TIDMMIN
RNS Number : 0812M
Minoan Group PLC
26 July 2017
26 July 2017
Interim Results Announcement
Minoan Group Plc
(the "Group" or the "Company" or "Minoan")
announces its unaudited interim results for the 6 months ended
30 April 2017
HIGHLIGHTS
-- Group total transaction value up by circa 20% to GBP39,729,000 from GBP33,106,000
-- Travel and Leisure gross profit up by circa 14% to GBP4,052,000 from GBP3,544,000
-- Travel and Leisure profit at EBITDA level increased by circa
35% to GBP449,000 from GBP332,000
Christopher Egleton, Minoan Chairman, said:
"Following the dismissal of the Appeals against the Presidential
Decree granting Outline Planning Consent for its Project in Crete,
and the continued increase in the profitability of its travel
business, the Group is about to enter the most rewarding period in
its history."
The Company's unaudited interim results for the 6 months ended
30 April 2017 can be viewed on Minoan's website,
www.minoangroup.com, with effect from 26 July 2017.
For further information visit www.minoangroup.com or
contact:
Minoan Group Plc
Christopher Egleton christopher.egleton@minoangroup.com
Duncan Wilson 0141 226 2930
Bill Cole 020 8253 4305
WH Ireland Limited 020 7220 1666
Adrian Hadden/Alex Bond
Morgan Rossiter 020 3195 3240
Richard Morgan Evans/James Rossiter
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Chairman's Statement
Introduction
The Group is poised for what is likely to be the most rewarding
period in its history. As indicated in my last Chairman's Statement
the dismissal of the Appeals against the Presidential Decree ("PD")
is a transformational event which will, finally, allow the Group to
crystallise the significant value of the Itanos Gaia project in
Crete (the "Project").
We now have an un-appealable PD which, in effect, gives Outline
Planning Consent for what is probably the most significant foreign
investment project in the tourism sector that has been approved by
the Greek Government. It puts the Group in a strong position in
terms of negotiating with potential partners and investors to
ensure that shareholders receive the best value in any
transaction.
In addition, I am pleased to report that the Group has enjoyed a
strong period of trading in its Travel and Leisure business, with
total transaction value up by circa 20%, gross profit up by circa
14% and profit at EBITDA level up by circa 35% - all compared with
the same period last year.
Greece
With the dismissal of the Appeals against the PD, the Group is
now in position to move towards the completion of a number of
ongoing negotiations with potential partners and investors. It is
also likely that, with the announcement of the dismissals, a number
of previously silent observers will wish to become involved, as has
already occurred.
The key partners in a Project of this nature are divided into
two main sectors: operating partners such as hotel groups etc. and
financial/investor partners. Although both are required, from a
developer's point of view the key players at this stage are usually
those investors who are themselves experienced in the tourism and
leisure sector and, as you would expect, this is where we have been
concentrating our efforts to date. Simultaneously, the next steps
for the development and operation of the Project are continuing so
as to enable it to progress as soon as possible.
Now that we have obtained Outline Planning Consent it is worth
re-stating some of the key facts related to the Group's hotel and
leisure Project and its site. The combination of the site itself
and the Project is unique. With the Project's inherent
sustainability, a build footprint of less than 0.5% and more than
90% of the landscape being left in its natural state, the Group
intends to ensure that Itanos Gaia will be one of the "softest",
most environmentally friendly major projects in Europe and a
landmark for tourism in Greece.
The site comprises around 6,000 acres and is set on a peninsula.
It has 28 kilometres of coastline with numerous coves and bays,
spectacular cliffs and, as you would expect, stunning views in all
directions. The areas for development within the site, with outline
consent for 108,000 square metres, are spread over approximately
2,000 acres.
Chairman's Statement (continued)
Greece (continued)
In terms of local infrastructure, Sitia Municipality, the
Regional Government of Crete and the Central Government in Athens
have worked together to improve the access to the area by means of
major improvements to the East - West main road network linking the
area to the Centre and West of Crete. The local authorities in
Crete have also dramatically improved the local road network and
the Project is now less than 30 minutes from Sitia International
Airport which is fully operational.
The granting of Outline Planning Consent, the negotiations in
progress and the improvements in local infrastructure provide a
secure base for the realisation of the Group's ambitions in
Greece.
Travel and Leisure ("T&L")
The T&L division continues to be the Group's main operating
driver with its network of specialist, corporate and award-winning
travel agencies, spanning all aspects of worldwide travel and
delivering another period of strong growth.
Total transaction value was up by circa 15% in the 6 months
ended 30 April 2016 to GBP33,106,000 and has continued to rise,
being up circa 20% to GBP39,729,000 in the 6 months ended 30 April
2017.
Gross profit has also continued to rise. Following a 19%
increase in the 6 months ended 30 April 2016 to GBP3,544,000 it was
up a further 14% in the current period to GBP4,052,000. In similar
fashion, profit at EBITDA level is up 35% on the comparable period
last year i.e. up from GBP332,000 to GBP449,000.
Another positive has been the recent announcement of the
acquisition of Morningside Travel Limited, an independent travel
agent based in Edinburgh and an ideal fit for the Stewart Travel
retail business, which will make a full contribution to the Group's
figures in the forthcoming year. With a successful track record of
travel agency acquisitions the Group is still looking for further
suitable opportunities to acquire other leading, specialist travel
agencies to help further enhance the T&L division's
performance.
Finance
Since the period end, prior to the dismissal of the Appeals, we
completed a small placing, raising GBP450,000 before expenses, to
help with our working capital position.
The most significant financial event has been the recently
announced extension from 30 June 2017 to 31 December 2017 of the
GBP5million 8% Loan Facility dated 16 October 2013 from Hillside
International Holdings Limited. This bolsters the Group's financial
position and will greatly help the Board as it continues its
negotiations with parties interested in the Project.
Chairman's Statement (continued)
Outlook
Clearly, the Board's main goal is to move forward with the
realisation of the Project and the prospects for this have never
looked better. With regard to the T&L business, its organic
growth remains healthy and we will work to continue to improve its
operational profitability whilst reviewing suitable opportunites
and strategies to increase its rate of growth. This may involve
bringing in a suitable partner or investor.
Conclusion
The past six months have been a landmark period for the Group
with the profitability of the T&L business reaching new
heights, while the dismissal of the Appeals against the PD promises
to be the catalyst for the joint development of one of the premier
resorts in the Mediterranean and a world-class tourist
destination.
The forthcoming year looks set to be a transformational period
for the Group. I would like to thank all our shareholders for their
patience and forbearance to date and to reassure them that the
Board's overriding objective is to achieve maximum value for
them.
Christopher W Egleton
Chairman
26 July 2017
Unaudited Consolidated Statement of Comprehensive Income
6 months ended 30 April 2017
6 months ended 6 months ended Year ended
30.04.17 30.04.16 31.10.16
GBP'000 GBP'000 GBP'000
-------------- -------------- ----------
Total transaction value 39,729 33,106 67,820
-------------- -------------- ----------
Revenue 4,223 3,544 7,317
Cost of sales (171) - (273)
-------------- -------------- ----------
Gross profit 4,052 3,544 7,044
Operating expenses (4,084) (3,618) (7,261)
Other operating expenses
Corporate development costs (238) (222) (595)
(Charge)/credit in respect of
share based payments - (14) 24
Operating loss (270) (310) (788)
Finance costs (637) (746) (1,484)
Loss before taxation (907) (1,056) (2,272)
Taxation - - -
-------------- -------------- ----------
Loss for period attributable
to equity holders of the Company (907) (1,056) (2,272)
-------------- -------------- ----------
Loss per share attributable to
equity holders of
the Company: Basic and diluted (0.46)p (0.56)p (1.19p)
-------------- -------------- ----------
Unaudited Consolidated Statement of Changes in Equity
6 months ended 30 April 2017
6 months ended 30 April 2017
Share Share Merger Warrant Retained Total
capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP000 GBP'000 GBP'000
-------- -------- -------- -------- -------------- -----------
Balance at 1 November
2016 15,119 32,585 9,349 2,119 (16,127) 43,045
Loss for the period - - - - (907) (907)
Issue of ordinary shares
at a premium 109 508 - - - 617
Share based payments - - - 293 - 293
Balance at 30 April 2017 15,228 33,093 9,349 2,412 (17,034) 43,048
-------- -------- -------- -------- -------------- -----------
6 months ended 30 April 2016
Share Share Merger Warrant Retained Total
capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP000 GBP'000 GBP'000
-------- -------- -------- -------- ------------ ----------
Balance at 1 November
2015 14,975 31,435 9,349 1,904 (13,831) 43,832
Loss for the period - - - - (1,056) (1,056)
Issue of ordinary shares
at a premium 82 800 - - - 882
Share based payments - - - - 14 14
Balance at 30 April 2016 15,057 32,235 9,349 1,904 (14,873) 43,672
-------- -------- -------- -------- ------------ ----------
Year ended 31 October 2016
Share Share Merger Warrant Retained Total
capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP000 GBP'000 GBP'000
-------- -------- -------- -------- --------------- ----------
Balance at 1 November
2015 14,975 31,435 9,349 1,904 (13,831) 43,832
Loss for the period - - - - (2,272) (2,272)
Issue of ordinary shares
at a premium 144 1,150 - - - 1,294
Share based payments - - - - (24) (24)
Extension of warrant expiry
date - - - 215 215
Balance at 31 October
2016 15,119 32,585 9,349 2,119 (16,127) 43,045
-------- -------- -------- -------- --------------- ----------
Unaudited Consolidated Balance Sheet as at 30 April 2017
As at 30.04.17 As at 30.04.16 As at 31.10.16
GBP'000 GBP'000 GBP'000
---------------- ---------------- --------------
Assets
Non-current assets
Intangible assets 9,892 9,818 9,771
Property, plant and equipment 743 688 728
Total non-current assets 10,635 10,506 10,499
---------------- ---------------- --------------
Current assets
Inventories 43,458 41,781 42,562
Receivables 2,947 2,683 2,610
Cash and cash equivalents 88 67 104
---------------- ---------------- --------------
Total current assets 46,493 44,531 45,276
---------------- ---------------- --------------
Total assets 57,128 55,037 55,775
---------------- ---------------- --------------
Equity
Share capital 15,228 15,057 15,119
Share premium account 33,093 32,235 32,585
Merger reserve account 9,349 9,349 9,349
Warrant reserve 2,412 1,904 2,119
Retained earnings (17,034) (14,873) (16,127)
---------------- ---------------- --------------
Total equity 43,048 43,672 43,045
---------------- ---------------- --------------
Liabilities
Current liabilities 14,080 11,365 12,730
Total liabilities 14,080 11,365 12,730
---------------- ---------------- --------------
Total equity and liabilities 57,128 55,037 55,775
---------------- ---------------- --------------
Unaudited Consolidated Cash Flow Statement
6 months ended 30 April 2017
6 months ended 6 months ended Year ended
30.04.17 30.04.16 31.10.16
GBP'000 GBP'000 GBP'000
-------------- -------------- ----------------------
Cash flows from operating activities
Net cash inflow/(outflow) from
continuing operations (note
1) (650) (490) 458
Finance costs (96) (265) (255)
Net cash (used in)/generated
from operating activities (746) (755) 203
-------------- -------------- ----------------------
Cash flows from investing activities
Purchase of property, plant
and equipment (78) (24) (103)
Purchase of intangible assets:
Goodwill- deferred consideration (25) - (130)
IT Project (5) (51) (140)
Net cash used in investing
activities (108) (75) (373)
-------------- -------------- ----------------------
Cash flows from financing activities
Net proceeds from the issue - - -
of ordinary shares
Loans received 838 752 129
Net cash generated from financing
activities 838 752 129
-------------- -------------- ----------------------
Net decrease in cash (16) (78) (41)
-------------- -------------- ----------------------
Cash at beginning of period 104 145 145
-------------- -------------- ----------------------
Cash at end of period 88 67 104
-------------- -------------- ----------------------
Notes to the Unaudited Consolidated Cash Flow Statement
6 months ended 30 April 2017
1 Cash flows from operating activities
6 months 6 months ended Year ended
ended 30.04.17 30.04.16 31.10.16
GBP'000 GBP'000 GBP'000
--------------- -------------- ----------
Loss before taxation (907) (1,056) (2,272)
Finance costs 637 746 1,484
Depreciation 57 51 122
Amortisation 172 158 334
Exchange gain/(loss) relevant to
property, plant and equipment 9 6 (36)
Increase in inventories (896) (515) (1,296)
Share based payments - 14 (24)
Increase in receivables (337) (512) (439)
Increase in current liabilities 498 593 1,291
Non cash movement in equity 117 25 1,294
--------------- -------------- ----------
Net cash inflow/(outflow) from
continuing operations (650) (490) 458
--------------- -------------- ----------
Notes to the unaudited interim results
6 months ended 30 April 2017
1. General information
The Company is a public limited company incorporated in England
and Wales and quoted on AIM. The Company's principal activity in
the period under review was that of a holding and management
company of a Group involved in the design, creation, development
and management of environmentally friendly luxury hotels and
resorts and in the operation of independent travel businesses,
through which the Group provides a broad range of services
including, inter alia, transportation, hotel and other
accommodation and leisure services.
2. Basis of preparation
The interim financial statements are unaudited and do not
constitute statutory accounts as defined in Section 434(3) of the
Companies Act 2006. A copy of the audited Report and Financial
Statements for the year ended 31 October 2016 has been delivered to
the Registrar of Companies. The auditor's report on these accounts
was unqualified and did not contain statements under s498(2) to
s498(4) of the Companies Act 2006. The Report and Financial
Statements for the year ended 31 October 2016 were approved by the
Board on 31 March 2017.
The interim financial statements for the 6 months ended 30 April
2017 comprise an Unaudited Consolidated Statement of Comprehensive
Income, Unaudited Consolidated Statement of Changes in Equity,
Unaudited Consolidated Balance Sheet and Unaudited Consolidated
Cash Flow statement plus relevant notes.
The interim financial statements are prepared in accordance with
EU adopted International Financial Reporting Standards ("IFRS") and
the International Financial Reporting Interpretations Committee
("IFRIC") interpretations and the Companies Act 2006 applicable to
companies reporting under IFRS.
The principal accounting policies adopted in the preparation of
the interim financial statements are consistent with those adopted
in the Report and Financial Statements for the year ended 31
October 2016.
Going concern
The interim unaudited financial statements have been prepared on
the going concern basis.
The directors have considered the financial and commercial
position of the Group in relation to its project in Crete (the
"Project") and also in respect of its travel and leisure business.
In particular, the directors have reviewed the matters referred to
below.
Following the dismissal, in June, of the Appeals against the
Presidential Decree granting land use approval for the Project, the
Company now has an un-appealable Presidential Decree which, in
effect, gives outline planning consent for the Project.
The directors consider it relevant that having completed
financial joint venture agreements prior to the above, and any
other consents, they will conclude further Project joint venture
agreements in the near term. In addition, the directors are
considering other options which would have a major beneficial
impact on the Group's resources.
In addition to specific Project related matters as noted above,
and as has been the case in the past, the Group continues to raise
capital in order to meet its existing working capital requirements
and the directors consider that any necessary funds will be raised
as required.
Notes to the unaudited interim results (continued)
6 months ended 30 April 2017
2. Basis of preparation (continued)
Going concern (continued)
With a number of acquisitions in the planned expansion of its
Travel and Leisure business having been completed over a period of
time, the Group is now generating profits and cash flow within this
sector of its activities.
Having taken these matters into account, the directors consider
that the going concern basis of preparation of the financial
statements is appropriate.
3. Segmental information
The Group strategy and growth objectives necessitate the
building of an associated infrastructure. The Group considers it
appropriate to identify separately the corporate development
division together with costs related to acquisitions. Accordingly,
the Group is organised into three divisions both by business
segment and geographical location:
-- the luxury resorts division, currently being the development
of a luxury resort in Crete, which includes the central
administration costs of the Group;
-- the Travel and Leisure division (UK), being the operation and
management of the travel businesses; and
-- the corporate development division (UK) as described above.
Notes to the unaudited interim results (continued)
6 months ended 30 April 2017
3. Segmental information (continued)
The information presented below is consistent with how
information is presented to the Board, with the Group's accounting
policies and with the geographical location of the relevant
divisions.
6 months ended 30 April 2017
Luxury Travel Corporate
Resorts and Leisure Development Total
GBP'000 GBP'000 GBP'000 GBP'000
----------- ------------------ ---------------------- ----------------
Total transaction value - 39,729 - 39,729
Revenue - 4,223 - 4,223
Cost of sales - (171) - (171)
----------- ------------------ ---------------------- ----------------
Gross profit - 4,052 - 4,052
Operating expenses (252) (3,832) (238) (4,322)
----------- ------------------ ---------------------- ----------------
(252) 220 (238) (270)
Charge in respect of share
based payments - - - -
----------- ------------------ ---------------------- ----------------
Operating (loss)/profit (252) 220 (238) (270)
Finance costs (587) (50) - (637)
(Loss)/profit before taxation (839) 170 (238) (907)
----------- ------------------ ---------------------- ----------------
Operating expenses include:
Depreciation and amortisation - 229 - 229
Assets/liabilities
Goodwill 6,127 3,765 - 9,892
Other non-current assets 159 584 - 743
Current assets 44,513 1,980 - 46,493
Total assets 50,799 6,329 - 57,128
----------- ------------------ ---------------------- ----------------
Total liabilities 11,710 2,370 14,080
----------- ------------------ ---------------------- ----------------
Notes to the unaudited interim results (continued)
6 months ended 30 April 2017
3. Segmental information (continued)
6 months ended 30 April 2016
Luxury Travel Corporate
Resorts and Leisure Development Total
GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------------------- ---------------------- ---------------
Total transaction value - 33,106 - 33,106
Revenue - 3,544 - 3,544
Cost of sales - - - -
---------------- -------------------- ---------------------- ---------------
Gross profit - 3,544 - 3,544
Operating expenses (197) (3,421) (222) (3,840)
---------------- -------------------- ---------------------- ---------------
(197) 123 (222) (296)
Charge in respect of share
based payments (14) - - (14)
---------------- -------------------- ---------------------- ---------------
Operating (loss)/profit (211) 123 (222) (310)
Finance costs (680) (66) - (746)
(Loss)/profit before taxation (891) 57 (222) (1,056)
---------------- -------------------- ---------------------- ---------------
Operating expenses include:
Depreciation and amortisation - 209 - 209
Operating leases - plant
and equipment - 8 - 8
---------------- -------------------- ---------------------- ---------------
Assets/liabilities
Goodwill 6,127 2,601 - 8,728
Other non-current assets 138 1,640 - 1,778
Current assets 42,638 1,893 - 44,531
Total assets 48,903 6,134 - 55,037
---------------- -------------------- ---------------------- ---------------
Total liabilities 7,859 3,506 - 11,365
---------------- -------------------- ---------------------- ---------------
Notes to the unaudited interim results (continued)
6 months ended 30 April 2017
3. Segmental information (continued)
Year ended 31 October 2016
Luxury Travel Corporate
Resorts and Leisure Development Total
GBP'000 GBP'000 GBP'000 GBP'000
Total transaction value - 67,820 - 67,820
--------------- --------------------- ------------------- ----------------------
Revenue - 7,317 - 7,317
Cost of sales - (273) - (273)
--------------- --------------------- ------------------- ----------------------
Gross profit - 7,044 - 7,044
Operating expenses (489) (6,772) (595) (7,856)
--------------- --------------------- ------------------- ----------------------
(489) 172 (595) (812)
Credit in respect of share-based
payments 24 - - 24
--------------- --------------------- ------------------- ----------------------
Operating (loss)/profit (465) 272 (595) (788)
Contribution to central
costs 100 (100) - -
Finance costs (1,341) (143) - (1,484)
--------------- --------------------- ------------------- ----------------------
(Loss)/profit before taxation (1,706) 29 (595) (2,272)
Taxation - - - -
--------------- --------------------- ------------------- ----------------------
(Loss)/profit after taxation (1,706) 29 (595) (2,272)
Operating expenses include:
Depreciation and amortisation 13 443 - 456
Operating leases - plant
and equipment - 83 - 83
--------------- --------------------- ------------------- ----------------------
Assets/liabilities
Goodwill 6,127 2,641 - 8,768
Other non-current assets 157 1,574 - 1,731
Current assets 43,491 1,785 - 45,276
--------------- --------------------- ------------------- ----------------------
Total assets 49,775 6,000 - 55,775
--------------- --------------------- ------------------- ----------------------
Total and current liabilities 10,561 2,169 - 12,730
--------------- --------------------- ------------------- ----------------------
4. Goodwill
Goodwill arising on acquisitions represents the difference
between the fair value of the net assets acquired and the
consideration paid and is recognised as an asset.
Goodwill arising on acquisition is allocated to cash-generating
units. The recoverable amount of the cash-generating unit to which
goodwill has been allocated is tested for impairment annually, or
on such other occasions that events or changes in circumstances
indicate that it might be impaired. Any impairment is recognised
immediately as an expense and is not subsequently reversed.
The Group conducts an annual impairment test on the carrying
value of goodwill based on the recoverable amount of two cash
generating units: the Project and the Travel and Leisure
business.
The directors consider that there have been no indicators of
impairment of goodwill for either the Project or the Travel and
Leisure CGU since the last annual review and therefore do not
consider that an interim review is required.
Notes to the unaudited interim results (continued)
6 months ended 30 April 2017
5. Loss per share attributable to equity holders of the
Company
Earnings per share are calculated by dividing the earnings
attributable to the equity holders of a company by the weighted
average number of ordinary shares in issue during the period.
Diluted earnings per share are calculated by adjusting basic
earnings per share to assume the conversion of all dilutive
potential ordinary shares. There are no dilutive instruments in
issue, therefore the basic loss per share and diluted loss per
share are the same. The weighted average number of shares used in
calculating basic and diluted loss per share for the 6 months ended
30 April 2017 was 197,769,617 (6 months ended 30 April 2016:
188,729,546, year ended 31 October 2016: 190,972,389).
6. Share based payments charge
6 months ended 6 months ended Year ended
30.04.17 30.04.16 31.10.16
GBP'000 GBP'000 GBP'000
-------------- -------------- ----------
Share based payments - directors - 14 24
Share based payments - warrants
finance charges 293 481 930
293 495 954
-------------- -------------- ----------
In accordance with IAS 32, the share based payments charge in
respect of warrants finance charges shown above has been included
in Finance costs in the Unaudited Consolidated Statement of
Comprehensive Income.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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