Interim Results
13 December 2002 - 3:20AM
UK Regulatory
RNS Number:0435F
Deep-Sea Leisure PLC
12 December 2002
News Release
12 December 2002
Deep Sea Leisure PLC
Interim Results for the six months ended 31 August 2002
Deep Sea Leisure plc, the leisure company which runs two aquariums in the UK
featuring marine life, announces its interim results for the six months ended 31
August 2002.
Highlights
* Pre-tax profit up 53% to #1.06m before exceptional items (#0.69m for
corresponding period) on turnover of #3.76m (#3.65m for corresponding
period)
* Improved margins achieved through strengthened management team with
enhanced operational cost controls and further plans to improve margins
during 2002/2003
* Acquisition of a majority interest in Deep Sea Leisure by Net-Ein, part of
the Aspro Group, the operator of water parks, animal parks and aquariums in
Europe, completed in August 2002 - AIM listing retained
* Richard Golding appointed Chairman following Board restructure and
year-end changed to October from February. Intention to report results for
the eight month period ended 31 October 2002 to shareholders early in the
New Year.
For further information please contact:-
Richard Golding, Chairman
Deep Sea Leisure plc 0034 91 562 5010
Stuart Earley, Managing Director
Deep Sea Leisure plc 0151 357 8804
Roland Cross, Director
Broadgate 020 7726 6111
Chairman's Interim Statement
This has been an eventful period for the Company in terms of corporate activity
and one which has seen much progress made from an operational and financial
perspective. During the six months ended 31 August 2002, pre-tax profit
increased 53% to #1.06m, before exceptional items, (#0.69m for corresponding
period) on turnover of #3.76m (#3.65m for corresponding period).
The exceptional items of #0.233m referred to above primarily consist of advisors
fees incurred by the Company during the acquisition of a majority interest in
Deep Sea Leisure PLC by Net-Ein.
As previously advised, notwithstanding the acquisition of a majority interest by
Net- Ein in August, the Board intends to maintain the Company's listing on the
AIM market.
Since the appointment of Stuart Earley as Managing Director, in February 2002,
new management systems have been introduced that have helped to improve the
Company's trading performance. Stuart Earley has brought a useful perspective to
the business, building on his experience at Whipsnade Wild Animal Park and
working for the State of Florida Tourism Division.
The operational strategy for the Company has focused on maximising per capita
spends and margins and not chasing visitor numbers without financial growth.
Consequently, whilst visitor numbers have not been as high as the same period in
2001, when the Foot & Mouth crisis led to the temporary closure of many of our
competitors, per capita spend has increased by over 12.4%. To put this in
context, visitor numbers for the first six months of the year were in excess of
501,000 compared to 546,000 in 2001, representing a reduction in visitor numbers
of 8.2%. During the same period overall per capita spend has increased from
#6.67 to #7.50, meaning that, despite the drop in visitor numbers, turnover has
increased year on year by 2.9% to #3.76m.
Despite these successes there are a number of areas where there is still
significant room for improvement and therefore future growth opportunities. The
most significant area for improvement is marketing and it is your Board's
conviction that profitable turnover growth will be driven by new cost effective
marketing initiatives planned for the 2003 season which will be focused on
achieving greater returns on the marketing spend. Membership schemes and
functions are also key potential income streams and there will undoubtedly be
opportunities to develop best practice across the business.
Against this background the outcome for the eight month period ended 31 October
2002 looks encouraging and the Company is poised to move forward with
significant new initiatives focused on profitable growth.
The financial results of Deep Sea Leisure are now incorporated into those of the
Aspro Group. Accordingly and following the appointment of new auditors to the
Company, the Board considered it appropriate to undertake a thorough review of
operational and accounting matters.
As part of this review, the Board has considered the appropriateness of its
accounting policies, in particular, the accounting treatment of the European
Regional Development Grant which amounted to #3m and assisted the construction
of Blue Planet. Previous treatment was to release the grant to profit and loss
over the economic life of the grant which was deemed to expire in March 2003.
The Board however now consider that an alternative treatment, releasing the
grant over the useful economic life of the assets acquired would be more
appropriate. The Board considered this matter carefully as any change in
accounting treatment would have a significant effect on both the balance sheet
and future profits. The interim statement reflects this change of policy with
the grant being released partly over 20 and also over 50 years.
The net impact of this change in policy is detailed in note 3. Irrespective of
the impact of these changes in accounting policy the Board is delighted that
profits have risen significantly year on year.
The Board has decided that the Company's financial year should be changed to
31 October, enabling final results to reflect the Company's busiest trading
period, and also to be consistent with the Aspro Group. The Board will therefore
report audited results for the eight month period ending 31 October 2002 early
in the New Year.
Richard Golding
Chairman
12 December 2002
Unaudited profit and loss account
for the half year ended 31 August 2002
Half year to Half year to Full year to
31 August 31 August 2001 28 February 2002
2002 #000 #000
#000 RESTATED RESTATED
Turnover 3,761 3,655 6029
Cost of sales (531) (535) (862)
_______ _______ _______
Gross profit 3,230 3,120 5,167
Administrative expenses (1,976) (2,115) (3903)
_______ _______ _______
Operating profit before exceptional items 1,254 1,005 1,254
Exceptional expenses (233) - -
_______ _______ _______
Operating profit before interest 1,021 1,005 1,254
Interest payable (203) (319) (514)
_______ _______ _______
Profit on ordinary activities before taxation 818 686 740
Tax on profit on ordinary activities (335) (228) (248)
_______ _______ _______
Profit retained for the financial year for equity
shareholders 483 458 492
_______ _______ _______
Earnings per ordinary share - basic 2.54p 2.41p 2.65p
_______ _______ _______
adjusted 3.76p 2.41p 2.65p
_______ _______ _______
Unaudited balance sheet
at 31 August 2002
Half year to Half year to Full year to
31 August 2002 31 August 2001 28 February 2002
RESTATED RESTATED
#000 #000 #000 #000 #000 #000
Fixed assets
Tangible assets 18007 18,730 18,251
Current assets
Stocks 383 414 365
Debtors 104 207 64
Cash at bank and in
hand 314 247 62
______ ______ ______
801 868 491
Creditors: amounts
falling due within
one year (2,821) (3,703) (2,202)
______ ______ ______
Net current
liabilities (2,020) (2,835) (1,711)
______ ______ ______
Total assets less
current liabilities 15,987 15,895 16,540
Creditors: amounts
falling due after
more than one year (3,154) (3,785) (4,447)
Accruals and deferred
income (2,945) (3,100) (3,023)
Provision for
liabilities and
charges (1,378) (1,023) (1,043)
______ ______ ______
Net assets 8,510 7,987 8,027
______ ______ ______
Capital and reserves
Called up share
capital 960 960 960
Share premium account 5,902 5,902 5,902
Capital redemption
reserve 1,003 1,003 1,003
Profit and loss
account 645 122 162
______ ______ ______
Shareholders' funds 8,510 7,987 8,027
______ ______ ______
Unaudited cash flow statement
for the half year ended 31 August 2002
Half year to Half year to Full year to
31 August 2002 31 August 28 February
2001 2002
#000 #000 #000
Operating profit 1,026 1,010 1,271
Depreciation charges 382 449 832
Decrease in stocks (18) (48) 1
(Increase)/decrease in debtors (40) (168) (25)
(Decrease)/increase in creditors (269) (233) (757)
Grant released (83) (83) (166)
_____ _____ _____
Net cash inflow from operating activities 998 927 1,156
Cash flow statement
Servicing of finance (203) (319) (514)
Capital expenditure (118) (253) (157)
______ ______ _____
Cash inflow/ (outflow) before financing 677 355 485
Financing (425) (1,405) (1,720)
______ ______ ______
(Decrease)/Increase in cash 252 (1,050) (1,235)
______ ______ ______
Notes
1. The Board is not recommending the payment of an interim dividend.
2. The interim financial statements do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985,
they have been prepared on the basis of the accounting policies set out
in the audited report and accounts for the year ended 28 February 2002,
except as reported below in note 3. The figures for the year ended 28
February 2002 have been extracted from the audited accounts for that
year, which have been delivered to the Registrar of Companies and on
which the auditors gave an unqualified report.
3. The restatement of prior year accounts follows the implementation
of FRS 19 'Deferred Tax' requiring the recognition of the tax
liabilities which were previously unrecognised. The recognition of these
liabilities has given rise to a prior year adjustment, with provisions
for liabilities and charges being increased by #1,023,000 and revenue
reserves decreased by #1,023,000 at 31 August 2001.
An additional restatement has been made to account more
appropriately for capital grants received, to amortise them over the
useful economic lives of the assets for which the grants were provided.
The effect of this change on the results for the six months ended 31
August 2002 is to reduce the reported profit before taxation by
#255,000. Comparative figures have been restated and the effect is to
decrease the reported profit before taxation for the six months ended 31
August 2001 by #255,000, to increase the accruals and deferred income by
#1,724,000 and decrease revenue reserves by #1,724,000.
This information is provided by RNS
The company news service from the London Stock Exchange
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