RNS Number : 5326H
Braemar Group PLC
06 November 2008
BRAEMAR GROUP PLC
UNAUDITED INTERIM RESULTS
CHAIRMAN'S STATEMENT
Braemar Group plc ("Braemar" or "the Group") is pleased to announce its unaudited interim results for the six months ended 30 September
2008, during which time the Group has achieved turnover and gross profit growth by following its core strategy of managing direct
investments in real estate assets owned by our client funds.
Financial overview
The unaudited results for the six months to 30 September 2008 report revenue of �1,267,000 (30 September 2007: �231,000) and a loss
before tax of �58,000 (30 September 2007 �287,000 loss). This reduction in the loss has been achieved through a combination of the increase
in turnover, a positive contribution from both operating divisions and a pre-emptive reduction in certain costs earlier in 2008.
Divisional revenue for the period is made up of �633,000 from fund management and corporate finance ("Braemar Securities"), �595,000
from property management ("Braemar Estates") and �39,000 from property investment and trading. The Directors are pleased that the benefits
of the investment in people and systems are now beginning to show through in an increase in turnover and the improvement in operating
profitability.
Cash balances and cash equivalents at the period end were �230,000, (2007: �1,013,000) added to which the Group purchased �252,000 in
gilts just before the period end, a time when the stability of some banks was being called into question. The total equity of the Group
stood at �2,668,000 at 30 September 2008 (30 September 2007: �3,348,000).
Summary
Against the economic backdrop, the Group has continued to raise money for its funds, launch new funds and to prepare new funds for
launch. In the latter part of the last financial year, the Group made its first move to diversify its assets under management with the
launch of two companies investing in farmland and is now preparing to launch funds for investment in a variety of other diverse real-estate
assets, in the form of Open Ended Investment Companies or "OEIC".
The Directors are pleased with Braemar's growing brand awareness amongst Financial Intermediaries, and, having built this platform for
growth, anticipate that this will, in turn, generate credibility amongst Financial Institutions. Braemar has demonstrated that it is able to
react quickly to changing economic and market conditions and to create innovative real estate products which have a place in today's asset
allocation models.
Financial results
The business is monitored internally by the performance of the two operating divisions and the highlights for the period under review
are as follows:
Braemar Securities
This division successfully launched the first cell of the Group's OEIC, investing in tenanted UK agricultural land, which had its first
dealing day in May 2008, having raised �2.3 million by then, substantially more than the �500,000 minimum amount required to obtain a
listing for the fund on the Channel Islands Stock Exchange. As an OEIC, this fund remains open for investment on a monthly basis and
continued to receive additional applications during the period.
The division acted a sponsor to the second offer for subscription of Braemar UK Agricultural Land plc. This company, the ownership of
which is independent of Braemar Group plc, has just completed the acquisition of its first farm and has appointed advisers to prepare the
company for admission to AIM, together with a placing and further offer for subscription. This flotation is timetabled to take place in the
first quarter of 2009.
The division now acts as manager to eight existing residential property partnerships. During the period, one further partnership was
launched, which will close for investment during the second half of the year.
Braemar Estates
Our apartment management business, with almost 2,500 units under management, continues to provide a stable cash flow for the business
going forward and has demonstrated resilience in what has proven tough economics for the wider estate agency market. It is almost one year
since we acquired part of this business, and the Directors are pleased with the subsequent integration, having demonstrated an increase in
Braemar estates' turnover since the acquisition.
Outlook
The performance of the Group for the period shows an encouraging improvement on the performance in the corresponding period in 2007 and
on the full year results to 31 March 2008. As the scope and portfolio of funds continues to grow, the benefits of combining the Group's
regulated financial services activities with the management of physical real estate assets owned by our client funds are becoming
increasingly apparent. Braemar will use the OEIC to launch further funds during the remainder of the financial year, the first of which will
be a UK student accommodation product.
The Directors are pleased with the progress that has been made during the first half of the year and look forward to reporting further
improvements in the Group's performance in the second half.
Martin Robinson
Chairman
6 November 2008
BRAEMAR GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 September 2008 30 September 2007 31 March 2008
Notes �'000 �'000 �'000
Revenue 1,267 231 1,264
Cost of sales (417) (113) (445)
Gross profit 850 118 819
Increase in fair value of - 132 82
investment properties
Administration Expenses (894) (538) (1,340)
Operating loss (44) (288) (439)
Investment income 17 21 42
Finance costs (31) (20) (53)
Loss on ordinary activities (58) (287) (450)
before taxation
Taxation - - (23)
Loss for the period from (58) (287) (473)
continuing operations
Loss for the period from - (32) (471)
discontinued operations
Loss attributable to equity (58) (319) (944)
holders of parent
Loss per share- basic and 2 0.04p 0.23p 0.62p
fully diluted
BRAEMAR GROUP PLC
CONSOLIDATED BALANCE SHEET
AT 30 SEPTEMBER 2008
Unaudited Unaudited Audited
30 September 2008 30 September 2007 31 March 2008
Notes �'000 �'000 �'000
Non-current assets
Goodwill 2,694 2,423 2,694
Other intangible assets 90 100 101
Property, plant and equipment 172 144 183
Investment properties 225 275 225
Held-to-maturity investments 58 4 18
Other financial assets 317 - 37
Available-for-sale investments 14 29 32
3,570 2,975 3,290
Current assets
Trade and other receivables 462 205 1,919
Cash and cash equivalents 230 1,013 289
692 1,218 2,208
Total assets 4,262 4,193 5,498
Equity and Liabilities
Issued capital 1,638 1,638 1,638
Share premium 3 2,945 2,945 2,945
Retained earnings 3 (1,915) (1,235) (1,845)
Total equity 2,668 3,348 2,738
Non-current liabilities
Obligations under finance 18 18 29
leases
Interest bearing loans and 225 - 225
borrowings
Deferred Tax 23 - 23
266 18 277
Current liabilities
Trade and other payables 793 304 1,949
Interest bearing loans and 512 512 512
borrowings
Obligations under finance 23 11 22
leases
1,328 827 2,483
Total liabilities 1,594 845 2,760
Total equity and liabilities 4,262 4,193 5,498
BRAEMAR GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 3O SEPTEMBER 2008
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 September 2008 30 September 2007 31 March 2008
Notes �'000 �'000 �'000
Operating activities
Loss before tax (58) (320) (921)
Adjustments to reconcile loss
before tax to net cash flows
for:
Depreciation of property, 19 4 22
plant and equipment
Amortisation of intangible 11 - 9
assets
Impairment of intangible - - 160
assets
Goodwill impairment charge - - 119
Share option charge 6 7 19
Share-based income (29) - (37)
Increase in fair value of - (132) (82)
investment properties
Interest income (17) (21) (42)
Interest expense 31 20 53
Decrease/(increase) in trade 1,457 41 (1,622)
and other receivables
(Decrease)/increase in trade (1,173) (132) 1,444
and other payables
Interest paid (13) (33) (45)
Cash generated from operations 234 (566) (923)
Cash flows from investing
activities
Interest received 17 21 41
Purchase of property, plant (7) (35) (186)
and equipment
Purchase of held-to-maturity (40) - (14)
investments
Purchase of other financial (252) - -
assets
Purchase of investment - (92) (1)
property
Acquisition of subsidiary - (29) (589)
Net cash used in investing (282) (135) (749)
activities
Cash flows from financing
activities
Proceeds from issue of share - 1,312 1,312
capital
Transaction costs of issue of - (16) (16)
share capital
Proceeds from borrowings - 26 283
Repayment of borrowings (11) (375) (385)
Net cash from financing (11) 947 1,194
activities
Net (reduction)/increase in (59) 246 (478)
cash and cash equivalents
Cash and cash equivalents at 1 289 767 767
April
Cash and cash equivalents at 230 1,013 289
30 September
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 September 2008 30 September 2007 31 March 2008
�'000 �'000 �'000
Losses on available-for-sale
investments taken to equity (18) (83) (80)
Expense recognised directly in (18) (83) (80)
equity
Loss for the period (58) (319) (944)
Total recognised income and
expense for the period (76) (402) (1,024)
1 - BASIS OF PREPARATION
The interim financial report has been prepared in accordance with the AIM rules and the basis of accounting policies set out in the
accounts for the year to 31 March 2008 and on the basis of all International Financial Reporting Standards ("IFRS") that are expected to be
applicable to the Group's statutory accounts for the year ended 31 March 2009. These standards are subject to ongoing review and possible
amendment. Further standards and/or interpretations could be issued that could apply to that year. If any such amendment, new standards or
new interpretations are issued these may require the financial information provided in the interim report to be changed.
The Directors have chosen not to comply with IAS 34. Accordingly, the interim financial statements do not comply with all the
disclosures in IAS 34 on interim reporting and therefore are not in full compliance with IFRS.
The interim report is unaudited and does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985.
A copy of the statutory accounts for the year ended 31 March 2008, which were prepared under IFRS and on which the Company's auditors gave
an unqualified report, have been filed with the Registrar of Companies.
2 - LOSS PER SHARE
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 September 2008 30 September 2007 31 March 2008
�'000 �'000 �'000
Loss for the period 58 319 944
Weighted average number of 163,786,903 136,924,486 150,392,492
ordinary shares
Loss per ordinary share - 0.04p 0.23p 0.62p
basic
There are 34,072,172 potentially issuable shares that have not been included in a diluted EPS calculation as they are anti-dilutive.
3 - RESERVES
Share Premium Account Unaudited Unaudited Audited
2008 2007 31 March 2008
�'000 �'000 �'000
At 1 April 2,945 1,957 1,957
Shares issued during the period - 1,004 1,004
Share issue costs - (16) (16)
At 30 September 2,945 2,945 2,945
Retained earnings Unaudited Unaudited Audited
2008 2007 31 March 2008
�'000 �'000 �'000
At 1 April (1,845) (840) (840)
Loss for the period (58) (319) (944)
Available-for-sale investments fair (18) (83) (80)
value movement
Credit arising on share options 6 7 19
At 30 September (1,915) (1,235) (1,845)
4 - BOARD APPROVAL
The Interim Statement was approved by the Board on 4 November 2008. .
5 - COPIES OF INTERIM STATEMENT
Copies of this statement will be sent to shareholders shortly and are available to the public from the Registered Office at: Richmond
House, Heath Rd, Hale, Cheshire, WA14 2XP.
For further information please contact:
Marc Duschenes, CEO, Braemar Group plc
Julie Serrage, Investor Relations, Braemar Group plc
Tel: 0161 929 4969
Alex Clarkson/Nick Cowles, Zeus Capital Limited
Tel: 0161 831 1512
Stuart Forshaw, Corporate Broking, WH Ireland Limited
Tel: 0161 832 2174
This information is provided by RNS
The company news service from the London Stock Exchange
END
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