RNS Number:6504S
Safeland PLC
01 December 2003
1 December 2003
SAFELAND PLC
Interim Results
CHAIRMAN'S STATEMENT
SIX MONTHS TO 30 SEPTEMBER 2003
I am pleased to set out the six months results to 30 September 2003.
I have been consistent in recent statements in advising you that the trading
environment has remained difficult and this situation has continued in the
period under review.
It is against this backdrop that I am pleased to report that Safeland has made a
profit before tax of #115,000 (2002 #1,911,000) on turnover of #14.7m up from
#9.1m for the comparable period last year.
It is evident from these figures that margins have been squeezed due to
prevailing market conditions. I see no change in current conditions and
therefore would not expect the following six months to improve.
Your Board believe that in certain areas there is a concern that the market has
overheated and in these circumstances, as in previous years when this has
occurred, we will not make purchases that we do not consider can provide
reasonable return.
In light of these circumstances your Board does not consider that a return to
the payment of a dividend should be made at this time. The opportunities for
continued share buy back by Safeland have been limited and we have only
purchased 40,000 shares during the previous six months. Net asset value per
share as at 30 September 2003 is 91p compared with 80pas at 30 September 2002.
Earnings per share have, however, dropped to 0.38p from 5.71p for the respective
periods.
Shareholders may be aware of the recent announcement made that Steven Lipman has
resigned his directorship of Safeland in order to pursue his own activities. My
co-directors and I, wish to take this opportunity to thank him for his
contribution to Safeland over the years and to wish him well for the future.
We are content with the investments that we have in Hercules Property Services,
Bizspace and most recently Tecc-IS which we continue to review periodically.
In the event there are any significant changes to market conditions we are well
positioned to take advantage of these enjoying good relationships with both our
professional advisors and our bankers.
Raymond Lipman
Chairman
1 December 2003
SAFELAND PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Neither Neither
audited nor audited nor
reviewed reviewed
Six months Six months
ended ended Audited
30 September 30 September Year ended
2003 2002 31 March 2003
#'000 #'000 #'000
TURNOVER
Group and share of joint ventures 15,881 10,733 30,521
Less: share of joint ventures (1,182) (1,658) (4,420)
Group turnover 14,699 9,075 26,101
(including acquisition of #6,169,000)
Cost of sales (13,407) (7,197) (22,650)
Gross profit 1,292 1,878 3,451
Sales and distribution costs (360) (151) (341)
Administrative expenses (1,511) (1,376) (3,411)
Other operating income 107 261 501
Operating (loss) profit (including acquisition of (472) 612 200
#139,000)
Share of operating profit of joint ventures 738 879 2,564
Share of operating loss of associate (15) - -
__________ __________ __________
Group operating profit 251 1,491 2,764
Profit on disposal of fixed assets 29 7 -
Profit on disposal of fixed assets - investment properties 31 32 302
Profit on disposal of subsidiary undertakings - 300 550
Profit on disposal of investments - - 72
Profit on ordinary activities before interest and taxation 311 1,830 3,688
Interest receivable and similar income - group 80 260 700
- joint venture 5 262 17
- associate 6 - -
- dividends 18 27 -
Interest payable and similar charges (305) (468) (883)
Profit on ordinary activities before taxation 115 1,911 3,522
Tax charge on profit on ordinary activities (36) (475) (1,106)
Profit on ordinary activities after taxation and profit
for the financial period/year 79 1,436 2,416
Equity dividends paid and proposed 3 - - -
Retained profit for the financial period/year 79 1,436 2,416
Basic earnings per share (pence) 2 0.38p 5.71p 10.33p
Diluted earnings per share (pence) 2 0.38p 5.71p 10.33p
All operations derive from continuing operations.
SAFELAND PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2003
Neither audited Neither audited
nor reviewed nor reviewed Audited
30 September 30 September 31 March
2003 2002 2003
#'000 #'000 #'000
Fixed assets
Tangible assets 5,566 3,913 4,993
Investment properties 3,348 5,239 2,808
Investments 4,281 4,732 4,281
Investment in joint venture 4,103 1,797 3,420
Share of gross assets 5,191 2,466 4,564
Share of gross liabilities (1,088) (669) (1,144)
Investment in associate 972 - 1,000
18,270 15,681 16,502
Current assets
Stocks 12,077 15,061 5,965
Debtors:
Amounts falling due within one year 2,391 4,502 3,826
Amounts falling due after more than one year - 1,902 -
Cash at bank and in hand 3,020 4,481 4,783
17,488 25,946 14,574
Creditors: amounts falling due within one year (5,153) (5,908) (5,122)
Net current assets 12,335 20,038 9,452
Total assets less current liabilities 30,605 35,719 25,954
Creditors: amounts falling due after more than one year (11,495) (15,684) (6,905)
Net assets 19,110 20,035 19,049
Capital and reserves
Called-up share capital 4 1,045 1,247 1,047
Share premium account 5,304 5,304 5,304
Capital redemption reserve 642 440 640
Investment property revaluation reserve 547 1,934 586
Profit and loss account 11,572 11,110 11,472
Equity shareholders' funds 5 19,110 20,035 19,049
SAFELAND PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Neither audited nor Neither audited nor
reviewed reviewed
Six months ended Six months ended
30 September 30 September Audited
2003 2002 Year ended
#'000 #'000 31 March 2003
#'000
Note
Net cash (outflow) inflow from 7 (4,427) (2,624) 2,125
operating activities
Returns on investment and
servicing of finance
Interest received 80 522 558
Interest paid (245) (468) (810)
Dividend received 18 27 141
Net cash (outflow) inflow from (147) 81 (111)
returns on investments and
servicing of finance
Taxation
Tax paid (301) (253) (720)
Capital expenditure and
financial investment
Purchase of tangible fixed (810) (1,889) (2,540)
assets
Purchase of investment (720) (963) (1,091)
properties
Purchase of interest in (981) - -
associate
Disposal of tangible fixed 176 26 439
assets
Disposal of investment 211 595 3,495
properties
Disposal of investments - - 523
Net cash (outflow) inflow from (2,124) (2,231) 826
capital expenditure and
financial investment
Acquisitions and disposals
Sale of subsidiary undertaking - 300 4,608
Cash (outflow) inflow before (6,999) (4,727) 6,728
financing
Financing
Purchase of own shares (18) (120) (2,156)
Net loans taken out (repaid) 5,254 5,926 (3,191)
Net cash inflow (outflow) from 5,236 5,806 (5,347)
financing
(Decrease) increase in cash 8 (1,763) 1,079 1,381
SAFELAND PLC
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Neither audited nor reviewed Neither
Six months ended audited nor reviewed
30 September Six months ended
2003 30 September Audited
#'000 2002 Year ended
#'000 31 March 2003
#'000
Profit for the financial period/year 79 1,436 2,416
Unrealised surplus on revaluation of - - 70
investment properties
Total recognised gains relating to the 79 1,436 2,486
period/year
SAFELAND PLC
NOTES TO THE ACCOUNTS (UNAUDITED)
1. Basis of preparation and accounting policies
This interim financial information was approved by the Board of Directors on 28
November 2003.
The interim financial information for the six months ended 30 September 2002 and
the six months ended 30 September 2003 are neither audited nor reviewed by the
auditors.
The unaudited interim financial information has been prepared in accordance with
accounting policies set out in the audited statutory accounts for the year ended
31 March 2003. The financial information in this report for the six months
ended 30 September 2003 does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985 and should be read in conjunction with the
31 March 2003 audited financial statements. The figures for the year ended 31
March 2003 are an abridged statement from the group's statutory accounts at that
date, which have been delivered to the Registrar of Companies. The auditors'
report on those accounts was unqualified and did not contain a statement under
section 237(2) or 237(3) of the Companies Act 1985.
2. Earnings per share
Basic earnings per share is calculated on profit on ordinary activities of
#79,000 (30 September 2002 - #1,436,000; 31 March 2003 - #2,416,000) and on
20,889,770 ordinary shares (30 September 2002 - 25,163,929; 31 March 2003 -
23,393,843), being the weighted average number of shares in issue throughout the
period. Diluted earnings per share is calculated by adjusting the weighted
average number of ordinary shares in issue on the assumption of conversion of
all dilutive potential ordinary shares. The group does not have any dilutive
potential ordinary shares because the exercise price of all share options
granted is above the average price of the company's ordinary shares during the
periods.
3. Dividend per share
No interim dividend has been declared (six months ended 30 September 2002 - no
interim dividend declared; year ended 31 March 2003 - no interim or final
dividend declared).
4. Repurchased shares
Safeland plc purchased 40,000 of its own shares during the period for a total
consideration of #18,181. A balance of #2,000 has been transferred to the
capital redemption reserve.
5. Acquisition of subsidiary undertaking
On 30 June 2003, Safeland plc purchased 100% of the ordinary share capital of
Protea Properties Ltd. for #100,000 consideration.
6. Reconciliation of movements in shareholders' funds
Neither audited nor reviewed Neither audited nor reviewed
Six months ended Six months ended
30 September 30 September 2002
2003 #'000 Audited
#'000 Year ended
31 March 2003
#'000
Profit for the financial 79 1,436 2,416
period/year
Dividends - -
79 1,436 2,416
Other recognised gains and losses - - 70
Repurchase of shares (including (18) (120) (2,156)
expenses)
Net addition to equity 61 1,316 330
shareholders' funds
Opening equity shareholders' funds 19,049 18,719 18,719
Closing equity shareholders' funds 19,110 20,035 19,049
7. Reconciliation of operating (loss) profit to net cash (outflow) inflow
from operating activities
Neither audited nor reviewed Neither audited nor reviewed
Six months ended Six months ended
30 September 30 September
2003 2002 Audited
#'000 #'000 Year ended
31 March 2003
#'000
Operating (loss) profit (472) 612 200
Depreciation 90 60 217
Profit on sale of fixed assets - - (13)
(Increase) decrease in stocks (6,112) (5,517) (648)
Increase in debtors 1,436 (409) 2,949
Increase (decrease) in creditors 631 2,630 (580)
Net cash (outflow) inflow from (4,427) (2,624) 2,125
operating activities
7. Reconciliation of net cash flow to movement in net debt
Neither audited nor reviewed Neither audited nor reviewed
Six months ended Six months ended
30 September 30 September
2003 2002 Audited
#'000 #'000 Year ended
31 March 2003
#'000
(Decrease) increase in cash in the (1,763) 1,079 1,381
period/year
Cash (inflow) outflow from (5,254) (5,926) 3,191
(increase) decrease in debt
Change in net debt resulting from (7,017) (4,847) 4,572
cash flows
Net debt brought forward (1,784) (6,356) (6,356)
Net debt carried forward (8,801) (11,203) (1,784)
8. Analysis of net debt
At
At 1 April Cash 30 September
2003 flows 2003
#'000 #'000 #'000
Cash 4,783 (1,763) 3,020
4,783 (1,763) 3,020
Debt due within one year (657) 331 (326)
Debt due after one year (5,910) (5,585) (11,495)
Total (1,784) (7,017) (8,801)
9. Copies of this statement are being sent to all shareholders and
are available to the public for collection at the Company's Registered Office at
94-96 Great North Road, London N2 0NL.
This press announcement has been issued by Insinger de Beaufort a subsidiary of
Bank Insinger de Beaufort N.V., on behalf of Safeland PLC
Member of the London Stock Exchange and ISMA. Regulated by the FSA.
Registered in England and Wales No. 2479169.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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