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Market Cap
£5.94m
Change Today
Share Price
72.50p
Interim Results
Bailey(C.H.) PLC
21 December 2007
C.H. BAILEY PLC
Chairman's Statement
Six months ended 30th September 2007
Results for the 6 month period ended 30th September 2007 are disappointing and
show a loss of £785,307 (2006 £552,467). Turnover has decreased by £293,737
(5.3%) with a decrease in gross profit of 4.4%.
UK Operations
The UK Engineering companies have reported a reduction in sales, with both
Specialist Heavy Engineers Ltd and Midway Precision Ltd reporting a decrease
in revenue but forecasting improved sales for the second half of the year.
Modular Automation International Ltd (MAIL), has seen an increase in enquiries,
but less confirmed sales and reported a loss for the period of approximately
£300,000. In recent months, we have seen a substantial improvement and are
confident that with an order book of over £ 4 million, this position will be
reversed. MAIL is projecting a profit for the full year in excess of £200,000.
Malta
Our hotel in Malta has once again been profitable. Whilst we continue to speak
to planners and third parties regarding the re-development, we are disappointed
with the progress to date. We will be addressing this issue again in the New
Year and hope to report further progress in the near future.
Tanzania
The new Oyster Bay Hotel was finished on time and re-opened its doors in
November. The Hotel is unique for Dar es Salaam being a boutique hotel offering
a different quality of accommodation and service to those that currently exist.
Sales are expected to be quiet until the new tourist season begins in June 2008
when we are encouraged with the level of bookings.
The office development is on target to be completed by May 2008. We can report
an increase in demand and that agreements have been signed with tenants for
over 50% of the office accommodation. We are confident that we shall reach 100%
occupancy by the time the offices become available for occupation.
Beho Beho has seen increased revenues and occupancy and has maintained its
market share and reputation in the international tourist market. Mikumi Wildlife
Camp has also seen improvements and continues to contribute to group.
Investment
This division has seen a turbulent time over the past few months with large
variances in World financial markets. We are pleased to report that our fund
managers are currently weathering the storm and have maintained growth of your
managed investments in these difficult times.
Current Trading and outlook
We are naturally disappointed in the half year results however, there are
encouraging signs within the group. We are conscious of the global uncertainty
and are continually looking to reduce costs in order to achieve greater
efficiencies and better margins. With the Hotel development now completed in
Tanzania, we expect our financial reports to record further increases in
revenues and we believe that these contributions will help the group move
forward and improve the bottom line.
Charles Bailey
Chairman December 21st 2007
Consolidated Income Statement
for the six months ended 30th September 2007 (unaudited)
Six months ended Six months ended Year ended
30 September 2007 30 September 2006 31 March 2007
£ £ £
Continuing operations
Revenue 5,218,153 5,511,890 11,021,082
Cost of sales (4,163,765) (4,153,357) (8,181,967)
______________________________________________________
Gross profit 1,054,388 1,358,533 2,839,115
Administrative expenses (1,777,719) (1,742,653) (3,377,842)
______________________________________________________
Trading (loss) (723,331) (384,120) (538,727)
Investment activities and other income (52,357) (24,496) 387,261
______________________________________________________
Operating (loss) (775,688) (408,616) (151,466)
________________________________________________________________________________________________________________________
EBITDI (609,404) (236,411) 170,191
Depreciation and impairment losses (166,284) (172,205) (317,737)
Loss on the sale of property, plant and equipment - - (3,920)
______________________________________________________
Operating (loss) (775,688) (408,616) (151,466)
________________________________________________________________________________________________________________________
Finance income 958 5,645 15,767
Finance costs (86,464) (61,757) (120,395)
______________________________________________________
(Loss) before taxation (861,194) (464,728) (256,094)
Taxation 11,635 22,704 55,456
Minority interest 64,252 (17,124) (18,545)
______________________________________________________
(Loss) for the period from continuing operations (785,307) (459,148) (219,183)
Discontinued operations
(Loss) for the period from discontinued operations - (93,319) (472,253)
______________________________________________________
(Loss) for the financial period (785,307) (552,467) (691,436)
______________________________________________________
Earnings per share from continuing operations (9.59p) (5.60p) (2.68p)
Earnings per share from total operations (9.59p) (6.74p) (8.44p)
EBITDI is Earnings before interest, taxation, depreciation and impairment provisions.
Consolidated Balance Sheet
as at 30th September 2007 (unaudited)
30 September 2007 30 September 2006 31 March 2007
£ £ £
Non-current assets
Property, plant and equipment 8,834,687 7,343,691 7,738,117
Goodwill 629,387 717,050 672,781
Lease prepayments 47,996 54,344 51,170
Deferred tax asset 774,593 670,150 708,444
______________________________________________________
10,286,663 8,785,235 9,170,512
______________________________________________________
Current Assets
Stocks 225,594 350,195 180,584
Trade and other receivables 3,625,771 3,204,292 4,406,904
Other current asset investments 1,840,638 2,387,186 1,865,615
Cash and cash equivalents 226,336 294,329 244,047
______________________________________________________
5,918,339 6,236,002 6,697,150
______________________________________________________
Current liabilities
Bank loans and overdrafts (824,946) (846,775) (576,186)
Trade and other payables (4,326,110) (3,864,449) (4,579,337)
Current tax liabilities (205,609) (209,751) (294,703)
Other loans (653,459) (739,219) (647,335)
Obligations under finance leases (59,599) (41,448) (59,599)
Provisions (217,235) (137,582) (135,505)
______________________________________________________
(6,286,958) (5,839,224) (6,292,665)
______________________________________________________
Net current assets (368,619) 396,778 404,485
______________________________________________________
Total assets less current liabilities 9,918,044 9,182,013 9,574,997
Non-current liabilities
Bank loans (1,759,857) (353,603) (724,691)
Obligations under finance leases (53,339) (64,894) (82,721)
Cumulative preference shares (530,180) (530,180) (530,180)
Deferred tax liabilities (713,636) (659,122) (659,122)
______________________________________________________
6,861,032 7,574,214 7,578,283
______________________________________________________
Equity
Share capital 833,541 833,541 833,541
Share premium account 609,690 609,690 609,690
Capital redemption reserve 5,163,332 5,163,332 5,163,332
Investment in own shares (187,528) (187,528) (187,528)
Foreign currency translation reserve 1,371,718 1,201,818 1,257,185
Retained earnings (766,812) 46,047 (6,816)
______________________________________________________
Surplus attributable to the parent's shareholders 7,023,941 7,666,900 7,669,404
Minority interest (162,909) (92,686) (91,121)
______________________________________________________
Total equity 6,861,032 7,574,214 7,578,283
______________________________________________________
Consolidated Cash Flow Statement
for the six months ended 30th September 2007 (unaudited)
Six months ended Six months ended Year ended
30 September 2007 30 September 2006 31 March 2007
£ £ £
Cash flows from operating activities
Cash flow from operations (72,345) 54,498 (728,876)
Interest paid (86,464) (61,757) (120,395)
Overseas tax paid - - (5,542)
______________________________________________________
Net cash flow from operating activities (158,809) (7,259) (854,813)
______________________________________________________
Investing activities
Sale of property, plant and equipment - - 600
Purchase of property, plant and equipment (1,089,736) (245,068) (724,843)
Investment in associated undertaking - - (100,000)
Sale of investments 43,737 234,322 1,803,375
Purchase of investments (103,222) (305,118) (600,430)
Interest received 958 5,645 15,767
______________________________________________________
Net cash flow from investing activities (1,148,263) (310,219) 394,469
______________________________________________________
Financing activities
Movement in bank loans 1,041,505 50,929 420,961
Movement in directors' loans 29,837 (276,250) (201,571)
Movement in other loans 6,124 9,565 (82,319)
Movement in capital element of finance leases (29,382) 11,442 47,420
______________________________________________________
Net cash flow from financing activities 1,048,084 (204,314) 184,491
______________________________________________________
Net decrease in cash and cash equivalents (258,988) (521,792) (275,853)
Cash and cash equivalents at beginning of period (332,139) 11,226 11,226
Effect of foreign exchange rate changes (7,483) (41,880) (67,512)
______________________________________________________
Cash and cash equivalents at end of period (598,610) (552,446) (332,139)
______________________________________________________
Reconciliation of net cash flow to movement in net debt in the period
Net decrease in cash and cash equivalents (258,988) (521,792) (275,853)
Cash inflow from the increase in debt (1,018,247) (71,936) (386,062)
______________________________________________________
Movement in net debt during the period (1,277,235) (593,728) (661,915)
Net debt at the beginning of period (1,846,485) (1,123,140) (1,123,140)
Effect of foreign exchange rate changes (1,144) (34,742) (61,430)
______________________________________________________
Net debt at the end of the period (3,124,864) (1,751,610) (1,846,485)
______________________________________________________
Consolidated Statement of Recognised Income and Expense
for the six months ended 30th September 2007 (unaudited)
Six months ended Six months ended Year ended
30 September 2007 30 September 2006 31 March 2007
£ £ £
Currency translation differences 139,844 63,202 204,675
______________________________________________________
Net income recognised directly in equity 139,844 63,202 204,675
Loss for the period attributable to equity shareholders (785,307) (552,467) (691,436)
______________________________________________________
Total recognised expense for the period attributable to
equity shareholders (645,463) (489,265) (486,761)
______________________________________________________
Notes to the Consolidated Interim Financial Statements
For the six months ended 30th September 2007 (unaudited)
1. General Information
Basis of preparation
These interim financial statements have been prepared in accordance with
International Accounting Standards (IAS) and International Financial Reporting
Standards (IFRS) as adopted by the European Union and with the Companies Act
1985. They comply with the requirements of IAS 34 - Interim Financial
Reporting.
The information for the year ended 31 March 2007 does not constitute the group's
statutory accounts for 2007 as defined in Section 240 of the Companies Act 1985.
Statutory accounts for 2007 have been delivered to the Registrar of Companies.
The auditor's report on those accounts was unqualified and did not contain
statements under Section 237(2) or (3) of the Companies Act 1985.
The interim financial statements have been prepared using the historical cost
basis of accounting except for:
i) Properties held at the date of transition to IFRS which are stated
at deemed cost;
ii) Assets held for sale which are stated at the lower of fair value less
anticipated disposal costs and carrying value.
Functional and presentational currency
The financial statements are presented in pounds sterling because that is the
functional currency of the primary economic environment in which the group
operates.
First time adoption of International Financial Reporting Standards
This is the group's first interim statement that has been prepared in accordance
with IFRS. The group's transition date for adoption of IFRS is 1st April 2006.
An explanation of how the transition to IFRS has affected the group's financial
position at the date of the last interim report prepared in accordance with UK
GAAP and the last reporting date under UK GAAP together with a reconciliation
of the results under UK GAAP to IFRS are given in note 9.
The group has revised its accounting policies where applicable to conform with
IFRS and the significant policies having an effect on the interim statement are
set out below. These policies have been applied consistently to all the periods
presented across all group companies and in preparing the opening balance sheet
at 1st April 2006 for the purpose of transition to IFRS.
The group has taken advantage of the following exemptions on transition to IFRS
as permitted by paragraph 13 of IFRS 1:
• The requirements of IFRS 3 - Business Combinations - have not applied to
business combinations that occurred before the date of transition to IFRS.
• The carrying value of freehold and leasehold properties are based on
previously adopted UK GAAP valuations and these are now taken as deemed
cost on transition to IFRS.
2. Significant accounting policies
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the company and entities controlled by the company (its subsidiaries) made up
to 30th September 2007.
Minority interests in the net assets of consolidated subsidiaries are identified
separately from the group's equity therein. Minority interests consist of the
amount of those interests at the date of the original business combination (see
below) and the minority's share of changes in equity since the date of the
combination. Losses applicable to the minority in excess of the minority's
interest in the subsidiary's equity are allocated against the interests of the
group except to the extent that the minority has a binding obligation and is
able to make an additional investment to cover the losses.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Business combinations and goodwill
Goodwill arising on consolidation represents the excess of consideration over
the group's interest in the fair value of assets acquired. Goodwill is
recognised as an asset and is not amortised. It is reviewed for impairment at
each reporting date as detailed in "impairment of non-financial assets" below.
In accordance with the options that are available under IFRS 1, the group has
elected not to apply IFRS 3 retrospectively to past business combinations that
occurred before the date of transition to IFRS. Accordingly goodwill that had
previously been offset against reserves under UK GAAP has not been recognised
in the opening IFRS balance sheet.
Trade investments
The results of entities over which the group is not in a position to be able to
exercise significant influence despite holding a significant shareholding are
not accounted for as associates and therefore are not equity accounted. The
companies are classified as trade investments and are carried at cost within
non-current assets as they are held as a long term investments. Dividend income
is recognised in the income statement on a cash basis when received.
Property, plant and equipment
Property is carried at deemed cost at the date of transition to IFRS based on
the previous UK GAAP valuations. Plant and equipment held at the date of
transition and subsequent additions to property, plant and equipment are stated
at purchase cost including directly attributable costs. The group does not have
a revaluation policy.
Freehold land is not depreciated. Depreciation of other property, plant and
equipment is provided on a straight line basis using rates calculated to write
down the cost of each asset over its estimated useful life as follows:
Property:
Freehold buildings and long leasehold property 1%
Short leasehold buildings Period of the lease
Plant and equipment Between 5% and 50%
Annual reviews are made of estimated useful lives and material residual values.
Leased assets
Lessee accounting
Property leases are split into two elements, land and buildings and each
considered in isolation and each element is reviewed to determine if it is
operating or finance in nature. Initial rental payments in respect of operating
leases are included in current and non-current assets as appropriate and
amortised to the income statement over the period of the lease. Ongoing rental
payments are charged as an expense in the income statement on a straight line
basis until the date of the rent review. Finance leases are capitalised and
depreciated in accordance with the accounting policy for property, plant and
equipment.
As permitted by IFRS 1 at the date of transition to IFRS, the carrying value of
long leasehold properties are based on the previous UK GAAP valuations and this
has been taken as deemed cost.
Rental costs arising from operating leases are charged as an expense in the
income statement on a straight line basis over the period of the lease.
Non-current assets held for sale
Non-current assets are reclassified as assets held for sale if their carrying
value will be recovered through a sale transaction which is highly probable
to be completed within 12 months of the initial classification. Assets held
for sale are valued at the lower of carrying amount at the date of initial
classification and fair value less costs to sell.
Impairment of non-financial assets
Goodwill is tested annually for impairment, or more frequently if there are any
changes in circumstances or events that indicate that a potential impairment
may exist. Goodwill impairments cannot be reversed.
Property, plant and equipment are reviewed for indications of impairment when
events or changes in circumstances indicate that the carrying amount may not be
recovered. If there are indications then a test is performed on the asset
affected to assess its recoverable amount against carrying value.
An asset impaired is written down to the higher of value in use or its fair
value less cost to sell.
Deferred and current taxation
The charge for taxation is based on the taxable profit or loss for the period
and takes into account taxation deferred because of differences between the
treatment of certain items for taxation and for accounting purposes. Full
provision is made for the tax effects of these differences. Deferred tax is
provided on unremitted earnings from overseas subsidiaries where it is probable
that these earnings will be remitted to the UK in the foreseeable future.
Deferred tax is measured using tax rates that have been enacted, or
substantively enacted, by the period end balance sheet date. Deferred tax
assets and liabilities are not discounted.
The carrying amount of the deferred tax assets is reviewed at each reporting
balance sheet date to ensure that it is probable that sufficient taxable profits
will be available to allow the asset to be recovered. Assets and liabilities,
in respect of both deferred and current tax, are only offset when there is a
legally enforceable right to offset and the assets and liabilities relate to
taxes levied by the same taxation authority.
Deferred and current tax are charged or credited in the income statement except
when they relate to items charged directly to equity in which case the
associated tax is also dealt with in equity.
Stocks
Stocks are valued at the lower of cost of purchase and net realisable value.
Cost comprises actual purchase price and where applicable associated direct
costs incurred bringing the stock to its present location and condition. Net
realisable value is based on estimated selling price less further costs
expected to be incurred to completion and disposal. Provision is made for
obsolete, slow moving or defective items where appropriate.
Financial instruments
Financial assets and financial liabilities are recognised on the consolidated
balance sheet when the group becomes a party to the contractual provisions of
the instrument.
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument
is any contract that evidences a residual interest in the assets of the group
after deducting all of its liabilities.
Trade and other receivables
Trade and other receivables are measured at initial recognition at fair value
and are subsequently measured at amortised cost using the effective interest
rate method. Allowances for irrecoverable amounts, which are dealt with in
the income statement, are calculated based on the difference between the
assets' carrying amount and the present value of estimated future cash flows
discounted at the effective interest rate computed at initial recognition.
Cash and cash equivalents
Cash and cash equivalents includes cash-in-hand, cash at bank and short term
highly liquid investments that are readily convertible into known amounts of
cash within three months from the date of initial acquisition with an
insignificant risk of a change in value.
Trade and other payables
Trade and other payables are measured at initial recognition at fair value and
are subsequently measured at amortised cost using the effective rate method.
Bank loans
Interest bearing bank loans are recorded at the proceeds received less capital
repayments made. Finance charges are accounted for on an accruals basis in the
income statement using the effective interest rate method. They are included
within accruals to the extent that they are not settled in the period in which
they arise.
Provisions
Provisions are created where the group has a present obligation (legal or
constructive) as a result of a past event where it is probable that the group
will be required to settle that obligation at the balance sheet date.
Provisions are only discounted to present value where the effect is material.
Net debt
Net debt is defined as cash and cash equivalents, bank and other loans including
finance lease obligations and derivative financial instruments stated at current
fair value.
Revenue recognition
Revenue
Revenue represents the fair value of the consideration received and receivable
for services provided and goods supplied to third party customers. In respect
of long term contracts and contracts for on-going services, revenue is
recognised as the contract progresses on the basis of work completed. Revenue
excludes value added tax.
Investment and interest income
Dividend income is recognised in the income statement when the shareholder's
right to receive payment has been established.
Interest income from bank deposit accounts is accrued on a time basis calculated
by reference to the principal on deposit and effective interest rate applicable.
Foreign Currencies
Transactions in foreign currencies are recorded at the rate of exchange at the
date of the transaction. Monetary assets and liabilities in foreign currencies
are translated into pounds sterling at the financial reporting period end rates.
The results of overseas subsidiary undertakings, associates and trade
investments are translated into pounds sterling at average rates for the period
unless exchange rates fluctuate significantly during that period in which case
exchange rates at the date of transactions are used. The closing balance sheets
are translated at the period end rates and the exchange differences arising are
transferred to the group's translation reserve as a separate component of equity
and are reported within the Statement of Recognised Income and Expense. All
other exchange differences are included within the Income Statement in the
period.
Operating profit
Operating profit is defined as the profit for the period from continuing
operating costs and income but before income from other participating interests,
finance income, finance costs, other gains and losses and taxation. Operating
profit is disclosed as a separate line on the face of the income statement.
Finance costs
Finance costs are recognised in the income statement on the accruals basis in
the period in which they occurred.
3. Segmental information
Turnover Operating (loss) Operating (loss)
Continuing continuing discontinued
Operations operations operations Net assets
Classes of business £ £ £ £
Industrial:
Six months to 30th September 2007 3,596,443 (341,535) - 469,822
Six months to 30th September 2006 4,024,780 29,376 (93,319) 702,528
Year to 31st March 2007 8,614,953 295,661 (472,253) 1,027,424
Leisure:
Six months to 30th September 2007 1,610,210 46,245 - 5,572,552
Six months to 30th September 2006 1,477,931 73,746 - 5,489,175
Year to 31st March 2007 2,387,627 (76,549) - 5,459,064
Agents, managers, consultants and investors:
Six months to 30th September 2007 11,500 (480,398) - 818,658
Six months to 30th September 2006 9,179 (511,738) - 1,382,511
Year to 31st March 2007 18,502 (370,578) - 1,091,795
Total:
Six months to 30th September 2007 5,218,153 (775,688) - 6,861,032
Six months to 30th September 2006 5,511,890 (408,616) (93,319) 7,574,214
Year to 31st March 2007 11,021,082 (151,466) (472,253) 7,578,283
Geographical segments
United Kingdom:
Six months to 30th September 2007 3,507,316 (680,012) - 925,189
Six months to 30th September 2006 3,699,148 (224,834) (93,319) 1,618,439
Year to 31st March 2007 7,929,503 (302,307) (472,253) 1,320,881
Malta, Tanzania and Rest of the World:
Six months to 30th September 2007 1,710,837 (95,676) - 5,935,843
Six months to 30th September 2006 1,812,742 (183,782) - 5,955,775
Year to 31st March 2007 3,091,579 150,841 - 6,257,402
Total:
Six months to 30th September 2007 5,218,153 (775,688) - 6,861,032
Six months to 30th September 2006 5,511,890 (408,616) (93,319) 7,574,214
Year to 31st March 2007 11,021,082 (151,466) (472,253) 7,578,283
4. Discontinued activities
During the year ended 31st March 2007, the group disposed of the subsidiary
undertaking P&D Electrical Services Limited.
5. Earnings per share
The calculation of earnings per share is based on the loss for the period
divided by the weighted average number of ordinary shares excluding own shares
held. This is 8,192,980 shares for the periods to 30th September 2006 and 2007
and for the year ended 31st March 2007.
6. Share capital
30 September 2007 30 September 2006 31 March 2007
£ £ £
Authorised:
60,000,000 ordinary shares of 10p each 6,000,000 6,000,000 6,000,000
______________________________________________________
Issued and fully paid:
8,335,414 ordinary shares of 10p each 833,541 833,541 833,541
______________________________________________________
The company retains as treasury shares 142,434 ordinary shares.
7. Cash flows from operations
Six months ended Six months ended Year ended
30 September 2007 30 September 2006 31 March 2007
£ £ £
Operating loss - continuing operations (775,688) (408,616) (151,466)
Operating loss - discontinuing operations - (93,319) (472,253)
Depreciation 166,284 172,205 317,737
Loss on sale of tangible fixed assets - - 3,920
(Profit) on sale of investments (11,984) (34,541) (754,232)
Movement in fair value of investments 28,551 104,611 71,502
(Profit) on sale of subsidiary undertaking - - (10,032)
Provision against cost of investments 67,895 16,290 16,920
Exchange rate adjustments 6,902 328,421 479,466
(Increase) decrease in stock and work in progress (45,010) 51,959 221,570
(Increase) decrease in debtors 781,133 700,474 (502,138)
(Decrease) in creditors (290,428) (782,986) (59,902)
Working capital transferred on sales of subsidiary undertaking - - 110,032
______________________________________________________
Cash flow from operations (72,345) 54,498 (728,876)
______________________________________________________
8. Cash and cash equivalents
Exchange
Rate 30th September
1st April 2007 Cash Flow adjustments 2007
£ £ £ £
Cash and bank overdrafts (335,096) (259,081) (7,375) (601,552)
Liquid resources 2,957 93 (108) 2,942
______________________________________________________________
(332,139) (258,988) (7,483) (598,610)
Other loans due within one year (647,335) (6,124) - (653,459)
Finance leases (142,320) 29,382 - (112,938)
Bank loans due after more than one year (724,691) (1,041,505) 6,339 (1,759,857)
______________________________________________________________
Net funds/(debt) (1,846,485) (1,277,235) (1,144) (3,124,864)
______________________________________________________________
Liquid resources comprise short-term bank and money market deposits.
9. Explanation of transition to IFRS
The following disclosures are required to explain the financial impact of adopting IFRS on the group.
Reconciliation of equity as at 1st April 2006 (date of transition to IFRS)
IRFS 1 First time
UK GAAP Reclassications adoption IAS 17 Leases IFRS
£ £ £ £ £
Non-current assets
Goodwill 761,319 - - - 761,319
Property, plant and equipment 7,512,405 - - (57,518) 7,454,887
Lease prepayments - - - 57,518 57,518
Deferred tax asset - 647,446 - - 647,446
______________________________________________________________________________
8,273,724 647,446 - - 8,921,170
______________________________________________________________________________
Current assets
Stocks 402,154 - - - 402,154
Trade and other receivables 4,552,212 (647,446) - - 3,904,766
Other currents assets investments 2,402,750 - - - 2,402,750
Cash and cash equivalents 279,552 - - - 279,552
_______________________________________________________________________________
7,636,668 (647,446) - - 6,989,222
_______________________________________________________________________________
Current liabilities
Bank loans and overdrafts - (268,326) - - (268,326)
Trade and other payables (6,064,838) 1,396,356 - - (4,668,482)
Current tax liabilities - (356,928) - - (356,928)
Other loans - (729,654) - - (729,654)
Obligations under finance leases - (41,448) - - (41,448)
Provisions - (245,608) - - (245,608)
_______________________________________________________________________________
(6,064,838) (245,608) - - (6,310,446)
_______________________________________________________________________________
Net current assets 1,571,830 (893,054) - - 678,776
_______________________________________________________________________________
Total assets less current liabilities 9,845,554 (245,608) - - 9,599,946
_______________________________________________________________________________
Non-current liabilities
Bank loans (893,444) 583,632 - - (309,812)
Obligations under finance leases - (53,452) - - (53,452)
Cumulative preference shares - (530,180) - - (530,180)
Deferred tax liabilities - - (659,122) - (659,122)
Provisions (245,608) 245,608 - - -
______________________________________________________________________________
(1,139,052) 245,608 (659,122) - (1,552,566)
___________________________________________________________________________
Net assets 8,706,502 - (659,122) - 8,047,380
___________________________________________________________________________
Equity
Share capital 833,541 - - - 833,541
Share premium account 609,690 - - - 609,690
Capital redemption reserve 5,163,332 - - - 5,163,332
Investment in own shares (187,528) - - - (187,528)
Foreign currency translation reserve - - 1,283,365 - 1,283,365
Retained earnings (771,780) - 1,225,545 - 453,765
Revaluation reserve 1,717,035 - (1,717,035) - -
Other reserves 743,143 - (743,143) - -
Investment revaluation reserve 707,854 - (707,854) - -
_______________________________________________________________________________
Surplus attributable to parent's
shareholders 8,815,287 - (659,122) - 8,156,165
Minority interest (108,785) - - - (108,785)
_______________________________________________________________________________
Total equity 8,706,502 - (659,122) - 8,047,380
_______________________________________________________________________________
Reconciliation of equity as at 30th September 2006 (date of last UK GAAP Interim Statement)
IRFS 1 First time
UK GAAP Reclassications adoption IAS 17 Leases IFRS
£ £ £ £ £
Non-current assets
Goodwill 717,050 - - - 717,050
Property, plant and equipment 7,398,035 - - (54,344) 7,343,691
Lease prepayments - - - 53,344 53,344
Deferred tax assets - 670,150 - - 670,150
________________________________________________________________________________
8,115,085 670,150 - - 8,785,235
________________________________________________________________________________
Current assets
Stocks 350,195 - - - 350,195
Trade and other receivables 3,874,442 (670,150) - - 3,204,292
Other currents assets investments 2,387,186 - - - 2,387,186
Cash and cash equivalents 294,329 - - - 294,329
________________________________________________________________________________
6,906,152 (670,150) - - 6,236,002
________________________________________________________________________________
Current liabilities
Bank loans and overdrafts - (846,775) - - (846,775)
Trade and other payables (5,701,642) 1,837,193 - - (3,864,449)
Current tax liabilities - (209,751) - - (209,751)
Other loans - (739,219) - - (739,219)
Obligations under finance leases - (41,448) - - (41,448)
Provisions - (137,582) - - (137,582)
________________________________________________________________________________
(5,701,642) (137,582) - - (5,839,224)
________________________________________________________________________________
Net current assets 1,204,510 (807,732) - - 396,778
________________________________________________________________________________
Total assets less current liabilities 9,319,595 (137,582) - - 9,182,013
________________________________________________________________________________
Non-current liabilities
Bank loans (948,677) 595,074 - - (353,603)
Obligations under finance leases - (64,894) - - (64,894)
Cumulative preference shares - (530,180) - - (530,180)
Deferred tax liabilities - - (659,122) - (659,122)
Provisions (137,582) 137,582 - - -
________________________________________________________________________________
(1,086,259) 137,582 (659,122) - (1,607,799)
________________________________________________________________________________
Net assets 8,233,336 - (659,122) - 7,574,214
________________________________________________________________________________
Equity
Share capital 833,541 - - - 833,541
Share premium account 609,690 - - - 609,690
Capital redemption reserve 5,163,332 - - - 5,163,332
Investment in own shares (187,528) - - - (187,528)
Foreign currency translation reserve - - 1,201,818 - 1,201,818
Retained earnings (1,039,826) - 1,085,873 - 46,047
Revaluation reserve 1,682,274 - (1,682,274) - -
Other reserves 661,296 - (661,296) - -
Investment revaluation reserve 603,243 - (603,243) - -
_______________________________________________________________________________
Surplus attributable to parent's
shareholders 8,326,022 - (659,122) - 7,666,900
Minority interest (92,686) - - - (92,686)
_______________________________________________________________________________
Total equity 8,233,336 - (659,122) - 7,574,214
_______________________________________________________________________________
Reconciliation of equity as at 31st March 2007 (date of last UK GAAP Financial Statements)
IRFS 1 First time
UK GAAP Reclassications adoption IAS 17 Leases IFRS
£ £ £ £ £
Non-current assets
Goodwill 672,781 - - - 672,781
Property, plant and equipment 7,789,287 - - (51,170) 7,738,117
Lease prepayments - - - 51,170 51,170
Deferred tax assets - 708,444 - - 708,444
___________________________________________________________________________
8,462,068 708,444 - - 9,170,512
___________________________________________________________________________
Current assets
Stocks 180,584 - - - 180,584
Trade and other receivables 5,115,348 (708,444) - - 4,406,904
Other currents assets investments 1,865,615 - - - 1,865,615
Cash and cash equivalents 244,047 - - - 244,047
___________________________________________________________________________
7,405,594 (708,444) - - 6,697,150
___________________________________________________________________________
Current liabilities
Bank loans and overdrafts - (576,186) - - (576,186)
Trade and other payables (6,157,160) 1,577,823 - - (4,579,337)
Current tax liabilities - (294,703) - - (294,703)
Other loans - (647,335) - - (647,335)
Obligations under finance leases - (59,599) - - (59,599)
Provisions - (135,505) - - (135,505)
___________________________________________________________________________
(6,157,160) (135,505) - - (6,292,665)
___________________________________________________________________________
Net current assets 1,248,434 (843,949) - - 404,485
___________________________________________________________________________
Total assets less current liabilities 9,170,502 (135,505) - - 9,574,997
___________________________________________________________________________
Non-current liabilities
Bank loans (1,337,592) 612,901 - - (724,691)
Obligations under finance leases - (82,721) - - (82,721)
Cumulative preference shares - (530,180) - - (530,180)
Deferred tax liabilities - - (659,122) - (659,122)
Provisions (135,505) 135,505 - - -
___________________________________________________________________________
1,473,097 135,505 (659,122) - (1,996,714)
___________________________________________________________________________
Net assets 8,237,405 - (659,122) - 7,578,283
___________________________________________________________________________
Equity
Share capital 833,541 - - - 833,541
Share premium account 609,690 - - - 609,690
Capital redemption reserve 5,163,332 - - - 5,163,332
Investment in own shares (187,528) - - - (187,528)
Foreign currency translation reserve - - 1,257,185 - 1,257,185
Retained earnings (1,112,051) - 1,105,235 - (6,816)
Revaluation reserve 1,668,527 - (1,668,527) - -
Other reserves 716,663 - (716,663) - -
Investment revaluation reserve 636,352 - (636,352) - -
___________________________________________________________________________
Surplus attributable to parent's
shareholders 8,328,526 - (659,122) - 7,669,404
Minority interest (91,121) - - - (91,121)
___________________________________________________________________________
Total equity 8,237,405 - (659,122) - 7,578,283
___________________________________________________________________________
Reconciliation of profit for the six months ended 30th September 2006
IAS 39 Fair value
UK GAAP Reclassification adjustments IFRS
£ £ £ £
Revenue 6,196,338 (684,448) - 5,511,890
Cost of sales (4,789,916) 636,559 - (4,153,357)
_______________________________________________________________
Gross Profit 1,406,422 (47,889) - 1,358,533
Administrative expenses (1,883,861) 141,208 - (1,742,653)
Investment activities and other income 80,115 - (104,611) (24,496)
_______________________________________________________________
Operating loss (397,324) 93,319 (104,611) (408,616)
Finance income 5,645 - - 5,645
Finance costs (61,757) - - (61,757)
_______________________________________________________________
Loss before taxation (453,436) 93,319 (104,611) (464,728)
Taxation 22,704 - - 22,704
Minority interest (17,124) - - (17,124)
_______________________________________________________________
Loss for the period from continuing operations (447,856) 93,319 (104,611) (459,148)
Loss for the period from discontinued operations - (93,319) - (93,319)
_______________________________________________________________
Loss for the financial period (447,856) - (104,611) (552,467)
_______________________________________________________________
Reconciliation of profit for the year ended 31st March 2007
IAS 39 Fair value
UK GAAP Reclassification adjustments IFRS
£ £ £ £
Revenue 12,736,589 (1,715,507) - 11,021,082
Cost of sales (10,071,143) 1,889,176 - (8,181,967)
_______________________________________________________________
Gross Profit 2,665,446 173,669 - 2,839,115
Administrative expenses (3,686,458) 308,616 - (3,377,842)
Investment activities and other income 468,795 (10,032) (71,502) 387,261
_______________________________________________________________
Operating loss (552,217) 472,253 (71,502) (151,466)
Finance income 15,767 - - 15,767
Finance costs (120,395) - - (120,395)
_______________________________________________________________
Loss before taxation (656,845) 472,253 (71,502) (256,094)
Taxation 55,456 - - 55,456
Minority interest (18,545) - - (18,545)
_______________________________________________________________
Loss for the period from continuing operations (619,934) 472,253 (71,502) (219,183)
Loss for the period from discontinued operations - (472,253) (472,253)
_______________________________________________________________
Loss for the financial period (619,934) - (71,502) (691,436)
_______________________________________________________________
Notes to the reconciliations of equity and profit
1 Reclassifications are required as certain items are shown differently
under IFRS compared with UK GAAP. Reclassifications relate to (i) the
disclosure of current tax liabilities and financial liabilities as
separate items on the face of the balance sheet under IFRS, (ii) the
split of provisions for liabilities between current and long term
creditors under IFRS, and (iii) the disclosure of loss on disposal of
business as a discontinued operation. In addition the foreign exchange
translation adjustments are disclosed as a separate reserve under IFRS
from the date of transition.
2 As permitted by IFRS 1 - First time adoption of IFRS, the group has elected
to treat the revaluation reserve of the UK freehold and longstanding
leasehold properties as deemed cost at that date. Although no adjustment
is required to the carrying value of the property, plant and equipment, the
revaluation reserve carried under UK GAAP has been transferred to retained
earnings as a consequence of this election.
3 As required by IFRS 3 - Business Combinations, purchased goodwill is
not amortised and is stated at the carrying value at the date of transition
to IFRS.
4 IFRS requires property leases to be split into two elements, land and
buildings. Each element is then considered independently and treated as a
finance or operating lease as appropriate. This treatment differs to UK
GAAP which requires the whole property lease to be considered in its
entirety. Consequently certain leasehold land, that was previously treated
as a finance lease under UK GAAP, has been reclassified as an off balance
sheet operating lease. Lease premiums relating to land have been
reclassified as prepayments.
Other than presentational differences, there are no material adjustments to the
previous cash flow statements presented under UK GAAP.
10. Distribution of interim financial statements
A copy of these interim financial statements is available from the company's
registered office. and is also available on the company's website.
Enquiries:
Charles Bailey
CH Bailey plc 01633 262961
Richard Day 020 7398 1632
Colin Smith 0121 423 8940
Arden Partners plc
This information is provided by RNS
The company news service from the London Stock Exchange