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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bailey(C.H) | LSE:BLEY | London | Ordinary Share | GB00B6SCF932 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 92.50 | 85.00 | 100.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMBLEY
RNS Number : 4052S
Bailey(C.H.) PLC
21 December 2016
C H Bailey plc
21 December 2016
Chairman's statement and unaudited financial results
for the six months ended 30(th) September 2016
CH Bailey plc ("CH Bailey", the "Company" or, together with its subsidiaries, the "Group"), announces its interim results for the half year ended 30 September 2016.
Key Highlights
-- Turnover up 22% to GBP2.9m (2015: GBP2.4m).
-- Operating profit of GBP577k (2015 loss: GBP494k), assisted by foreign exchange gains and performance of current asset investments.
-- EBITDA at GBP1.1m (2015: loss of GBP70k). -- Overall profit for the period of GBP361k (2015: loss GBP717k).
-- Retail and offices in Tanzania at 85% occupancy and serviced accommodation increasing in line with two year plan.
-- Development of St Lucia Street property in Malta nearing completion and refurbishment of Galenia Estate hospitality unit completed.
Interim Statement and Results
Our interim results for the 6 month period ended 30 September 2016 show a profit for the period of GBP381,000 (2015: loss GBP717,000). Revenue has increased by 22% to GBP2.9m (2015: GBP2.4m) with cost of sales increasing by 16% to GBP2.0m (2015:GBP1.8m). This has resulted in an operating profit for the period of GBP577,000 (2015: loss GBP494,000). EBITDA has risen from a small loss of GBP52,000 to earnings for the period of GBP1.1m.
These improved results arise from a combination of increased sales from the serviced offices and accommodation in Tanzania, profits on our current asset investments and the positive effect of the slide in the value of the pound.
The Phase III of our offices in Tanzania is now fully let and we have seen a build up throughout the period in the occupancy of our new serviced accommodation in Dar es Salaam. Despite a turbulent time for engineering in South Wales, Bailey Industrial Engineering Limited ("BIE") has traded in line with our internal forecasts.
During the period we have been working on the development at St Lucia Street in Valletta, Malta, which is nearing completion, and have refurbished the hospitality unit at Montagu in South Africa.
Overhead costs have generally been kept in line with the prior period, although the pre-revenue planning work in Malta coupled with additional overheads incurred in South Africa in connection with the renovation of the hospitality unit ready for occupancy have resulted in administrative expenses increasing from GBP761,000 in the same period last year to GBP944,000 this time.
Tanzania
Despite significant economic uncertainty in Tanzania, the Phase III offices are now fully let, with our overall office and retail occupancy in Dar es Salaam now at over 85%.
Our new serviced accommodation, the Oyster Bay Suites, has been building occupancy levels during the period. These have continued to climb in the two months since the period end and in line with our internal forecast that it would take two years for the product to become established in the market.
By contrast, although the quality of our accommodation continues to be recognised with various awards, the hospitality business in Tanzania (The Oyster Bay and Beho Beho) has remained subdued, primarily due to the imposition of VAT on tourist revenue, which has made it difficult to compete with similar offerings in other countries, such as Kenya. However, these leisure assets represent less than 20% of our revenue in Tanzania.
South Africa
We are pleased with progress at our hospitality unit outside Montagu, now re-named the Galenia Estate. Following its refurbishment over the low season, it has been able to maintain similar occupancy levels to those seen previously, but at a much enhanced room rate.
We continue to discuss our approach to the Galenia Estate and Little Bean Farm sites with local planning authorities and we believe that both have significant long term development potential.
The appointment of Marinus Venter, with his African property sector background, as Head of Development and Operations, has added impetus to our search for additional development opportunities in the Western Cape of South Africa and we have identified several interesting development properties.
Malta
Valletta continues to exhibit increasing demand for well-appointed office and residential property. The refurbishment of the St Lucia Street property is nearing completion and we are starting to market it, as single or multiple tenant office space. We are also considering various options to generate income from the property on St Barbara Bastions.
We have received MEPA planning consent for the Charles Street property and are hoping to receive consent for the Archbishop Street property in the New Year. We expect to start development work on one of these as soon as St Lucia Street is generating income.
UK Operations
Bailey Industrial Engineering in Newport has faced many challenges associated with the sector in that part of the world. However, recent months have seen an improvement in orders as the TATA plant at Port Talbot came back after a period of inactivity, due to the threat of closure, and other client orders also picked up. The result is revenue only 7% down from the previous period and with improved margins and controlled overhead costs, the business produced a 134% increase in operating profit, from GBP17,000 in the prior period to GBP40,000.
The future remains uncertain, but TATA and the potential of work arising from the go ahead for Hinkley Point give cause for a more positive view. Our lease at Newport expires in 2017 and, as a result, we are currently considering our options.
Outlook
Market conditions have been difficult in several of our sectors, with the effect of the oil and gas prices and general economic uncertainty. During the first six months of this financial year, this was offset by newer revenue streams coming on line and by the fact that almost all of our non-UK revenue is denominated in US dollars, with many costs and much of our borrowing in local currencies. This has resulted in a significant foreign currency benefit. We are cautious about prospects, as there are few signs that economic uncertainty will reduce in the short term and currencies may not remain in our favour.
We therefore continue to keep costs under review, whilst looking for ways to increase the value of our existing property assets. We are also seeking interesting property trading and development opportunities in more buoyant markets, where we have market knowledge and connections, such as the Western Cape.
The key focus of your Group is on leisure and commercial operations and properties in Tanzania, South Africa and Malta. I am confident that the Group is well placed in these countries to add value for shareholders.
David Wilkinson
21 December 2016
Further information:
Bryan Warren, Company Secretary
C H Bailey Plc
Tel: 01633 262961
James Felix / Ciaran Walsh
Arden Partners plc
Tel: 020 7614 5900
Consolidated Income Statement
for the six months ended 30 September 2016
Hot Features
Premium
Notes September September March
2016 2015 2016
GBP GBP GBP
Continuing operations
Revenue 4 2,923,756 2,395,441 5,105,211
Cost of sales (2,042,291) (1,767,144) (3,576,420)
------------------- ------------------ -----------------
Gross profit 881,465 628,297 1,528,791
Administrative expenses (944,185) (761,232) (1,711,538)
Investment activities
and other income 5 639,630 (360,588) 216,207
------------------- ------------------ -----------------
Operating profit (loss) 576,910 (493,523) 33,460
EBITDA* 1,100,589 (51,924) 946,526
Depreciation (523,071) (440,767) (918,920)
(Loss) profit on sale of plant
and equipment (608) (832) 5,854
------------------- ------------------ -----------------
Operating profit (loss) 576,910 (493,523) 33,460
------------------------------- ------ ------------------- ------------------ -----------------
Finance income 6 901 14,103 25,846
Finance costs 7 (215,185) (239,012) (457,849)
------------------- ------------------ -----------------
Profit (loss) before taxation 362,626 (718,432) (398,543)
Taxation (1,869) 945 (28,115)
Minority interest 59 305 344
------------------- ------------------ -----------------
Profit (loss) for the
financial period 360,816 (717,182) (426,314)
------------------- ------------------ -----------------
Earnings (loss) per share
from continuing and total
operations 8 4.73p (9.43p) (5.60p)
*Earnings before interest, taxation, depreciation, loss on sale of plant and equipment and profit on sale of property.
Consolidated Statement of
Comprehensive Total Income
for the six months ended 30 September 2016
September September March
2016 2015 2016
GBP GBP GBP
Profit (loss) for the financial
period 360,816 (717,182) (426,314)
Items that may be reclassified
to profit and loss:
Exchange differences 822,397 (1,654,433) (1,543,976)
Total comprehensive income for
the period 1,183,213 (2,371,615) (1,970,290)
-------------- -------------- --------------
Consolidated Balance Sheet
as at 30 September 2016
Notes September September March
2016 2015 2016
GBP GBP GBP
Non-current assets
Property, plant and equipment 9 14,461,315 12,455,865 12,827,555
Operating leases 92,979 35,175 87,626
Trade and other receivables 855,895 620,217 694,617
Deferred tax asset 268,460 187,272 231,757
15,678,649 13,298,529 13,841,555
---------------- ---------------- ----------------
Current assets
Inventory 19,976 15,622 19,851
Trade and other receivables 2,708,367 1,997,833 2,334,371
Current asset investments 10 1,755,653 1,889,234 1,522,622
Cash and cash equivalents 13 1,771,745 4,418,838 2,183,225
6,255,741 8,321,527 6,060,069
Assets classified as held
for sale 197,811 171,850 178,112
6,453,552 8,493,377 6,238,181
---------------- ---------------- ----------------
Current liabilities
Trade and other payables (3,033,874) (2,292,295) (2,287,285)
Bank loans and overdrafts 13 (2,067,491) (1,663,368) (2,049,180)
Other loans 13 - (793,787) -
Obligations under finance
leases - (17,181) (1,934)
Provisions (225,000) (225,000) (225,000)
(5,326,365) (4,991,631) (4,563,399)
---------------- ---------------- ----------------
Net current assets 1,127,187 3,501,746 1,674,782
---------------- ---------------- ----------------
Total assets less current
liabilities 16,805,836 16,800,275 15,516,337
Non-current liabilities
Bank loans 13 (3,503,549) (3,652,976) (3,413,624)
Obligations under finance - - -
leases
Deferred tax liabilities (46,013) - (42,190)
Net assets 13,256,274 13,147,299 12,060,523
---------------- ---------------- ----------------
Equity
Called-up share capital 11 833,541 833,541 833,541
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 (915,616) (960,509) (929,955)
Translation reserve 59,535 50,978 54,470
Retained earnings 7,504,591 7,449,574 6,328,290
---------------- ---------------- ----------------
Surplus attributable to
the parent's shareholders 13,255,073 13,146,606 12,059,368
Minority interest 1,201 1,093 1,155
Total equity 13,256,274 13,147,699 12,060,523
---------------- ---------------- ----------------
Consolidated Cash Flow Statement
for the six months ended 30 September 2016
Notes September September March
2016 2015 2016
GBP GBP GBP
Cash flows from operating
activities
Cash generated from operations 12 625,669 30,868 (281,549)
Interest paid (215,185) (239,012) (457,849)
Overseas tax paid (30,380) (17,452) (48,807)
Net cash flow from operating
activities 380,104 (225,596) (788,205)
---------------- --------------- ---------------
Investing activities
Sale of property, plant and
equipment 6,586 11,330 32,304
Purchase of property, plant
and equipment (779,658) (2,194,701) (2,263,358)
Sale of investments 22,186 117,431 809,533
Purchase of investments (21,372) (574,800) (949,787)
Interest received 901 14,103 25,846
Net cash flow from investing
activities (771,357) (2,626,637) (2,345,462)
---------------- --------------- ---------------
Financing activities
Equity dividends paid - - (1,521,551)
Dividend to minority interest - - -
Investment in own shares 12,492 - 32,988
Movement in bank loans (268,823) (625,876) (1,083,462)
Movement in directors' loans 222,155 (15,533) (18,636)
Movement in other loans - 793,787 -
Movement in capital element of
finance leases (1,934) (14,947) (30,194)
Net cash flow from financing
activities (36,110) 137,431 (2,620,855)
---------------- --------------- ---------------
Net (decrease) in cash and
cash equivalents (427,363) (2,714,802) (5,754,522)
Cash and cash equivalents at beginning
of period 134,045 5,321,954 5,321,954
Exchange differences (2,428) 148,318 566,613
Cash and cash equivalents
at end of period 13 (295,746) 2,755,470 134,045
---------------- --------------- ---------------
Reconciliation of net cash flow to movement in net (debt)
in the period
Net (decrease) in cash and
cash equivalents (427,363) (2,714,802) (5,754,522)
Net cashflow from the movement
in debt 270,757 (152,964) 1,113,656
---------------- --------------- ---------------
Movement in net (debt) during
the period (156,606) (2,867,766) (4,640,866)
Net (debt) funds at the beginning
of period (3,281,513) 933,933 933,933
Exchange differences (361,176) 225,359 425,420
Net (debt) at the end of
period 13 (3,799,295) (1,708,474) (3,281,513)
---------------- --------------- ---------------
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2016
Called-up Share Capital Investment Translation Retained Minority Total
share premium redemption in own reserve earnings interest
capital account reserve shares
GBP GBP GBP GBP GBP GBP GBP GBP
At 31 March
2015 833,541 609,690 5,163,332 (960,509) 51,307 9,820,860 1,370 15,519,591
Transactions with owners
recorded directly in equity
Equity
dividends
paid - - - - - (1,521,551) - (1,521,551)
Sale on
investment
in own
shares - - - - - 32,988 - 32,988
Cost of
investment
in own
shares - - - 30,554 - (30,554) - -
Income
statement
(Loss) for
the
financial
period - - - - - (426,314) (344) (426,658)
Items that may be reclassified
to profit and loss
Exchange
differences - - - - 3,163 (1,547,139) 129 (1,543,847)
------------------- ------------------ ---------------------- ---------------------- ------------------------ ------------------- ----------------- -----------------------
At 31 March
2016 833,541 609,690 5,163,332 (929,955) 54,470 6,328,290 1,155 12,060,523
Transactions with owners
recorded directly in equity
Sale on
investment
in own
shares - - - - - 12,492 - 12,492
Cost of
investment
in own
shares - - - 14,439 - (14,439) - -
Income
statement
Profit for
the
financial
period - - - - - 360,816 (59) 360,757
Items that may be reclassified
to profit and loss
Exchange
differences - - - - 5,065 817,332 105 822,502
------------------- ------------------ ---------------------- ---------------------- ------------------------ ------------------- ----------------- -----------------------
At 30
September
2016 833,541 609,690 5,163,332 (915,516) 59,535 7,504,491 1,201 13,256,274
------------------- ------------------ ---------------------- ---------------------- ------------------------ ------------------- ----------------- -----------------------
.
Notes to the Accounts
1. General information
Legal status and country of incorporation
C. H. Bailey plc, company number 190106, is incorporated in England and Wales under the Companies Act 2006.
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 2006. Therefore these financial statements comply with the AIM rules.
The interim financial statements are prepared using the historical cost basis of accounting except for:
-- Properties held at the date of transition to IFRS which are stated at deemed cost; and
-- Assets held for sales which are stated at the lower of fair value less anticipated disposal costs and carrying value.
Going concern
The directors have prepared these financial statements on the fundamental assumption that the group is a going concern and will continue to trade for at least 12 months following the date of approval of the financial statements.
Accounting period
The current period is for the six months ended 30 September 2016 and the comparative period is for the six months ended 30 September 2015.
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.
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 31 March 2016. Control is achieved where the company has the power to govern the financial and operating policies of an investee so as to obtain benefits from its activities.
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.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Business combinations and goodwill
The acquisition of subsidiaries is accounted for using the acquisition method. The assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at their acquisition date except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 which are recognised and measured at fair value less costs to sell. Any excess of the cost over the asset valuation as calculated above is recognised as goodwill.
In accordance with the options that are available under IFRS 1 on transition to IFRS, the group 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. The interest of any minority shareholders in the acquiree is initially measured at the minority's proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.
Investments in associates and 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 as available for sale financial assets which are measured at cost, as the directors consider that fair value cannot be reliably measured, other than impairment losses which are recognised in the income statement. 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 Between 2% and 5% Leasehold buildings Period of the lease Plant and equipment Between 10% and 25%
Annual reviews are made of estimated useful lives and material residual values.
Investment and development property
Properties are externally valued on the basis of fair value at the balance sheet date. Investment property is recorded at valuation whereas trading property is stated at the lower of cost and net realisable value. Any surplus or deficit arising is recognised in investment activities in the income statement.
The cost of properties in the course of development includes attributable interest and other associated outgoings. Interest is calculated on the development expenditure by reference to specific borrowings. Interest is not capitalised where no development activity is taking place. A property ceases to be a development property on practical completion.
Investment property disposals are recognised on completion. Profits and losses are recognised in investment activities in the income statement. The profit on disposal is determined as the difference between the net sale proceeds and the carrying amount of the asset at the commencement of the accounting period plus capital expenditure in the period.
Where investment properties are appropriated to trading stock, they are transferred at market value. If properties held for trading are appropriated to investment, they are transferred at book value.
Lessee accounting
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 next 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 they are immediately available for sale in their current condition and their carrying value will be recovered through a sale transaction on 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 value 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 year 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 year end balance sheet date. The measurement of deferred tax reflects the tax consequences that would follow the manner in which the group expects, at the end of the reporting period, to recover or settle the carrying value of its assets and liabilities. 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 is charged or credited in the income statement except when it relates 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 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 assets are recognised and derecognised on a trade date where the purchase or sale of an asset is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned. Financial assets are classified as "loans and receivables", "held to maturity" investments, "available for sale" investments or "assets at fair value through the profit and loss" depending upon the nature and purpose of the financial asset. The classification is determined at the time of the initial recognition.
Financial assets are normally classified as "loans and receivables" and are initially measured at fair value including transaction costs incurred. The only financial assets currently held at "fair value through profit or loss" are the current asset investments.
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. There are currently no financial liabilities held at "fair value through profit or loss".
Loans and receivables
Trade receivables, loans and other receivables are measured on initial recognition at fair value and, except for short term receivables where the recognition of interest would be immaterial, are subsequently re-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 asset's carrying amount and the present value of estimated future cash flows, calculated based on past default experience, discounted at the effective interest rate computed at initial recognition where material.
Derivative financial instruments and hedge accounting
The group has loans held in US dollars which are disclosed in borrowings and are at fixed rates of 6.25% and 8%. The other group loans and overdrafts are subject to floating interest rates based on LIBOR plus the most competitive margin available. The group's policy is not to hedge its international assets with respect to foreign currency balance sheet translation exposure, nor against foreign currency transactions. The group generally does not enter into any forward exchange contracts and it does not use financial instruments for speculative purposes. The group does not hold any derivative financial instruments or embedded derivative financial instruments at either period end.
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.
Impairment of financial assets
Financial assets, other than those designated as "assets at fair value through the profit and loss" are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, the estimated future cash flows of the investment have been impacted.
Other financial liabilities
Other financial liabilities, including trade payables, are measured on initial recognition at fair value and, except for short term payables where the recognition of interest would be immaterial, are subsequently re-measured at amortised cost using the effective interest 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 profit and loss account 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. Provisions are measured at the directors' best estimate of the expenditure required to settle the obligation at the balance sheet date. Provisions are only discounted to present value where the effect is material.
Net funds
Net funds 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 year end rates. Non monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. The results of overseas subsidiary undertakings, associates and trade investments are translated into pounds sterling at average rates for the year unless exchange rates fluctuate significantly during that year in which case exchange rates at the date of transactions are used.
The closing balance sheets are translated at the year 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 consolidated statement of changes in equity. All other exchange differences are included within the consolidated income statement in the year. In accordance with IFRS 1, the translation reserve has been set to zero at the date of transition to IFRS.
Operating profit
Operating profit is defined as the profit for the year from continuing operations after all operating costs and income but before finance income, finance costs, and taxation. Operating profit is disclosed as a separate line on the face of the income statement.
Normalised operating profit is the same as the above but excludes non-recurring items, for example profit on the sale of property. Normalised operating profit is reconciled to operating profit on the face of the income statement.
Other gains and losses
Other gains and losses are material items that arise from unusual non-recurring events. They are disclosed separately, in aggregate, on the face of the income statement after operating profit where, in the opinion of the directors, such disclosure is necessary in order to fairly present the results for the financial period.
Finance costs
Finance costs are recognised in the income statement on the accruals basis in the year in which they are incurred.
3. Use of critical accounting assumptions and estimates
Estimates and judgements are continually evaluated and assessed based on historical experience and other factors, including expectations of future events that are believed to be reasonable given the circumstances prevailing when the accounts are approved.
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The directors are not aware of any estimates and assumptions that have significant risk of causing a material adjustment to the carrying value of assets and liabilities.
4. Segmental information
Revenue Operating Depreciation EBITDA Net assets
continuing profit (loss) and loss
operations continuing (profit)
operations on sale
of plant
and equipment
GBP GBP GBP GBP GBP
Classes of
business
Engineering:
September
2016 730,468 40,043 39,000 79,043 233,063
September
2015 781,372 17,104 39,000 56,104 251,905
March 2016 1,425,101 (36,813) 76,912 40,099 183,086
Tourism and
serviced
units:
September
2016 2,189,324 367,718 473,430 841,148 6,312,883
September
2015 1,614,069 203,988 402,529 606,517 5,937,012
March 2016 3,680,110 642,507 818,309 1,460,816 5,219,364
Investment
and
development
property:
September
2016 3,964 (88,289) 11,249 (77,040) 4,025,896
September - - - - -
2015
March 2016 - 126,137 17,705 143,842 3,799,978
Management:
September
2016 - 257,438 - 257,438 2,684,432
September
2015 - (714,615) 70 (714,545) 6,958,782
March 2016 - (698,371) 140 (698,231) 2,858,095
Total:
September
2016 2,923,756 576,910 523,679 1,100,589 13,256,274
September
2015 2,395,441 (493,523) 441,599 (51,924) 13,147,699
March 2016 5,105,211 33,460 913,066 946,526 12,060,523
Geographical
segments
United
Kingdom:
September
2016 774,970 16,814 39,000 55,814 827,884
September
2015 840,731 (135,605) 39,070 (96,535) 1,984,024
March 2016 1,515,725 (468,844) 77,052 (391,792) 530,105
Africa:
September
2016 2,144,822 112,932 473,430 586,362 6,048,740
September
2015 1,554,710 27,767 394,309 422,076 3,719,519
March 2016 3,589,486 276,840 818,309 1,095,149 5,107,786
Malta and
Rest of the
World:
September
2016 3,964 447,164 11,249 458,413 6,379,650
September
2015 - (385,685) 8,220 (377,465) 7,444,156
March 2016 - 225,464 17,705 243,169 6,422,632
Total:
September
2016 2,923,756 576,910 523,679 1,100,589 13,256,274
September
2015 2,395,441 (493,523) 441,599 (51,924) 13,147,699
March 2016 5,105,211 33,460 913,066 946,526 12,060,523
5. Investment activities and other income
September September March
2016 2015 2016
GBP GBP GBP
Income from current asset
investments 78,195 72,459 91,907
Profit (loss) on sale of
current asset investments 20,733 (9,497) (37,098)
(Increase) in provision on
current asset investments (12,135) (32,735) (32,735)
Net foreign exchange gain
(loss) 327,589 (248,755) 6,509
Current assets investment
valuation movement 225,248 (142,060) (163,956)
Investment and development
property valuation movement - - 351,580
639,630 (360,588) 216,207
---------------- ---------------- ----------------
6. Finance income
September September March
2016 2015 2016
GBP GBP GBP
Bank deposits 901 14,103 25,846
----------------- --------------- ---------------
7. Finance costs
September September March
2016 2015 2016
GBP GBP GBP
Bank loans 214,553 234,473 448,980
Finance leases 632 4,539 8,869
215,185 239,012 457,849
------------------ ----------------- -----------------
8. Earnings (loss) per share
The earnings per share has been calculated by reference to the weighted average number of ordinary shares of 10p each in issue of 7,631438 (September 2015: 7,607,755) (March 2016: 7,609,083) which excludes own shares held. The share options in issue have no dilutive effect on the weighted average number of ordinary shares.
9. Property, plant and equipment
Freehold Leasehold Plant and Investment Total
land and land and equipment and development
buildings buildings property
under 50
years
GBP GBP GBP GBP GBP
Cost
At 1 April
2016 2,265,823 9,794,062 3,564,617 2,098,769 17,723,271
Exchange
differences 283,907 1,002,328 325,203 190,161 1,801,599
Additions 49,820 553,893 52,907 123,038 779,658
Disposals - ( 2,463) ( 5,037) - ( 7,500)
At 30
September
2016 2,599,550 11,347,820 3,937,690 2,411,968 20,297,028
--------------------- ---------------------- ---------------------- ----------------------- -------------------
Depreciation
At 1 April
2016 31,955 2,712,244 - 2,151,517 4,895,716
Exchange
differences 3,481 221,429 - 192,322 417,232
Charge for
year 13,738 256,972 - 252,361 523,071
Disposals - - - ( 306) ( 306)
At 1 April
2016 49,174 3,190,645 - 2,595,894 5,835,713
--------------------- ---------------------- ---------------------- ----------------------- -------------------
Carrying
value
September
2016 2,550,376 8,157,175 3,937,690 (183,926) 14,461,315
March 2016 2,233,868 7,081,818 3,564,617 (52,748) 12,827,555
10. Current asset investments
September September March
2016 2015 2016
GBP GBP GBP
Listed investments 1,749,653 1,862,098 1,504,486
Unlisted investments 6,000 27,136 18,136
---------- ---------- ----------
1,755,653 1,889,234 1,522,622
---------- ---------- ----------
Investments are carried at fair value at the balance sheet date.
11. Called-up share capital
September September March
2016 2015 2016
GBP GBP GBP
Issued and fully paid:
8,335,413 ordinary shares
of 10p each 833,541 833,541 833,541
---------- ---------- --------
The company retains as treasury shares 693,648 ordinary shares of 10 pence at a cost of GBP915,616. The company did not buy back any shares for cancellation during the year. The company has one class of ordinary shares, which carry no right to fixed income.
12. Cash generated from operations
September September March
2016 2015 2016
GBP GBP GBP
Operating profit (loss) continuing
operations 576,910 (493,523) 33,460
Depreciation 523,071 440,767 918,920
Loss (profit) on the sale of
property, plant and equipment 608 832 (5,854)
(Profit) loss on sale of current
asset investments (20,733) 9,497 37,098
Fair value movement of investments (225,248) 142,060 (187,624)
Provision on current asset investments 12,135 32,735 32,735
Exchange differences (234,447) 106,860 (433,966)
------------------ ------------------ -----------------
Cash generated from operations
before movements in working capital 632,296 239,228 394,769
Operating leases 4,338 (3,137) (54,421)
(Increase) decrease in inventories (125) (1,904) (6,133)
(Increase) in trade and other
receivables (535,274) (195,751) (606,289)
Increase (decrease) in trade
and other payables 524,434 (7,568) (9,475)
Cash generated from operations 625,669 30,868 (281,549)
------------------ ------------------ -----------------
13. Analysis of net funds (debt)
September September March
2016 2015 2016
GBP GBP GBP
Cash and cash equivalents 1,771,745 4,418,838 2,183,225
Bank loans and overdrafts (2,067,491) (1,663,368) (2,049,180)
------------ ------------ -------------
(295,746) 2,755,470 134,045
Bank loans - non-current (3,503,549) (3,652,976) (3,413,624)
Obligations under finance leases - (17,181) (1,934)
Other loans - (793,787) -
Net (debt) funds (3,799,295) (1,708,474) (3,281,513)
------------ ------------ -------------
14. Significant investment in subsidiaries
Percentage Principle activities
of ordinary
share capital
held
Industrial:
Bailey Industrial Engineering Engineering
Limited (UK) 100%
Leisure:
Bay Travel Limited (UK) 100% Travel agency
Industrial Investment Corporation 100% Operation of
SA Property (Proprietary) Limited hotel
(South Africa)
St. George's Bay Hotel Limited 99% Operation of
(Malta) hotel
Leonardo Da Vinci Knowledge Tourism Property development
Ltd (Malta) 99%
IIC (Malta) Ltd (Malta) 100% Property development
Cordura Limited (Tanzania) 100% Operation of hotel
and safari camps
Kimbiji Bay Limited (Tanzania) 100% Property development
Other activities:
Industrial Investment Corporation 100% Holding company
Limited (Bermuda)
Kimbiji Bay Limited (Malta) 100% Holding company
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKKDNABDDOBB
(END) Dow Jones Newswires
December 21, 2016 02:00 ET (07:00 GMT)
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