TIDMSAF
RNS Number : 3117Z
Safeland PLC
10 December 2014
SAFELAND PLC
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014
Chairman's statement
I am delighted to report that the six months to 30 September
2014 has seen Safeland plc generate a significant increase in
turnover and profit.
Headlines
Turnover: GBP7.76m (2013: GBP5.03m), up 54.1%
Profit before tax: GBP2.2m (2013: GBP0.2m)
Total shareholder return: 127.6% (2013: 68.0%)
Dividend in specie paid in the period equivalent to 10.73 pence
per share (2013: nil)
Net asset value per share: 63.8p (2013: 59.0p, 31 March 2014
63.0p)
The six month period has seen the Board focus on realising the
increase in value from some of the Group's investments and its
portfolio of trading property whilst continuing to identify new
opportunities in the London property market.
On 2 May 2014, Safeland demerged its Safestay joint venture.
Safeland received 3,617,246 shares from Safestay plc, with a market
value of GBP1.808m, generating a profit on sale of its investment
in the joint venture for the half year of GBP209k. Combined with
the capital restructuring approved by shareholders on 20 February
2014, Safeland made a distribution to shareholders by way of a
dividend in specie of the Safestay plc shares it had received. The
market value of the Safestay plc shares was the equivalent of a
cash dividend of 10.73 pence per share.
On 4 November 2014, Safeland announced that it had completed the
sale of 31 residential units in Wimbledon for GBP10.23m.
Construction of these flats is due to be completed in two stages in
February 2015 and June 2015.
On 7 November 2014, Safeland announced that following the
granting of a planning consent, it had completed the sale of the
Chandos Tennis club to a prominent housebuilder who intends develop
the site. The consideration payable comprised GBP4.0 million in
cash, which has been received. The balance will be satisfied by way
of the transfer to Safeland of four detached houses (valued by the
Company's directors in aggregate at GBP9.2 million) in the
completed development anticipated by the summer of 2017. The cash
consideration received was used to redeem bank debt secured on the
property. The Group is also entitled to overage payments from the
sale of the residential units once developed.
On 9 December 2014, the Board renewed its GBP12.5m credit
facility with its principal bankers, Lloyds, for a further 3
years.
Outlook
The property market remains stable but could be affected by
interest rate changes and global economic events. Notwithstanding
this, the Board believes that it has the skills necessary, and the
resources available, to make the opportunistic acquisitions and
sales that generate shareholder return.
Raymond Lipman
Chairman
Contacts:
Larry Lipman, Managing Director, Safeland Plc: 020 8815 1600
Tom Griffiths, Westhouse Securities Limited: 020 7601 6100
Safeland Plc Unaudited Unaudited Audited
Condensed consolidated income statement Six months Six months Year
ended ended ended
30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
------------- ------------- ----------
Revenue 7,763 5,029 10,408
Cost of sales (5,315) (4,003) (8,269)
Gross profit 2,448 1,026 2,139
Administrative expenses (588) (711) (1,458)
Gain on revaluation of investment
properties 225 - 325
Share of results of jointly controlled
entity 11 58 252
Share of results of associate 25 22 53
Profit on sale of investment in joint
venture 209 - -
Profit on sale of investment property 124 - -
Operating profit 2,454 395 1,311
Finance income 1 - 1
Finance costs (224) (180) (409)
Profit before tax 2,231 215 903
Tax (351) - (93)
------------- ------------- ----------
Profit for the financial period attributable
to owners of the parent company 1,880 215 810
------------- ------------- ----------
Basic earnings per share (note 2) 11.15p 1.28p 4.81p
Diluted earnings per share (note
2) 5.12p 0.58p 3.17p
Safeland plc
Condensed consolidated statement Unaudited Unaudited Audited
of comprehensive income Six months Six months Year
ended ended ended
30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
------------- ------------- ---------
Profit for the period 1,880 215 810
Total comprehensive income for
the period attributable to owners
of the parent company 1,880 215 810
------------- ------------- ---------
Condensed consolidated statement
of Unaudited Unaudited Audited
financial position 30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
-------------- -------------- ----------
Non-current assets
Property plant and equipment 170 149 151
Investment properties (note
5) 5,448 5,018 5,343
Investment in jointly controlled
entity - 504 698
Investments in associate 151 126 126
Available-for-sale investments 225 50 50
5,994 5,847 6,368
-------------- -------------- ----------
Current assets
Trading properties (note 6) 13,098 13,239 12,483
Trade and other receivables 362 1,308 1,509
Cash and cash equivalents 2,865 499 1003
16,325 15,046 14,995
-------------- -------------- ----------
Total assets 22,319 20,893 21,363
-------------- -------------- ----------
Current liabilities
Bank loans and overdrafts
(note 7) 9,500 - -
Trade and other payables 1,287 488 1,633
Derivative financial instruments 3 2 3
10,790 490 1,636
-------------- -------------- ----------
Non-current liabilities
Bank loans (note 7) - 9,700 8,400
Deferred income tax liabilities 778 756 717
778 10,456 7,634
-------------- -------------- ----------
Total liabilities 11,568 10,946 10,753
-------------- -------------- ----------
Net assets 10,751 9,947 10,610
-------------- -------------- ----------
Equity
Share capital 843 843 843
Share premium account - 5,351 -
Capital redemption reserve - 847 -
Share-based payment reserve 417 280 348
Investment revaluation reserve 5 5 5
Retained earnings 9,486 2,621 9,414
Total equity attributable
to owners of the parent company 10,751 9,947 10,610
-------------- -------------- ----------
Safeland plc
Condensed consolidated statement Unaudited Unaudited Audited
of cash flows Six months Six months Year
Ended ended ended
30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
------------- ------------- ---------
Cash flows from operating activities
Cash generated/(utilised) from
operations (note 4) 946 (2,819) (787)
Interest paid (225) (189) (416)
------------- ------------- ---------
Net cash generated/(utilised)
from operating activities 721 (3,008) (1,203)
------------- ------------- ---------
Cash flows from investing activities
Cash flows from investing activities 1 - 1
Distributions from associate - - 30
Purchase of property, plant
and equipment (88) (41) (115)
Purchase of available for sale
investments (175)
Proceeds from sale of investment
property 244 - -
Proceeds from sale of property,
plant and equipment 59 14 56
Net cash inflow/(outflow) from
investing activities 41 (27) (28)
------------- ------------- ---------
Cash flows from financing activities
New loans 6,400 2,822 8,206
Loan repayments (5,300) - (6,684)
Net cash inflow from financing
activities 1,100 2,822 1,522
------------- ------------- ---------
Net increase/(decrease) in cash
and cash equivalents 1,862 (213) 291
Cash and cash equivalents at
beginning of period 1,003 712 712
Cash and cash equivalents at
end of period 2,865 499 1,003
------------- ------------- ---------
Safeland plc Share Share Capital Share-based Investment Retained Total
Condensed consolidated statement
of changes in capital premium Redemption payment revaluation earnings equity
Equity account Reserve reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- ----------- ------------ ------------ --------- --------
Balance at 1 April 2014 843 - - 348 5 9,414 10,610
Comprehensive income
Profit for the six months period
to 30 September 2014 - - - - - 1,880 1,880
Total comprehensive income - - - - - 1,880 1,880
-------- -------- ----------- ------------ ------------ --------- --------
Transactions with owners
Dividend - - - - - (1,808) (1,808)
Share-based payment charge for
the period - - - 69 - - 69
Balance at 30 September 2014 843 - - 417 5 9,486 10,751
-------- -------- ----------- ------------ ------------ --------- --------
Safeland plc Share Share Capital Share-based Investment Retained Total
Condensed
consolidated
statement
of changes in capital premium Redemption Payment revaluation Earnings Equity
equity account Reserve Reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- ----------- ------------ ------------ --------- -------
Balance at 1
April 2013 843 5,351 847 211 5 2,406 9,663
Comprehensive
income
Profit for the
six months
period
to 30
September
2013 - - - - - 215 215
Total
comprehensive
income - - - - - 215 215
-------- -------- ----------- ------------ ------------ --------- -------
Transactions
with owners
Share-based
payment
charge for
the period - - - 69 - - 69
Balance at 30
September
2013 843 5,351 847 280 5 2,621 9,947
-------- -------- ----------- ------------ ------------ --------- -------
Safeland plc Share Share Capital Share-based Investment Retained Total
Condensed
consolidated
statement
of changes in capital premium redemption Payment revaluation earnings Equity
Equity account reserve Reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- ----------- ------------ ------------ --------- -------
Balance at 1
April 2013 843 5,351 847 211 5 2,406 9,663
Comprehensive
income
Profit for the
year to 31
March
2014 - - - - - 810 810
Total
comprehensive
income - - - - - 810 810
-------- -------- ----------- ------------ ------------ --------- -------
Transactions
with owners
Capital
reduction - (5,351) (847) - - 6,198 -
Share-based
payment
charge for
the period - - - 137 - - 137
Balance at 31
March 2014 843 5,351 847 348 5 9,414 10,610
-------- -------- ----------- ------------ ------------ --------- -------
1. Basis of preparation and accounting policies
The condensed interim consolidated financial statements of the
Company and its subsidiaries ("the Group") for the six months ended
30 September 2014 ("the period") have been prepared using
accounting policies consistent with International Financial
Reporting Standards (IFRSs) as adopted by the European Union. The
same accounting policies, presentation and methods of computation
are followed in the condensed set of financial statements as
applied in the Group's latest audited financial statements for the
year ended 31 March 2014. This half year statement does not
constitute full accounts as defined by Section 434 of the Companies
Act 2006
These condensed interim financial statements have not been
audited, do not include all of the information required for full
annual financial statements, and should be read in conjunction with
the Group's consolidated annual financial statements for the year
ended 31 March 2014.
2. Earnings per share
Unaudited Unaudited Audited
Six months Six months Year
ended Ended ended
30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
------------- ------------- -------------
Profit for the financial period
attributable to owners of the
parent company 1,880 215 810
------------- ------------- ----------
No No No
000 000 000
Weighted average number of ordinary
shares for
the purposes of basic earnings
per share 16,851 16,851 16,851
Effect of potential dilutive
ordinary shares:
share options 19,865 19,865 8,693
Weighted average number of ordinary
shares for the purposes of diluted
earnings per share 36,716 17,789 25,544
------------- ------------- ----------
Diluted Earnings per share is calculated by adjusting the
earnings and number of shares for the effects of dilutive options
and other dilutive potential ordinary shares.
3. Dividends
On 2 May 2014, the company distributed the Safestay plc shares
it received by way of a dividend in specie. Each shareholder
received one Safestay plc share for every 4.66 Safeland plc share
held. The market value of the Safestay plc shares at the date of
the distribution was 50p.
No interim dividend has been declared.
4. Cash flows from operating activities
Unaudited Unaudited Audited
Six months Six months Year
Ended ended ended
30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
------------- ------------- ---------
Profit before tax 2,230 215 903
Depreciation 25 18 50
Loss on sale of property, plant
and equipment (15) (7) (9)
Gain on revaluation of investment
properties (225) - (325)
Profit on sale of investment in
joint venture (209) - -
Profit on sale of investment property (124)
Share of results of associate (25) (22) (53)
Share of results of jointly controlled
entity (11) (58) (252)
Finance income (1) - (1)
Finance costs 219 180 409
Share-based payments charge 69 69 137
1,933 395 (787)
Changes in working capital
Increase in trading properties (615) (3,375) (2,619)
Decrease in trade and other receivables 258 423 197
(Decrease)/increase in trade and
other payables (630) (262) 776
946 (2,819) (787)
------------- ------------- ---------
5. Investment properties
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
------------ ------------ ------------
Fair value
Start of the period 5,343 5,018 5,018
Disposals (120) - -
Increase in fair value during the -
period 225 - 325
End of period 5,448 5,018 5,343
------------ ------------ ------------
The fair value of the investment properties at 30 September 2014
comprises freehold properties of GBP4,990,000 (30 September 2013:
GBP4,440,000 and 31 March 2014: 4,765,000 and long leasehold
properties of GBP458,000 (30 September 2013: GBP578,000 and 31
March 2014: GBP578,000).
The directors do not consider the fair value of the Group's
lease obligations associated with its long leasehold investment
properties to be material to the financial statements. As a result,
no finance lease obligations are included in the statement of
financial position at 30 September 2014, 30 September 2013 or 31
March 2014.
The Group has pledged investment properties for resale with
carrying value of GBP5,448,000 (30 September 2013: GBP5,018,000 and
31 March 2014: GBP5,343,000).
On the 7 November 2014, the Chandos Tennis Club was sold. At the
30 September 2014 the carrying value of this property was
GBP4,725,000 (see note 8).
6. Trading properties
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
------------ ------------ ----------
Properties for resale 13,098 13,239 12,483
------------ ------------ ----------
The Group has pledged trading properties for resale with
carrying value of GBP11,169,000 (30 September 2013: GBP13,239,000
and 31 March 2014: GBP12,483,000).
7. Bank loans and overdrafts
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2014 2013 2014
GBP000 GBP000 GBP000
------------ ------------ ------------
Bank loans
Due within one year 9,500 - -
Due within one to two years - 9,700 8,400
------------ ------------ ------------
9,500 9700 8,400
------------ ------------ ------------
There were no breaches in bank loan covenants as at 30 September
2014, 30 September 2013 or 31 March 2014. All of the Group's bank
loans and overdrafts disclosed above comprise borrowings in
sterling. The bank loans are secured on properties owned by the
Group.
At 30 September 2014, the loan facility was due to expire on 24
April 2015. On 9 December 2014 the company renewed its loan
facility with its principal lender for a three year period ending 8
December 2017.
8. Post balance sheet events
The company announced on 7 November 2014 the sale of the Chandos
tennis club to a prominent residential developer after planning
consent to build residential property at this location was
unconditionally granted.
The completion of the sale will be recognised in the second half
of the current financial year. At 30 September 2014 the property
was valued on the future anticipated proceeds less a deduction for
planning risks which were prevalent at that date.
The Group received GBP4.0m in cash on the completion date and,
in addition, a deferred consideration of four residential
properties from the developer in exchange for the Tennis club and a
second plot of land held in trading stock. This property is
anticipated to be completed and transferred to the group in June
2017 where it will be classed as trading property. The Directors
have valued this deferred consideration at GBP9.20m and estimate
the net present value to be GBP7.65m after applying a discount rate
of 6.5%. The carrying value of the investment property sold at 30
September 2014 was GBP4.725m and the trading property was
GBP1.836m. The group is also entitled to overage payments from the
onward sale of the residential property sold from this development,
although the directors do not anticipate further proceeds at this
stage.
9. Copies of this announcement are available on the Company's website www.safeland.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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