We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Wallgate | LSE:WGT | London | Ordinary Share | GB00B29Q2280 | ORD 0.075P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.625 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:3667N Wigmore Group (The) PLC 09 June 2005 The Wigmore Group Plc (The "Company") Final Results The Wigmore Group plc, contractors to the hotel and leisure industries, today announces its preliminary results for the year ended 31 December 2004 along with a business review and appointments to the board which become effective from today. * The Group made a pre tax loss of #6.79m (2003: loss of #0.36m) after exceptional costs of #4.43m (2003: #nil) * Loss per share 0.75p (2003: loss 0.26p) * New experienced board appointed * Andrew Latham appointed as Chief Executive. * Keith Lees FCA, appointed as Finance Director * Business reorganised around Speymill's core hotel and leisure markets * Central overheads reduced * Current order prospects at over #30m * New property management division formed to take advantage of Real Estate Investment Trust (REIT) legislation. * Proposal to rename the Company "Speymill Group plc" * Proposed share structure rationalisation with a 1-for-100 share consolidation Chairman Paul Doona said today: "The figures reflect an appalling year for the Group and root and branch restructuring has been necessary since the financial rescue by our majority shareholder Burnbrae. I am, however, confident that the Group is now on a firm financial footing and that the long tried patience of our shareholders will ultimately be rewarded." For further information please contact: Paul Doona Executive Chairman 01624 698131 Tim Blackstone Britton Financial PR 0207 251 2544 Jonathan Naess Nabarro Wells & Co Ltd 0207 710 7400 Chairman's Statement Introduction The year to December 2004 was a very poor one for the Group resulting in a loss after tax of #6.71m (2003: loss #0.36m) which comprised pre-exceptional losses of #2.28m (2003: loss #0.36m) and exceptional costs of #4.43m (2003: #nil). I was appointed as your Chairman in November 2004 and in my first statement to you, I am pleased to have the opportunity to describe significant changes in the financing, management, core business and, most importantly, the prospects of your Company. Radical changes, made in the second half of 2004 and since the year-end, have put the Company on the right track towards health and profitability, and far removed from its parlous state last year. Board and Management First of all I am pleased to introduce a new board to you: Andrew Latham, your new Chief Executive, has most recently served as interim Managing Director of Speymill Contracts Limited during the start of the reconstruction of the Group and has significant experience in the hotel and leisure industries. Keith Lees, the new Finance Director, has 25 years' experience in industry, including considerable involvement in contracting companies. I also welcome to the Company four Non-Executive Directors, each of whom brings a wealth of relevant experience. These are: Sir James Mellon KCMG, who after a distinguished career as a diplomat has valuable experience of the sector in which we operate, most notably as former Executive Chairman of Thamesmead Urban Development Corporation and as former Chairman of the housing agency, Scottish Homes; Denham Eke, Managing Director of Burnbrae Group Ltd ("Burnbrae"), your Company's largest shareholder, which has considerable property interests; Ilyas Khan, the Managing Director of Crosby Capital Partners, the AIM-listed investment banking and asset management company; and Anthony Baillieu, Chairman of Regent Pacific Group, the Hong Kong-listed asset management group. The team beneath main board level has also been re-shaped and strengthened and the benefits of these changes are already being felt. Overview and strategy The Company's survival during 2004 and the early months of 2005 depended on significant additional finances, mostly provided through Burnbrae, which is a private investment company whose portfolio includes an expanding brand, Sleepwell Hotels. Not only is Burnbrae the majority shareholder in your Company but, as a major client in the hotel and leisure construction and refurbishment sector, it intends to provide a stream of opportunities to the Group as it pursues its own expansion plans in the UK and the Isle of Man, where it is based. The hotel and leisure sector has always been the specialist focus of Speymill Contracts, and is now the core of the Group's business. Accordingly, your board proposes to rename the Company Speymill Group plc. A resolution to that effect will be tabled at the forthcoming AGM. Along with Burnbrae I am delighted to also welcome a number of other new shareholders. Your board is determined to ensure that there is a rewarding future for all its shareholders, old and new. We were also supported throughout the period by our bankers, Bank of Scotland. Your board is most appreciative of the confidence demonstrated by the bank in the Company and is also encouraged by the constructive way in which our recovery plans have been received. Other parts of an all-embracing recovery programme have included rationalising costs by closing the Crawley offices and the consolidation of all of the Group's activities at Speymill Contracts' premises in Huntingdon. To improve the focus on core activities in the hotel and leisure sector, we also recently announced the disposal of D.F. Blanchard (Salisbury) Ltd ("Blanchard's"), which incorporated the business of First National Property Maintenance ("FNPM"). We also plan to amend the share structure and will propose a resolution at the AGM to approve a 1-for-100 share consolidation. The Financial Review that follows describes other mechanisms that have already strengthened our position. As a means of fully aligning shareholder and employee interests, we intend to use share incentive schemes to encourage and reward management performance. Your Company's fortunes are therefore being revived and the outlook has significantly improved. Speymill's order prospects currently total over #30 million. We expect that this figure will grow substantially in 2006 and 2007 as the impact of the new management team is felt and as a result of demand from Burnbrae's hotel and leisure operations in the UK and Isle of Man. We also intend to capitalise on our core competencies through other initiatives in property development and facilities management. One initiative is the creation of a new business division, which will investigate the potential of UK- Real Estate Investment Trusts ("REITs"), or their equivalent. These would offer a tax advantage under expected forthcoming legislation. Appreciation and Outlook In closing I wish to thank all our employees for their continued support and to offer encouragement particularly to those forming the new core of the business at Speymill. I also wish to thank our suppliers and sub-contractors and the professional advisers that have helped in the restructuring and new direction of the Group. There is considerable work to be done at all levels, but I am confident of fruitful results. Paul Doona, Chairman. Chief Executive's Operational Review I am pleased to be taking up a permanent role as Chief Executive, having initially joined Speymill as interim Managing Director in 2004. We have been able to lay some foundations for the future and I am confident that we can reverse the fortunes of the Group going forward. In delivering this recovery I am fortunate to have a very committed and competent team. This year will be one of consolidation and refocusing which should lead to a better return and value improvement for all stakeholders. Last year was an extremely difficult one for the Group. After a poor start, with a number of issues on existing contracts, there was still some optimism for the development of sales and better trading during the course of the year. However, in all subsidiaries, these failed to materialise for a variety of complex reasons. This necessitated an emergency refinancing that shareholders approved during the year. Predominantly, the crisis centred on serious cash flow problems caused mainly by poor trading performance and too high overhead costs. This led to a struggle for survival which has been achieved largely as a result of refinancing from Burnbrae. A number of factors had an adverse impact on the year: Blanchard's was affected by a change in procurement policy by the agents for the MoD on Salisbury Plain whereby they reduced their planned expenditure. FNPM suffered from a high cost base and poor management of some contracts. Before Christmas the board decided to combine FNPM with Blanchard's because of the synergy between these divisions and to cut costs. Speymill Contracts' year started badly, with several projects under-performing and various legacy issues relating to a number of contracts. Weak systems, poor management and delays in the start of some contracts led to a reduction in the division's turnover. Some cost savings were made but the lower turnover led to a haemorrhage in gross profits, leading to a large net loss. Because of the financial instability and business crisis a number of key personnel left the company, voluntarily and through redundancy, and although they have been replaced, where appropriate, the new team has needed time to settle in. In the light of these problems, Speymill's business encountered considerable cash pressure. Legal actions and other demands from creditors resulted, all of which have since been settled or dismissed. The reputation of the business has been affected by these actions, but we are working hard to restore fully the good reputation with suppliers and creditors that has normally been enjoyed. As the Chairman has indicated, much of the work needed to address these problems at their source, and to strengthen the Company, took place in the second part of the year and since the year-end. The Crawley office has been closed and the head office functions relocated to Speymill's premises in Huntingdon. This has significantly reduced overhead costs. We have also recently announced the sale of Blanchard's, which has raised funds and helped us to define our target business areas in the hotel, leisure and retail industries. These include three main areas of activity: new build, refurbishment of existing properties, and special works. We are currently reviewing all of the Group's systems and procedures to improve efficiencies and strengthen controls. To illustrate the much-improved prospects for the Group, order prospects stand at over #30 million, a figure representing committed and likely business and the win rate achieved for new tenders. This amount does not take account of the full breadth of opportunity offered by Burnbrae. It aims to develop the strengths of its Sleepwell Hotels subsidiary, which owns 600 hotel beds in the Isle of Man and the UK and it is Burnbrae's stated aim to construct or refurbish 5,000 beds in the next five years. Speymill has been appointed the preferred contractor for this business. I look forward to reporting to you, in due course, the results of these various changes and initiatives. With the rest of the board I am confident that we are developing the stability for growth and opportunity for future success. Andrew Latham Chief Executive Finance Review Introduction The Group's financial and organisational structures have been overhauled in the past 12 months. The 2004 financial statements reflect the full impact of the adverse trading performance during the year, the costs of reorganisation and the additional funding introduced to enable the business to continue. Trading results Turnover for the year, net of exceptional items, was #18.18m (2003: #22.23m). This included a full year for Blanchard's, which was sold in May 2005. Gross profit before exceptional items was 11.1% (2003: 13.7%), reflecting the more difficult market conditions experienced in the year. Gross profits were reduced by a further #1.40m as a result of exceptional items resulting from legacies on various new build and refurbishment contracts. Administrative expenses, before exceptional costs and goodwill amortisation increased to #4.08m (2003: #3.11m), largely due to Blanchard's full-year costs being incorporated. There were exceptional expenses of #0.59m on reorganisation and refinancing. The disposal of Blanchard's gave rise to a goodwill carrying value write-down of #0.77m, and a further goodwill write-down of #1.67m was made on Speymill as a fair reflection of the board's view of the ongoing value. Interest charges of #0.18m (2003: #0.13m) reflect the cost of bank borrowings and additional loan funding charges. The result of the poor trading performance and the additional costs and charges was a net loss before tax of #6.79m (2003: #0.36m) of which #4.43m (2003: #nil) was for exceptional items. Cash Flow Net cash outflow from operating activities for the year was #3.04m (2003: inflow #0.5m), reflecting the loss incurred, though there was a net reduction of #0.7m during the year in working capital. The operational outflow was compensated by financing receipts of #1.7m from convertible loan notes and #1.78m, net of costs, from additional equity, less a net outflow of #0.06m on finance leases. After interest costs of #0.18m, capital expenditure of #0.04m and acquisition costs of #0.07m this left a net improvement for the year in cash balances of #0.09m (2003: #0.02m). Financial restructuring In June 2004 the Company's existing ordinary shares of 1 pence each were sub-divided into one ordinary share of 0.01 pence (having the rights and being subject to the same restrictions as the existing ordinary shares) and one deferred share of 0.99 pence each (with very restricted rights). At the same time, the Company's authorised share capital was increased from #5m to #8m. During 2004, additional funding of #2.0m was provided by Burnbrae through a combination of equity and convertible loan capital. Also, to reduce bank overdraft borrowing, Burnbrae provided an overdraft facility of #0.65m. In January 2005, Jim Mellon (the beneficiary of Burnbrae) provided a personal convertible loan of #0.30m bringing their combined investment to almost #3.0m. Other private investors provided an additional #1.08m in 2004 through a combination of convertible loans and equity. By April 2005 all the Burnbrae loan notes, plus #0.7m of further loan notes had been converted into equity. An additional share placing of #0.5m was completed in April 2005, with new investors. Further equity investment is in progress to strengthen the Group's revived financial base. We are considering other safeguards to ensure the Company's liquidity, and are proposing to rationalise the share structure by a 1-for-100 share consolidation. Burnbrae has also made a commitment to provide further investment to support the Group's continued development. Net assets The year-end balance sheet shows negative net assets of #1.97m as a result of the loss recorded for the year. However, since the start of 2005 the Group balance sheet has benefited from the conversion of #0.85m of loan notes into equity; the net disposal proceeds of #0.40m and cancellation of #0.14m of loan notes in connection with the sale of Blanchard's and #0.50m of additional share capital from new investors. The loan conversions will considerably reduce the Group's interest burden. The impact of the funding changes on net assets in 2005 to date are shown in the following proforma statement: #000 Net assets at 31 December 2004 (1,974) 2005 movements: Loan note conversions 850 Additional shares issued 508 _______ (616) Further placing anticipated June 2005 500 _______ (116) Add: Existing funding considered as long term: J Mellon convertible loan 300 Burnbrae Overdraft 621 _______ Proforma net assets 805 Outlook The board believes that the financial restructuring has placed the Group in a stronger position to take advantage of distinct opportunities in the hotel and leisure field and in property investment and management. The board will continue to seek additional equity funding to enable further expansion of the Group's activities in these target markets. Keith Lees Finance Director. The Wigmore Group plc Preliminary Results for the Year Ended 31 December 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT 2004 2003 Before Exceptional Total Exceptional Items Items (see note 5) Notes #'000 #'000 #'000 #'000 Turnover 18,769 (591) 18,178 22,229 Cost of Sales (16,680) (809) (17,489) 19,173 ____________________________________________ _______ Gross Profit 2,089 (1,400) 689 3,056 Administrative Expenses Before goodwill amortisation and Impairment (4,079) (586) (4,665) (3,105) Amortisation of goodwill (196) - (196) (177) Impairment of goodwill - (2,440) (2,440) - ____________________________________________ _______ Operating Loss (2,186) (4,426) (6,612) (226) Interest payable and similar charges (181) - (181) (131) ____________________________________________ _______ Loss on ordinary activities before taxation (2,367) (4,426) (6,793) (357) Taxation 2 88 - 88 - ____________________________________________ _______ Loss on ordinary activities after taxation 9 (2,279) (4,426) (6,705) (357) ____________________________________________ _______ Loss per share (pence) Basic and fully diluted 4 (0.26) (0.75) (0.26) ____________________________________________ _______ In both 2003 and 2004 the group had no recognised gains or losses other than the result for each financial year shown above. The Wigmore Group plc Preliminary Results for the year ended 31 December 2004 CONSOLIDATED BALANCE SHEET 2004 2003 Notes #'000 #'000 FIXED ASSETS Intangible - goodwill 1,000 3,716 Tangible 756 728 _________ _________ 1,756 4,444 _________ _________ CURRENT ASSETS Stocks 59 48 Debtors 3,059 4,747 Cash at bank - 413 _________ _________ 3,118 5,208 CURRENT LIABILITIES Creditors: amounts falling due within one year (5,422) (7,006) _________ _________ NET CURRENT LIABILITIES (2,304) (1,798) _________ _________ TOTAL ASSETS LESS CURRENT LIABILITIES (548) 2,646 Creditors: amounts falling due after more than one year (1,426) (593) _________ _________ (1,974) 2,053 _________ _________ CAPITAL AND RESERVES Called up share capital 237 2,097 Called up deferred share capital 2,294 - Share premium account 3,057 813 Profit and loss account - deficit (7,562) (857) _________ _________ 9 (1,974) 2,053 _________ _________ The Wigmore Group plc Preliminary Results for the year ended 31 December 2004 2004 2003 CONSOLIDATED CASH FLOW STATEMENT Notes #'000 #'000 Net Cash (Outflow)/Inflow from operating activities 6 (3,037) 499 Returns on investment and servicing of finance (181) (131) Tax paid (6) (222) Capital expenditure and financial investment (38) (59) Acquisitions (70) (821) _________ _________ Cash Outflow before financing (3,332) (734) Financing 7 3,425 749 _________ _________ Increase in cash in the year 93 15 _________ _________ RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Increase in cash in the period 93 15 Cash (inflow)/outflow from decrease in debt (1,642) 523 _________ _________ Change in net debt resulting from cash flows (1,549) 538 Finance lease creditors of acquired subsidiary - (16) Bank loans of acquired subsidiary - (73) Issue of redeemable loan notes - (309) New finance leases (158) (103) Conversion of loan notes 850 600 Issue of convertible loan notes - (150) _________ _________ (857) 487 Opening net debt (1,639) (2,126) Closing net debt 8 (2,496) (1,639) _________ _________ NOTES TO THE ACCOUNTS 1. The financial information set out in this announcement does not constitute statutory accounts within the meaning of s240 of the Companies Act 1998. The results incorporated in the preliminary announcement have been prepared on the basis of accounting policies consistent with the previous year. The comparative figures have been extracted from statutory accounts for the year ended 31 December 2003, which have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified and did not contain statements under Section 237 (2) of the Companies Act 1985. The statutory accounts for the year to 31 December 2004 will be delivered to the Registrar of Companies on or about 15 July 2005. Copies of those statutory accounts will be posted to shareholders on or about 29 June 2005 and they will be laid before the shareholders at the Annual General Meeting. 2. The tax credit for the year arises from the carry back of current year losses against pre-acquisition trading profits of a subsidiary. In the foreseeable future, no charge to taxation arises as the Group has incurred losses to date. Consequential deferred tax assets are not recognised as their recovery is uncertain. 3. No final dividend is proposed. 4. Loss per share The basic and diluted loss per share calculations are based on the following: 2004 2003 #'000 #'000 Net loss before exceptional items 2,279 357 ____________ ____________ Net loss after exceptional items 6,705 357 ____________ ____________ Weighted average number of No. No. ordinary shares in issue 892,728,606 135,548,000 ____________ ____________ The share options and warrants do not give rise to any dilution and therefore the fully diluted loss per share is equal to the basic loss per share. 5. Exceptional items comprise: 2004 2003 #'000 #'000 Cost over-runs and loss provisions on new build and refurbishment contracts 1,400 - ____________ ____________ Costs of refinancing 428 - Reorganisation costs 158 - ____________ ____________ 586 - ____________ ____________ Impairment of goodwill: Provision re Blanchard disposal 771 - Speymill write down 1,669 - ____________ ____________ 2440 - ____________ ____________ 4,426 - ____________ ____________ 6. Reconciliation of Operating Loss to Operating Cash Flow 2004 2003 #'000 #'000 Operating loss (6,612) (226) Depreciation of tangible assets 169 155 Amortisation of goodwill 196 178 Impairment of goodwill 2,440 - Operating costs paid by way of share issue 45 - Decrease/(increase) in stocks and work in progress 249 (5) Decrease/(increase) in debtors 1,429 (1,625) (Decrease)/increase in creditors (953) 2,022 ____________ ____________ Net cash (outflow)/inflow from operating activities (3,037) 499 7. Analysis of cash flows from financing 2004 2003 #'000 #'000 Issue of equity shares 1,917 1,508 Expenses of issue (134) (235) ____________ ____________ 1,783 1,273 Issue of convertible loan notes 1,700 - Repayment of loan - (73) Repayment of loan notes - (400) Capital element of finance leases repaid (58) (51) ____________ ____________ 3,425 749 ____________ ____________ 8. Analysis of net debt At 1 Jan Cash Flow Other At 31 Dec 2004 non-cash 2004 changes #'000 #'000 #'000 #'000 Cash at bank and in hand 413 (413) - Overdrafts Bank of Scotland (1,471) 1,127 - (344) Burnbrae - (621) - (621) ______________________________________________ (1,058) 93 - (965) ______________________________________________ Debt due within one year: finance leases (57) 58 (105) (104) Debt due after more than one year: finance leases (65) - (53) (118) convertible loan notes (150) (1,700) 850 (1,000) redeemable loan notes (309) - - (309) ______________________________________________ (581) (1,642) 692 (1,531) ______________________________________________ Movement in net debt (1,639) (1,549) 692 (2,496) ______________________________________________ 9. Reconciliation of movement in equity shareholders funds 2004 2003 #'000 #'000 Loss for the year (6,705) (357) New share capital subscribed 2,812 2,307 Costs written off to share premium (134) (235) _________ _________ Net (reduction)/addition to shareholders' funds (4,027) 1,715 Opening equity shareholders' funds 2,053 338 _________ _________ Closing equity shareholders' funds (1,974) 2,053 _________ _________ 10. Copies of the report and accounts will be available from the Company's registered office once they have been dispatched to shareholders. This information is provided by RNS The company news service from the London Stock Exchange END FR PKCKNBBKDOAK
1 Year Wallgate Chart |
1 Month Wallgate Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions