Deep-Sea Leisure PLC - Interim Results
17 September 1999 - 11:06PM
UK Regulatory
RNS No 6594v
DEEP-SEA LEISURE PLC
17 September 1999
DEEP-SEA LEISURE PLC
Interim Results for the half-year ended 31 August 1999
Deep-Sea Leisure PLC announces its unaudited interim results for the half-year
ended 31 August 1999.
Highlights
----------
Half-year ended 31 August 31 August Change
1999 1998
#'000s #'000s
Turnover 3,474 2,461 + 41.2%
Operating profit 1,340 1,009 + 32.8%
Pre-Tax profit 907 798 + 13.7%
Earnings per share 14.5p 13.4p + 8.2%
Commenting on the results, Phil Crane, Managing Director of Deep-Sea Leisure,
said:
"Despite the increase in Turnover and Pre Tax Profits, which reflect a full
contribution from the Blue Planet for the whole of the period compared to a
six week contribution in the same period last year, the results fall far
short of the Directors' projections. In particular, the long spell of
exceptionally warm dry weather has adversely affected visitor numbers to the
Blue Planet and these have fallen well short of expectations. However, the
Directors remain confident in the quality and location of the Blue Planet
Aquarium and this, together with the potential for management contracts in
other sites across Europe, continues to give the Board confidence in 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
-------
With a full 6 months trading from both Aquariums, turnover is well up from the
same period last year. Turnover for the period of #3,474,000 is up 41.2% from
#2,461,000 last year and Profit Before Tax of #907,000 is up 16.2% from
#798,000 last year. However, these figures fall well short of expectations
for the traditionally busier half of the year and do not reflect the full
potential of our Aquariums. Since Easter the country has experienced some of
the warmest and driest weather for a decade and in line with other indoor
attractions, we have suffered accordingly. In addition, the continued
strength of sterling has had an impact on the number of tourists visiting the
UK. The impact of these factors on visitor numbers should not cloud the
considerable steps taken to improve and strengthen the business and your
Directors remain pleased with the underlying resilience and potential of the
Company.
BLUE PLANET AQUARIUM
--------------------
Our Ellesmere Port location has taken the brunt of poor summer trading, with
visitor numbers of 283,000 during the period being well short of projections.
However, I am pleased to report that, whilst entrance revenue was down on
expectations, every other department achieved increased margins and better
average spends than last year.
Customer reviews of our product are outstanding (83% rate it "good" to
"excellent") and revisitation stands already at 16%, very high for a visitor
attraction after only one year of operation. This continues to give your
Directors confidence in the quality of the Blue Planet and its ability to
penetrate its market catchment area to at least the same extent achieved by
Deep Sea World in Scotland. A large effort has been put into marketing the
Blue Planet and this will be continued over the winter with emphasis on
corporate entertainment over the Christmas period. This marketing has paid
off on the odd wet days when visitor numbers have exceeded 4,000 but it has
been hard to penetrate the market on hot sunny days which have been prevalent
over the summer and early autumn. The company has recently been provided with
an ERDF grant to help with marketing and this is welcomed by the Directors.
SCOTLAND
--------
Deep Sea World has similarly suffered from the effects of a warm summer but
not to the same extent, being only #18,000 behind last year's operating
profit, a creditable result in the circumstances which again demonstrates the
underlying resilience of this business. As with the Blue Planet, six out of
seven departments have improved margins and average spend and further
marketing and other initiatives are being explored to help increase visitor
numbers. During the year we have transformed the theatre into an interactive
amphibian display which has proved to be a popular addition for visitors.
DIVIDEND
--------
Your Directors consider it inappropriate to recommend a dividend at this time.
FUTURE SITES
------------
The company continues to pursue opportunities that do not commit it to large
capital investment: essentially using our skill and experience to design,
build and operate aquariums for other investors. We are engaged in
negotiations in Holland, Germany, Spain and Canada. Decisions on our project
in Seville will be taken in late autumn when the Spanish authorities report
definitively on the extent of grant assistance.
OUTLOOK
-------
Despite the disappointing trading over the warm summer months, your Directors
remain confident about the quality and location of the Blue Planet Aquarium
and are reviewing the business in order to find ways of making it less weather
dependent. This, together with the potential for management contracts at
other sites across Europe, continues to give your Board confidence in the
future prospects of the Company. The Board is continually looking at ways to
increase value for shareholders including joint ventures and partnerships to
exploit the Company's expertise and experience in the development of aquariums
whilst minimising the capital outlay. To this end, the Board has asked its
Corporate Advisers to consider the strategic options available to the Company.
Unaudited Profit and Loss Account
for the half-year ended 31 August 1999
--------------------------------------
Half Year to Half Year to Year to
31 August 1999 31 August 1999 28 February 1999
(Unaudited) (Unaudited) (Audited)
#'000s #'000s #'000s
Turnover 3,454 2,461 4,780
Cost of Sales (474) (335) (659)
----- ----- -----
Gross Profit 2,980 2,126 4,121
Administrative Costs (1,640) (1,117) (2,462)
Operating Profit 1,340 1,009 1,659
Exceptional Item 0 (42) (1,059)
Interest Payable (net) (433) (169) (649)
----- ----- -----
Profit Before Tax 907 798 (49)
Taxation 0 0 0
Profit After Tax 907 798 (49)
===== ===== =====
Earnings per Share (pence) 14.5 13.4 16.1
(Before Exceptional Item)
===== ===== =====
Unaudited Balance Sheet
as at 31 August 1999
-----------------------
As at As at As at
31 August 1999 31 August 1998 28 February 1999
(Unaudited) (Unaudited) (Audited)
#'000s #'000s #'000s
Fixed Assets 20,091 18,589 20,200
Current Assets
Stocks 632 405 683
Debtors 179 1,178 444
Cash 21 17 17
Creditors:
Amounts falling due within (4,420) (2,563) (5,766)
one year
Net Current Liabilities (3,588) (963) (4,622)
Total Assets less Current 16,503 17,626 15,578
Liabilities
Creditors:
Amounts falling due outwith (7,516) (8,404) (7,615)
one year
Accruals and Deferred Income (3,162) (3,456) (3,051)
----- ----- -----
Net Assets 5,825 5,766 4,912
===== ===== =====
Capital and Reserves
Called up Share Capital 1,316 1,316 1,316
Share Premium Account 3,027 3,028 3,021
Profit and Loss Account 1,482 1,422 575
----- ----- -----
Shareholders' Funds 5,825 5,766 4,912
===== ===== =====
Whereof:
Equity 5,328 5,269 4,415
Non-Equity 497 497 497
----- ----- -----
5,825 5,766 4,912
===== ===== =====
Unaudited Cash Flow Statement
for the half-year ended 31 August 1999
Half-Year to Half-Year to Year to
31 August 1999 31 August 1998 28 February 1999
(Unaudited) (Unaudited) (Audited)
#'000s #'000s #'000s
Operating Profit 1,340 1,009 600
Depreciation Charges 288 112 379
Movement in Stocks 51 (129) (307)
Movement in Debtors 245 132 661
Movement in Creditors (493) 90 367
Grant Released (325) (56) (366)
Net Cash Flow from 1,106 1,158 1,334
Operations
Servicing of Finance (297) (134) (977)
Capital Expenditure (624) (4,048) (5,591)
Cash Flow before Financing 185 (3,024) (5,234)
Financing 0 3,267 2,959
Net Movement in Cash 185 243 (2,275)
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
and have been prepared using the same accounting policies as set out in
the audited reports and accounts for the year-ended 28th February 1999.
The figures for the year ended 28th February 1999 are 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 share is based on the profit for the
period and on the number of ordinary shares is issued during the period
of 6,267,063 (1998:6,267,063).
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. This statement will be sent to shareholders shortly and copies are
available from the Company's registered office, North Queensferry, Fife,
KY11 1JR, Scotland.
17th September 1999
END
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