Deep-Sea Leisure PLC - Interim Results
12 November 1998 - 6:33PM
UK Regulatory
RNS No 5420q
DEEP-SEA LEISURE PLC
12th November 1998
DEEP-SEA LEISURE PLC
Interim Results for the half-year ended 31 August 1998
Deep-Sea Leisure PLC, the aquarium company, announces its
unaudited interim results for the half-year ended 31 August 1998.
Highlights
Half-year ended 31 August 21 August Change
1998 1997
#'000s #'000s
Turnover 2,461 1,532 +60.1%
Operating profit 1,009 522 +93.3%
Pre-Tax profit 798 436 +83.0%
Earnings per share 12.73p 6.96p +82.9%
* Opening of the Blue Planet, the first of the Company's new breed of
aquariums in mid-July.
* Since the opening of the Blue Planet in July to date, approaching one
quarter of a million visitors have visited the Blue Planet.
* The Blue Planet has recently been awarded the "New Attraction of the Year
award for the UK for 1998 by the Good Guide to Britain's Top Attractions.
* Operating margins have increased from 34% to 41%.
* Discussions progressing with respect to other sites in the United Kingdom
and Europe where the market is enormous and
potential sites have excellent demographic attributes.. Initial planning
permission is being sought in respect of certain sites.
Commenting on the results, Phil Crane, Managing Director of Deep-
Sea Leisure, said:
"The successful opening of the Blue Planet is a major milestone
in Deep-Sea Leisure's development and the Company now has the
base upon which to build the future growth of the business here
in the UK and overseas. The Board remains confident about the
future prospects of the Company."
For further information, please contact:
Phil Crane, Managing Director, Deep-Sea Leisure (0131) 343 6682 or
(0860) 796 832
Norman Yarrow, Director, Deep-Sea Leisure (0131) 220 4110
Michael Westmacott, Compro PR (0131) 319 1477
Simon Clarke, Williams de Broe (0131) 220 3686
MANAGING DIRECTOR'S REVIEW
RESULTS
Turnover is up by 60% to #2,461,000 compared with the previous year
(#1,532,000) even though the Blue Planet Aquarium only made a contribution
during the final six weeks of the period. Profit before tax is up 83% to
#798,000 compared to the previous year (#436,000). Operating margin has
improved from 34% to 41% and further improvements can be expected as the full
impact of the Blue Planet takes effect.
Trading at Deep-Sea World at North Queensferry continues to be
satisfactory although visitor numbers were down 11% over the period,
this is in common with other visitor attractions in the UK and was
compounded by major road works carried out at weekends for three
months on the nearby Forth Road Bridge. The Directors believe that
despite the fall in visitor numbers the performance of North
Queensferry continues to demonstrate the underlying resilience of the
business.
START-UP COSTS/CHESTER ZOO AGREEMENT
During the construction phase of the Blue Planet the company incurred
#550,000 of start-up related costs. In addition the company has paid
#100,000 to Chester Zoo for marketing support and will be paying a
further #300,000 over the next three years. It is the Board's
intention to write all the above costs off as an exceptional item
against the year end results. This policy will obviously affect the
full year results, however, it will ensure that the company's future
profits are not impacted by these exceptional costs
BLUE PLANET AQUARIUM
The Blue .Planet opened in mid July, four months behind schedule
The total construction cost of #14.2 million was 21% above original
estimates made in October 1996. The additional costs have been met
from the Group's current banking facilities. The delay in opening
will have an adverse effect on the full year trading to 28 February
1999, having lost four key trading months.
However, the Board are extremely pleased with the finished
product and we remain confident that the site will meet our
original expectations. We were very encouraged that in August we
welcomed over 100,000 visitors from a standing start and over
240,000 visitors to date have been to the Blue Planet, which
included an exceptionally strong performance during the October
half-term break. We were delighted that Her Majesty The Queen
and His Royal Highness The Duke of Edinburgh paid an official
visit on 31 July generating tremendous PR coverage.
There are early indications that the education department and
corporate function business will exceed our expectations.
Currently the forward order book for functions at the Blue Planet
up to 31 December 1998 is more than double what we would normally
expect to achieve in one year at North Queensferry. Most
important of all is the response of our visitors to the product
which has been excellent.
There is an enormous market catchment for the Blue Planet
aquarium and the challenge we face is to penetrate this market to
the same extent that we have been successful in penetrating the
Scottish market at Deep-Sea World. We plan to meet this
challenge by an extensive advertising and PR campaign which is
already under way. In addition, the importance of word of mouth
cannot be over-estimated and we are confident that this will
increase as visitors relay their experiences at the Blue Planet
to friends and family.
AWARDS
I am delighted to announce that the Blue Planet has just won two
prestigious awards. The Blue Planet has been awarded the "New
Attraction of the Year" award for the UK for 1998 by the Good
Guide to Britain's Top Attractions. In addition, the Good Guide
to Britain's Top Attractions has also awarded the Blue Planet the
"Cheshire Family Attraction of the Year" award against strong
competition.
FUTURE SITES
The company is at various stages of discussion with interested
parties to find further sites for additional aquaria. It
remains the company's strategy to expand the concept into
mainland Europe where we believe there is an enormous market
opportunity. Discussions are taking place regarding sites in
the UK, Spain, Holland, Turkey and Germany and, indeed, in
respect of several sites in Europe the developers are seeking
initial planning permission.
DIVIDEND
In the Company's prospectus in October 1996 the Directors
estimated that the Company's first dividend would be payable in
respect of the financial year ended 28 February 1999. They also
stated that they would have regard to usual commercial
considerations and intend to maintain a minimum dividend cover of
three times. With this in mind and in view of the late opening
of the "Blue Planet" and the additional costs that were incurred,
the Directors believe that it is unlikely that a dividend will be
paid in respect of this financial year. However, it is currently
the Directors intention to declare a dividend in respect of the
six month period to 31 August 1999 and thereafter to adopt a
progressive dividend policy.
OUTLOOK
The directors believe the company now has the base upon which to
build for the future growth of your company here in the UK and
overseas and they remain confident about the company's prospects.
Unaudited profit and loss account
for the half-year ended 31st August 1998
Half Year Half Year Full Year
to to to
31st August 21st August 28th February
1998 1997 1998
(Unaudited) (Unaudited) (Audited)
#'000s #'000s #'000s
Turnover 2,461 1,532 2,478
Cost of Sales (335) (229) (369)
----- ----- -----
Gross Profit 2,126 1,303 2,109
Administrative Costs (1,117) (781) (1,511)
------- ----- -------
Operating Profit 1,009 522 598
Interest Payable (net) 169 86 169
Pre-Opening Costs Charged 42 - -
-- -- --
Profit Before Tax 798 436 429
Taxation - - -
-- -- --
Profit After Tax 798 436 429
====== ====== ======
Earnings per Ordinary Share 12.73p 6.96p 6.85p
====== ====== ======
Unaudited balance sheet
as at 31st August 1998
As at As at As at
31st August 21st August 28th February
1998 1997 1998
(Unaudited) (Unaudited) (Audited)
#'000s #'000s #'000s
Fixed Assets 18,589 9,584 14,471
Current Assets
Stocks 405 234 276
Debtors 1,178 140 1,310
Cash 17 337 16
Creditors:
Amounts falling due within (2,563) (1,150) (1,869)
one year
Net Current Liabilities (963) (439) (267)
Total Assets less Current 17,626 9,145 14,204
Liabilities
Creditors:
Amounts falling due after (8,404) (2,508) (6,612)
more than one year
Accruals and Deferred Income (3,456) (1,626) (2,588)
------- ------- -------
Net Assets 5,766 5,011 5,004
===== ===== =====
Capital and Reserves
Called up Share Capital 1,316 1,316 1,316
Share Premium Account 3,028 3,064 3,064
Profit and Loss Account 1,422 631 624
----- ----- -----
Shareholders' Funds 5,766 5,011 5,004
===== ===== =====
Whereof:
Equity 5,269 4,514 4,507
Non-Equity 497 497 497
----- ----- -----
5,766 5,011 5,004
===== ===== =====
Unaudited cash flow statement
for the half-year ended 31st August 1998
Half-Year to Half-Year to Full-Year to
31st August 21st August 28th February
1998 1997 1998
(Unaudited) (Unaudited) (Audited)
#'000s #'000s #'000s
Operating Profit 1,009 522 598
Depreciation Charges 112 88 175
Movement in Stocks (129) (12) (54)
Movement in Debtors 132 82 (672)
Movement in Creditors 90 (82) 369
Grant Released (56) (35) (70)
---- ---- ----
Net Cash Inflow from
Operating Activities 1,158 563 346
===== === ===
Cash Flow Statement
Net Cash Flow from 1,158 563 346
Operating Activities
Servicing of Finance (134) (117) (339)
Capital Expenditure (4,048) (1,146) (5,895)
------- ------- -------
Cash Flow before Financing (3,024) (700) (5,888)
Financing 3,267 898 (5,369)
----- --- -------
Increase/Decrease in Cash 243 198 (519)
=== === =====
Notes to the Interim Financial Statements
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 1998. The figures for the year
ended 28 February 1998 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 calculation of earnings per ordinary share is based on the
profit for the period of #798,000 (1997: #436,000) and on the
number of ordinary shares in issue during the period of
6,267,063 (1997: 6,267,063).
4.No liability to corporation tax arises on the profit for the
period by reason of the availability of capital allowances on
expenditure on fixed assets. The Directors consider that
provision for deferred taxation is not required because it is
unlikely that an actual liability will crystallise in respect
of timing differences arising from such capital allowances.
5.The period covered by this interim report to 31 August 1998 is
10 days longer than the comparative period last year. In the
opinion of the Directors, comparisons between the two periods
are not significantly affected by the variation in length of
the respective periods.
6.Costs for the Blue Planet Aquarium occurred before opening
will be charged as exceptional Pre-Opening Costs against the
year end results for the current financial year.
7.This statement will be sent to shareholders shortly and copies
are available from the Company's registered office, North
Queensferry, Fife, KY11 1JR, Scotland.
END
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