31st May 2011 14:08
FOR IMMEDIATE RELEASE 31 May 2011
AMICREST HOLDINGS PLC ("THE COMPANY")
PRELIMINARY ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010
CHAIRMAN'S STATEMENT TO SHAREHOLDERS
Dear Shareholder
It has been another very difficult year for the property sector.
As you know, last year the board took the decision to remove all borrowings in the company. Due to the continuing banking crisis, this has proved to be a wise decision. It was the Boards' intention to complete the small development of 17 flats in Bristol. In order to complete the development, it was necessary to raise a very small amount of finance. Unfortunately due to market conditions, the facilities offered from the bank, fell short of the money needed to complete the development. Therefore the Board took the view that it was in the best interest of the company to sell the development as is. Had the Board continued with the development, it could have placed the company in a position where it ran short of funds to pay the contractor, even though it did have mortgage free assets, this was not a position the Board could allow.
It is the intention of the Board to sell the remaining assets and return funds to shareholders. However, the residential market is still fragile, therefore, this will not be a quick and easy process.
Finally, I would like to thank all the members of the Board and the staff for working very hard this year.
G A LeeChairman31 May 2011
The directors of the issuer accept responsibility for this announcement.
OPERATING AND FINANCIAL REVIEW
Investment Property
During the year the group continued to hold investment properties, which include the freehold interest at Corporation Street, Manchester, a 125 year leasehold property at Baltic Quay, London and freehold interest of a block of 15 apartments based in Manchester. The head lease interest in Strype Street / Leyden Street, London was disposed during the year.
Development Property
The company continues to hold the 7 apartments from the completed development at Corporation Street, Manchester. These are currently rented out. Five 120 year leasehold apartments located in Manchester continued to be held during the year. The 999 year leasehold property located in Bristol was disposed during the year.
Results
Turnover for the period comprises of the sale of developed property, rent receivable on freehold land acquired for development and investment properties. Despite the sale of the property located in Bristol, and combined with the rent received from the apartments at Corporation Street, Manchester during the year, a gross loss of £348,000 (2009 - Gross loss of £507,000) was recorded in the profit and loss account.
Administrative expenses for the year were at £337,000 compared to £384,000 in 2009 due to less depreciation charges this year and salary re-charges outside the group.
Net interest cost for 2010 is £2,000 compared with net interest cost of £ 105,000 in 2009. This is a result of the long - term loans not existing in 2010.
The investment in a listed company was written down to reflect the current market value of the shares traded on AIM. This write down was for £6,000. The market value of the shares on AIM is 5.62 pence per share. The company owns 260,000 shares.
Overall losses before tax were £693,000 compared with losses before tax of £ 1,032,000 in 2009.
Dividends
No interim or final dividends have been paid or proposed in the year.
Net Assets
The movement in the shareholders funds from £5,300,000 (2009) to £4,662,000 (2010) was attributable to a loss of £693,000 during the year and the revaluation of the property based at Baltic Quay, London. The net assets at the year end are £0.97 per share, compared with £1.10 per share at 31 December 2009. The treasury shares are not entitled to voting rights or dividends.
Borrowings and Cash flows
There were no borrowings by the group during the year. Cash in hand amounted to £878,000 (2009: £37,000). Increase in the cash balance was due to the sale of property based at Bristol during the year. The gearing ratio remained at nil.
Current and Future Trading
We continue to implement the policy of rationalising the investment properties with a view to maximising the realisation of your investment. We intend to continue to take advantage of any short-term development projects and property trading opportunities that may be appropriate to the business, to maximise the capital employed in the company.
CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31 DECEMBER 2010 Year ended 31 Year ended 31 December 2010 December 2009 £000 £000 Turnover including associates 1,528 2,888 Less: Share of associates (252) (97) Group Turnover 1,276 2,791 Cost of sales (1,624) (3,298) Group gross (Loss) / profit (348) (507) Share of profit / (loss) of - - associates Administration expenses (337) (384) Operating (loss) / profit including (685) (891) associates Amounts written off investments (6) (15) Amounts written off fixed assets (-) (21) Operating (loss) / profit before (691) (927) interest Interest receivable 9 - Interest payable (11) (105) (Loss) / profit on ordinary (693) (1,032) activities before taxation Taxation - 74 (Loss) / profit on ordinary (693) (958) activities after tax (Loss) / profit for the year (693) (958) Pence Pence (Loss) / earnings per share (14.4) (19.9) The profit and loss account has been prepared on the basis that all operationsare continuing operations.CONSOLIDATED BALANCE SHEETAT 31 DECEMBER 2010 31 December 2010 31 December 2009 £000 £000 £000 £000 Fixed assets Tangible assets 484 443 Investments - Other 15 21 Investments in 1,504 1,504 associates 2,003 1,968 Current assets Work in progress 1,043 2,441 Debtors 969 1,255 Cash at bank 878 37 2,890 3,733 Creditors: Amounts (231) (401) falling due within one year Net current assets 2,659 3,332 Total assets less 4,662 5,300 current liabilities Creditors: Amounts ( -) ( -) falling due after more than one year Net assets 4,662 5,300 Capital and reserves Called up share 2,410 2,410 capital Other reserves (334) (334) Share premium 1,802 1,802 account Capital redemption 425 425 reserve Revaluation reserve 55 - Profit and loss 304 997 account Equity shareholders' 4,662 5,300 funds Pence Pence Net assets per share 97 110 attributable to ordinary shareholders CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2010 31 December 2010 31 December 2009 £000 £000 £000 £000 Net cash inflow from 838 2,215 operating activities Returns on investments and servicing of finance Interest received 9 - Interest paid (11) (105) Net cash (outflow) from returns (2) (105) on investments and servicing of finance Taxation Taxation recovered - 74 Capital expenditure and financial investment Purchase of tangible (-) (9) fixed assets Net cash (outflow) from capital (-) (9) expenditure and financial investment Financing Repayment of loans (-) (2,275) New Loans drawn 5 - Net cash inflow/ (outflow) from 5 (2,275) financing Increase/(decrease) in 841 (100) cash NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010
1. The financial information set out herein does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006 (the "Act"). The financial information in respect of the year ended 31 December 2010 is unaudited but has been reviewed and agreed with the Company's auditors.
2. Comparative financial information for the 12 months ended 31 December 2009 has been extracted from the statutory accounts for the period which have been delivered to the Registrar of Companies and upon which the auditors gave an unqualified report, with no statement under the Companies Act 2006 which the auditors are required to report by exception.
3. Accounting Policies Basis of Accounting
The financial statements have been prepared under the historical cost convention modified by the valuation of investment properties and in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) which have been applied consistently (except as otherwise stated) and the Companies Act 2006. The company has not adopted International Financial Reporting Standards (IFRS) until it is required to do so.
The consolidated financial statements comprise the financial statements of the company and its subsidiary and associate undertakings. Where a subsidiary is acquired during the period, the profit attributable to shareholders includes only the profits or losses from the effective date of acquisition. Where a subsidiary has been disposed of during the period, the profit attributable to shareholders includes only profit or losses to the effective date of disposal. The Group's interests in joint ventures are accounted for using the gross equity method. Where the company exercises significant influence over certain investments, these are treated as associates and the interest is accounted for using the gross equity method. Where the company no longer exercises significant influence, these are treated as investments from the date at which the ability to exercise significant influence ceased.
In preparing the financial statements, the directors are required to make an assessment of the group companies' ability to continue to trade as a going concern. The directors have considered the group companies' cash requirements to settle the debts as they fall due and have compared this against the facilities available to them for a period greater than 12 months from the approval of the financial statements. Based on this analysis, the group companies are dependent on continuing finance from companies in which the directors have a material interest to enable it to meet the liabilities as they fall due. The parent company has received commitment from these companies, in which the directors have a material interest that they will continue to provide sufficient funds to the parent company for these purposes. The companies in which the directors have a material interest are profitable entities, with strong net asset positions and the directors are confident over their ability to provide such funds as and when required. It is on this basis that the directors consider it to be appropriate to prepare the financial statements on a going concern basis.
Turnover
Turnover and operating profit for the period is principally attributable to investment property rental, value of development stock and work in progress sold during the period and fees from management contracts.
Revenue from sales of investment and development properties are recognised on completion of contracts.
Rental income is recognised when due. Any amounts received in advance or arrears are included in debtors or creditors as applicable.
Turnover is derived from activities undertaken in the United Kingdom.
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010
4. (Loss) / Earnings Per Share
The calculation of loss per share is based on losses of £693,000 (2009 - losses of £958,000) and on 4,820,247 (2009 - 4,820,247) ordinary shares, being the weighted average number of ordinary shares in issue during the year.
5. Reconciliation of Shareholders' funds
31 December 31 December 2009 2010 £ 000 £000 Brought forward 5,300 6,277 Loss for the year (693) (958) Revaluation reserve 55 (19) Dividends - - Closing shareholders' funds 4,662 5,300
During the year, the directors re-valued an investment property to its current open market value hence
giving rise to a revaluation reserve of £54,520.
6. Dividend
No interim or final dividend has been paid or proposed during the year.
7. Reconciliation of operating (loss) / profit to net cash flows from operatingactivities Year ended 31 Year ended 31 December 2010 December 2009 £000 £000 Operating (loss) (685) (891) Depreciation 14 44 Decrease / (increase) in work in progress 1,398 3,134 Decrease / (increase) in debtors 286 86 (Decrease) / increase in creditors (175) (158) Net cash inflow / (outflow) from operating 838 2,215activities
8. Analysis of changes in net cash / (debt)
31 December Cashflows 31 December 2009 2010 £000 £000 £000 Net Cash Cash at bank and in hand 878 841 37 Bank overdrafts (5) (5) (-) 873 836 37 Debt Bank loans - - - Net (debt)/cash 873 836 37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
9. Reconciliation of net cash flow to movement in net cash
2010 2009 £000 £000 Increase / (decrease) in cash in the year 841 (100) Cash flow from loans (5) 2,275 Movement in net cash/(debt) 836 2,175 in the year Net cash / (debt) at 1 January 2010 37 (2,138) Net cash / (debt) at 31 December 2010 873 37
10. Own Shares
Own shares held at 31 December 2010 amounted to £333,583 and comprise 201,663 shares (nominal value -
£100,831.50) held in treasury. The shares held in treasury were purchased at a weighted average price of £1.65. At 31 May 2011, the total market value of own shares held in treasury was £32,266 (2009 - £35,291).
Amicrest Holdings plc
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