TIDMSYG
RNS Number : 1842P
Speymill PLC
29 September 2011
29 September 2011
Speymill plc ("Speymill" or the "Company")
Interim Results for the six months to 30 June 2011
Speymill (AIM: SYG), the property service business specialising
in real estate investment management, property management and
property construction, today announces its interim results for the
six months to 30 June 2011.
Contacts:
Speymill plc Tel: 01624 640
Denham Eke 860
Nominated Adviser Tel: 020 7131
Smith & Williamson Corporate Finance 4000
Limited
Azhic Basirov
Siobhan Sergeant
Chairman's statement
Dear Shareholders,
I am pleased to take this opportunity to provide you with an
update on the Group's activities for the first six months of
2011.
Results
Turnover for continuing operations increased by 123.9% to
GBP13.4 million (2010: GBP6.0 million), GBP6.6 million of this
increase is attributable to Speymill Contracts Limited. The
remainder being derived from the Group's property investment
activities.
During the six months ended 30 June 2011, the Group made a loss
before tax on operations of GBP59,000 (2010: a profit of GBP8.36
million). Last year's interim report included a profit of GBP9.12
million in respect of discontinued and discontinuing operations,
GBP7.28 million of which was in relation to the termination of the
investment management agreement with Speymill Deutsche Immobilien
Company plc ("SDIC"). Thus on a like-for-like continuing basis, the
2010 loss would have been GBP755,000.
The results include a profit before tax of GBP0.12 million in
respect of the Group's German property investment activities: there
is no comparative result for the six months ending 30 June 2010.
The results also include a reduced loss before tax of GBP0.13
million (2010: loss of GBP0.2 million) for Speymill Contracts
Limited ("Speymill Contracts").
Financial position
As at 30 June 2011, the Group had net assets of GBP3.65 million
(2010: GBP5.80 million).
As I reported in our annual statement for 2010 I, together with
Burnbrae Limited, agreed to provide a revised shareholder loan
facility. The new facility shall continue to be revolving, with a
limit of GBP5 million and an expiry date of 30 June 2012, in
addition the interest rate was reduced to 8% from 9% under the
previous arrangement. As at 30 June 2011, a total of GBP3.39
million (2010: GBP3.07 million) of the shareholder loan facility
had been drawn down by the Group.
German Property investment
The Group's German property investment activities returned a
profit before tax of GBP0.12 million for the six months ended 30
June 2011. These activities relate to the assets acquired from SDIC
as part of the agreement to terminate the Group's investment
management agreement with that company. The Group continues to work
to optimise the efficiency and profitability of these assets.
Speymill Contracts
Speymill Contracts has continued to show a gratifying
improvement in results, with turnover increasing by 112.0% to
GBP12.67 million (2010: GBP5.98 million) and returned a reducing
loss before tax of GBP0.13 million (2010: loss of GBP0.20 million).
We believe that this reflects the continued focus on risk
management and disciplined approach implemented at Speymill
Contracts.
I can also confirm that with the orders already received by
Speymill Contracts, we would expect the turnover for the year to be
in the region of GBP30 million. We expect that this very positive
upturn will not only result in a return to profitability but ensure
a positive cash generation by this company for the Group.
Speymill Deutsche Immobilien Company plc
As part of the acquisition of GOAL and termination of the
Investment Management Agreement, SDIC issued convertible loan notes
("Loan Notes") to Speymill in an aggregate amount of EUR2.088
million. The appointment of receivers to SDIC's property owning
subsidiaries in December 2010, constituted an event of default
under the terms of the Loan Notes and, therefore, the Loan Notes
would ordinarily become immediately repayable, in cash. We
considered the enforcement of these terms not to be in the best
interests of Speymill shareholders and, as SDIC, itself, continues
to trade, we have come to an arrangement regarding the loan notes.
We monitor this situation closely to ensure that we will be able to
gain the maximum value for Speymill shareholders.
Update on Far Eastern activities
The Group announced on 28 June 2010 that it had received notice
from Speymill Macau Property Company plc ("Speymill Macau") to
terminate the investment management agreement between Speymill
Macau and SPG. The notice period for this investment management
agreement expired on 28 June 2011 and the Group no longer provides
any services to Speymill Macau.
Restructuring
I have stated in previous annual and interim reports that steps
had been taken to downsize the operating costs at the Group's head
office in the Isle of Man and at the Group's London based advisory
function, Speymill Property Group (UK) Limited ("SPGUK").
The London based advisory function was closed earlier this year
as part of the on-going rationalisation program and there has been
a further reduction in headcount and overheads at our Isle of Man
operation as the Group seeks to implement the most appropriate and
efficient structure for its future activities.
Following the termination of the investment management agreement
with Speymill Macau, the Group has closed its Far East operation,
which was based in Hong Kong.
The Group will continue to seek the most cost effective and
efficient structure for its activities and to this end we have
already commenced a process to reorganise the remaining Group
subsidiaries and proceed with the closure of any entities which are
no longer required.
As reported in our annual report for 2010 and on 26 January
2011, the composition of the board of directors has also changed.
Bob MacDonald, the then Chief Executive Officer, and Sir James
Mellon both resigned from the board of directors earlier in 2011
leaving myself as Executive Chairman, Denham Eke as Chief Executive
Officer and Lincoln Forrest as a non-executive director.
Outlook
I and your board continue to consider a number of positive
strategic options to create the maximum value for shareholders and
we will provide further information as and when appropriate.
Jim Mellon
Chairman
29 September 2011
Condensed consolidated interim income statement
For the six months ended 30 June 2011
6 months 12 months
6 months to to to
30 June 30 June 31 Dec
2011 2010 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Continuing operations
Turnover 13,385 5,977 15,533
Cost of sales (12,016) (4,911) (13,213)
Gross profit 1,369 1,066 2,320
General administrative expenses (1,430) (1,514) (2,816)
Share-based payments (5) (22) (61)
Total operating costs (1,435) (1,536) (2,877)
Loss from operations (66) (470) (557)
Net finance costs (246) (285) (616)
Loss before taxation (312) (755) (1,173)
Taxation - - -
Loss after taxation from
continuing operations (312) (755) (1,173)
Profit for the period / year
from discontinued operations 243 8,867 6,898
(Loss)/profit for the period
/ year (69) 8,112 5,725
Attributable to:
Owners of the Company (75) 8,112 5,717
Non-controlling interest 6 - 8
(69) 8,112 5,725
Basic loss per share (pence)
From continuing operations (0.54) (1.29) (2.02)
Diluted loss per share (pence)
From continuing operations (0.54) (1.29) (2.02)
Condensed consolidated interim statement of comprehensive
income
For the six months ended 30 June 2011
6 months 12 months
6 months to to to
30 June 30 June 31 Dec
2011 2010 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ------------ ------------ ----------
(Loss)/profit for the period / year (69) 8,112 5,725
-------------------------------------- ------------ ------------ ----------
Other comprehensive income:
Revaluation of available-for-sale
financial assets 56 (10) (135)
Currency translation differences on
foreign operations 274 (217) (282)
Total comprehensive profit for the
period / year 261 7,885 5,308
-------------------------------------- ------------ ------------ ----------
The notes are an integral part of these condensed consolidated
interim financial statements.
Condensed consolidated interim statement of financial
position
As at 30 June 2011
As at As at As at
31 Dec
30 June 2011 30 June 2010 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets-goodwill - 2 -
Property, plant and equipment 84 877 153
Investment property 23,747 - 22,626
Available-for-sale financial
assets 1,260 562 1,287
Total non-current assets 25,091 1,441 24,066
Current assets
Due from customers for contract
work 2,456 928 1,228
Trade and other receivables 2,347 12,507 2,734
Cash and cash equivalents 1,049 149 1,551
Total current assets 5,852 13,584 5,513
Total assets 30,943 15,025 29,579
Equity
Capital and reserves
Ordinary share capital 584 584 584
Share premium 34 34 34
Share-based payments reserve 1,110 2,068 1,105
Other income reserve (232) (659) (562)
Retained earnings 2,418 3,776 2,493
Equity attributable to owners
of the Company 3,914 5,803 3,654
Non-controlling interest (263) - (269)
Total equity 3,651 5,803 3,385
Non-current liabilities
Deferred tax liabilities - 316 -
Obligations under finance leases - 1 -
Interest bearing loans 15,508 - 14,915
Derivative financial instruments 581 - 838
Shareholders' loan 3,386 3,066 3,241
Total non-current liabilities 19,475 3,383 18,994
Current liabilities
Bank overdraft - 685 989
Trade and other payables 3,620 3,932 3,643
Due to suppliers for contract
work 3,640 908 2,212
Interest bearing loans 176 - -
Obligations under finance leases 1 1 1
Current tax liabilities 380 313 355
Total current liabilities 7,817 5,839 7,200
Total liabilities 27,292 9,222 26,194
Total equity and liabilities 30,943 15,025 29,579
The notes are an integral part of these condensed consolidated
interim financial statements.
Condensed consolidated interim statement of changes in
equity
For the six months ended 30 June 2011
Attributable
Ordinary Share-based Other Retained to owners
share Share payment income earnings/ of Non-controlling Total
capital premium reserve reserves (loss) the parent interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- --------- -------- ------------ --------- ---------- ------------- ---------------- --------
Balance at 31
December 2009
(audited) 583 34 1,988 (432) (4,336) (2,163) - (2,163)
Profit for the
period - - - - 8,112 8,112 - 8,112
Other comprehensive
income for the
period:
Revaluation of
available-for-sale
financial assets - - - (10) - (10) - (10)
Currency
translation
differences on
foreign
operations - - - (217) - (217) - (217)
Transactions with
owners, recorded
directly in
equity:
Share-based
payments:
- share options
charge - - 49 - - 49 - 49
- deferred share
plan - - 31 - - 31 - 31
Own shares
distributed
(77,273 shares) 1 - - - - 1 - 1
-------------------- --------- -------- ------------ --------- ---------- ------------- ---------------- --------
Balance at 30 June
2010 (unaudited) 584 34 2,068 (659) 3,776 5,803 - 5,803
-------------------- --------- -------- ------------ --------- ---------- ------------- ---------------- --------
Loss for the period - - - - (2,395) (2,395) 8 (2,387)
Other comprehensive
income for the
period:
Revaluation of
available-for-sale
financial assets - - - (125) - (125) - (125)
Currency
translation
differences on
foreign
operations - - - (65) - (65) - (65)
Acquisition of
subsidiaries - - - 242 - 242 - 242
Transactions with
owners, recorded
directly in
equity:
Share-based
payments:
- share options
charge - - 9 - - 9 - 9
- deferred share
plan - - (13) - - (13) - (13)
Disposal of
subsidiary - - (212) - 410 198 - 198
Shares issued in
the period (77,273
shares) - - (9) - 9 - - -
Own shares
distributed
(165,269 shares) - - (45) 45 - - - -
Lapsed/forfeited
share options - - (693) 693 - - -
Arising on
acquisition of
subsidiaries - - - - - - (277) (277)
Balance at 31
December 2010
(audited) 584 34 1,105 (562) 2,493 3,654 (269) 3,385
-------------------- --------- -------- ------------ --------- ---------- ------------- ---------------- --------
(Loss)/profit for
the period - - - - (75) (75) 6 (69)
Other comprehensive
income for the
period:
Revaluation of
available-for-sale
financial assets - - - 56 - 56 - 56
Currency
translation
differences on
foreign
operations - - - 274 - 274 - 274
Transactions with
owners, recorded
directly in
equity:
Share based
payments:
- share options
charge - - 2 - - 2 - 2
- deferred share
plan - - 3 - - 3 - 3
Balance at 30 June
2011 (unaudited) 584 34 1,110 (232) 2,418 3,914 (263) 3,651
-------------------- --------- -------- ------------ --------- ---------- ------------- ---------------- --------
The notes are an integral part of these condensed consolidated
interim financial statements.
Condensed consolidated statement of cash flows
For the six months ended 30 June 2011
6 months 6 months 12 months
to to to
30 June
2011 30 June 2010 31 Dec 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
----------------------------------- ------------ ------------- ------------
Cash flows from operating
activities
Net cash inflow from operations 1,080 2,135 11,525
Taxation paid - (1,081) (1,295)
----------------------------------- ------------ ------------- ------------
Net cash inflow from operating
activities 1,080 1,054 10,230
----------------------------------- ------------ ------------- ------------
Cash flows from investing
activities
Interest received - - 37
Cash acquired in acquisition of
subsidiaries - - 294
Cash held by subsidiary on
disposal - - (750)
Loan notes received - - (1,238)
Disposal/write-off of investments 83 - 148
Subsequent expenditure on
investment properties (20) - (78)
Transfer to investment/foreign
exchange reserve - - (6,773)
Net purchase and disposal of
property, plant and equipment (9) (226) (310)
----------------------------------- ------------ ------------- ------------
Net cash inflow/(outflow) from
investing activities 54 (226) (8,670)
----------------------------------- ------------ ------------- ------------
Cash flows from financing
activities
Issue of equity shares - 1 1
Shareholders' loan draw-downs 475 468 680
Shareholders loans repayments (480) - (213)
Facility fees paid (11) - 14
Finance lease principal repayments - (1) (1)
Repayment of interest bearing
loans (131) - (40)
Interest paid (510) (57) (407)
Interest rate swap valuation
movement - - (210)
----------------------------------- ------------ ------------- ------------
Net cash (outflow)/inflow from
financing activities (657) 411 (176)
----------------------------------- ------------ ------------- ------------
Net increase in cash and cash
equivalents 477 1,239 1,384
----------------------------------- ------------ ------------- ------------
Translation effect of exchange
rate fluctuation on cash held 10 (69) 884
Cash and cash equivalents at
beginning of period/year 562 (1,706) (1,706)
----------------------------------- ------------ ------------- ------------
Net cash and cash equivalents at
end of period/year 1,049 (536) 562
----------------------------------- ------------ ------------- ------------
Cash and cash equivalents comprise
Bank balances 1,049 149 1,551
Bank overdraft used for cash
management purposes - (685) (989)
----------------------------------- ------------ ------------- ------------
Cash and cash equivalents in the
statement of cash flows 1,049 (536) 562
----------------------------------- ------------ ------------- ------------
Reconciliation of profit from
operations and discontinued
activities to net cash inflow from
operations
Profit from operations including
discontinued activities 186 8,619 6,546
Adjusted for:
Depreciation of tangible assets 74 301 497
Share-based payments charge 5 80 76
(Increase)/decrease in receivables (857) (7,241) 1,057
Increase in payables 1,672 376 3,349
----------------------------------- ------------ ------------- ------------
Net cash inflow from operations 1,080 2,135 11,525
----------------------------------- ------------ ------------- ------------
The notes are an integral part of these condensed consolidated
interim financial statements.
Notes to the condensed consolidated interim financial
statements
For the six months ended 30 June 2011
1 Reporting entity
Speymill plc is a public limited company incorporated and
domiciled in the Isle of Man (referred to as the Company). The
address of the Company's registered office is 1st Floor, Regent
House, 16-18 Ridgeway Street, Douglas, Isle of Man, IM1 1EN.
The condensed consolidated interim financial statements of the
Company as at and for the six months ended 30 June 2011 comprises
the Company and its subsidiaries (together referred to as the
"Group" and individually as "Group entities"). The Group is
primarily involved in real estate investment and construction
operations.
1.1 Basis of preparation
(a) Statement of compliance
The condensed consolidated interim financial statements have
been prepared in accordance with IAS 34 "Interim Financial
Reporting". They do not include all the information required for
full annual financial statements and should be read in conjunction
with the consolidated financial statements of the Group as at and
for the year ended 31 December 2010.
The condensed consolidated interim financial statements were
authorised for issuance on 29 September 2011.
(b) Basis of measurement and functional currency
The Group condensed consolidated interim financial statements
are presented in Pounds Sterling, rounded to the nearest thousand.
They have been prepared on the historical cost basis except where
assets and liabilities are required to be stated at their fair
value.
(c) Use of estimates and judgement
The preparation of Group consolidated interim financial
statements in conformity with International Financial Reporting
Standards (IFRS) requires management to make judgments, estimates
and assumptions that affect the application of policies and
reported amounts of assets, liabilities, income and expenses. The
estimates and associated assumptions are based on historical
experience, current and expected economic conditions, and in some
cases actuarial techniques and various other factors that are
believed to be reasonable under the circumstances, the results of
which form the basis of making the judgments about carrying values
of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.
The significant judgments made by management in applying the
Group's accounting policies and key sources of estimation of
uncertainty were the same as those that were applied to the
consolidated financial statements as at and for the year ended 31
December 2010.
(d) Determination and presentation of operating segments
The Group determines and presents operating segments based on
the information that internally is provided to the CEO, who is the
Group's chief operating decision maker. This accounting policy
reflects the Group's adoption of IFRS 8 Operating Segments which
took effect from 1 January 2009.
An operating segment is a component of the Group that engages in
business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to
transactions with any of the Group's other components. An operating
segment's operating results are reviewed regularly by the CEO to
make decisions about resources to be allocated to the segment and
assess its performance, and for which discrete financial
information is available.
Segment results that are reported to the CEO include items
directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Unallocated items comprise mainly
corporate assets (primarily the Company's headquarters) and office
expenses.
Segment capital expenditure is the total cost incurred during
the period to acquire property, plant and equipment, and intangible
assets other than goodwill.
(e) Investment property
The investment properties were valued at their fair value at
acquisition. The Directors review the carrying value of investment
properties periodically taking into account factors such as the
current economic environment. If it is felt appropriate an
independent, external valuation will be sought to assist with this
review.
(f) Non-current Assets Held for Sale and Discontinued
Operations
The Group has adopted IFRS 5 Non-current Assets Held for Sale
and Discontinued Operations to account for the presentation of
discontinued operations. Disclosure has been made of the operating
results of discontinued operations and continuing operations.
The prior period results to 30 June 2010 have been re-presented
to reflect the revised continuing and discontinued operations basis
adopted in the Annual Report for the year ended 31 December 2010,
in order to provide a more meaningful comparison.
(g) Financial risk management
The Group's financial risk management objectives and policies
are consistent with those disclosed in the financial statements as
at 30 June 2011 and for the year ended 31 December 2010.
2 Segmental information - continuing operations
In respect of its continuing operations, the Group has three
reportable segments, as described below, which are the Group's
strategic business units. The strategic business units offer
different products and services, and are managed separately because
they require different technology and marketing strategies. The
following summary describes the operations in each of the Group's
reportable segments:
-- United Kingdom construction and refurbishment
-- Property investment
-- Other - head office and group administration costs
United Kingdom
Construction
and Property
refurbishment investment Other Elimination Total
For the six
months ended 30
June 2011 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------------- ----------- -------- ------------ ---------
External
revenue 12,668 717 - - 13,385
Inter-segment
revenue - - 1,189 (1,189) -
---------------- -------------- ----------- -------- ------------ ---------
Total segment
revenue 12,668 717 1,189 (1,189) 13,385
---------------- -------------- ----------- -------- ------------ ---------
Reportable
segment
(loss)/profit
from
operations
before
share-based
payments (107) 415 376 (745) (61)
Share-based
payments - - (5) - (5)
Finance income - 294 15 - 309
Finance costs (24) (584) (164) 217 (555)
---------------- -------------- ----------- -------- ------------ ---------
Reportable
segment
(loss)/profit
before tax (131) 125 222 (528) (312)
---------------- -------------- ----------- -------- ------------ ---------
Depreciation (50) - (18) - (68)
Reportable
segment
assets 4,899 24,295 1,285 - 30,479
Reportable
segment
liabilities (6,328) (16,695) (3,629) - (26,652)
Segment capital
expenditure (9) - - - (9)
---------------- -------------- ----------- -------- ------------ ---------
United Kingdom
Construction
and Property
refurbishment Investment Other Elimination Total
For the six
months ended 30
June 2010 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------------- ----------- -------- ------------ --------
External
revenue 5,977 - - - 5,977
Inter-segment
revenue - - 1,285 (1,285) -
---------------- -------------- ----------- -------- ------------ --------
Total segment
revenue 5,977 - 1,285 (1,285) 5,977
---------------- -------------- ----------- -------- ------------ --------
Reportable
segment
(loss)/profit
from
operations
before
share-based
payments (135) - 264 (577) (448)
Share-based
payments (6) - (16) - (22)
Finance income - - - - -
Finance costs (55) - (208) (22) (285)
----------------
Reportable
segment
(loss)/profit
before tax (196) - 40 (599) (755)
---------------- -------------- ----------- -------- ------------ --------
Depreciation (56) - (16) - (72)
Reportable
segment
assets 2,760 - 270 (184) 2,846
Reportable
segment
liabilities (4,694) - (3,327) 184 (7,837)
Segment capital
expenditure (7) - (1) - (8)
---------------- -------------- ----------- -------- ------------ --------
United Kingdom
Construction
and Property
For the twelve
months ended refurbishment investment Other Elimination Total
31 December
2010 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------------- ----------- -------- ------------ ---------
External
revenue 14,987 546 - - 15,533
Inter-segment
revenue - - 2,218 (2,218) -
---------------- -------------- ----------- -------- ------------ ---------
Total segment
revenue 14,987 546 2,218 (2,218) 15,533
---------------- -------------- ----------- -------- ------------ ---------
Reportable
segment
(loss)/profit
from
operations
before
share-based
payments (486) 417 46 (473) (496)
Share-based
payments (9) - (52) - (61)
Finance income - 210 3 - 213
Finance costs (93) (478) (386) 128 (829)
----------------
Reportable
segment
profit/ (loss)
before tax (588) 149 (389) (345) (1,173)
---------------- -------------- ----------- -------- ------------ ---------
Depreciation (106) - (32) - (138)
Reportable
segment
assets 3,501 23,429 1,808 - 28,738
Reportable
segment
liabilities (5,726) (16,484) (3,422) - (25,632)
Segment capital
expenditure (10) - - - (10)
---------------- -------------- ----------- -------- ------------ ---------
As at As at As at
30 June
30 June 2011 2010 31 Dec 2010
(unaudited) (unaudited) (audited)
Reportable segment assets and
liabilities reconciliation GBP'000 GBP'000 GBP'000
----------------------------------- ------------- ------------ ------------
Segment assets for reportable
segments 30,479 2,846 28,738
Segment assets for discontinued
operations 464 12,179 841
----------------------------------- ------------- ------------ ------------
Total assets per the balance
sheet 30,943 15,025 29,579
----------------------------------- ------------- ------------ ------------
Segment liabilities for reportable
segments (26,652) (7,837) (25,632)
Segment liabilities for
discontinued operations (640) (1,385) (562)
----------------------------------- ------------- ------------ ------------
Total liabilities per the balance
sheet (27,292) (9,222) (26,194)
----------------------------------- ------------- ------------ ------------
3 Discontinued operations information
In the Interim Report for 30 June 2010, the Group determined
that two lines of business met the criteria to be treated under
IFRS 5 as Non-current assets held for sale or discontinued
operations. These were the Group's property services business
except for GOAL construction GmbH and that part of the Group's
property fund management business which specifically related to the
management of the property investment fund Speymill Deutsche
Immobilien Company plc ("SDIC").
For the purposes of the Annual Report for 31 December 2010, this
basis was revised due to further developments and circumstances at
that date, and the business segments deemed to be continuing and
discontinued were subsequently revised.
In order to provide a meaningful comparison, the prior period
results to 30 June 2010 have been re-presented to align with the
continuing and discontinued operations basis adopted in the Annual
Report for 31 December 2010. The results of these lines of business
are set out below under the heading discontinued operations. The
Group's two business segments treated as discontinued operations
are as follows:
-- Property services business
-- Property fund management business
6 months 6 months 12 months
to to to
30 June 30 June 31 Dec
2011 2010 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ------------ ------------ ----------
Discontinued operations
Turnover 840 12,081 17,897
Expenses (587) (10,243) (18,919)
-------------------------------------- ------------ ------------ ----------
Profit/(loss) before tax of
discontinued operations 253 1,838 (1,022)
Gain on sale of discontinued
activities - 7,281 8,173
Taxation (10) (252) (253)
-------------------------------------- ------------ ------------ ----------
Profit after tax from discontinued
operations 243 8,867 6,898
-------------------------------------- ------------ ------------ ----------
Earnings per share (pence) (note 7)
Basic earnings per ordinary share (pence) 0.42 15.19 11.81
Diluted earnings per share (pence) 0.42 15.19 11.81
------------------------------------------- ----- ------ ------
6 months 6 months 12 months
to to to
30 June
30 June 2011 2010 31 Dec 2010
(unaudited) (unaudited) (audited)
Cash flows of discontinued
operations GBP'000 GBP'000 GBP'000
----------------------------------- ------------- ------------ ------------
Operating cash flows (771) 529 8,381
Investing cash flows 83 (218) (8,268)
Financing cash flows (1) 20 (40)
----------------------------------- ------------- ------------ ------------
Total cash flows (689) 331 73
----------------------------------- ------------- ------------ ------------
4 Share-based payments
6 months to 6 months to 12 months to
30 June 2011 30 June 2010 31 Dec 2010
(unaudited) (unaudited) (audited)
Share based payments within
continuing operations GBP'000 GBP'000 GBP'000
--------------------------------- ------------- ------------- -------------
Share options 2 11 25
Provision for share issue 3 11 36
--------------------------------- ------------- ------------- -------------
5 22 61
--------------------------------- ------------- ------------- -------------
5 Net finance costs
6 months 6 months 12 months
to to to
30 June
30 June 2011 2010 31 Dec 2010
(unaudited) (unaudited) (audited)
Finance costs of continuing
operations GBP'000 GBP'000 GBP'000
----------------------------------- ------------- ------------ ------------
Finance income
Bank - - -
Other interest receivable 15 - 3
Change in fair value of derivative
financial instruments 294 - 210
309 - 213
----------------------------------- ------------- ------------ ------------
Finance costs
Bank charges and interest payable (27) (77) (181)
Interest charge on interest
bearing loans (367) - (308)
Share holder loan and facility
fees (161) (208) (339)
Finance lease - - (1)
Net finance costs (246) (285) (616)
----------------------------------- ------------- ------------ ------------
6 Taxation
There are currently no tax charges on continuing operations.
This results from the fact that either operations are conducted in
tax jurisdictions with a 0% tax rate for companies or that
operations did not generate any taxable profits during the period,
taking into account any available allowances and brought forward
tax losses.
7 (Loss)/earnings per ordinary share
6 months to 6 months to 12 months to
30 June 2011 30 June 2010 31 Dec 2010
(unaudited) (unaudited) (audited)
From continuing operations GBP'000 GBP'000 GBP'000
--------------------------------- ------------- ------------- -------------
Loss for the period/year from
continuing operations (318) (755) (1,181)
--------------------------------- ------------- ------------- -------------
No. No. No.
Basic weighted average number of
shares in issue 58,389,555 58,388,267 58,388,918
Employee share options and
provisions for share issue - - -
--------------------------------- ------------- ------------- -------------
Basic loss per ordinary share
(pence) (0.54) (1.29) (2.02)
Dilutive effect of employee
share options - - -
------------- -------------
Diluted loss per share (pence) (0.54) (1.29) (2.02)
--------------------------------- ------------- ------------- -------------
8 Called up share capital
6 months to 6 months to 12 months to
30 June 2011 30 June 2010 31 Dec 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------- ------------- ------------- -------------
Authorised 5,000 5,000 5,000
------------- ------------- -------------
500,000,000 ordinary shares of
1p each
--------------------------------- ------------- ------------- -------------
No. No. No.
--------------------------------- ------------- ------------- -------------
Issued and fully paid
At beginning of period/year 58,389,555 58,312,282 58,312,282
Exercise of share options - 77,273 77,273
---------------------------------
At end of period/year 58,389,555 58,389,555 58,389,555
--------------------------------- ------------- ------------- -------------
9 Interest bearing loans
6 months 6 months 12 months
to to to
30 June
30 June 2011 2010 31 Dec 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
----------------------------------- ------------- ------------ ------------
Under the terms of the loan
agreement the interest bearing
loans are repayable as follows:
On demand or within one year 176 - 176
In the second year 186 - 186
In the third to fifth years
inclusive 15,322 - 14,553
After 5 years - - -
----------------------------------- ------------- ------------ ------------
15,684 - 14,915
----------------------------------- ------------- ------------ ------------
The Group's interest-bearing loans are carried at amortised
cost. As at 30 June 2011, the Group had two secured bank loan
facilities amounting to GBP15.7m (31 December 2010: GBP14.9m). Each
of the Group's interest-bearing loan facilities has been secured by
charges on investments properties, rental income, bank accounts,
other assets and undertakings within the related financing
packages.
Deutsche Genossenschafts-Hypothekenbank AG is the sole lender
for the two financing packages, as detailed below:
Horsfield Limited
The balance outstanding under this facility at the period-end
was GBP8,545,648 (31 December 2010: GBP8,126,366). The facility
amount at original drawdown was EUR 9,807,200. The interest rate is
fixed at 4.615% per annum inclusive of margin. Interest is payable
quarterly in arrears. The loan is currently amortising at 1.17% of
the original loan amount per annum and is repayable on the
repayment date of 31 December 2014.
Wyatt Limited
The balance outstanding under this facility at the period-end
was GBP7,138,831 (31 December 2010: GBP6,788,573). The facility
amount at original drawdown was EUR 8,192,700. The interest rate is
fixed at 4.615% per annum inclusive of margin. Interest is payable
quarterly in arrears. The loan is currently amortising at 1.17% of
the original loan amount per annum and is repayable on the
repayment date of 31 December 2014.
10 Guarantees and other financial commitments
As is normal within the construction sector, the Group has given
Parent Company Guarantees in relation to work completed by Speymill
Contracts and has provided performance bonds with a value of
GBP765,117 (31 December 2010: GBP1,621,767). The Group had no
capital commitments (31 December 2010: GBPnil).
The Group has guaranteed the overdrafts of its subsidiaries. As
at 30 June 2011, the total commitment was GBPnil (31 December 2010:
GBP988,919).
11 Related party transactions
Loan facility
As set out in the Annual Report for 31 December 2010 and
announced on 27 June 2011, the Company secured further financing by
way of a committed loan facility from one of its directors, Jim
Mellon and Burnbrae Limited. The overall limit of the principal on
the loan facility is GBP5m and it will expire on 30 June 2012.
Further details were set out in the Annual Report. As at 30 June
2011, the total balance of the facility utilised was GBP3.39m
including principal, facility fees and accrued interest.
12 Interim Report
Copies of the Interim Report for the six months to 30 June 2011
will be available from the Company's registered office once they
have been posted to shareholders and on the Company's website,
www.speymill.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLMLTMBATMLB
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