TIDMSUH
RNS Number : 5178H
Sutton Harbour Group PLC
04 December 2020
4 December 2020
Sutton Harbour Group plc (formerly Sutton Harbour Holdings
plc)
("The Company", "Sutton Harbour")
Sutton Harbour Group plc, the AIM-listed marine and waterfront
regeneration specialist, announces its interim results for the
six-month period to 30 September 2020.
Financial Highlights
-- Profit before taxation GBP0.058m (6 months to 30 September 2019: GBP0.281m)
-- Net assets GBP46.140m (31 March 2020: GBP46.082)
-- Net assets per share 39.8p (31 March 2020: GBP39.7p)
-- Net debt GBP24.472m (31 March 2020: GBP23.591m)
-- Gearing 53.0% (31 March 2020: 51.1%)
Company Highlights
-- Finalising pre-construction preparations for consented schemes at Harbour Arch Quay
-- Preliminary planning submission for a new 200+ unit
residential led scheme to the east of Sutton Harbour
-- Strong trading performance by the Marinas despite Covid crisis disruption
-- A further GBP2.0million borrowing facility through to May
2021 to provide working capital during the Covid pandemic
"The first half year has been used productively to get
development projects ready to start and to deliver new homes as the
country emerges from the Covid crisis. The Group has remained
operational throughout the crisis period with appropriate safety
measures put in place to manage infection risk and in accordance
with UK Government advice. Inevitably, the restrictions have had an
impact on trading revenues but to date our business activities have
shown resilience to recover as more normal operations can resume.
The Group has intensified its efforts to promote the marinas and
lifestyle attributes of Sutton Harbour to increase its profile as a
'staycation' destination and to position the location benefits of
the new developments scheduled to go ahead in 2021."
Philip Beinhaker, Executive Chairman
For further information, please contact:
Sutton Harbour Group plc 01752 204186
Philip Beinhaker - Executive Chairman
Corey Beinhaker - Chief Operating Officer
Natasha Gadsdon - Finance Director
Arden Partners 020 7614 5900
Paul Shackleton
Benjamin Cryer
Executive Chairman's Statement
For the six-month period to 30 September 2020
Results and Financial position
Profit before taxation for the six month period to 30 September
2020 was GBP0.058m, down GBP0.223m from GBP0.281m for the
comparative period to 30 September 2019.
As at 30 September 2020, net assets were GBP46.140m compared to
GBP46.082m, as last reported as at 31 March 2020, and this
represents a net asset value of 39.8p per share (31 March 2020:
39.7p per share). There has been no re-valuation of assets during
the reporting period, with the next external independent valuation
due to be undertaken at the financial year end.
Net debt has increased to GBP24.472m, up by GBP0.881m from
GBP23.591m at 31 March 2020. This budgeted movement reflects the
lower point in the annual cash cycle (as rents and annual berthing
fee receipts peak between January and April) and expenditure on
pre-construction costs in connection with new development schemes
due to be submitted to the local planning authority in the coming
weeks and with other previously consented schemes. This has
resulted in a rise in gearing to 53.0% as at 30 September 2020 up
from 51.1% as at 31 March 2020.
To ensure continuity of financing the Group had already entered
into a new 4 year facility agreement in December 2019 and a further
GBP2.0million borrowing facility through to May 2021 to provide
working capital during the Covid pandemic. Funding for consented
projects will be funded by separate development financing.
Trading Report
The Group's business activities have been affected by the Covid
pandemic during the first half year but with impacts varying across
the different trading segments. The marinas have performed well
with overall results exceeding the comparative period last year
arising from an increase in annual berths sales. The car parks were
materially affected by the lock-down for the period of April, May
and June, and this is the main reason for the fall in group revenue
during the first half year; trade bounced back quickly to normal
seasonal levels once lockdown restrictions ended. Fisheries'
operations continued throughout the lockdown, albeit that fish
prices were relatively low and landings were reduced as the export
market weakened. The shortfall in fisheries revenues has been
partly compensated by the improved lettings of on-site stores and
commercial units. The Group has continued to work with tenants,
assisting in some cases by agreeing to payment plans. Following the
release from lock-down restrictions, the retail activity during the
summer months returned to high level of utilisation by the visiting
public enjoying the leisure activity. The Group owns a 7,500 sq ft
unit currently occupied by Edinburgh Woollen Mill (in
administration) and arrears have accumulated since 1 April 2020. We
await the outcome of the administration but can report that a
number of high quality enquires to rent this iconic waterfront unit
have been received. Pre-season marina bookings have started at a
high level of retention of existing berth-holders committing to
stay for 2021/22. Occupancy of the investment property estate has
upheld well throughout the first half year with further new
lettings expected to complete before the financial year end.
Regeneration
Finalisation of pre-construction preparations for the planning
consented scheme at Harbour Arch Quay, Sutton Harbour, have
continued in recent months. Selection of the construction
management team and finalisation of the detailed drawings are in
process. It is expected that, subject to completion of finance,
this 14 apartment building at will start on site during 2021, with
marketing of the units to be launched in the springtime of the New
Year. In addition, the Group has submitted the preliminary
applications for additional 200+ residential units with retail and
live/work space, a public east-west walkway and a new urban square,
on a site immediately to the east of the approved Sugar Quay
development at Sutton Harbour. Efforts are being made to secure
planning consent in the first half of 2021. The Sugar Quay site
proposal is being re-submitted to the Planning Authority after
changes to the original application have been made to remove the
basement parking and to relocate it to the adjacent new development
on the site immediately to the east.
Summary
The first half year has been used productively to get
development projects ready to start and to deliver new homes as the
country emerges from the Covid crisis. The Group has remained
operational throughout the crisis period with appropriate safety
measures put in place to manage infection risk and in accordance
with UK Government advice. Inevitably, the restrictions have had an
impact on trading revenues but to date our business activities have
shown resilience to recover as more normal operations can resume.
The Group has intensified its efforts to promote the marinas and
lifestyle attributes of Sutton Harbour to increase its profile as a
'staycation' destination and to position the location benefits of
the new developments scheduled to go ahead in 2021.
Philip Beinhaker
EXECUTIVE CHAIRMAN
Consolidated Statement of Comprehensive Income
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2020 2019 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Revenue 2,873 3,820 6,558
Cost of Sales (1,874) (2,379) (4,229)
Gross Profit 999 1,441 2,329
-------------- -------------- -----------
Fair value adjustment on fixed assets
and investment property - (26) (977)
Administrative expenses (547) (672) (1,264)
Operating profit from continuing operations 452 743 88
Financial income - -
Financial expense (394) (462) (844)
Net financing costs (394) (462) (844)
Profit before tax from continuing
operations 58 281 (756)
Taxation credit on profit from continuing
operations - - (232)
Profit from continuing operations 58 281 (988)
============== ============== ===========
Basic profit/earnings per share - 0.02p (0.85p)
Diluted profit/earnings per share - 0.02p (0.85p)
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2020 2019 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Profit from continuing operations 58 281 (988)
Other comprehensive income/(expenses)
Continuing operations:
Revaluation of property, plant and
equipment - - 1,338
Deferred taxation on income and expenses
recognised directly in the consolidated
statement of comprehensive income
Effective portion of changes in fair - - -
value of cash flow hedges
Total other comprehensive income - - 1,338
-------------- -------------- -----------
Total comprehensive income for the
period attributable to equity shareholders 58 281 350
============== ============== ===========
Consolidated Balance Sheet
As at As at As at
30 September 30 September 31 March
2020 2019 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Non-current assets
Property, plant and equipment 27,694 26,855 27,958
Investment property 18,989 19,571 18,985
Inventories 12,878 12,610 12,810
-------------- -------------- -----------
59,561 59,036 59,753
-------------- -------------- -----------
Current assets
Inventories 12,748 11,552 12,217
Trade and other receivables 2,363 2,104 2,595
Cash and cash equivalents 177 244 792
Tax recoverable - - 5
-------------- -------------- -----------
15,288 13,900 15,609
-------------- -------------- -----------
Total assets 74,849 72,936 75,362
-------------- -------------- -----------
Current liabilities
Trade and other payables 1,098 1,053 1,396
Finance lease liabilities 62 65 63
Deferred income 936 936 1,544
Provisions 63 75 70
2,159 2,129 3,073
-------------- -------------- -----------
Non-current liabilities
Other interest-bearing loans and
borrowings 24,250 23,000 24,250
Finance lease liabilities 337 40 10
Deferred government grants 646 646 646
Deferred tax liabilities 1,255 1,023 1,254
Provisions 62 85 29
26,550 24,794 26,207
-------------- -------------- -----------
Total liabilities 28,709 26,923 29,280
-------------- -------------- -----------
Net assets 46,140 46,013 46,082
============== ============== ===========
Issued capital and reserves attributable
to owners of the parent
Share capital 16,266 16,266 16,266
Share premium 10,695 10,695 10,695
Other reserves 13,034 11,696 13,034
Retained earnings 6,145 7,356 6,087
-------------- -------------- -----------
Total equity 46,140 46,013 46,082
============== ============== ===========
Consolidated Statement of Changes in Equity
Share Share Revaluation Merger Hedging Retained TOTAL
capital premium reserve reserve reserve earnings
----------Other Reserves----------
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- ------------ -------- -------- --------- --------
Balance at 1 April 2020 16,266 10,695 9,163 3,871 - 6,087 46,082
Comprehensive
income/(expense)
Profit for the period - - - - - 58 58
Total comprehensive
income/(expense)
6 month period ended
30
September 2020 - - - - - 58 58
-------- -------- ------------ -------- -------- --------- --------
Balance at 30 September
2020 16,266 10,695 9,163 3,871 - 6,145 46,140
-------- -------- ------------ -------- -------- --------- --------
Balance at 1 April 2019 16,266 10,695 7,825 3,871 - 7,075 45,732
Comprehensive
income/(expense)
Profit for the period - - - - - 281 281
Other comprehensive
income/(expense)
Revaluation of - - - - - - -
property,
plant and equipment
Effective portion of
changes
in fair value of cash
flow hedges
-------- -------- ------------ -------- -------- --------- --------
Total other
comprehensive
income/(expense) 6
month
period ended 30
September
2019 - - - - - 281 281
-------- -------- ------------ -------- -------- --------- --------
Total comprehensive
income/(expense) - - - - - - -
6 month period ended 30
September 2019
-------- -------- ------------ -------- -------- --------- --------
Balance at 30 September
2019 16,266 10,695 7,825 3,871 - 7,356 46,013
-------- -------- ------------ -------- -------- --------- --------
Balance at 1 October
2019 16,266 10,695 7,825 3,871 - 7,356 46,013
Comprehensive
income/(expense)
Profit for the period - - - - - (1,269) (1,269)
Other comprehensive
income/(expense)
Revaluation of
property,
plant and equipment - - 1,338 - - - 1,338
Effective portion of
changes - - - - - - -
in fair value of cash
flow hedges
-------- -------- ------------ -------- -------- --------- --------
Total other
comprehensive - - - - - - -
income/(expense) 6
month
period ended 31 March
2020
-------- -------- ------------ -------- -------- --------- --------
Total comprehensive
income/(expense) - - - - - - -
6 month period ended 31
March 2020
-------- -------- ------------ -------- -------- --------- --------
Transactions with
owners
of the parent
Issue of shares - - - - - - -
-------- -------- ------------ -------- -------- --------- --------
Balance at 31 March
2020 16,266 10,695 9,163 3,871 - 6,087 46,082
-------- -------- ------------ -------- -------- --------- --------
Consolidated Cash Flow Statement
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2020 2019 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
--- -------------- -------------- -----------
Cash generated from total operating
activities (599) (481) (455)
-------------- -------------- -----------
Cash flows from investing activities
Net expenditure on investment
property (4) - (52)
Expenditure on property, plant
and equipment 75 (609) (823)
Proceeds from sale of plant - - -
and equipment
-------------- -------------- -----------
Net cash used in investing activities 71 (609) (875)
-------------- -------------- -----------
Cash flows from financing activities
Proceeds from sale of shares - - -
Expenses of share issuance - - -
Interest paid (396) (462) (844)
Loan drawdowns/(repayment of
borrowings) 309 500 1,750
Net finance lease (payments)/receipts - - (78)
Net cash generated from financing
activities (87) 38 826
-------------- -------------- -----------
Net increase/(decrease) in cash
and cash equivalents (615) (1,052) (504)
Cash and cash equivalents at
beginning of period 792 1,296 1,296
Cash and cash equivalents at
end of period 177 244 792
============== ============== ===========
Notes to Interim Report
General information
This consolidated interim financial information does not
comprise statutory accounts within the meaning of section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
March 2020 were approved by the Board of Directors on 6 July 2020
and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified and did not contain any
statement under section 498 of the Companies Act 2006.
Copies of the Group's financial statements are available from
the Company's registered office, Sutton Harbour Office, Guy's Quay,
Sutton Harbour, Plymouth, PL4 0ES and on the Company's website
www.sutton-harbour.co.uk.
This consolidated interim financial information has not been
audited.
Basis of preparation
The consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 March 2020, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) and
International Financial Reporting Interpretation Committee (IFRIC)
interpretations as endorsed by the European Union, and those parts
of the Companies Acts 2006 as applicable to companies reporting
under IFRS.
Accounting policies
Except as described below, the accounting policies applied are
consistent with those of the annual financial statements for the
year ended 31 March 2020, as described in those annual financial
statements.
Accounting estimates and judgements
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making
judgements that are not readily apparent from other sources. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised, if the revision
affects only that period, or in the period of the revision and
future periods, if the revision affects both current and future
periods.
Segment information
Management has determined the operating segments based on the
reports reviewed by the Board of Directors that are used to make
strategic decisions.
The Board of Directors considers the business from an
operational perspective as having only one geographical segment,
with all operations being carried out in the United Kingdom.
The Board of Directors considers the performance of the
operating segments using operating profit. The segment information
provided to the Board of Directors for the reportable segments for
the period ended 30 September 2019 is as follows:
6 months to
30 September
2020 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 1,969 676 228 - 2,873
Gross profit
prior to non-recurring
items 561 448 100 (110) 999
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 561 448 100 (110) 999
Fair value adjustment
on fixed assets
and investment
property assets - - - - -
Unallocated:
Administrative
expenses (547)
Operating profit
from continuing
operations 452
Financial income
Financial expense (394)
-------
Profit before
tax from continuing
operations 58
Taxation -
-------
Profit for the
year from continuing
operations 58
=======
Depreciation
charge
Marine 168
Car Parking 11
Administration 11
-------
190
=======
Segment Information (continued)
6 months to
30 September
2019 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2,662 762 396 - 3,820
Gross profit
prior to non-recurring
items 637 534 270 - 1,441
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 637 534 270 - 1,441
Fair value adjustment
on fixed assets
and investment
property assets - - - - -
Unallocated:
Administrative
expenses (698)
Operating profit
from continuing
operations 743
Financial income
Financial expense (462)
-------
Loss before
tax from continuing
operations 281
Taxation -
-------
Loss for the
year from continuing
operations 281
=======
Depreciation
charge
Marine 150
Car Parking 14
Administration 5
-------
169
=======
Segment Information (continued)
Year ended 31
March 2020 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 4,323 1,580 655 - 6,558
Gross profit
prior to non-recurring
items 916 1,157 404 (148) 2,329
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 916 1,157 404 (148) 2,329
Fair value adjustment
on fixed assets
and investment
property assets (483) (494) - - (977)
1,352
Unallocated:
Administrative
expenses (1,264)
Operating profit
from continuing
operations 88
Financial income -
Financial expense (844)
--------
Profit before
tax from continuing
operations (756)
Taxation (232)
--------
Profit for the
year from continuing
operations (988)
========
Depreciation
charge
Marine 313
Car Parking 26
Administration 1
--------
340
========
30 September 30 September 31 March
2020 2019 2020
GBP000 GBP000 GBP000
Segment assets:
Marine 23,304 23,731 23,858
Real estate 19,660 19,815 19,640
Car Parking 5,323 4,423 5,267
Regeneration 25,746 24,267 25,115
Total segment assets 74,033 72,236 73,880
Unallocated assets:
Property, plant and equipment 83 87 80
Trade & other receivables 556 368 610
Cash & cash equivalents 177 245 792
Total assets 74,849 72,936 75,362
============= ============= =========
Segment Information (continued)
30 September 30 September 31 March
2020 2019 2020
GBP000 GBP000 GBP000
Segment liabilities:
Marine 1,184 1,196 1,960
Real estate 560 417 550
Car Parking 90 72 108
Regeneration 823 951 903
------------- ------------- ---------
Total segment liabilities 2,657 2,636 3,521
Unallocated liabilities:
Bank overdraft & borrowings 24,649 23,105 24,341
Trade & other payables 148 157 163
Financial Derivatives - - -
Tax payable - 1 -
Deferred tax liabilities 1,255 1,024 1,255
------------- ------------- ---------
Total liabilities 28,709 26,923 29,280
============= ============= =========
Unallocated assets included in total assets and unallocated
liabilities included in total liabilities are not split between
segments as these items are centrally managed.
Taxation
The Company has applied an effective tax rate of 19% (2019: 19%)
based on management's best estimate of the tax rate expected for
the full financial year and is reflected in a movement in deferred
tax.
Dividends
The Board of Directors do not propose an interim dividend (2019:
nil).
Earnings per share
6 months to 6 months Year Ended
to
30 September 30 September 31 March
2020 2019 2020
(unaudited) (unaudited) (audited)
pence pence pence
--------------- -------------- -----------
Continuing operations
Basic earnings per share - 0.02p (0.85p)
Diluted earnings per share* - 0.02p (0.85p)
Basic Earnings per Share:
Basic earnings per share have been calculated using the profit
for the period of GBP58,000 (2019: profit GBP281,000, year ended 31
March 2020 loss GBP988,000). The average number of ordinary shares
in issue, excluding those options granted under the SAYE scheme, of
115,944,071 (2019: 115,944,071; year ended 31 March 2020:
115,944,071) has been used in our calculation.
Diluted Earnings per Share:
Diluted earnings per share uses an average number of 115,944,071
(2019: 115,944,071; year ended 31 March 2020 115,944,071) ordinary
shares in issue, and takes account of the outstanding options under
the SAYE scheme in accordance with IAS 33 'Earnings per share'.
There are no outstanding options under expire SAYE schemes.
Property valuation
Freehold land and buildings and investment property have been
independently valued by Jones Lang LaSalle as at 31 January 2020,
in accordance with the Practice Statements in the Valuations
Standards (The Red Book) published by the Royal Institution of
Chartered Surveyors.
A further valuation will be commissioned for the year ending 31
March 2021, as in previous years.
Cash and cash equivalents
As at As at As at
30 September 30 September 31 March
2020 2019 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
------------- ------------- ----------
Cash and cash equivalents per
balance sheet and cash flow
statement 177 244 792
============= ============= ==========
Provisions
Onerous leases Total
GBP000 GBP000
------------------------------ ------
Balance at 1 April 2019 243 243
Provisions utilised (83) (83)
Balance at 30 September
2019 160 160
============================== ======
Provisions made - -
Provisions utilised (61) (101)
------------------------------ ------
Balance at 31 March 2020 99 59
============================== ======
Provisions made 26 66
Provisions utilised - -
------------------------------ ------
Balance at 30 September
2020 125 125
============================== ======
Current 63 63
Non-current 62 62
125 125
============================== ======
Cash flow statements
6 months to 6 months to Year Ended
30 September 30 September 31 March
2020 2019 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Cash flows from operating
activities
Profit/(loss) for the period 58 281 (756)
Adjustments for:
Taxation - - -
Financial income - - -
Financial expense 396 442 844
Fair value adjustment on fixed
assets and investment property - - 977
Depreciation 190 169 340
Amortisation of grants - - -
Profit/loss on sale of property,
plant and equipment - 7 2
Cash generated from operations
before changes in working
capital and provisions 644 899 1,407
Increase in inventories (599) (635) (1,460)
Decrease/(increase) in trade
and other receivables 234 251 (312)
(Decrease)/increase in trade
and other payables (236) (366) (100)
Decrease in deferred income (607) (556) 145
(Decrease)/increase in provisions (35) (74) (135)
Cash generated from operations (599) (481) (455)
============== ============== ===========
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FSEFMDESSEIE
(END) Dow Jones Newswires
December 04, 2020 02:00 ET (07:00 GMT)
Sutton Harbour (LSE:SUH)
Historical Stock Chart
From Apr 2024 to May 2024
Sutton Harbour (LSE:SUH)
Historical Stock Chart
From May 2023 to May 2024