RNS Number:2005R
Hurlingham PLC
31 March 2008
HURLINGHAM PLC
31 March 2008
Preliminary Results for the year ended 30th September 2007
Chairman's statement
I am pleased to present the Annual Report and financial statements of the Group
for the year ended 30th September 2007.
Since March 2006, the Group's principal business has been the Perth Hotel. As
set out in the circular to shareholders dated 14th March 2008, whilst that has
been profitable, it is not considered to be capable of generating the profits
needed to pay Hurlingham's administrative expenses and, without the financial
resources to develop further hotels, your Board concluded that it should dispose
of Bettagrade Limited, which owns the Perth Hotel and seek to develop more
profitable opportunities. At the same time, the existing Executive Board, being
Charles Llewellyn, Charles Pettingell and Maurice Taylor, who are all in their
60's, considered, subject to approval of all resolutions contained in the
Notices of the First and Second General Meetings referred to in that circular,
that it would be appropriate for them to retire from the Board.
The Remaining Directors of Hurlingham are David Low and myself. David, is aged
49 and is an experienced broker. I am 53 and an experienced Chartered Accountant
of many years standing, with a proven track record as the Finance Director of a
number of listed companies over the last 20 years. David Low and I joined the
Board in December 2005 and June 2004 respectively, and have brought significant
financial and corporate expertise to the Group.
In the light of these proposals, I was appointed the new Non-Executive Chairman
of Hurlingham on 14th March 2008.
Results
Group profit and loss account
Following the sale of the Group's residential properties and the closure of the
companies comprising the flight business, turnover for the year to 30th
September 2007 amounted to �1,166,000, including �6,000 attributable to
discontinued operations (2006: �4,614,000 including �3,482,000 attributable to
discontinued operations). Bettagrade Limited, the Group's hotel company
continued to trade well and turnover was �1,160,000 (2006: �1,132,000) with
profit before tax coming in at �237,000 (2006: �221,000).
After central costs of �161,000 (2006: �151,000), net interest payable of
�185,000 (2006: �223,000) and a deferred tax credit of �103,000 (2006: nil), the
Group profit after taxation for the period was �34,000 (2006: loss of �767,000).
Group balance sheet
After taking into account the Group profit for the period of �34,000 and the
revaluing of the Group's hotel to �4,500.000 reflecting the independent
valuation of the property, shareholders funds amounted to �2,295,000 at 30th
September 2007 (2006: �2,228,000).
Dividend
Due to a current deficiency on the company's profit and loss account reserve,
the Board does not recommend the payment of a dividend for the year. However,
shareholders will be aware from the circular to shareholders dated 14th March
2008, that proposals have been implemented to redress this position. As a
result of completion of those proposals, the company should be significantly
closer to having a positive profit and loss account reserve, thus facilitating
the payment of dividends in future periods.
Outlook
Shareholders will be aware from the circular to shareholders dated 14th March
2008, that the Board sought shareholder consent for the sale of Bettagrade
Limited, which owns the Perth Hotel, to Thistle Perth LLP. That circular also
included details of a restructuring of the Board, the raising of fresh capital
by the issue of 800,000 ordinary shares at 75 pence per share and the
acquisition of the 'A' Ordinary shares by the Company for cancellation. Full
details of these proposals were contained in the circular. The First General
Meeting dealing with the sale of Bettagrade Limited and related matters was
successfully concluded this morning, and the Second General Meeting will be held
on 7th April 2008 in accordance with the notice in that circular.
Looking forward, the Remaining Directors anticipate appraising a number of
alternative business opportunities for the Company. It is envisaged this is
likely to involve the acquisition by Hurlingham of another business, whose
activities are likely to be different from those previously undertaken by the
Company. Any such acquisition will involve a circular being sent to Shareholders
setting out the proposed terms of the acquisition, providing financial details
relating thereto and inviting Shareholders to consider and if thought fit,
approve the proposals prior to the acquisition of any such company or business
by the Company.
Andrew Blurton
Chairman
31 March 2008
Directors' report
for the year ended 30 September 2007
The directors present their report and the audited financial statements for the
year ended 30 September 2007.
Principal activities and business review
The principal activities of the Group during the year comprised the development
and operation of the Perth Hotel and the sale of international hotel products.
Since the year end, proposals have been finalised which involve the sale of
Bettagrade Limited which owns the Perth Hotel, which comprised the remaining
elements of the above activities, as set out in the circular to shareholders
dated 14 March 2008. A summary of this transaction is included in note 22 to the
financial statements. The sale of Bettagrade Limited was completed as planned
on 31 March 2008.
Following the proposed restructuring referred to in the circular to shareholders
dated 14 March 2008, the Company's principal source of income will be interest
generated on its cash deposit. After settling current liabilities and collecting
debtors, this cash deposit is estimated to amount to �1,861,000 at completion.
Based on current interest rates, this is expected to produce interest of
approximately �90,000 on an annual basis. However, this will not commence to be
earned until completion of these transactions which is expected to be during
April 2008. In addition, following the resignation of the Retiring Directors,
administration costs will be reduced and it is hoped by the Remaining Directors
that administration costs in future will be predominantly covered by income from
the Company's cash reserves pending acquisition of a new business.
Financial risk management objectives and policies
During the year ended 30 September 2007, and since then to the date of this
report, the financial risk management performed by the Board has centred on
operating financial risks and funding financial risk.
The operating financial risks emanated from the level of financial performance
achieved from the Group's hotel in Perth and the management team's ability to
increase room revenue, room occupancy, general service income and therefore
overall return from this asset. This risk was removed when the sale of
Bettagrade Limited referred to in the circular to shareholders dated 14 March
2008 completed on 31 March 2008 and the related debt was repaid.
The Group's funding financial risk centred on the total interest cost incurred
on the Group's overdraft and long term loans, which at 30 September 2007
amounted to approximately �2,300,300. The Board chose to retain these funds at
floating rates during the year ended 30 September 2007 due to the relatively low
level of interest rates by reference to the earnings capability of the hotel.
This risk was removed when the sale of Bettagrade Limited referred to in the
circular to shareholders dated 14 March 2008 was completed on 31 March 2008.
Dividends
Due to a current deficiency on the company's profit and loss account reserve,
the Board does not recommend the payment of a dividend for the year.
Consolidated profit and loss account
for the year ended 30 September 2007
2007 2006
Restated
(see note below)
� �
Turnover:
Continuing operations 1,160,273 1,131,913
Discontinued operations 6,000 3,482,349
1,166,273 4,614,262
Cost of sales (426,301) (4,191,787)
Gross profit 739,972 422,475
Administrative expenses (658,427) (973,363)
Losses on subsidiaries not consolidated (2,798) -
Operating profit/(loss)
Continuing operations 75,545 55,432
Discontinued operations 3,202 (606,320)
Profit on disposal of fixed assets 37,054 7,145
Profit/(loss) on ordinary activities before interest
and taxation 115,801 (543,743)
Net interest payable and similar charges (184,863) (223,040)
Loss on ordinary activities before taxation (69,062) (766,783)
Tax credit on profit on ordinary activities 102,980 -
Profit/(loss) for the financial year 33,918 (766,783)
________ ________
Earnings/(loss) per share expressed in pence per share
Basic 1.61p (36.4)p
Diluted 1.61p (36.4)p
________ ________
Earnings/(loss) per share from continuing operations
expressed in pence per share
Basic 1.46p (7.62)p
Diluted 1.46p (7.62)p
________ ________
The comparative results for the year ended 30 September 2006 have been adjusted
to reflect the discontinuance of certain operations referred to in the
accounting policies note to the financial statements. These adjustments have no
affect on the overall result for that year.
Balance sheets
at 30 September 2007
Group
2007 2006
� �
Fixed Assets
Tangible assets 4,500,000 4,562,390
Investments - -
4,500,000 4,562,390
Current Assets
Stock 3,005 3,005
Debtors 59,924 63,579
Deferred tax asset 102,980 -
Cash at bank and in hand 101,154 126,658
267,063 193,242
Creditors: due within one year (857,191) (762,999)
Net current (liabilities)/assets (590,128) (569,757)
Total assets less current
liabilities 3,909,872 3,992,633
Creditors: due after one year (1,615,000) (1,765,000)
Provision for liabilities - -
Net assets 2,294,872 2,227,633
________ ________
Capital and reserves
Called up share capital 1,579,280 1,579,280
Share premium account 362,454 362,454
Revaluation reserve 1,326,798 1,293,477
Profit and loss account (973,660) (1,007,578)
Equity shareholders' funds 2,294,872 2,227,633
________ ________
Consolidated cash flow statement
for the year ended 30 September 2007
2007 2006
� � � �
Net cash inflow/(outflow) from operating 65,926 (793,399)
activities
Returns on investments and servicing of finance
Interest received 4,608 6,984
Interest paid (191,723) (253,664)
Net cash outflow from returns on investments and
servicing of finance
(187,115) (246,680)
Capital expenditure and financial investments
Purchase of operating assets (17,079) (25,237)
Sale of properties 98,494 657,645
Net cash inflow from capital expenditure and
financial investment 81,415 632,408
Net cash outflow before financing (39,774) (407,671)
Financing
Bank loan repaid (140,000) (145,000)
Net cash outflow from financing (140,000) (145,000)
Decrease in cash for the year (179,774) (552,671)
_______ _______
Reconciliation of net cash flow to movement in net debt
for the year ended 30 September 2007
2007 2006
� �
Decrease in cash in year (179,774) (552,671)
Cash outflow from movement in debt 140,000 145,000
Net movement in year (39,774) (407,671)
Net debt at 1 October 2006 (2,166,358) (1,758,687)
Net debt at 30 September 2007 (2,206,132) (2,166,358)
________ ________
Consolidated statement of total recognised gains and losses
for the year ended 30 September 2007
2007 2006
� �
Profit/(loss) on ordinary activities after taxation 33,918 (766,783)
Revaluation surplus on fixed assets credited to revaluation reserve 33,321 49,228
Total recognised gains and losses for the year 67,239 (717,555)
_______ ________
Note of historical cost profits and losses
for the year ended 30 September 2007
2007 2006
� �
Reported loss on ordinary activities before taxation (69,062) (766,783)
Realisation of unrealised revaluation surpluses recorded in prior years - 354,906
Historical cost loss on ordinary activities before taxation (69,062) (411,877)
______ _______
Historical cost profit/(loss) transferred to reserves after taxation and
dividends 33,918 (411,877)
_______ _______
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the Annual General Meeting of Hurlingham Plc will be
held at 19 Cavendish Square, London W1A 2AW on 23 April 2008 commencing at
11.30 a.m.
A copy of the Annual Report and Accounts will be posted to shareholders later
today and is available from the Hurlingham website www.hurlinghamplc.co.uk.
Enquiries:
Hurlingham PLC Tel: 020 7706 2121
Andrew Blurton
Landsbanki Securities (UK) Tel: 020 7426 9000
Fred Walsh
Sebastian Jones
This information is provided by RNS
The company news service from the London Stock Exchange
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