before interest 1,151 4,037 4,016
Finance income 30 121 140
Finance costs (923) (206) (465)
Profit before tax 258 3,952 3,691
Tax (149) (1,264) (882)
Profit for the financial period 109 2,688 2,809
Basic earnings per share 2 0.59p 14.53p 15.18p
Diluted earnings per share 2 0.59p 14.53p 15.17p
SAFELAND PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 30 September 2007
Neither audited Neither audited
nor reviewed nor reviewed Audited
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Non-current assets
Property, plant and equipment 4,251 5,355 4,263
Investment properties 1,007 1,661 1,868
Interests in associates 10 14 10
Available-for-sale investments 1,134 203 1,191
Deferred tax assets 46 55 46
Total non-current assets 6,448 7,288 7,378
Current assets
Trading properties 31,091 14,587 38,753
Trade and other receivables 1,341 922 2,363
Cash and cash equivalents 1,314 3,267 1,448
Total current assets 33,746 18,776 42,564
Total assets 40,194 26,064 49,942
Current liabilities
Bank loans and overdrafts 584 332 8,089
Trade and other payables 1,280 1,376 2,051
Current tax liabilities 479 1,660 541
Total current liabilities 2,343 3,368 10,681
Non-current liabilities
Bank loans 16,616 1,570 18,040
Deferred tax liabilities 103 107 103
Total non-current liabilities 16,719 1,677 18,143
Total liabilities 19,062 5,045 28,824
Net assets 21,132 21,019 21,118
Equity
Share capital 925 925 925
Share premium account 5,351 5,351 5,351
Capital redemption reserve 765 765 765
Translation reserve (46) 7 (7)
Revaluation reserve 29 - 85
Retained earnings 14,108 13,971 13,999
Total equity 21,132 21,019 21,118
SAFELAND PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 September 2007
Neither audited Neither audited
nor reviewed nor reviewed Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
Notes 2007 2006 2007
£'000 £'000 £'000
Operating activities
Net cash inflow/(outflow) from operations 4 8,992 (450) (26,100)
Interest paid (841) (222) (481)
Tax paid (340) - (728)
Net cash inflow/(outflow) from operating activities 7,811 (672) (27,309)
Investing activities
Interest received 30 121 140
Purchase of investment properties (1) (568) (776)
Purchase of property, plant and equipment (134) (267) (518)
Purchase of available for sale investments - - (1,000)
Proceeds from sale of property, plant and equipment 101 909 2,947
Proceeds from sale of investment properties 1,033 3,704 3,696
Proceeds from sale of available-for-sale investments - 6,889 6,890
Proceeds from the sale of subsidiaries 1,225 3,525 3,525
Net cash inflow from investing activities 2,254 14,313 14,904
Financing activities
New loans 10,292 2,000 21,513
Loan repayments (20,699) (13,940) (9,306)
Net cash (outflow)/inflow from financing activities (10,407) (11,940) 12,207
Net (decrease)/increase in cash and cash equivalents (342) 1,701 (198)
Cash and cash equivalents at beginning of period 1,349 1,547 1,547
Cash and cash equivalents at end of period 1,007 3,248 1,349
SAFELAND PLC
UNAUDITED CONSOLIDATED Statement of RECOGNISED INCOME AND EXPENSE
FOR THE SIX MONTHS ENDED 30 September 2007
Neither Neither
audited nor audited nor
reviewed reviewed
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Fair value (losses)/gains on available-for-sale investments (56) 30 18
Exchange differences on translation of foreign operations (39) 57 43
Tax on items taken directly to equity - (10) (5)
Net (loss)/income recognised directly in equity (95) 77 56
Transfer to profit on disposal of available-for-sale - (3,053) (3,053)
investments
Tax on items transferred from equity - 752 751
Profit for the period 109 2,688 2,809
Total recognised income and expense for the period 14 464 563
available to equity shareholders
SAFELAND PLC
NOTES TO THE FINANCIAL INFORMATION (UNAUDITED)
1. Basis of preparation and accounting policies
This interim financial information was approved by the Board of Directors on
November 23 2007.
The results for the year ended 31 March 2007 are not statutory accounts within
the meaning of s240, Companies Act 1985. Statutory accounts for that period
were prepared and filed with the Registrar of Companies and received an
unqualified audit report. The results for the six months to 30 September 2007
and 2006 are unaudited and do not constitute the Group's statutory accounts
within the meaning of s240 of the Companies Act 1985.
The accounting policies adopted in the preparation of this financial information
are consistent with those used in the preparation of the 2007 statutory
accounts.
2. Earnings per share
Basic earnings per share of 0.59p (30 September 2006: earnings of 14.53p; 31
March 2007 earnings of 15.18p) are based on the profit for the period of
£109,000 (30 September 2006: profit of £2,688,000; 31 March 2007: profit of
£2,809,000) and on 18,500,530 ordinary shares being the weighted average number
of shares in issue for each period.
Diluted earnings per share of 0.59p (30 September 2006: diluted earnings of
14.53p; 31 March 2007: diluted earnings of 15.17p) are based on the profit for
the period of £109,000 (30 September 2006: profit of £2,688,000; 31 March 2007:
profit of £2,809,000) and on 18,500,300 ordinary shares being the weighted
average number of shares in issue (30 September 2006: 18,500,530; 31 March 2007:
18,515,019).
The increase in the weighted average number of shares in issue for the
calculation of diluted earnings per share is due to the dilutive effect of the
share options granted in the January 2007. This does not affect the weighted
average number of shares in issue for the 6 months ended 30 September 2007 due
to the average share price of Safeland plc for the period being below the
exercise price of the share options.
3. Dividend
No interim dividend has been declared.
4. Reconciliation of operating profit to net cash flow from
operations
Neither audited Neither audited
nor reviewed nor reviewed
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Operating profit 1,151 466 448
Adjustments for:
Depreciation of property, plant and equipment 85 264 342
Profit on sale of property, plant and equipment (2) (166) (939)
Profit on sale of investment properties (121) (165) (156)
Profit on sale of subsidiaries (34) (192) (192)
Other non-cash changes - 57 -
Changes in working capital:
Decrease/(increase) in trading properties 7,662 (1,533) (25,699)
Decrease/(increase) in trade and other receivables 1,022 486 (955)
(Decrease)/increase in trade and other payables (771) 333 1,051
Net cash inflow/(outflow) from operations 8,992 (450) (26,100)
5. Copies of this statement are being sent to all shareholders
and are available to the public for collection at the company's Registered
Office at 94-96 Great North Road, London N2 0NL, and are available on the
website www.safeland.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange