TIDMSAF
RNS Number : 5875K
Safeland PLC
17 December 2018
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR")
STRICTLY EMBARGOED UNTIL 7am: 17 December 2018
Safeland plc
("Safeland" or the "Company" or the "Group")
Interim Results
For the Six Months to 30 September 2018
Safeland (AIM: SAF), the property trading and investment
company, announces its unaudited interim results for the six months
ended 30 September 2018
Highlights
Turnover: GBP2.0m (2017: GBP2.8m)
Loss before tax: GBP0.5m (2017: loss GBP0.2m)
Net asset value per share: 140.2p (30 September 2017: 129.3p, 31
March 2018: 144.6p)
Managing Director's Statement
I am pleased to report the Group's interim results for the 6
months to 30 September 2018. These results reflect transactional
volatility that shareholders will be aware of.
During the period, the Group sold five investment properties in
north London. The Group took possession of four houses as part and
final consideration for the sale of the Chandos Tennis Club. The
consideration payable for the sale in 2014 comprised GBP4.0m in
cash (which was received in 2014) and the balance was to be
satisfied by way of transfer to Safeland of four detached houses
(valued at the time by the Company's directors, in aggregate, at
GBP9.2m) in the completed development.
All 3 houses in the Edeleny Close development and all 18
apartments in the Raglan Hall development have been let to third
parties at an annual rental of GBP525k.
Given the results for the 6 months ended 30 September 2018, the
Directors do not propose the payment of an interim dividend (6
months ended 30 September 2017: nil; year ended 31 March 2018:
1p).
Outlook
As stated in previous announcements, the market continues to be
constrained by the current economic and political outlook. However,
we continue to pursue acquisition opportunities whilst continuing
to add value to existing stock held through planning or
development. To that end, since the period end, the Group has
acquired a golf club in Woldingham, Surrey for GBP1.065m in cash.
We intend to invest in developing the club's existing facilities
and thereby enhance its appeal to both existing and new members. In
November, we also acquired a shopping mall in Northampton for
GBP0.6m in cash.
The Board is confident that it has the skills necessary to make
selected acquisitions in the current market, but is being extremely
selective until there is further clarity as to the general economic
and political outlook.
For further information:
Safeland plc +44 (0) 20 8815 1600
Larry Lipman, Managing Director
Stockdale Securities
(Nominated Adviser and Broker) +44 (0) 20 7601 6100
Tom Griffiths
For more information visit: www.safeland.co.uk
Condensed consolidated income
statement Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ------------
Revenue
Continuing 1,964 2,846 2,900
1,964 2,846 2,900
Cost of sales (1,367) (2,580) (2,595)
Gross profit 597 266 305
Administrative expenses (698) (700) (1,577)
Gain on revaluation of investment
properties - - 3,833
Share of results of associate 12 12 25
Dividend from investment 6 6 11
(Loss)/profit on disposal of investment
property (145) 73 74
Profit on sale of fixed assets - 12 -
Operating (loss)/profit (228) (331) 2,671
------------- ------------- ------------
Finance income 1 293 148
Finance costs (245) (186) (426)
(Loss)/profit before tax (472) (224) 2,393
Tax - - (247)
------------- ------------- ------------
(Loss)/profit for the financial
period attributable to owners
of the parent company (472) (224) 2,146
------------- ------------- ------------
Basic (loss)/earnings per share
(note 2) (3.17p) (1.49p) 14.25p
Diluted (loss)/earnings per share
(note 2) (3.17p) (1.49p) 7.88p
There is no difference between the diluted loss per share and
the basic loss per share presented as the effect of the share
options in issue is anti-dilutive.
Condensed consolidated statement
of comprehensive income Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ------------
(Loss)/profit for the period (472) (224) 2,146
Other comprehensive (loss)/income
Fair value (losses)/gains on available
for sale financial assets (38) 30 (104)
------------- ------------- ------------
Other comprehensive (loss)/income
for the period, net of tax (38) 30 (104)
------------- ------------- ------------
Total comprehensive (loss)/income
for the period attributable to
owners of the parent company (510) (194) 2,042
------------- ------------- ------------
Condensed consolidated statement
of
financial position Unaudited Unaudited Audited
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ---------
Non-current assets
Property plant and equipment 1,753 1,830 1,789
Investment properties (note 5) 23,217 1,182 14,762
Investments in associate 139 133 127
Available-for-sale investments 660 832 698
25,769 3,977 17,376
------------- ------------- ---------
Current assets
Trading properties (note 6) 4,404 13,290 5,018
Trade and other receivables 73 9,500 9,238
Cash and cash equivalents 481 2,157 1,066
4,958 24,947 15,322
------------- ------------- ---------
Total assets 30,727 28,924 32,698
------------- ------------- ---------
Current liabilities
Bank loans and overdrafts (note
7) - 9,325 10,455
Trade and other payables 677 198 470
Corporation tax payable 166 - 140
843 9,523 11,065
------------- ------------- ---------
Non-current liabilities
Bank loans (note 7) 8,910 - -
Deferred income tax liabilities 74 32 74
8,984 32 74
------------- ------------- ---------
Total liabilities 9,827 9,555 11,139
------------- ------------- ---------
Net assets 20,900 19,369 21,559
------------- ------------- ---------
Equity
Share capital (note 8) 745 749 745
Share-based payment reserve 354 354 354
Investment revaluation reserve (224) (52) (186)
Capital redemption reserve 98 94 98
Retained earnings 19,927 18,224 20,548
Total equity attributable to
owners of the parent company 20,900 19,369 21,559
------------- ------------- ---------
Consolidated Statement of Changes in Equity
For the six months to 30 September 2018 (unaudited)
Share Capital Share-based Revaluation Retained Total
Capital redemption payment Reserve earnings equity
GBP000 reserve reserve GBP000 GBP000 GBP000
GBP000 GBP000
-------- ----------- ----------- ----------- --------- -------
Balance at 31 March
2018 745 98 354 (186) 20,548 21,559
Comprehensive income
Profit/(loss) for
the period - - - - (472) (472)
Revaluation of
available-for-sale
investments - - - (38) - (38)
-------- ----------- ----------- ----------- --------- -------
Total comprehensive
income - - - (38) (472) (510)
-------- ----------- ----------- ----------- --------- -------
Transactions with
owners
Dividend paid - - - - (149) (149)
-------- ----------- ----------- ----------- --------- -------
Total transactions
with owners - - - - (149) (149)
-------- ----------- ----------- ----------- --------- -------
Balance at 30 September
2018 745 98 354 (224) 19,927 20,900
======== =========== =========== =========== ========= =======
For the six months to 30 September 2017 (unaudited)
Share Capital Share-based Revaluation Retained Total
Capital redemption payment Reserve earnings equity
GBP000 reserve reserve GBP000 GBP000 GBP000
GBP000 GBP000
-------- ----------- ----------- ----------- --------- -------
Balance at 31 March
2017 768 75 354 (82) 18,815 19,930
Comprehensive income
Profit for the
period - - - (224) (224)
Revaluation of
available-for-sale
investments - - - 30 - 30
-------- ----------- ----------- ----------- --------- -------
Total comprehensive
income - - - 30 (224) (194)
-------- ----------- ----------- ----------- --------- -------
Transactions with
owners
Purchase of own
shares (19) 19 - - (216) (216)
Dividend paid - - - - (151) (151)
-------- ----------- ----------- ----------- --------- -------
Total transactions
with owners (19) 19 - - (367) (367)
-------- ----------- ----------- ----------- --------- -------
Balance at 30 September
2017 749 94 354 (52) 18,224 19,369
======== =========== =========== =========== ========= =======
For the year ended 31 March 2018 (audited)
Share Capital Share-based Revaluation Retained Total
Capital redemption payment Reserve earnings equity
GBP000 reserve reserve GBP000 GBP000 GBP000
GBP000 GBP000
-------- ----------- ----------- ----------- --------- -------
Balance at 31 March
2017 768 75 354 (82) 18,815 19.930
Comprehensive income
Profit for the
year - - - - 2,146 2,146
Revaluation of
available-for-sale
investments - - - (104) - (104)
-------- ----------- ----------- ----------- --------- -------
Total comprehensive
income - - - (104) 2,146 2,042
-------- ----------- ----------- ----------- --------- -------
Transactions with
owners
Purchase of own
shares (23) 23 - - (262) (262)
Dividend paid - - - - (151) (151)
-------- ----------- ----------- ----------- --------- -------
Total transactions
with owners (23) 23 - - (413) (413)
-------- ----------- ----------- ----------- --------- -------
Balance at
31 March 2018 745 98 354 (186) 20,548 21,559
======== =========== =========== =========== ========= =======
Condensed consolidated statement
of cash flows Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ------------
Cash flows from operating activities
Cash generated by/(utilised) from
operations (note 4) 66 (4,409) (6,274)
Interest paid (245) (165) (395)
Corporation tax paid - - (65)
------------- ------------- ------------
Net cash (utilised)/generated
from operating activities (179) (4,574) (6,734)
------------- ------------- ------------
Cash flows from investing activities
Interest received 1 3 5
Other dividends received 6 6 36
Purchase of property, plant and
equipment - (52) (44)
Additions to investment properties (27) - -
Proceeds from sale of investment
properties 1,309 116 72
Proceeds from sale of property,
plant and equipment - 79 79
Net cash inflow/(outflow) from
investing activities 1,289 152 148
------------- ------------- ------------
Cash flows from financing activities
New loans - 1,665 2,785
Loan repayments (1,546) - -
Purchase of own share capital - (215) (262)
Dividends paid to equity shareholders (149) (151) (151)
Loan repayments - -
Net cash inflow from/(used in)
financing activities (1,695) 1,299 2,372
------------- ------------- ------------
Net increase/(decrease) in cash
and cash equivalents (585) (3,123) (4,214)
Cash and cash equivalents at beginning
of period 1,066 5,280 5,280
Cash and cash equivalents at end
of period 481 2,157 1,066
------------- ------------- ------------
1. Basis of preparation and accounting policies
The condensed interim consolidated financial statements of the
Company and its subsidiaries (the "Group") for the 6 months to 30
September 2018 (the "period") have been prepared using accounting
policies consistent with International Financial Reporting
Standards (IFRS) as adopted by the European Union. The financial
information presented above does not constitute statutory financial
statements as defined by section 435 of the Companies Act 2006.
Copies of this announcement are available from the Company's
registered office at 1a Kingsley Way, London N2 0FW and on its
website, www.safeland.co.uk.
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 2018. While the financial figures included within
this interim report have been computed in accordance with IFRS
applicable to interim periods, this report does not contain
sufficient information to constitute an interim financial report as
set out in International Accounting Standard 34 Interim Financial
Reporting.
Revenue
Revenue is stated net of VAT and comprises rental income,
proceeds from sales of trading properties, fees, commissions and
other income.
Sales of trading properties are recognised on completion of a
contract. This reflects the point of transfer of risk and rewards
when a trading property is sold.
Rental income from investment and trading properties leased out
under operating leases is recognised in the Income Statement on a
straight-line basis over the term of the lease. Contingent rents
which comprise turnover rents are recognised as income in the
periods in which they are earned. Rent reviews are recognised when
such reviews have been agreed with tenants.
Revenue in the previous period arising from deferred
consideration in the form of four completed houses in a residential
development being completed on the site of the Chandos Tennis Club
in the forthcoming year is based on a valuation by the directors,
discounted to a present-day value using the weighted average cost
of capital.
Other fees in relation to property management are recognised on
a straight-line basis over the term of management contracts.
Hotel revenue comprised revenues from overnight hotel
accommodation, banqueting facility hire and sales of food and
beverages. All revenues are recognised when the service is
provided. The hotel closed and ceased to trade on 3 August
2017.
Freehold property
Freehold property is stated at cost less accumulated
depreciation and is depreciated at 2% per annum on a straight-line
basis, pro-rated in the year of acquisition.
Property, plant and equipment
Property, plant and equipment are stated at cost less
accumulated depreciation and are depreciated over their estimated
useful lives on the following annual bases:
Motor vehicles 25% (reducing balance)
Fixtures, fittings and equipment 20% (reducing balance)
Investment properties
Investment properties are those properties that are held either
to earn rental income or for capital appreciation or both.
Investment properties are measured and stated at fair value in the
statement of financial position. Valuation surpluses and deficits
arising in the period are included in profit or loss.
The gain or loss arising on the disposal of a property is
determined as the difference between the sales proceeds and the
fair value of the asset at the beginning of the period and is
recognised in the income statement.
Investment properties may be freehold properties or leasehold
properties. For leasehold properties that are classified as
investment properties, the associated leasehold obligations, if
material, are accounted for as finance lease obligations.
Trading properties
Properties held for development and resale are classified as
trading properties and are shown at the lower of cost and net
realisable value. Cost comprises purchase price, acquisition costs
and direct expenditure.
2. Earnings per share
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ------------
(Loss)/profit for the financial
period attributable to owners
of the parent company (472) (224) 2,146
------------- ------------- ------------
No No No
'000 '000 '000
Weighted average number of ordinary
shares for
the purposes of basic earnings
per share 14,907 15,008 15,042
Effect of potential dilutive
ordinary shares:
Share options 11,727 12,020 12,149
Weighted average number of ordinary
shares for the purposes of diluted
earnings per share 26,634 27,028 27,191
------------- ------------- ------------
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
No interim dividend has been declared or paid in respect of the
six months ended 30 September 2018. In the six months ended 30
September 2017, the Company did not declare or pay an interim
dividend. A final dividend in the year to 31 March 2018 of 1p per
ordinary share was declared and paid on 28 September 2018. A final
dividend in the year to 31 March 2017 of 1p per ordinary share was
declared and paid on 29 September 2017.
4. Cash flows from operating activities
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ------------
(Loss)/profit before tax (472) (224) 2,393
Depreciation of property, plant
and equipment 36 40 79
Profit/(loss) on sale of property,
plant and equipment - (12) (18)
(Loss)/profit on sale of investment
property 145 (73) (74)
Loss/(gain) on revaluation of
investment properties - - (3,833)
Share of results of associate (12) - (25)
Dividend from investment (11)
Finance income (6) (3) (148)
Unwinding of discount on deferred
revenue - (290) -
Finance costs 245 186 426
Changes in working capital
Decrease/(increase) in trading
properties 581 (3,942) (5,415)
(Increase)/decrease in trade
and other receivables (685) (30) 114
Increase/(decrease) in trade
and other payables 234 (61) 238
66 (4,409) (6,274)
------------- ------------- ------------
5. Investment properties
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ------------
Fair value
Start of the period 14,762 1,182 1,182
Transfer from current properties 9,910 - 9,747
Disposals (1,455) - -
Increase in fair value during
the period - - 3,833
------------- ------------- ------------
End of period 23,217 1,182 14,762
------------- ------------- ------------
The fair value of the investment properties at 30 September 2018
comprises freehold properties of GBP23,217,000 (30 September 2017:
GBP457,000 and 31 March 2018: GBP13,832,000) and long leasehold
properties of GBPnil (30 September 2017: GBP725,000 and 31 March
2018: GBP930,000).
The Group has pledged investment properties for resale with a
total carrying value of GBP20,450,000 (30 September 2017:
GBP1,175,000 and 31 March 2018: GBP14,762,000) to secure banking
facilities granted to the Group.
6. Trading properties
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ------------
Properties for resale 4,404 13,290 5,018
------------- ------------- ------------
The Group has pledged trading properties for resale with
carrying value of GBP4,404,000 (30 September 2017: GBP13,290,000
and 31 March 2017: GBP5,012,000) to secure banking facilities
granted to the Group.
7. Bank loans and overdrafts
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
-------------- ------------- ------------
Due within one year - 9,335 10,455
Unamortised borrowing costs - (10) -
-------------- ------------- ------------
- 9,325 10,455
------------------------------------------------- ------------- ------------
Due in the second to fifth years 9,049 - -
Unamortised borrowing costs (139) - -
-------------- ------------- ------------
8,910 - -
------------------------------------------------- ------------- ------------
All of the Group's bank loans and overdrafts disclosed above
comprise borrowings in sterling. The facility is based on LIBOR
plus a fixed margin.
The Group's GBP16,500,000 (2017: GBP12,500,000) revolving credit
facility, which is secured on certain properties owned by the
Group, was renewed in April 2018 under similar terms as the
previous facility, and is due to expire in December 2020. The Group
has operated within the covenants of the loan throughout the
period.
8. Share capital
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
------------- ------------- ------------
Authorised:
45,750,000 ordinary shares of
5p each 2,288 2,288 2,288
------------- ------------- ------------
Allotted, called up and fully
paid:
14,987,380 ordinary shares (30
September 2017: 14,987,380 31
March 2018: 14,987,380) of 5p
each 745 749 745
------------- ------------- ------------
The Company bought back and cancelled no shares in the period
(2017: 380,000 shares; year to 31 March 2018: 460,000 shares), at a
total cost of GBPnil (2017: GBP216,000; year to 31 March 2018:
GBP262,000), reducing the nominal value of shares by GBPnil (2017:
19,000; year to 31 March 2018: GBP23,000), which is reflected in
these accounts as a capital redemption reserve.
Following the period end, on 5 November 2018, the Company
announced that on 2 November 2018 it had purchased 50,000 ordinary
shares of 5p each at a price of 45p per share for cancellation; and
on 9 November 2018 it announced that on the same day it had
purchased 75,285 ordinary shares of 5p each at a price of 45p also
for cancellation. These transactions have reduced the Company's
issued share capital to 14,782,095 shares.
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.
END
IR GGGCWPUPRGQC
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