TIDMSUH
RNS Number : 5635V
Sutton Harbour Group PLC
04 December 2019
04 December 2019
Sutton Harbour Group plc (formerly Sutton Harbour Holdings
plc)
("The Company", "Sutton Harbour")
Sutton Harbour Group plc, the AIM-listed marine and waterfront
regeneration specialist, announces its interim results for the
six-month period to 30 September 2019.
Financial Highlights
-- Profit before taxation GBP0.281m 6 months to 30 September 2018: GBP0.110m)
-- Net assets GBP46.013m (31 March 2019: GBP45.732)
-- Net debt GBP22.861m (31 March 2019: GBP21.373m)
-- Gearing 49.7% (31 March 2019: 46.7%)
Company Highlights
-- Finalising pre-construction preparations for consented
schemes at Harbour Arch Quay and Sugar Quay
-- Installation of new Plymouth Fisheries fuel and power servery
underway and due to be complete by end of 2019
-- Work underway to increase marinas berthing space and
accommodation for a greater number of larger leisure vessels
-- Appointment of Corey Beinhaker as Executive Director and Chief Operating Officer
-- New 4 year long facility agreement with existing company bankers, NatWest, put in place
"With longer term banking facilities in place the Company is
advancing confidently with its objective to self-deliver real
estate projects and to continue targeted investment into the asset
base to achieve medium term returns and value growth to
shareholders."
Philip Beinhaker, Executive Chairman
For further information, please contact:
Sutton Harbour Group plc 01752 204186
Philip Beinhaker - Executive Chairman
Corey Beinhaker - Chief Operating Officer
Natasha Gadsdon - Finance Director
Arden Partners 020 7614 5900
Paul Shackleton
Benjamin Cryer
Executive Chairman's Statement
For the six-month period to 30 September 2019
Results and Financial position
Profit before taxation for the six-month period to 30 September
2019 was GBP0.281m, up GBP0.171m from GBP0.110m for the comparative
period to 30 September 2018.
As at 30 September 2019, net assets were GBP46.013m compared to
GBP45.732m, as last reported as at 31 March 2019. There has been no
re-valuation of assets during the reporting period, with the next
external independent valuation due to be undertaken early in
2020.
Net debt has increased to GBP22.861m, up by GBP1.488m from
GBP21.373m as at 31 March 2019. This budgeted movement reflects the
lower point in the annual cash cycle (as rents and annual berthing
fee receipts peak between January and April) and expenditure on
pre-construction costs in connection with consented schemes at
Harbour Arch Quay and Sugar Quay, infrastructure improvements
notably including the new fuel and utility dispensary system at
Plymouth Fisheries and works to other premises to facilitate new
tenancies and to maintain the quality of the estate. This has
resulted in a rise in gearing to 49.7% as at 30 September 2019 from
46.7% as at 31 March 2019.
To ensure continuity of financing the Company has just entered
into a new 4 year facility agreement with its incumbent bank on
equivalent terms to the previous agreement. Funding for consented
projects will be funded by separate development financing.
Board Composition Update
In October 2019 the Company announced Corey Beinhaker's
appointment as Chief Operating Officer. This brings the board to a
total of five Directors including Executive Chairman, Philip
Beinhaker.
Trading Report
The Company's business activities traded successfully during the
first half year, with the marinas and car parks both achieving
strong revenue growth ahead of price inflation. Marketing of the
marinas for the 2020 season was launched at Southampton Boat Show
from our newly designed interactive stand which attracted an
encouraging level of interest. Fisheries' trading remained on par
with the same period last year and rental incomes from recent
lettings added to income of this business sector. Further new
lettings are expected to complete in the second half year.
Regeneration
Finalisation of pre-construction preparations for the planning
consented residential led developments at Harbour Arch Quay and
Sugar Quay, both at Sutton Harbour, has been the priority in recent
months. These works have required submission of some amendments to
the Local Planning Authority, selection of the construction and
sub-contractor teams and finalisation of detailed drawings. It is
expected that subject to completion of finance and planning
amendments that both the smaller 14 apartment scheme at Harbour
Arch Quay and larger 170 apartment building at Sugar Quay will
start on site during 2020, along with the marketing of the
units.
The planning consented two storey extension to Harbour Car Park
has been put back to follow the Mayflower 400 celebrations which
take place throughout 2020, to avoid parking disruption during the
events season at the largest car park around Sutton Harbour.
Infrastructure improvements
The Company is currently in the process of commissioning a new
fuel and utility dispensary system at Plymouth Fisheries. The part
grant funded GBP800,000 project, updates the current 25 year old
system with modern fuel and energy delivery technology. It is the
latest phase of a 5 year plan to overhaul key fisheries
infrastructure which has also included GBP2m investment in ice
making equipment, chilled stores, energy efficient lighting and
boilers, hygienic wall cladding, enhanced CCTV and lock barrel
walkways.
During the winter months part of the marina at Sutton Harbour
will be re-configured to meet requirements of prospective
berth-holders for larger berths and new pontoon equipment will be
installed to meet the increasing demand for berthing space at King
Point Marina. To improve facilities for public participation and
entertainment in the harbour, the Company will be investing in new
floating 'event-size' pontoons which can be located in various
shallow water areas of Sutton Harbour together with an access
pontoon.
Summary
Our financial year to date has been a productive period in which
we have been preparing for major development projects which are now
close to the delivery phase. Profitability of the trading
businesses is improving following investment in marketing,
facilities' presentation and increased use of time saving
technologies in each area. The Company is working in partnership
with the City Council and other groups to support hosting of events
to commemorate the 400th anniversary of the departure of the
Pilgrim Fathers to America. Visitors numbers are expected to peak
in Summer 2020 centred around the Mayflower Steps located on
southern the side of Sutton Harbour
With longer term banking facilities in place the Company is
advancing confidently with its objective to self-deliver real
estate projects and to continue targeted investment into the asset
base to achieve medium term returns and value growth to
shareholders.
Philip Beinhaker
EXECUTIVE CHAIRMAN
Consolidated Statement of Comprehensive Income
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Revenue 3,820 3,717 6,893
Cost of Sales (2,379) (2,390) (4,686)
Gross Profit 1,441 1,327 2,207
-------------- -------------- -----------
Fair value adjustment on fixed assets
and investment property (26) (8) 1,444
Administrative expenses (672) (711) (1,234)
Operating profit from continuing operations 743 608 2,417
Financial income - - 1
Financial expense (462) (498) (902)
Net financing costs (462) (498) (901)
Profit before tax from continuing
operations 281 110 1,516
Taxation credit on profit from continuing
operations - - 315
Profit from continuing operations 281 110 1,831
============== ============== ===========
Basic profit/earnings per share 0.02p 0.01p 1.68p
Diluted profit/earnings per share 0.02p 0.01p 1.68p
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Profit from continuing operations 281 110 1,831
Other comprehensive income/(expenses)
Continuing operations:
Revaluation of property, plant and
equipment - - 1,640
Deferred taxation on income and expenses
recognised directly in the consolidated
statement of comprehensive income
Effective portion of changes in fair
value of cash flow hedges - - 6
Total other comprehensive income - - 1,646
-------------- -------------- -----------
Total comprehensive income for the
period attributable to equity shareholders 281 110 3,477
============== ============== ===========
Consolidated Balance Sheet
As at As at As at
30 September 30 September 31 March
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Non-current assets
Property, plant and equipment 26,855 23,899 26,632
Investment property 19,571 19,055 19,425
Inventories 12,610 - 12,448
-------------- -------------- -----------
59,036 42,954 58,505
-------------- -------------- -----------
Current assets
Inventories 11,552 22,250 11,119
Trade and other receivables 2,104 2,122 2,283
Cash and cash equivalents 244 1,859 1,296
Tax recoverable - - (5)
-------------- -------------- -----------
13,900 26,231 14,693
-------------- -------------- -----------
Total assets 72,936 69,185 73,198
-------------- -------------- -----------
Current liabilities
Trade and other payables 1,053 1,308 1,496
Finance lease liabilities 65 96 122
Deferred income 936 883 1,398
Provisions 75 69 70
2,129 2,356 3,086
-------------- -------------- -----------
Non-current liabilities
Other interest-bearing loans and
borrowings 23,000 25,000 22,500
Finance lease liabilities 40 232 47
Deferred government grants 646 646 646
Deferred tax liabilities 1,023 1,338 1,023
Provisions 85 168 164
24,794 27,384 24,380
-------------- -------------- -----------
Total liabilities 26,923 29,740 27,466
-------------- -------------- -----------
Net assets 46,013 39,445 45,732
============== ============== ===========
Issued capital and reserves attributable
to owners of the parent
Share capital 16,266 16,162 16,266
Share premium 10,695 7,872 10,695
Other reserves 11,696 10,055 11,696
Retained earnings 7,356 5,356 7,075
-------------- -------------- -----------
Total equity 46,013 39,445 45,732
============== ============== ===========
Consolidated Statement of Changes in Equity
Share Share Revaluation Merger Hedging Retained TOTAL
capital premium reserve reserve reserve earnings
----------Other Reserves----------
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------- --------- ------------- --------- --------- ---------- --------
Balance at 1 April 2019 16,266 10,695 7,825 3,871 - 7,075 45,732
Comprehensive
income/(expense)
Profit for the period - - - - - 281 281
Total comprehensive
income/(expense)
6 month period ended 30
September 2019 - - - - - 281 281
--------- --------- ------------- --------- --------- ---------- --------
Balance at 30 September
2019 16,266 10,695 7,825 3,871 - 7,356 46,013
--------- --------- ------------- --------- --------- ---------- --------
Balance at 1 April 2018 16,162 7,782 6,183 3,871 (6) 5,246 39,328
Comprehensive
income/(expense)
Profit for the period - - - - - 110 110
Other comprehensive
income/(expense)
Revaluation of property,
plant and equipment - - - - 7 - 7
Effective portion of changes
in fair value of cash
flow hedges
--------- --------- ------------- --------- --------- ---------- --------
Total other comprehensive
income/(expense) 6 month
period ended 30 September
2018 - - - - 7 - 7
--------- --------- ------------- --------- --------- ---------- --------
Total comprehensive
income/(expense)
6 month period ended 30
September 2018 - - - - 7 110 7
--------- --------- ------------- --------- --------- ---------- --------
Balance at 30 September
2018 16,162 7,782 6,183 3,871 1 5,356 39,445
--------- --------- ------------- --------- --------- ---------- --------
Balance at 1 October 2018 16,162 7,872 6,183 3,871 1 5,356 39,445
Comprehensive
income/(expense)
Profit for the period - - - - - 1,719 1,719
Other comprehensive
income/(expense)
Revaluation of property,
plant and equipment - - 1,642 - - - 1,642
Effective portion of changes
in fair value of cash
flow hedges - - - - (1) - (1)
--------- --------- ------------- --------- --------- ---------- --------
Total other comprehensive
income/(expense) 6 month
period ended 31 March
2019 - - 1,642 - (1) - 1,641
--------- --------- ------------- --------- --------- ---------- --------
Total comprehensive
income/(expense)
6 month period ended 31
March 2019 - - 1,642 - (1) 1,719 3,360
--------- --------- ------------- --------- --------- ---------- --------
Transactions with owners
of the parent
Issue of shares 104 2,823 - - - - 2,927
--------- --------- ------------- --------- --------- ---------- --------
Balance at 31 March 2019 16,266 10,695 7,825 3,871 - 7,075 45,732
--------- --------- ------------- --------- --------- ---------- --------
Consolidated Cash Flow Statement
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
---- -------------- -------------- -----------
Cash generated from total operating
activities (481) (916) (1,181)
-------------- -------------- -----------
Cash flows from investing activities
Net expenditure on investment
property - - (60)
Expenditure on property, plant
and equipment (609) (100) (243)
Proceeds from sale of plant - - -
and equipment
-------------- -------------- -----------
Net cash used in investing activities (609) (100) (303)
-------------- -------------- -----------
Cash flows from financing activities
Proceeds from sale of shares - - 3,000
Expenses of share issuance - - (73)
Interest paid (462) (498) (958)
Loan drawdowns/(repayment of
borrowings) 500 650 (1,850)
Net finance lease (payments)/receipts - (43) (106)
Net cash generated from financing
activities 38 109 13
-------------- -------------- -----------
Net increase/(decrease) in cash
and cash equivalents (1,052) (907) (1,471)
Cash and cash equivalents at
beginning of period 1,296 2,766 2,767
Cash and cash equivalents at
end of period 244 1,859 1,296
============== ============== ===========
Notes to Interim Report
General information
This consolidated interim financial information does not
comprise statutory accounts within the meaning of section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
March 2019 were approved by the Board of Directors on 10 July 2019
and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified and did not contain any
statement under section 498 of the Companies Act 2006.
Copies of the Group's financial statements are available from
the Company's registered office, Sutton Harbour Office, Guy's Quay,
Sutton Harbour, Plymouth, PL4 0ES and on the Company's website
www.sutton-harbour.co.uk.
This consolidated interim financial information has not been
audited.
Basis of preparation
The consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 March 2019, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) and
International Financial Reporting Interpretation Committee (IFRIC)
interpretations as endorsed by the European Union, and those parts
of the Companies Acts 2006 as applicable to companies reporting
under IFRS.
Accounting policies
Except as described below, the accounting policies applied are
consistent with those of the annual financial statements for the
year ended 31 March 2019, as described in those annual financial
statements.
Adoption of new International Financial Reporting Standards
The following new standards, amendments to standards or
interpretations have been issued, but are not effective for the
financial year beginning 1 April 2018 and have not been adopted
early:
IFRS 15 Revenue from Contracts with Customers: *1 January
2018
IFRS 9 Financial Instruments: * 1 January 2018
* mandatory effective date is periods commencing on or after
Accounting estimates and judgements
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making
judgements that are not readily apparent from other sources. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised, if the revision
affects only that period, or in the period of the revision and
future periods, if the revision affects both current and future
periods.
Segment information
Management has determined the operating segments based on the
reports reviewed by the Board of Directors that are used to make
strategic decisions.
The Board of Directors considers the business from an
operational perspective as having only one geographical segment,
with all operations being carried out in the United Kingdom.
The Board of Directors considers the performance of the
operating segments using operating profit. The segment information
provided to the Board of Directors for the reportable segments for
the period ended 30 September 2019 is as follows:
6 months to
30 September
2019 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2,662 762 396 - 3,820
Gross profit
prior to non-recurring
items 637 534 269 - 1,440
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 637 534 269 - 1,440
Fair value adjustment
on fixed assets
and investment
property assets - - - - -
Unallocated:
Administrative
expenses (697)
Operating profit
from continuing
operations 743
Financial income
Financial expense (462)
-------
Profit before
tax from continuing
operations 281
Taxation -
-------
Profit for the
year from continuing
operations 281
=======
Depreciation
charge
Marine 150
Car Parking 14
Administration 5
-------
169
=======
Segment Information (continued)
6 months to
30 September
2018 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2,665 747 305 - 3,717
Gross profit
prior to non-recurring
items 629 486 213 (57) 1,271
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 629 486 213 (57) 1,271
Fair value adjustment
on fixed assets
and investment
property assets - - - - -
Unallocated:
Administrative
expenses (662)
Operating profit
from continuing
operations 609
Financial income
Financial expense (499)
-------
Loss before
tax from continuing
operations 110
Taxation -
-------
Loss for the
year from continuing
operations 110
=======
Depreciation
charge
Marine 152
Car Parking 16
Administration 7
-------
175
=======
Segment Information (continued)
Year ended 31
March 2019 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 4,896 1,474 523 - 6,893
Gross profit
prior to non-recurring
items 1,057 941 350 (141) 2,207
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 1,057 941 350 (141) 2,207
Fair value adjustment
on fixed assets
and investment
property assets 1,134 310 - - 1,444)
3,651
Unallocated:
Administrative
expenses (1,234)
Operating profit
from continuing
operations 2,417
Financial income 1
Financial expense (902)
--------
Profit before
tax from continuing
operations 1,516
Taxation 315
--------
Profit for the
year from continuing
operations 1,831
========
Depreciation
charge
Marine 314
Car Parking 33
Administration 11
--------
358
========
30 September 30 September 31 March
2019 2018 2019
GBP000 GBP000 GBP000
Segment assets:
Marine 23,731 20,580 23,514
Real estate 19,815 19,704 19,952
Car Parking 4,423 4,196 4,456
Regeneration 24,267 22,335 23,577
Total segment assets 72,236 66,815 71,499
Unallocated assets:
Property, plant and equipment 87 72 61
Trade & other receivables 368 439 361
Cash & cash equivalents 245 1,859 1,277
Total assets 72,936 69,185 73,198
============= ============= =========
Segment Information (continued)
30 September 30 September 31 March
2019 2018 2019
GBP000 GBP000 GBP000
Segment liabilities:
Marine 1,196 1,134 1,897
Real estate 417 607 575
Car Parking 72 79 130
Regeneration 951 996 1,085
------------- ------------- ---------
Total segment liabilities 2,636 2,816 3,687
Unallocated liabilities:
Bank overdraft & borrowings 23,105 25,232 22,652
Trade & other payables 157 354 102
Financial Derivatives - (2) -
Tax payable 1 - 1
Deferred tax liabilities 1,024 1,340 1,024
------------- ------------- ---------
Total liabilities 26,923 29,740 27,466
============= ============= =========
Unallocated assets included in total assets and unallocated
liabilities included in total liabilities are not split between
segments as these items are centrally managed.
Taxation
The Company has applied an effective tax rate of 19% (2018: 19%)
based on management's best estimate of the tax rate expected for
the full financial year and is reflected in a movement in deferred
tax.
Dividends
The Board of Directors do not propose an interim dividend (2018:
nil).
Earnings per share
6 months to 6 months Year Ended
to
30 September 30 September 31 March
2019 2018 2019
(unaudited) (unaudited) (audited)
pence pence pence
-------------- -------------- -----------
Continuing operations
Basic earnings per share 0.02p 0.01p 1.68p
Diluted earnings per share* 0.02p 0.01p 1.68p
Basic Earnings per Share:
Basic earnings per share have been calculated using the profit
for the period of GBP281,000 (2018: profit GBP110,000, year ended
31 March 2019 profit GBP1,831,000). The average number of ordinary
shares in issue, excluding those options granted under the SAYE
scheme, of 115,944,071 (2018: 98,320,272; year ended 31 March 2019:
115,944,071) has been used in our calculation.
Diluted Earnings per Share:
Diluted earnings per share uses an average number of 115,944,071
(2018: 98,320,272; year ended 31 March 2019 108,982,966) ordinary
shares in issue, and takes account of the outstanding options under
the SAYE scheme in accordance with IAS 33 'Earnings per share'.
There are no outstanding options under expire SAYE schemes.
Property valuation
Freehold land and buildings and investment property have been
independently valued by Jones Lang LaSalle as at 31 January 2019,
in accordance with the Practice Statements in the Valuations
Standards (The Red Book) published by the Royal Institution of
Chartered Surveyors.
A further valuation will be commissioned for the year ending 31
March 2020, as in previous years.
Cash and cash equivalents
As at As at As at
30 September 30 September 31 March
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
------------- ------------- ----------
Cash and cash equivalents per
balance sheet and cash flow
statement 244 1,859 1,296
============= ============= ==========
Provisions
Onerous leases Total
GBP000 GBP000
-------------- ------
Balance at 1 April 2018 239 239
Provisions utilised (2) (2)
Balance at 30 September
2018 237 237
============== ======
Provisions made - -
Provisions utilised (3) (3)
-------------- ------
Balance at 31 March 2019 243 243
============== ======
Provisions made
Provisions utilised (83) (83)
-------------- ------
Balance at 30 September
2019 160 160
============== ======
Current 75 75
Non-current 85 85
160 160
============== ======
Cash flow statements
6 months to 6 months to Year Ended
30 September 30 September 31 March
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Cash flows from operating
activities
Profit/(loss) for the period 281 110 1,831
Adjustments for:
Taxation - - (315)
Financial income - - -
Financial expense 442 498 901
Fair value adjustment on fixed
assets and investment property - - (1,443)
Depreciation 169 175 358
Amortisation of grants - - -
Profit/loss on sale of property,
plant and equipment 7 (16) -
Cash generated from operations
before changes in working
capital and provisions 899 767 1,332
Increase in inventories (635) (959) (2,236)
Decrease/(increase) in trade
and other receivables 251 57 (113)
(Decrease)/increase in trade
and other payables (366) (229) (124)
Decrease in deferred income (556) (551) (35)
(Decrease)/increase in provisions (74) (1) (5)
Cash generated from operations (481) (916) (1,181)
============== ============== ===========
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LLFFDFALVIIA
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December 04, 2019 02:00 ET (07:00 GMT)
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