Poole Investments Share Discussion Threads

[zinco1] 29/8/2006 16:03

RNS Number:1989I
Poole Investments PLC
29 August 2006

Poole Investments plc ("the Company")

The Company was advised on 29 August 2006 that Mr. Peter O'Reilly holds
26,465,000 ordinary shares of 5p each in the ordinary share capital representing
14.31% of the issued ordinary share capital of the Company.

For further information please contact:-

Kevin Wilson Zeus Capital Tel: [phone]

[fhmktg] 29/8/2006 15:51

Mr Booths number is 07973 820492, if anybody wants to see what he has to say.
Nothing for a further year?
But at least the valuation is up top £6.5 million, which is conservative IMHO, until planning permission is given.(3.7p per share, not counting debts)

[zinco1] 29/8/2006 15:26

Final Results

RNS Number:1940I
Poole Investments PLC
29 August 2006

POOLE INVESTMENTS PLC

Chairman's Statement

Results for the year ended 31 May 2006

Operational results

The results for the year show operating profit of #260,000 (2005:#262,000).
Interest and similar costs increased as, under the banking facility
arrangements, deferment of loan repayments cost #40,000. This was a doubling of
cost compared to last year as there were four quarterly deferments required
instead of two last year. Expenditure on work relating to the proposed planning
applications was minimal whilst clarification was sought on the precise type of
application to be sought, as explained below under Strategy. The loss for the
year after interest was #22,000 (2005: profit #1,000).

Our accounting policy, as set out in the Notes to the Accounts, states that
Investment Properties are accounted for in accordance with SSAP 19 such that
Investment Properties are revalued annually. The surplus or deficit on
revaluation is transferred to the revaluation reserve, and no depreciation is
provided for. The Directors consulted with their advisers and were informed that
the market value of the Investment Property has increased since the last
valuation undertaken. Accordingly the directors requested a market valuation of
the Investment Property for accounting purposes and an increase in value of
#1,750,000 has been made to book value, as described in note 9.

Strategy

The Company's asset is a 9.5 acre plot of land in Hamworthy which provides
rental income. This land forms part of the area within the Poole "Full Sail
Ahead" regeneration scheme. The Borough of Poole submitted a Transport and Works
Act and Town and Country Planning Act Planning application seeking an Order to
permit the building of the "Twin Sails Bridge" and regenerate Hamworthy. An
Inspector was appointed to conduct an enquiry and consider this in autumn 2005.

Since the end of the last financial year work has been initiated with regard to
the proposed planning application for the site. Work was undertaken on
Environmental and Transport scoping reports to ascertain requirements in these
aspects within a planning application. During the second half of the financial
year, consultations were held with consultants acting on behalf of Poole Council
to consider the commercial viability of any application with regard to the type
of development undertaken (residential, commercial and affordable housing), to
the allocation between the landowners and to the infrastructure costs in
connection with the regeneration of Hamworthy. In August 2006 the Secretary of
State for Transport, after consideration of the Report of the Inspector
appointed to conduct the enquiry into the Borough of Poole's application,
decided to make an Order, with modifications, and to direct that planning
permission with regard to the development within the Poole Harbour Opening
Bridges Order, be deemed to be granted subject to certain conditions. The
decision of the Secretary of State can be seen on the Department of Transport
web site (www.dft.gov.uk) which also sets out the timescale for any challenge to
the Order.

Following the granting of this Order, further meetings can now be held with the
Council to agree the outline of any planning application that the Company may
decide to submit.

The Board from time to time has received enquiries from parties expressing an
interest either in purchase of the Investment Property or in these parties
assisting in the planning process. To date none of these have merited pursuing
beyond an initial consideration of the interest but the directors will continue,
with its advisers, to evaluate any such interest so as to maximize shareholder
value.


H A Palmer
Chairman 29 August 2006



Consolidated Profit and Loss Account
for the year ended 31 May 2006

12 months ended 12 months ended
31 May 2006 31 May 2005
Total Total

Notes #'000 #'000
Turnover
Rental income 2 335 337
2 335 337
External charges (75) (75)
Operating profit/(loss): 2 260 262
Interest payable and similar charges 5 (282) (261)
(Loss)/profit on ordinary activities before taxation 2&3 (22) 1
Taxation 6 - -
(Loss)/profit transferred to reserves 17 (22) 1
(Loss)/earnings per ordinary share
- basic and diluted 8 (0.01)p 0.00p



A statement of movements on reserves is set out in Note 17.



Note of Historical Cost Profits and Losses
for the year ended 31 May 2006

12 months ended 12 months ended
31 May 2006 31 May 2005
#'000 #'000
Reported (loss)/profit on ordinary activities before taxation (22) 1

Historical cost (loss)/profit on ordinary activities before taxation (22) 1
Historical cost (loss)/profit on ordinary activities after taxation (22) 1
and dividends



Consolidated Statement of Total Recognised Gains and Losses
for the year ended 31 May 2006

12 months ended 12 months ended
31 May 2006 31 May 2005
#'000 #'000
(Loss)/profit for the financial year (22) 1
Revaluation of Investment Property 1,750 -

Total recognised gains and losses relating to the year 1,728 1


Reconciliation of Group Shareholders' Funds
for the year ended 31 May 2006

12 months ended 12 months ended
31 May 2006 31 May 2005
#'000 #'000
Total recognised gains and losses 1,728 1
Opening shareholder's funds 1,704 1,703
Shareholders' funds at 31 May 3,432 1,704



Balance Sheets
as at 31 May 2006
Group Company

31 May 31 May 31 May 31 May
2006 2005 2006 2005
Notes #'000 #'000 #'000 #'000
Fixed assets:
Tangible assets 9 6,500 4,750 6,500 4,750
Investments 10 - - - -
6,500 4,750 6,500 4,750
Current assets:
Debtors 11 20 20 20 20
Cash at bank and in hand 15 17 15 17

Short term deposits 145 153 145 153
180 190 180 190

Creditors:
Amounts falling due within one year 12 (405) (392) (405) (392)
Net current liabilities

(225) (202) (225) (202)
Total assets less current liabilities

6,275 4,548 6,275 4,548
Creditors:
Amounts falling due after more than one year 13 (2,843) (2,844) (2,843) (2,844)
Net assets

2 3,432 1,704 3,342 1,704

Capital and reserves:
Called up share capital 16 9,247 9,247 9,247 9,247
Special reserve 17 13,130 13,130 13,130 13,130
Revaluation reserve 17 5,540 3,790 1,750 -
Profit and loss account 17 (24,485) (24,463) (20,695) (20,673)
Equity shareholders' funds 3,432 1,704 3,432 1,704



Consolidated Cash Flow Statement
for the year ended 31 May 2006

Year ended Year ended
31 May 2006 31 May 2005
#'000 #'000
Cash inflow from operating activities (Note 18) 245 141

Returns on investment and servicing of finance:
Interest paid (255) (236)
Net cash outflow from returns on investments and servicing of finance (255) (236)

Cash (outflow) before management of liquid resources and financing (10) (95)

Management of liquid resources:

Decrease/(increase) in short term deposits 8 (154)
Net cash inflow/(outflow) from management of liquid resources 8 (154)
Decrease in cash (Note 18) (2) (249)



Notes to the Accounts
for the year ended 31 May 2006


1 Accounting policies

The principal accounting policies that have been adopted in the preparation of
the consolidated accounts of Poole Investments plc are given below.

Basis of accounting

The financial statements are prepared under the historical cost convention
modified to include the revaluation of freehold land and buildings. The
financial statements are prepared in accordance with applicable United Kingdom
accounting standards. The true and fair override provisions of the Companies
Act 1985 have been invoked, see 'Investment Property' below.

Going Concern

Having made enquiries including consideration of cash flow forecast and
availability of funds, the Directors have a reasonable expectation that the
company has adequate resources to continue in operational existence for a period
of not less than twelve months from the date of approval of the financial
statements. For this reason, they continue to adopt the going concern basis in
preparing the financial statements.

Basis of consolidation

The consolidated financial information includes the Company and all its
subsidiary undertakings. The results of subsidiary undertakings acquired or
disposed of are included in the consolidated profit and loss account from the
date of their acquisition or up to the date of their disposal. The purchase
consideration of subsidiary undertakings has been allocated to each class of
asset on the basis of fair value at the date of acquisition with goodwill being
the difference between the purchase consideration and the fair value of the net
separable assets.

No profit and loss account is presented for the Company as provided by Section
230 of the Companies Act 1985.

Investment Property

The Group's property at 31 May 2006 and 31 May 2005 is held for long-term
investment. Investment Property is accounted for in accordance with SSAP 19 and
is revalued annually. The surplus or deficit on revaluation is transferred to
the revaluation reserve unless a deficit below original cost, or its reversal,
on the Investment Property is expected to be permanent, in which case it is
recognised in the Profit and Loss account for the year.

Although the Companies Act would normally require the systematic annual
depreciation of fixed assets, the Directors believe that the policy of not
providing depreciation is necessary in order for the financial statements to
give a true and fair view, since the current value of investment properties, and
changes to that current value, are of prime importance rather than a calculation
of systematic annual depreciation. Depreciation is only one of the many factors
reflected in the annual valuation, and the amount which might otherwise have
been included cannot be separately identified or quantified.

Turnover

Turnover for the year represents gross rents receivable from investment
property. Operating lease income is spread over the lease term on a straight
line basis.

Deferred taxation

Deferred taxation is provided on all timing differences that have originated but
not reversed by the balance sheet date, calculated at the rate at which it is
anticipated the timing differences will reverse based on tax rates and laws
enacted or substantively enacted at the balance sheet date. This is subject to
deferred taxation assets only being recognised if it is considered more likely
than not that there will be suitable profits from which the future reversal of
the underlying timing differences can be deducted. Deferred taxation is not
provided on timing differences arising from the revaluation of fixed assets
where there is no commitment to sell the asset. Deferred tax assets and
liabilities are not discounted.

Notes to the Accounts
for the year ended 31 May 2006

2 Segmental information

The analysis of turnover by business group and geographical area and of profit
or loss before taxation and net assets by business group is set out below:

(a) Analysis of turnover by destination

All turnover, including prior year, comprises rental income derived in the UK.

(b) Profit/(loss) before tax by business group

12 months ended 12 months ended
31 May 2006 31 May 2005
#'000 #'000
Property investment 260 262
260 262
Finance costs (282) (261)
Profit/(loss) before taxation (22) 1



All operating costs, including those of prior year, are derived in the UK.



(c) Net assets (all UK) by business group




12 months ended 12 months ended
31 May 2006 31 May 2005
#'000 #'000
Investment Property 6,500 4,750
Tax and other corporate items (75) (92)
Net debt (2,993) (2,954)
Net assets 3,432 1,704


All net assets, including those of prior year, are based in the UK.



3 Loss on ordinary activities before taxation


This is stated after charging: 12 months ended 12 months ended
31 May 2006 31 May 2005
#'000 #'000
Auditors' remuneration (all in respect of the Company) 8 8



4 Staff costs and Directors' remuneration

Average number of employees was nil (2005: nil). This excludes the Directors of
the Company.



Directors' remuneration

12 months 12 months
ended ended
31 May 2006 31 May 2005
Executive Total Total
# #
D J Booth 15,000 15,000
Non-executive
H A (Tony) Palmer - -
D Cicurel - -
15,000 15,000



Payments made to D J Booth relate to the provision of consultancy services
within areas of his individual expertise. As set out in note 19, H A (Tony)
Palmer and D Cicurel have agreed that Directors fees will not be due until sale
of the Company's Investment Property or an offer for the share capital of the
Company is received and recommended. No provision for this cost has been made.



5 Interest cost and similar charges


12 months 12 months
ended ended
31 May 2006 31 May 2005
#'000 #'000
Interest on bank loan 214 216
Cost of deferring loan repayment 40 20
Interest on other loans 28 25
Total Interest payable and similar charges 282 261



6 Tax on ordinary activities


a) Analysis of tax 2006 2005
#'000 #'000
Current tax - -
Deferred tax - -
Tax on profit/loss on ordinary activities - -


b) Analysis of difference between tax credit at standard rate and current 2006 2005
year tax
#'000 #'000
(Loss)/profit on ordinary activities (22) 1
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of (7)
30% -
Expenses not deductible for tax purposes 1
-
Increase in tax losses carried forward 6 -
Tax on profit/(loss) on ordinary activities - -


c) Factors that may affect future tax charges

Tax losses carried forward within the Group and Company, relating to the costs
of managing the Group's investments are #272,000 (2005: #253,000). These are
trading losses, and are distinct from the capital losses of the group and
Company. No deferred tax asset has been recognised on these losses given the
minimal level of the losses and some uncertainty of timing of future profits.
The unrecognised asset may be recoverable in future periods in the event that an
appropriate surplus arises against which the tax loss can be offset. The Group
and Company have not recognised a deferred tax asset in respect of agreed
capital losses of approximately #22.5m (2005:#23m) in existence at the period
end as no chargeable gains are forecast to arise in the immediate future. The
decrease is due to the deferred tax impact of the revaluation of the Investment
Property.

7 Loss attributable to members of the parent Company

As permitted by Section 230 of the Companies Act 1985, the Company's profit and
loss account has not been included in the accounts.

The loss dealt with in the accounts of the parent Company was #22,000 (2005:
profit of #1,000).


8 Earnings/(loss) per ordinary share


The earnings per share figures are based on the result after taxation for the respective periods divided by
the weighted average number of shares in issue as follows:
2006 2005
Pence Pence
(Loss)/earnings per share (0.01) 0.00
#'000 #'000
The calculation of (loss)/earnings per share is based on:
(Loss)/profit on ordinary activities after taxation (22) 1
Weighted average number of shares used in basic earnings per share:
Thousands Thousands
Weighted average for the year 184,949 184,949


There are no outstanding share options and no dilutive shares.


9 Tangible fixed assets


Group and Company Freehold Investment
Property
#'000
As at 1 June 2005, valuation and net book value: 4,750
Revaluation of Investment Property 1,750
As at 31 May 2006, valuation and net book value: 6,500



All freehold property is stated at valuation.



The valuation of the Investment Property as at 31 May 2006 was performed by
Edward Symmons & Partners in August 2006 in accordance with the Appraisal and
Valuation Manual of The Royal Institution of Chartered Surveyors. Investment
Property continues to be held by the Group for long-term investment.
Accordingly, the property is recorded as an Investment Property and is valued on
an open market basis. The Investment Property is not depreciated.

The historical cost of Investment Properties at 31 March 2006 is #1,169,000
(2005: #1,169,000), and the net book value on the historical cost basis at 31
March 2006 is #960,000 (2005: #960,000).

10 Fixed asset investments

At 31 May 2005, the Company holds the entire share capital of Hamworthy
Investments Limited which is registered in England and Wales and has been
dormant since incorporation. Gross and net book value of this investment is #2.

11 Debtors: Amounts falling due within one year


Group and Company
31 May 2006 31 May 2005
#'000 #'000
Other debtors 20 20
20 20



12 Creditors: Amounts falling due within one year


Group and Company
31 May 2006 31 May 2005
#'000 #'000
Bank loans (Note 13) 310 281
Trade creditors 15 20
Deferred income 23 23
Other creditors and accruals 57 68
405 392



13 Creditors: Amounts falling due after more than one year.


Group and Company
31 May 2006 31 May 2005
#'000 #'000
Bank loan 2,540 2,569
Other loan 303 275
2,843 2,844


The bank loan is payable as follows:
Group and Company
31 May 2006 31 May 2005
#'000 #'000
Within one year 310 281
Between one and two years 372 336
Between two and five years 2,168 2,233
2,850 2,850
Less included within amounts due within one year (310) (281)
2,540 2,569




The Company has granted a fixed and floating charge over all assets to secure
the bank loans. The other loan is secured against the Investment Property and
is repayable in a single payment on the date on which the company disposes for
value to a third party the whole or part of its Investment Property. The other
loan bears interest at the higher of 10% or 5% above the bank's base lending
rate.

14 Derivatives and other financial instruments

The Group's strategy is to minimise its exposure to interest rate

[fhmktg] 29/8/2006 14:43

Davod Booth is usually chatty if you want to contact him - via the website, he will send you his mobile number

[brendog] 29/8/2006 12:07

Hi guys - I think it is time the PIV management told us exactly what their thinking is. Has any other shareholders had direct communications with the company ?

[sydney4] 26/8/2006 00:13

I dont have a recent co report but i notice from an old one the a non exec called Palmer was also a non exec of Berkeley Group This site will be developed care of a consortium / land assembly situation and will no doubt be a mixed use scheme with as much residential as they can get. PIV have 9.5 acres I gather. All right up Berkeleys street !

[steelwatch] 23/8/2006 14:21

Yes, and the site is also bounded by houses along Blandford and Ivor Roads with the demolished power station to the North. As you can see, it's fairly well hidden unless you knew it was there.

[fhmktg] 23/8/2006 13:59

What a wonderfull piece of kit that Google Earth is!

Tasty looking piece of real estate! Is that the timber yard by the side of the A350?

[steelwatch] 23/8/2006 09:37

Just been viewing the site on (requires WindowsXp)

Very clear! As previously mentioned, the satellite image is probably several years old, but I doubt anything much has changed.

[steelwatch] 21/8/2006 23:48

Arthur_Lame_Stocks - thanks for that. My assumption as to the relative sizes of the tile works and timber yard seems to be back to front! Mainly due to most of the tile works being concealed behind the timber yard and older closely packed housing along the main road to the south. Presumably, the small water frontage was used to bring sand and cement or clay for the tile works which would not have been obvious when seen from the old bridge just out of view on the plan north/east of the roundabout. Also, north of the tile works is the old power station site.

The broken red lines seem to indicate proposed roads from the new twin sails bridge which will land on the top right hand side of the power station site although the new bridge itself is just off plan right.

Does anyone here live in or near the town? If so, maybe they could go to the LA planning offices and enquire if any planning applications have been submitted? Also, the existing housing stock - certainly pre-war if not late Victorian artisan housing from memory - along the main road to the south of the site - is that up for redevelopment at the same time? Also, the road to the west of the tile works (cul-de-sac) - I don't recall this, but imagine it is older style housing similar to that I recall along the main east/west road coloured lilac.

[arthur_lame_stocks] 21/8/2006 20:29

steelwatch

The following link might give you a better idea of the layout of the various sites.



Our site is the one with "Lower Hamworthy" in the left hand corner. As you can see there is a small water frontage.

I don´t think any plans have been submitted for the site but the council want to develop the whole area as an "urban village" which means a mixture of housing, retail and there are also plans for an hotel or two I believe.

The land was independently valued a few years ago at between 7.5 and 14m pounds depending on what went on there with one possible use that could result in a much higher value apparantly.

I hope we don´t have to wait 7 years to sell the land. What´s the point? PIV are not developers. Alll we want is to sell the land for the best price and move on. How much more value can be added in 7 years? Hopefully we´ll find out soon in the results although useful communication from the management is about as rare as a panda´s orgasm.

[kervanda] 21/8/2006 20:20

doesnt get better than this:

[steelwatch] 21/8/2006 19:29

fhmktg - from memory, having visited the area a few years ago, the Sydenhams timber yard is probably the larger of the two and I'm vaguely thinking that the Pilkington's site doesn't have any water frontage. Sydenhams would probably have backed onto Pilkingtons and the timber yard had it's own quay with small coastal freighters delivering timber. (They had to be small enough to negotiate the old lifting bridge). Before any guestimates can be made, we need more specifics as to PIV's land proposals. A plan would be useful - anyone got an on-line link? Maybe GoogleEarth will give a bird's eye view of the existing layout (5/7 years out of date approximately based on my own property - last but one car clearly visible on the drive).

[fhmktg] 21/8/2006 19:10

Steelwatch,
Pasted the following from an earlier message - taken from the Council's planning documents -care to have a guess on the valuation?

CA7 LAND OCCUPIED BY PILKINGTON TILES AND SYDENHAM TIMBER YARD

ON LAND OCCUPIED BY PILKINGTON TILES AND SYDENHAMS TIMBER YARD SHOWN ON THE PROPOSALS MAP, PLANNING PERMISSION WILL BE GRANTED FOR THE FOLLOWING MIX AND INDICATIVE QUANTITY OF USES:

i) RESIDENTIAL (A MINIMUM OF 330 UNITS);

ii) B1 OFFICES;

iii) HOTEL IN THE NORTH EAST CORNER OF THE SITE;

iv) SMALL SCALE A1/A3 AND D2 LEISURE; AND

v) ACCOMMODATION FOR THE POOLE ROWING CLUB

PROVIDED

i) THERE IS A VARIETY OF BUILDING HEIGHT, SCALE AND FORM THAT RESPONDS TO THE URBAN LOCATION;

ii) A CONTINUOUS NEW QUAYSIDE AND NEW SOFT LANDSCAPED AREA IS CREATED WITH SIMPLE AND DIRECT LINKS TO THE NEW BRIDGE APPROACH, TO THE PROPOSED LINK ROAD TO THE PORT AND TO CONNECT WITH THE EXISTING POOLE BRIDGE AND BRIDGE APPROACH;

iii) ACTIVE USES AT GROUND FLOOR LEVEL ARE LOCATED ON KEY ROUTES AND ONTO PUBLIC SPACE AND FOCAL POINTS;

iv) PROPOSALS CONTRIBUTE TOWARDS THE TRANSPORTATION NETWORK REQUIRED FOR THE POOLE BRIDGE REGENERATION INITIATIVE; AND

v) PROPOSALS CONTRIBUTE TO COMPREHENSIVE FLOOD DEFENCE MEASURES

[steelwatch] 21/8/2006 18:42

hybrasil - as you probably realise, I'm watching, but having difficulty getting a handle on this from afar. I think any value could be unlocked much earlier than 5 years. The fact that the bridge is going to be built must enhance potential land values in the redevelopment area. The question is, what will the land here be used for? If the LA decide it should be landscaped and made into a puplic open space, kite flying area or velodrome or somesuch, or social housing, clearly the potential value is restricted.

However, if it is earmarked for upmarket luxury housing or apartments, then the potential will be sufficient to move share price up.

For starters. lets' say:
9 acres @ density of 15/acre @ £50k per plot = 6.75million against the current mc of 5.32m.

Now we need some alternative projections with background intelligence to adjust these figures.

[hybrasil] 21/8/2006 17:30

Their report will be of no significance unless the chairman gets excited about the bridge.
The fun comes here not in 2006, not in 2009, when the bridge will be built and operational but in 2011 to 2013 when the land is built on. Hopefully the company can get it to that stage. I look forward to lookin back at this posting in 5 years time. I have been posting on AFN boards for over 5 years - hopefully I can make anbother 5!

[fhmktg] 21/8/2006 09:17

All quiet on the Poole front - any idea when PIV will put out their report?

[arthur_lame_stocks] 16/8/2006 15:01

Oh well, the response to the good news on the bridge front has been not just muted but negative. The only trading appear to be selling. Perhaps the price will go even lower from here.

I hope we get some news from the company soon.

[steelwatch] 15/8/2006 18:35

The only problem I can see with that line of thinking is

- would the rental income over time cover costs

- what state is the building in and is it fully let etc.

If feasible, then yes, because the land should appreciate, but:

- might it then become subject to a compulsory purchase to fit in with the redevelopment of the whole brownfield site if the local authority intervenes?

- Any ideas as to the current status of the land within development proposals - residential/commercial/leisure and what current valuations would to for the 9 acres?

If sold, would PIV be wound up and capital distributed, or, would the capital retained within the resultant cash shell awaiting the company to reinvent itself in some other sphere of operations?

Hopefully, in light of the new bridge being approved, the chairman will enlighten us in his Annual statement or at the AGM.

[fhmktg] 15/8/2006 15:53

What's your thinking hybrasil?

[hybrasil] 15/8/2006 10:39

I sincerely hope they dont sell the land. This is a share for the very long haul and should over a long time frame produce good returns.

[arthur_lame_stocks] 14/8/2006 11:04

fairly muted reponse to the news. The finals were out at about this time last year. Perhaps we´ll get some news from the company soo. It would be nice they promised to sell the land two years ago.

[andy] 12/8/2006 12:34

Gentlemen,

It has to be a lifting bridge to allow ships through to the other side of the harbour, so a fixed one is out of the question IMO.

If they were to build a fixed bridge, that would put certain parts of the harbour off limits to larger boats, and presumably there would have to be a public enquiry. and various ancient ru=ights of way would have to be changed, it would take years I would think.