RNS Number : 7438Y
Abbey PLC
10 July 2008
ABBEY PLC
Preliminary Statement for the year ended 30 April 2008
The Board of Abbey plc reports a profit of EUR16.8 million before taxation against EUR45.3 million the previous year. After a tax charge
of EUR4.7 million the Group made a profit of EUR12.1 million reflecting earnings per share of 42.93 cents. Group operating profits during
the year were EUR15.1 million against EUR43.7 million the previous year. The profits have been materially impacted by an impairment charge
of EUR20.6 million against land and work in progress arising from the depressed trading conditions. This represented circa 11% of the gross
inventory as at 30 April. Whilst we believe these impairments are prudent based on current market conditions, if the market significantly
deteriorates further write-downs may be needed in future.
Dividends of 36 cents per share, absorbing EUR10.1 million were paid during the year. Further to the authority granted at the
Extraordinary General Meeting on 19 November 2007 the company has completed the share repurchase program under the resolution granted, of
4,342,531 ordinary shares at a total cost of EUR25,452,000.
Our housebuilding operations completed 716 sales (UK 467; Ireland 249) with a turnover of EUR159.2 million generating an operating
profit of EUR10.5 million. UK trading over the period as a whole was satisfactory, however, the trading environment became steadily more
difficult as the year progressed. In Ireland a good result was achieved as sales made in early 2007 were completed. A noticeable upturn in
sales at the start of 2008 faded towards the end of the period. We enter the current year with a forward order book sufficient to maintain
reasonable trading in the very short term. During the last two months market conditions have continued to deteriorate and current sales
rates are at very low levels in line with generally reported market conditions. In the circumstances it is likely the housing division will
deliver materially fewer houses this year. In Prague building is now quite advanced on our first phase in Slivenec. Forward sales have been
achieved and we are hopeful of a useful contribution to our figures this year.
At the year end the Group owned and controlled land with the benefit of planning permission for the supply of 2,300 plots. In view of
the current trading environment the Group's landbank will likely decline this year.
M & J reported operating profits of EUR2.8 million on a turnover of EUR20.6 million. In addition, a further gain of EUR1.3 million
resulted from the disposal of an M&J property. This was an encouraging outturn and May was also a good month. In recent weeks the first
signs of slowing activity have been seen and inevitably more difficult trading will be encountered during the year.
Rental income arising primarily from the letting of surplus space of Group property was EUR499,000.
At the year end shareholder funds stood at EUR207.9 million representing EUR8.44 per share whilst net cash balances stood at EUR39.8
million.
Shareholders should carefully note the exchange rates used for this statement. The profit and loss statement uses the average exchange
rate for the year of 100 cents:- STG 71.98p. The balance sheet uses the ratio prevailing on 30th April of 100 cents: STG 78.63p.
In recent weeks trading conditions have deteriorated noticeably. The rate and depth of the current slowdown in activity is outside our
experience. It seems clear that the source of the difficulty is the dramatic contraction of the mortgage market. Unless conditions markedly
improve, which seems unlikely in the short term, a wrenching adjustment lies ahead. Future prospects will be governed (amongst other
factors) by the ability of the Group to avail of opportunities to buy land on advantageous terms. In these circumstances sensibly maximising
the cash resources at the disposal of the Group is essential and, therefore, the Board will not recommend a dividend for consideration at
the Annual General Meeting in October.
On behalf of the Board
CHARLES H GALLAGHER
CHAIRMAN
10 July 2008
ABBEY plc
Group Income Statement
30 April 2008
Note 30/04/2008 30/04/2007
EUR'000 EUR'000
Revenue 180,334 192,201
Cost of sales
- normal (132,881) (135,492)
- impairment charge on land 3 (20,599) -
Gross profit 26,854 56,709
Administrative expenses (13,228) (13,034)
Gain on property disposal 3 1,306 -
Share of joint venture profit 144 -
before taxation
Operating profit 15,076 43,675
Finance income 1,818 1,609
Finance costs (100) (12)
Profit on ordinary activities before 16,794 45,272
taxation
Income tax expense 4 (4,713) (10,883)
Profit attributable to equity 12,081 34,389
shareholders of the parent
Earnings per share - basic 5 42.93 c 118.13 c
Earnings per share - diluted 5 42.93 c 118.13 c
ABBEY plc
Group Consolidated Statement of Changes in Equity
For the year ended Capital
30 April 2008
Attributable to Issued Capital Share Premium Revaluation Reserve Redemption Reserve Currency Translation Retained Earnings
Total
equity holders of Fund
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 - - (757) - (14,356) -
(15,113)
translation
Reduction in - - (187) - - 187
-
revaluation surplus
Actuarial gain on
group defined
benefit pension - - - - - 2,012
2,012
obligations
Deferred tax
liability relating
to
actuarial gain on - - - - - (517)
(517)
Group defined
benefit pension
obligation
Purchase of company (1,389) - - 1,389 - (25,452)
(25,452)
shares
Total income and
expense for the year
recognised directly
in equity
year directly (1,389) - (944) 1,389 (14,356) (23,770)
(39,070)
recognised in equity
Profit for the year - - - - - 12,081
12,081
Total income and (1,389) - (944) 1,389 (14,356) (11,689)
(26,989)
expense for theyear
Dividends paid - - - - - (10,124)
(10,124)
At 30 April 2008 7,881 13,321 7,729 4,502 (12,839) 187,346
207,940
For the year ended Capital
30 April 2007
Attributable to Issued Capital Share Premium Revaluation Reserve Redemption Reserve Currency Translation Retained Earnings
Total
equity holders of Fund
the parent
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
EUR'000
At 1 May 2006 9,495 13,321 9,557 2,888 - 191,234
226,495
Foreign currency - - 111 - 1,517 -
1,628
translation
Reduction in - - (995) - - -
(995)
revaluation surplus
Actuarial gain on
group defined
benefit pension - - - - - 465
465
obligations
Deferred tax
liability relating
to
actuarial gain on
Group defined
benefit pension
obligation
benefit pension - - - - - (140)
(140)
obligation
Purchase of company (225) - - 225 - (6,360)
(6,360)
shares
Total income and
expense for the year
recognised directly
in equity
year directly (225) - (884) 225 1,517 (6,035)
(5,402)
recognised in equity
Profit for the year - - - - - 34,389
34,389
Total income and (225) - (884) 225 1,517 28,354
28,987
expense for theyear
Dividends paid - - - - - (10,429)
(10,429)
At 30 April 2007 9,270 13,321 8,673 3,113 1,517 209,159
245,053
ABBEY plc
GROUP BALANCE SHEET
at 30 April 2008
30/04/2008 30/04/2007
ASSETS EUR'000 EUR'000
Non-current assets
Property, plant and equipment 31,785 36,079
Investment property 2,392 2,392
Investment in joint venture 2,512 2,398
Investments 7
6
Pension benefit obligations 3,988 2,433
40,683 43,309
CURRENT ASSETS
Trade and other receivables 10,168 13,135
Inventories 168,086 232,721
Cash and cash equivalents 39,807 32,095
218,061 277,951
NET CURRENT ASSETS 258,744 321,260
LIABILITIES
Current liabilities
Trade and other payables (45,557) (65,948)
Tax liabilities (304) (4,532)
Provisions (2,120) (2,562)
(47,981) (73,042)
NET CURRENT ASSETS 170,080 204,909
TOTAL ASSETS LESS
CURRENT LIABILITIES
Non-current liabilities
Deferred taxation (2,751) (3,025)
Provisions (72) (140)
(2,823) (3,165)
TOTAL LIABILITIES (50,804) (76,207)
NET ASSETS 207,940 245,053
EQUITY
Equity attributable to equity
holders of the parent
Issued capital 7,881 9,270
Share premium 13,321 13,321
Revaluation reserve 7,729 8,673
Other reserves
- Capital redemption reserve 4,502 3,113
fund
- Currency translation (12,839) 1,517
Retained earnings 187,346 209,159
TOTAL EQUITY 207,940 245,053
TOTAL EQUITY AND LIABILITIES 258,744 321,260
ABBEY plc
GROUP CONSOLIDATED CASH FLOW STATEMENT
30 April 2008
30/04/2008 30/04/2007
EUR'000 EUR'000
Cash flows from operating activities
Profit before tax 16,650 45,272
Adjustments to reconcile profit before tax
to net cash flows
Non cash:
Depreciation 7,060 7,108
Other non cash items 94 (170)
Movement in pension benefit asset (28) 647
Impairment charge on land 20,599 -
Profit on disposal of property, plant and equipment (2,846) (1,482)
Finance income (1,818) (1,609)
Finance costs 100 12
Working capital adjustments:
Decrease (increase) in inventories 29,604 (19,061)
Decrease (increase) in trade and other receivables 1,671 (4,998)
Decrease in creditors and provisions (15,685) (27,651)
Income taxes paid (8,948) (11,283)
Net cash flow from operating activities 46,453 (13,215)
Cash flows from investing activities
Purchase of plant, property and equipment (9,346) (10,892)
Sale of plant, property and 5,338 3,233
equipment
Finance income 1,818 1,609
Net cash outflow from investing (2,190) (6,050)
activities
Cash flows from financing activities
Cost of share buy-backs (25,452) (6,360)
Equity dividends paid (10,124) (10,429)
Finance costs (100) (12)
Net cash outflow from financing activities (35,676) (16,801)
Net increase (decrease) in cash and
cash equivalents 8,587 (36,066)
Cash and cash equivalents at start of year 32,095 67,745
Net foreign exchange differences (875) 416
Cash and cash equivalents at end of year 39,807 32,095
ABBEY plc
NOTES TO THE PRELIMINARY STATEMENT
30 APRIL 2008
1. Basis of Preparation
The preliminary statement is prepared, including the comparative figures, in accordance with EU endorsed International Financial
Reporting Standards ("IFRSs), International Financial Reporting Interpretations Committee ("IFRIC") and in accordance with the rules of the
Irish Enterprise Exchange ("IEX") and the Alternative Investment Market ("AIM"). The financial information relating to Abbey plc and its
subsidiaries included within this statement for the year ended 30 April 2008 does not comprise full group accounts as referred to in
Regulation 40 of the European Communities (Companies: Group Accounts) Regulations 1992, copies of which are required by that Act to be
annexed to the company's annual return. The auditors have made reports without qualification under Section 193 of the Irish Companies Act,
1990 in respect of all such financial statements.
2. Segmental Information
Turnover, cost of sales and operating profit 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 segment information.
--Building and Property Development--- Plant Hire Property Rental Unallocated GROUP
Ireland United Kingdom Czech Republic United Kingdom Ireland and United
Kingdom
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
30 April 2008
Turnover 64,467 94,747 - 20,621 499 - 180,334
Operating (loss) (4,989) 15,878 (390) 4,078 499 - 15,076
profit
(Loss) profit before (3,973) 12,659 (359) 3,363 391 - 12,081
taxation
Net assets 107,606 55,269 13,932 27,942 2,293 898 207,940
30 April 2007
Turnover 59,471 111,111 - 21,144 475 - 192,201
Operating profit 16,529 24,513 (361) 2,519 475 - 43,675
Profit before 14,726 17,703 (331) 1,816 475 - 34,389
taxation
Net assets 114,007 88,198 10,158 29,838 2,293 559 245,053
ABBEY plc
NOTES TO THE PRELIMINARY STATEMENT
30 April 2008
3. Exceptional items
30/04/2008 30/04/2007
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 20,599 -
Over the last number of months the Group have closely
monitored the carrying value of our land inventories
in Ireland and the United Kingdom as a result of uncertain
market conditions and a weakening sales environment.
Arising from these considerations we estimate that the
original cost of certain development sites have suffered
an impairment.
Gain on disposal of property 1,306 -
During the year a gain resulted from the disposal of a
property vested under a Compulsory Purchase order.
As such this gain is not indicative of a trend in
financial
performance.
4. Taxation on profit on ordinary activities 30/04/2008 30/04/2007
EUR'000 EUR'000
The tax charge based on the profit on ordinary
activities comprises:
Irish Corporation Tax at
12.50%
Current (350) 2,190
United Kingdom Corporation Tax at 29.84% (2007:30%)
Current 5,486 8,669
Total current corporation tax 5,136 10,859
Deferred tax (423) 24
Income tax expense 4,713 10,883
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 28,139,295 (2007: 29,109,967)
and to the profit on ordinary activities after taxation amounting to EUR12,081,000 (2007: EUR34,389,000).
The total number of ordinary shares in issue at the year end is 24,626,992 (2007: 28,969,523).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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