RNS Number : 5816J
Abbey PLC
05 December 2008
ABBEY PLC
Interim Statement for the Six Months Ended 31 October 2008
The Board of Abbey plc reports a loss before taxation of EUR5.39m which compares with a profit of EUR18.20m for the corresponding period
last year. Losses at the operating level were EUR5.88m as compared to EUR17.24m profit at the half way stage last year. Included in these
results is an inventory loss arising from land impairment charges of EUR11.92m. In light of the above the Company will not be paying a
dividend.
Our housebuilding division completed 235 sales (UK 169; Ireland 66) with a turnover of EUR47.16m resulting in an operating loss of
EUR6.63m. Market conditions in both England and Ireland continue to be severely impacted by the prevailing negative sentiment. The outlook
for the second half is very dependent on the strength or otherwise of the traditional spring market. A broadly similar level of completions
to that achieved in the first half may be attainable. In addition a few completions in Prague subject to the successful completion of legal
formalities might contribute to our results. In Prague we have now taken 49 reservations on our project in Slivenec at an average sales
price of EUR244,000.
M & J Engineers, our UK plant hire business, generated operating profits of EUR496,000 on a turnover of EUR8.72m. This disappointing
result reflects the very sharp fall in trading in the second quarter. The immediate outlook is very weak. Post Christmas trading will
determine the prospects for 2009.
Rental income for the period amounted to EUR247,000.
The Group enjoyed good cashflow during the period and held EUR35.31m in cash together with EUR17.01m in short dated Irish government
debt at the end of October. The Group expects to generate additional cash in the coming months.
The short term prospects for the Group continue to be poor. The turmoil in the banking markets in both Britain and Ireland make for a
difficult backdrop for a business reliant on strong mortgage markets. The recent forecast in Britain of negative net new mortgage lending in
2009 is cause for concern. The aggressive run-off of significant elements of the Northern Rock's loan book this year under the direction of
the UK authorities was very damaging. There are, however, some grounds for optimism in the longer term. The substantial falls in interest
rates together with the emergence of a stronger banking system should eventually facilitate healthier mortgage markets. Significantly lower
house prices than in recent years may stimulate some demand. The Group is in a strong financial position to avail of any improvement in our
markets.
Shareholders should carefully note the exchange rates used for this statement. The profit and loss statement uses the average exchange
rate for the period of 100 cents: STG 79.10p and 100 cents: CZK 2,437.50h. The balance sheet uses the rate prevailing on 31 October of 100
cents: STG 78.46p and 100 cents: CZK 2,409.70h.
Copies of this statement are available to shareholders and members of the public at the company's registered office, 25/28 North Wall
Quay, Dublin 1.
On behalf of the Board
Charles H Gallagher - Chairman
5th December 2008
ABBEY plc
Interim Condensed Consolidated Income Statement
31 October 2008
Unaudited 6 Unaudited 6
months ended months ended
Continuing operations Note 31/10/2008 31/10/2007
EUR'000 EUR'000
Revenue 56,123
108,636
Cost of sales
- normal (44,551) (84,641)
- impairment charge on land 3 (11,917) -
Gross (loss) profit (345) 23,995
Administrative expenses (5,537) (6,755)
Operating (loss) profit (5,882) 17,240
Finance income 490 963
(Loss) profit on ordinary activities before taxation (5,392) 18,203
Income tax credit (expense) 1,457 (4,012)
(Loss) profit attributable to equity shareholders of the parent (3,935) 14,191
(Loss) profit per share - basic 5 (15.98) c 48.99 c
(Loss) profit per share - diluted 5 (15.98) c 48.99 c
ABBEY plc
Interim Consolidated Statement of Changes in Equity (unaudited)
For the six months
ended Capital
31 October 2008
Attributable to Issued Capital Share Premium Revaluation Reserve Redemption Reserve Fund Currency Translation Retained
Earnings Total
equity holders of
the parent
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
EUR'000 EUR'000
At 1 May 2008 7,881 13,321 7,729 4,502 (12,839)
187,346 207,940
Foreign currency - - 10 - 75
- 85
translation
Total income and
expense for the year
recognised directly
in equity
period directly - - 10 - 75
- 85
recognised in equity
Loss for the period - - - - -
(3,935) (3,935)
Total income and - - 10 - 75 (3,935)
(3,850)
expense for the
period
Dividends paid - - - - -
- -
At 31 October 2008 7,881 13,321 7,739 4,502 (12,764)
183,411 204,090
For the six months
ended Capital
31 October 2007
Attributable to Issued Capital Share Premium Revaluation Reserve Redemption Reserve Fund Currency Translation Retained
Earnings Total
equity holders of
the parent
EUR'000 EUR'000 EUR'000 EUR'000
EUR'000
EUR'000
EUR'000
At 1 May 2007 9,270 13,321 8,673 3,113 1,517
209,159 245,053
Foreign currency - - (118) - (2,394)
- (2,512)
translation
Total income and
expense for the year
recognised directly
in equity
period directly - - (118) - (2,394)
- (2,512)
recognised in equity
Profit for the - - - - -
14,191 14,191
period
Total income and - - (118) - (2,394)
14,191 11,679
expense for the
period
Dividends paid - - - - -
(6,953) (6,953)
(note: 4)
At 31 October 2007 9,270 13,321 8,555 3,113 (877)
216,397 249,779
ABBEY plc
INTERIM CONDENSED CONSOLIDATED BALANCE
SHEET
at 31 October 2008 Unaudited Unaudited Audited
31/10/2008 31/10/2007 30/04/2008
ASSETS Note EUR'000 EUR'000 EUR'000
Non-current assets
Property, plant and equipment 30,921 37,270 31,785
Investment property 2,392 2,392 2,392
Investment in joint venture 2,512 2,398 2,512
Investments 6 7 6
Pension benefit obligations 3,997 2,383 3,988
39,828 44,450 40,683
CURRENT ASSETS
Trade and other receivables 6,876 9,251 10,168
Inventories 147,426 218,275 168,086
Tax assets 3,106 - -
Financial asset 7 17,016 - -
Cash and cash equivalents 35,306 50,087 39,807
209,730 277,613 218,061
TOTAL ASSETS 249,558 322,063 258,744
LIABILITIES
Current liabilities
Trade and other payables (39,975) (62,426) (45,557)
Tax liabilities - (3,879) (304)
Provisions (2,664) (2,870) (2,120)
(42,639) (69,175) (47,981)
NET CURRENT ASSETS 167,091 208,438 170,080
TOTAL ASSETS LESS
CURRENT LIABILITIES
Non-current liabilities
Deferred taxation (2,757) (2,971) (2,751)
Provisions ( 72) (138) (72)
(2,829) (3,109) (2,823)
TOTAL LIABILITIES (45,468) (72,284) (50,804)
NET ASSETS 204,090 249,779 207,940
EQUITY
Equity attributable to equity holders of the parent
Issued capital 7,881 9,270 7,881
Share premium 13,321 13,321 13,321
Revaluation reserve 7,739 8,555 7,729
Other reserves
- Capital redemption reserve fund 4,502 3,113 4,502
- Currency translation (12,764) (877) (12,839)
Retained earnings 183,411 216,397 187,346
TOTAL EQUITY 204,090 207,940
249,779
TOTAL EQUITY AND LIABILITIES 249,558 258,744
322,063
ABBEY plc
INTERIM CONDENSED CONSOLIDATED
CASH FLOW STATEMENT
31 October 2008 Unaudited Unaudited
31/10/2008 31/10/2007
EUR'000 EUR'000
Cash flows from operating activities
(Loss) profit before tax (5,392) 18,203
Adjustments to reconcile (loss) profit before tax
to net cash flows
Non cash:
Depreciation 3,166 3,685
Other non cash items (162) 305
Impairment charge on land 11,917 -
Profit on disposal of property, plant and equipment (463) (947)
Finance income (490) (963)
Working capital adjustments:
Decrease in inventories 8,838 12,140
Decrease in trade and other receivables 3,283 3,740
Decrease in creditors and provisions (5,086) (2,252)
Income taxes paid (1,942) ( 4,662)
Net cash flow from operating activities 13,669 29,249
Cash flows from investing activities
Purchase of plant, property and equipment (2,858) (6,705)
Sale of plant, property and 1,070 2,113
equipment
Investment in government bonds (17,016) -
Finance income 490 963
Net cash outflow from investing (18,314) (3,629)
activities
Cash flows from financing activities
Equity dividends paid - (6,953)
Net cash outflow from financing activities - (6,953)
Net (decrease) increase in cash and
cash equivalents (4,645) 18,667
Cash and cash equivalents at start of year 39,807 32,095
Net foreign exchange differences 144 (675)
Cash and cash equivalents at end of period 35,306 50,087
ABBEY plc
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
31 October 2008
1. Corporate Information
The interim condensed consolidated financial statements of Abbey plc for the six month period ended 31 October 2008 were authorised for
issue in accordance with a resolution of the directors on December 5, 2008. Abbey plc is a limited company incorporated and domiciled in
Ireland. The company's shares are listed on the IEX and AIM stock exchanges. The principal activities of the Group are described in note 8.
2. Basis of Preparation of Financial Statements
The interim condensed consolidated financial statements for the six months ended 31 October 2008 have been prepared in accordance with
IAS 34 'Interim Financial Reporting'. The interim condensed financial statements do not contain all the information and disclosures required
in the annual financial statements and should be read in conjunction with the Group's annual financial statements.
3. Exceptional item
Unaudited Unaudited
31/10/2008 31/10/2007
Cost of sales EUR'000 EUR'000
The cost of sales charge for the year is arrived at after
charging:
Write down of inventories to net realisable value 11,917 -
The Group has continued to closely monitor the carrying value of its land inventories in Ireland and the United Kingdom as a result of
uncertain market conditions and a continuing weakening sales environment. Arising from these considerations we estimate that certain
development sites have suffered impairment.
4. Dividends
Unaudited Unaudited
31/10/2008 31/10/2007
EUR'000 EUR'000
Dividends on ordinary shares declared and paid during the six month
period:
Dividend for 2008: Nil (2007: 24 cents per share) - 6,953
Dividends on ordinary shares proposed (not recognised as a liability at 31
October)
Dividend for 2008: Nil (2007: 12 cents per share) - 3,476
ABBEY plc
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
31 October 2008
5. Earnings per share: basic and diluted
Earnings per share has been calculated by reference to the weighted average number of shares in issue of
24,626,992 (2007: 28,969,523) and to the loss on ordinary activities after taxation amounting to
EUR3,935,000 (2007: profit EUR14,191,000).
The total number of ordinary shares in issue at the period end is 24,626,992 (2007: 28,969,523).
6. Pensions
The surplus on the pension scheme included in the interim condensed consolidated balance sheet is the amount at the prior year end. No
revaluation of assets and liabilities of the scheme has been carried out in the period, and accordingly there is no gain or loss shown in
the statement of total recognised gains and losses in respect of the interim period. Actuarial gains and losses for the full year and the
surplus/deficit at the end of the year will be presented in the annual financial statements for the year ending 30 April 2009.
7. Financial Asset
Unaudited Unaudited
31/10/2008 31/10/2007
EUR'000 EUR'000
Irish government short term bonds 17,016 -
These amounts were disposed of in November 2008 and returned into cash.
ABBEY plc
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
31 October 2008
8. Segmental Information
---Building and Property Development--- Plant Hire Property Rental Unallocated GROUP
Ireland United Kingdom Czech Republic United Kingdom
Turnover, cost of sales and operating profit (loss) are derived from continuing activities. The Group operates in three markets being
Ireland, the United Kingdom and the Czech Republic. The principal activities of the Group are building and property development, plant hire
and property rental. These divisions are the basis on which the Group reports its primary segmental information.
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
31 October 2008
Income Statement
Information
Turnover 17,592 29,566 - 8,718 247 - 56,123
Cost of sales
- normal (13,822) (24,110) (51) (6,568) (44,551)
- impairment (3,443) (8,474) - - (11,917)
charge on land
Administrative (1,001) (2,668) (214) (1,654) (5,537)
expenses
Operating (loss) (674) (5,686) (265) 496 247 - (5,882)
profit
Balance Sheet
Information
Segment assets 76,885 68,797 17,065 29,578 2,393 - 194,718
Segment liabilities (13,286) (22,964) (5,378) (3,740) (100) - (45,468)
Segment net assets 63,599 45,833 11,687 25,838 2,293 - 149,250
Investment in joint 2,512 - - - - - 2,512
venture
Investments - 6 - - - - 6
Financial asset 17,016 - - - - - 17,016
Cash and cash 15,092 14,240 5,440 209 - 325 35,306
equivalents
TOTAL NET ASSETS 98,219 60,079 17,127 26,047 2,293 325 204,090
Other Segmental
Information
Depreciation 122 97 - 2,947 - - 3,166
Profit on disposal - - - (463) - - (463)
of fixed assets
- - - 2,858 - - 2,858
Capital expenditure
31 October 2007
Income Statement
Information
Turnover 36,647 60,498 - 11,265 226 - 108,636
Cost of sales (27,091) (49,028) (23) (8,499) (84,641)
Administrative (1,642) (3,690) (259) (1,164) (6,755)
expenses
Operating profit 7,914 7,780 (282) 1,602 226 - 17,240
Balance Sheet
Information
Segment assets 114,498 103,482 11,858 37,341 2,392 - 269,571
Segment liabilities (19,831) (43,482) (685) (8,186) (100) - (72,284)
Segment net assets 94,667 60,000 11,173 29,155 2,292 - 197,287
Investment in joint 2,398 - - - - - 2,398
venture
Investments - 7 - - - - 7
Cash and cash 14,410 32,204 783 505 - 2,185 50,087
equivalents
TOTAL NET ASSETS 111,475 92,211 11,956 29,660 2,292 2,185 249,779
Other Segmental
Information
Depreciation 151 105 - 3,429 - - 3,685
Profit on disposal (38) (5) - (904) - - (947)
of fixed assets
Capital expenditure 173 189 - 6,343 - - 6,705
Board of Directors
Charles H. Gallagher M.A., MSc.
Brian R. Hawkins BSc (Eng)
Robert N. Kennedy BSc (Econ)
David A. Gallagher B.A., MSc.
J. Roger Humber BSC (Econ), Hon D. Tech
John F. Hogan B. Comm, F.C.A.
Richard J. Shortt
Secretary and Registered Office
David J. Dawson CA
25/18 North Wall Quay
Dublin 1
Financial Diary
Interim Statement
5 December 2008
Preliminary Statement
July 2009
Annual Report
July 2009
Annual General Meeting
October 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
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