RNS Number:0508W
Innobox PLC
21 December 2005
Innobox Plc (the "Company")
Interim results for the six months ended 31 October 2005
21 December 2005
Chairman's statement
I am pleased to report the Company's results for the half year ended 31 October
2005. The loss for the period after taxation and minority interests was
#265,971 (2004: loss of #147,680), which represents a loss per share of 1.24p
(2004: loss per share of 1.18p).
The Company currently owns and operates three pub / hotel / restaurant sites,
which are: The Moss Cottage in Ripley, Derbyshire; The Three Tuns in Pettistree,
Suffolk; and The Royal Oak in Leominster, Herefordshire. We also have a country
house hotel under development at Fishmore Hall near Ludlow, Shropshire.
Following my last annual statement, the difficult market conditions have not
fully abated. Our three sites remain popular with customers, but we rationalised
our 'A la Carte' menus to reflect a lower spend per head per customer. We have
also reduced our staffing levels, wherever possible, to accommodate this,
without compromising our standards.
We manage to achieve good hotel occupancy levels during the week, but have seen
a fall in week-end break bookings, which has impacted on revenues. Overall our
rationalisation and cost cutting measures will ensure that our sites are
positioned to return to profitability when market conditions improve. However,
our skills in hotel development and refurbishment will continue to enhance the
underlying value of the freehold properties.
The Moss Cottage and The Three Tuns remain for sale, with some interest being
shown in both sites. However, the difficult market conditions, together with a
glut of properties coming onto the market have meant that there have been no
acceptable offers. These properties will remain on the market going into the New
Year, but at the same time the directors will look for suitable joint venture
partners with a view to possibly retaining these as joint venture sites if a
sale is not attainable.
Following the resolution of all planning and local authority issues, work will
continue in the New Year on the development of Fishmore Hall, with the intention
that the site will open later in the year. The directors are confident that,
once opened, this site's capital value would significantly increase.
The board has been disappointed with the performance of the investment in
AeroBox Plc during the period. Share value came under downward pressure
following lower than expected results and an additional cash call. As a result
we decided to dispose of most of our remaining shares in the interim period,
with the remaining holding disposed of after the interim period. This resulted
in a loss on disposal during the interim period of #16,642.
In order to assist the Company with its future activities, the directors have
resolved to subscribe for further equity, in conjunction with a placing,
following the issue of these results. Finally, I would like to take this
opportunity to thank my colleagues and our dedicated employees for their
continued hard work during these difficult trading times
A Baker
Chairman
21 December 2005
Consolidated Profit and Loss Account for the six months ended 31 October 2005
Notes 6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2005 2004 2005
(unaudited) (unaudited) (audited)
# # #
Turnover - continuing 487,603 161,810 353,588
Turnover - acquisitions - 142,444 451,271
----------- ----------- -----------
Total turnover 304,254 804,859
Cost of sales - continuing (372,383) (64,181) (282,993)
Cost of sales - acquisitions - (40,366) (359,216)
----------- ----------- -----------
Total cost of sales (372,383) (104,547) (642,209)
Gross profit - continuing 115,220 97,629 70,595
Gross profit - acquisitions - 102,078 92,055
----------- ----------- -----------
Total gross profit 115,220 199,707 162,650
Administrative expenses - continuing (318,711) (202,033) (288,312)
Administrative expenses - exceptional (5,816) - (120,000)
Administrative expenses - acquisitions - (131,681) (257,993)
----------- ----------- -----------
Total administrative expenses (324,527) (333,714) (666,305)
----------- ----------- -----------
Operating loss - continuing operations (209,307) (104,404) (337,717)
Operating loss - acquisitions - (29,603) (165,938)
----------- ----------- -----------
Total operating loss (209,307) (134,007) (503,655)
Loss on sale of investments (16,642) - (6,562)
Amounts written off investments - - (379,600)
Interest receivable 3,038 1,585 3,420
Interest payable (74,581) (32,731) (106,939)
----------- ----------- -----------
Loss on ordinary activities before taxation (297,492) (165,153) (993,336)
Taxation 5 - - -
----------- ----------- -----------
Loss for period (297,492) (165,153) (993,336)
Minority interests 31,521 17,473 83,396
----------- ----------- -----------
Retained loss (265,971) (147,680) (909,940)
----------- ----------- -----------
Basic loss per share (pence) 6 (1.24) (1.18) (7.11)
----------- ----------- -----------
The Company has no recognised gains or losses other than the losses for the
periods.
Consolidated Balance Sheet as at 31 October 2005
Note As at As at As at
31 October 31 October 30 April
2005 2004 2005
(unaudited) (unaudited) (audited)
# # #
Fixed assets
Tangible fixed assets 2,846,773 2,199,006 2,669,464
Intangible fixed assets 185,417 195,500 190,417
Investments 34,112 700,000 270,400
----------- ----------- -----------
3,066,302 3,094,506 3,130,281
Current assets
Stocks 22,163 22,169 25,197
Debtors 110,324 89,053 583,626
Cash at bank and in hand 63,454 41,255 3,586
----------- ----------- ------------
195,941 152,477 612,409
----------- ----------- ------------
Creditors:
Amounts falling due within one year (1,341,603) (481,870) (1,512,311)
----------- ----------- ------------
Net current liabilities (1,145,662) (329,393) (899,902)
----------- ----------- ------------
Total assets less current liabilities 1,920,640 2,765,113 2,230,379
Creditors:
Amounts falling due after more than one
year (1,295,453) (1,526,300) (1,330,890)
----------- ----------- ------------
Net assets 625,187 1,238,813 899,489
----------- ----------- ------------
Capital and reserves
Called up share capital 430,000 250,000 430,000
Share premium 1,070,364 764,004 1,070,364
Profit and loss account (777,184) 251,047 (511,213)
----------- ----------- ------------
Equity shareholders' funds 7 723,180 1,265,051 989,151
Equity minority interests (97,993) (26,238) (89,662)
----------- ----------- ------------
Total capital employed 625,187 1,238,813 899,489
----------- ----------- ------------
Consolidated Cash Flow Statement for the six months ended 31 October 2005
Notes 6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2005 2004 2005
(unaudited) (unaudited) (audited)
# # #
Net cash inflow/(outflow) from operating 8 334,015 28,819 (302,022)
activities
Return on investments and servicing of
finance
Interest received 3,038 1,585 3,420
Interest paid (73,005) (32,731) (104,289)
Interest element of finance lease (1,576) - (2,650)
rentals
----------- ----------- ------------
(71,543) (31,146) (103,519)
Acquisitions and disposals
Payments to acquire businesses - (1,373,925) (1,368,790)
Capital expenditure and financial
investment
Payments to acquire tangible fixed (230,039) (337,084) (954,080)
assets
Proceeds from disposal of investments 219,646 - 43,438
----------- ----------- ------------
Net cash inflow/(outflow) before 252,079 (1,713,336) (2,684,973)
financing
Financing
Issue of ordinary shares for cash - - 486,360
New bank loans - 1,413,725 1,766,350
Repayment of bank loans (262,500) - -
(Reduction)/issues of minority interests (1,255) 2,255 4,754
shares
Part disposal of minority interests 24,445 - -
Capital element of finance lease rentals (4,655) - (4,692)
----------- ----------- ------------
Increase/(decrease) in cash in the 9 8,114 (297,356) (432,201)
period
----------- ----------- ------------
Notes to the Interim Report for the six months ended 31 October 2005
1 Accounting policies
The interim financial statements have been prepared in accordance with applicable accounting
standards and under the historical cost convention. The principal accounting policies of the
Company have remained unchanged from those set out in the Company's 2005 annual report and
financial statements.
2 Basis of consolidation
The Consolidated Profit and Loss Account, Balance Sheet and Cash Flow Statement consolidate
those of the Company and its subsidiary undertakings. Intra-group transactions have been
eliminated in full.
3 Basis of preparation
The financial information set out in this report does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The figures for the year ended 30 April
2005 have been extracted from the statutory financial statements, which have been filed with
the Registrar of Companies. The auditors' report on those financial statements was
unqualified.
4 Dividends
No dividend is proposed for the six months ended 31 October 2005.
5 Taxation
On the grounds that year to date losses have been made which are not expected to be relieved
in the forthcoming period, there is no taxation charged or credited to the profit and loss
account in this period.
6 Loss per share
The calculation of the basic loss per share is based on the loss on ordinary activities
after tax and minority interests and on the weighted average number of shares in issue
during the period. The impact of share options is anti dilutive. The loss and weighted
average number of shares used in the calculations are set out below:
Weighted Loss per
average share
Loss number of (pence)
# shares
Basic earnings per share:
6 months ended 31 October 2005 (265,971) 21,500,000 (1.24)
6 months ended 31 October 2004 (147,680) 12,500,000 (1.18)
Year ended 30 April 2005 (909,940) 12,795,890 (7.11)
7 Reconciliation of movements in equity
shareholders' funds
6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2005 2004 2005
(unaudited) (unaudited) (audited)
# # #
Loss on ordinary activities after taxation (265,971) (147,680) (909,940)
Share subscription - - 504,000
Share subscription costs - - (17,640)
----------- ----------- ------------
Net reduction in shareholders' funds (265,971) (147,680) (423,580)
Equity shareholders' funds brought forward 989,151 1,412,731 1,412,731
----------- ----------- ------------
Equity shareholders' funds at the end of the
period
723,180 1,265,051 989,151
----------- ----------- ------------
8 Reconciliation of operating loss with net cash
flow from operating activities
6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2005 2004 2005
(unaudited) (unaudited) (audited)
# # #
Operating loss (209,307) (134,007) (503,655)
Depreciation, amortisation and impairment 57,730 35,295 210,549
Decrease/(increase) in stocks 3,034 (13,984) (17,012)
Decrease/(increase) in debtors 473,302 13,898 (480,675)
Increase in creditors 9,256 127,617 488,771
----------- ----------- ------------
Net cash inflow/(outflow) from operating
activities 334,015 28,819 (302,022)
----------- ----------- ------------
9 Reconciliation of net cash flow to movement in
net funds
6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2005 2004 2005
(unaudited) (unaudited) (audited)
# # #
Decrease in cash for the period 8,114 (297,356) (432,201)
New long term bank loan - (1,413,725) (1,766,350)
Repayment of long term bank loans 262,500
New finance leases and hire purchase contracts - - (28,768)
Repayment of finance lease and hire purchase 4,655 - 4,692
contracts
------------ ------------ ------------
Movement in net funds for the year (note 9) 275,269 (1,711,081) (2,222,627)
Net funds at the beginning of the period (2,294,263) (71,636) (71,636)
------------ ------------ ------------
Net funds at the end of the period (2,018,994) (1,782,717) (2,294,263)
------------ ------------ ------------
10 Analysis of changes in net funds
As at Cash flow As at
1 May 31 October
2005 2005
(audited) (unaudited)
# # #
Cash at bank and in hand 3,586 59,868 63,454
Bank overdraft (132,348) (51,754) (184,102)
------------
8,114
Bank loans (2,043,425) 262,500 (1,780,925)
Loan notes (98,000) - (98,000)
Finance leases and hire purchase contracts (24,076) 4,655 (19,421)
------------ ------------ ------------
(2,294,263) 275,269 (2,018,994)
------------ ------------ ------------
11 Copies of the Interim Results are available for download from the Company's website at
www.innobox.co.uk or by request from the Company's registered office, Meriden House, 6 Great
Cornbow, Halesowen, West Midlands B63 3AB.
Enquiries:
Russell Stevens 07860 562621
Chief Executive, Innobox Plc russell@innobox.co.uk
Richard Morrison 020 7601 6115
Westhouse Securities LLP richard.morrison@westhousesecurities.com
This information is provided by RNS
The company news service from the London Stock Exchange
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