10th Jul 2008 07:00
ABBEY PLC
Preliminary Statement for the year ended 30 April 2008
The Board of Abbey plc reports a profit of €16.8 million before taxation against €45.3 million the previous year. After a tax charge of €4.7 million the Group made a profit of €12.1 million reflecting earnings per share of 42.93 cents. Group operating profits during the year were €15.1 million against €43.7 million the previous year. The profits have been materially impacted by an impairment charge of €20.6 million against land and work in progress arising from the depressed trading conditions. This represented circa 11% of the gross inventory as at 30 April. Whilst we believe these impairments are prudent based on current market conditions, if the market significantly deteriorates further write-downs may be needed in future.
Dividends of 36 cents per share, absorbing €10.1 million were paid during the year. Further to the authority granted at the Extraordinary General Meeting on 19 November 2007 the company has completed the share repurchase program under the resolution granted, of 4,342,531 ordinary shares at a total cost of €25,452,000.
Our housebuilding operations completed 716 sales (UK 467; Ireland 249) with a turnover of €159.2 million generating an operating profit of €10.5 million. UK trading over the period as a whole was satisfactory, however, the trading environment became steadily more difficult as the year progressed. In Ireland a good result was achieved as sales made in early 2007 were completed. A noticeable upturn in sales at the start of 2008 faded towards the end of the period. We enter the current year with a forward order book sufficient to maintain reasonable trading in the very short term. During the last two months market conditions have continued to deteriorate and current sales rates are at very low levels in line with generally reported market conditions. In the circumstances it is likely the housing division will deliver materially fewer houses this year. In Prague building is now quite advanced on our first phase in Slivenec. Forward sales have been achieved and we are hopeful of a useful contribution to our figures this year.
At the year end the Group owned and controlled land with the benefit of planning permission for the supply of 2,300 plots. In view of the current trading environment the Group's landbank will likely decline this year.
M & J reported operating profits of €2.8 million on a turnover of €20.6 million. In addition, a further gain of €1.3 million resulted from the disposal of an M&J property. This was an encouraging outturn and May was also a good month. In recent weeks the first signs of slowing activity have been seen and inevitably more difficult trading will be encountered during the year.
Rental income arising primarily from the letting of surplus space of Group property was €499,000.
At the year end shareholder funds stood at €207.9 million representing €8.44 per share whilst net cash balances stood at €39.8 million.
Shareholders should carefully note the exchange rates used for this statement. The profit and loss statement uses the average exchange rate for the year of 100 cents:- STG 71.98p. The balance sheet uses the ratio prevailing on 30th April of 100 cents: STG 78.63p.
In recent weeks trading conditions have deteriorated noticeably. The rate and depth of the current slowdown in activity is outside our experience. It seems clear that the source of the difficulty is the dramatic contraction of the mortgage market. Unless conditions markedly improve, which seems unlikely in the short term, a wrenching adjustment lies ahead. Future prospects will be governed (amongst other factors) by the ability of the Group to avail of opportunities to buy land on advantageous terms. In these circumstances sensibly maximising the cash resources at the disposal of the Group is essential and, therefore, the Board will not recommend a dividend for consideration at the Annual General Meeting in October.
On behalf of the Board
CHARLES H GALLAGHER
CHAIRMAN
10 July 2008
|
ABBEY plc |
|||||||||
|
Group Income Statement |
|
|
|
|
|
|
|||
|
30 April 2008 |
|||||||||
|
Note |
30/04/2008 |
30/04/2007 |
|||||||
|
€'000 |
€'000 |
||||||||
|
Revenue |
180,334 |
192,201 |
|||||||
|
Cost of sales |
|||||||||
|
- normal |
(132,881) |
(135,492) |
|||||||
|
- impairment charge on land |
3 |
(20,599) |
- |
||||||
|
Gross profit |
26,854 |
56,709 |
|||||||
|
Administrative expenses |
(13,228) |
(13,034) |
|||||||
|
Gain on property disposal |
3 |
1,306 |
- |
||||||
|
Share of joint venture profit before taxation |
144 |
- |
|||||||
|
Operating profit |
15,076 |
43,675 |
|||||||
|
Finance income |
1,818 |
1,609 |
|||||||
|
Finance costs |
(100) |
(12) |
|||||||
|
Profit on ordinary activities before taxation |
16,794 |
45,272 |
|||||||
|
Income tax expense |
4 |
(4,713) |
(10,883) |
||||||
|
Profit attributable to equity shareholders of the parent |
12,081 |
34,389 |
|||||||
|
Earnings per share - basic |
5 |
42.93 |
c |
118.13 |
c |
||||
|
|
|
||||||||
|
Earnings per share - diluted |
5 |
42.93 |
c |
118.13 |
c |
||||
|
|
|
||||||||
|
ABBEY plc
|
||||||||
|
Group Consolidated Statement of Changes in Equity
|
||||||||
|
|
For the year ended 30 April 2008
|
|
Capital
|
|
|
|
||
|
|
Attributable to equity holders of the parent
|
Issued Capital
|
Share Premium
|
Revaluation Reserve
|
Redemption Reserve Fund
|
Currency Translation
|
Retained Earnings
|
Total
|
|
|
|
€'000
|
€'000
|
€'000
|
€'000
|
€'000
|
€'000
|
€'000
|
|
|
At 1 May 2007
|
9,270
|
13,321
|
8,673
|
3,113
|
1,517
|
209,159
|
245,053
|
|
|
Foreign currency translation
|
-
|
-
|
(757)
|
-
|
(14,356)
|
-
|
(15,113)
|
|
|
Reduction in revaluation surplus
|
-
|
-
|
(187)
|
-
|
-
|
187
|
-
|
|
|
Actuarial gain on group defined
|
|
|
|
|
|
|
|
|
|
benefit pension obligations
|
-
|
-
|
-
|
-
|
-
|
2,012
|
2,012
|
|
|
Deferred tax liability relating to
|
|
|
|
|
|
|
|
|
|
actuarial gain on Group defined
benefit pension obligation
|
-
|
-
|
-
|
-
|
-
|
(517)
|
(517)
|
|
|
Purchase of company shares
|
(1,389)
|
-
|
-
|
1,389
|
-
|
(25,452)
|
(25,452)
|
|
|
Total income and expense for the year recognised directly in equity
|
|
|
|
|
|
|
|
|
|
year directly recognised in equity
|
(1,389)
|
-
|
(944)
|
1,389
|
(14,356)
|
(23,770)
|
(39,070)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
12,081
|
12,081
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense for theyear
|
(1,389)
|
-
|
(944)
|
1,389
|
(14,356)
|
(11,689)
|
(26,989)
|
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(10,124)
|
(10,124)
|
|
|
At 30 April 2008
|
7,881
|
13,321
|
7,729
|
4,502
|
(12,839)
|
187,346
|
207,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended 30 April 2007
|
|
|
|
Capital
|
|
|
|
|
|
Attributable to equity holders of the parent
|
Issued Capital
|
Share Premium
|
Revaluation Reserve
|
Redemption Reserve Fund
|
Currency Translation
|
Retained Earnings
|
Total
|
|
|
|
€'000
|
€'000
|
€'000
|
€'000
|
€'000
|
€'000
|
€'000
|
|
|
At 1 May 2006
|
9,495
|
13,321
|
9,557
|
2,888
|
-
|
191,234
|
226,495
|
|
|
Foreign currency translation
|
-
|
-
|
111
|
-
|
1,517
|
-
|
1,628
|
|
|
Reduction in revaluation surplus
|
-
|
-
|
(995)
|
-
|
-
|
-
|
(995)
|
|
|
Actuarial gain on group defined
|
|
|
|
|
|
|
|
|
|
benefit pension obligations
|
-
|
-
|
-
|
-
|
-
|
465
|
465
|
|
|
Deferred tax liability relating to
|
|
|
|
|
|
|
|
|
|
actuarial gain on Group defined
benefit pension obligation
|
|
|
|
|
|
|
|
|
|
benefit pension obligation
|
-
|
-
|
-
|
-
|
-
|
(140)
|
(140)
|
|
|
Purchase of company shares
|
(225)
|
-
|
-
|
225
|
-
|
(6,360)
|
(6,360)
|
|
|
Total income and expense for the year recognised directly in equity
|
|
|
|
|
|
|
|
|
|
year directly recognised in equity
|
(225)
|
-
|
(884)
|
225
|
1,517
|
(6,035)
|
(5,402)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
34,389
|
34,389
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense for the year
|
(225)
|
-
|
(884)
|
225
|
1,517
|
28,354
|
28,987
|
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(10,429)
|
(10,429)
|
|
|
At 30 April 2007
|
9,270
|
13,321
|
8,673
|
3,113
|
1,517
|
209,159
|
245,053
|
|
|
|
|
|
|
|
|
|
|
|
ABBEY plc
|
|
|
|
|
|
|
|
|
GROUP BALANCE SHEET
|
|
|
|
|
|
|
|
|
at 30 April 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
30/04/2008
|
|
|
30/04/2007
|
|
ASSETS
|
|
|
|
€'000
|
|
|
€'000
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
31,785
|
|
|
36,079
|
|
|
Investment property
|
|
|
2,392
|
|
|
2,392
|
|
|
Investment in joint venture
|
|
|
2,512
|
|
|
2,398
|
|
|
Investments
|
|
|
|
6
|
|
|
7
|
|
Pension benefit obligations
|
|
|
3,988
|
|
|
2,433
|
|
|
|
|
|
|
40,683
|
|
|
43,309
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
10,168
|
|
|
13,135
|
|
Inventories
|
|
|
|
168,086
|
|
|
232,721
|
|
Cash and cash equivalents
|
|
|
39,807
|
|
|
32,095
|
|
|
|
|
|
|
218,061
|
|
|
277,951
|
|
NET CURRENT ASSETS
|
|
|
|
258,744
|
|
|
321,260
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
(45,557)
|
|
|
(65,948)
|
|
|
Tax liabilities
|
|
|
|
(304)
|
|
|
(4,532)
|
|
Provisions
|
|
|
|
(2,120)
|
|
|
(2,562)
|
|
|
|
|
|
(47,981)
|
|
|
(73,042)
|
|
NET CURRENT ASSETS
|
|
|
170,080
|
|
|
204,909
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS LESS
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
Deferred taxation
|
|
|
|
(2,751)
|
|
|
(3,025)
|
|
Provisions
|
|
|
|
(72)
|
|
|
(140)
|
|
|
|
|
|
(2,823)
|
|
|
(3,165)
|
|
TOTAL LIABILITIES
|
|
|
|
(50,804)
|
|
|
(76,207)
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
|
207,940
|
|
|
245,053
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Equity attributable to equity holders of the parent
|
|
|
|
|
|
|
|
|
Issued capital
|
|
|
|
7,881
|
|
|
9,270
|
|
Share premium
|
|
|
|
13,321
|
|
|
13,321
|
|
Revaluation reserve
|
|
|
7,729
|
|
|
8,673
|
|
|
Other reserves
|
|
|
|
|
|
|
|
|
- Capital redemption reserve fund
|
|
|
4,502
|
|
|
3,113
|
|
|
- Currency translation
|
|
|
(12,839)
|
|
|
1,517
|
|
|
Retained earnings
|
|
|
187,346
|
|
|
209,159
|
|
|
TOTAL EQUITY
|
|
|
|
207,940
|
|
|
245,053
|
|
TOTAL EQUITY AND LIABILITIES
|
|
|
|
258,744
|
|
|
321,260
|
|
ABBEY plc |
|||||||||
|
GROUP CONSOLIDATED CASH FLOW STATEMENT |
|
|
|
|
|||||
|
30 April 2008 |
|||||||||
|
30/04/2008 |
30/04/2007 |
||||||||
|
€'000 |
€'000 |
||||||||
|
Cash flows from operating activities |
|||||||||
|
Profit before tax |
16,650 |
45,272 |
|||||||
|
Adjustments to reconcile profit before tax |
|||||||||
|
to net cash flows |
|||||||||
|
Non cash: |
|||||||||
|
Depreciation |
7,060 |
7,108 |
|||||||
|
Other non cash items |
94 |
(170) |
|||||||
|
Movement in pension benefit asset |
(28) |
647 |
|||||||
|
Impairment charge on land |
20,599 |
- |
|||||||
|
Profit on disposal of property, plant and equipment |
(2,846) |
(1,482) |
|||||||
|
Finance income |
(1,818) |
(1,609) |
|||||||
|
Finance costs |
100 |
12 |
|||||||
|
Working capital adjustments: |
|||||||||
|
Decrease (increase) in inventories |
29,604 |
(19,061) |
|||||||
|
Decrease (increase) in trade and other receivables |
1,671 |
(4,998) |
|||||||
|
Decrease in creditors and provisions |
(15,685) |
(27,651) |
|||||||
|
|
|||||||||
|
Income taxes paid |
(8,948) |
(11,283) |
|||||||
|
Net cash flow from operating activities |
46,453 |
(13,215) |
|||||||
|
Cash flows from investing activities |
|||||||||
|
Purchase of plant, property and equipment |
(9,346) |
(10,892) |
|||||||
|
Sale of plant, property and equipment |
5,338 |
3,233 |
|||||||
|
Finance income |
1,818 |
1,609 |
|||||||
|
|
|
||||||||
|
Net cash outflow from investing activities |
(2,190) |
(6,050) |
|||||||
|
Cash flows from financing activities |
|||||||||
|
Cost of share buy-backs |
(25,452) |
(6,360) |
|||||||
|
Equity dividends paid |
(10,124) |
(10,429) |
|||||||
|
Finance costs |
(100) |
(12) |
|||||||
|
Net cash outflow from financing activities |
(35,676) |
(16,801) |
|||||||
|
Net increase (decrease) in cash and |
|||||||||
|
cash equivalents |
8,587 |
(36,066) |
|||||||
|
Cash and cash equivalents at start of year |
32,095 |
67,745 |
|||||||
|
Net foreign exchange differences |
(875) |
416 |
|||||||
|
Cash and cash equivalents at end of year |
39,807 |
32,095 |
|||||||
ABBEY plc
NOTES TO THE PRELIMINARY STATEMENT
30 APRIL 2008
1. Basis of Preparation
The preliminary statement is prepared, including the comparative figures, in accordance with EU endorsed International Financial Reporting Standards ("IFRSs), International Financial Reporting Interpretations Committee ("IFRIC") and in accordance with the rules of the Irish Enterprise Exchange ("IEX") and the Alternative Investment Market ("AIM"). The financial information relating to Abbey plc and its subsidiaries included within this statement for the year ended 30 April 2008 does not comprise full group accounts as referred to in Regulation 40 of the European Communities (Companies: Group Accounts) Regulations 1992, copies of which are required by that Act to be annexed to the company's annual return. The auditors have made reports without qualification under Section 193 of the Irish Companies Act, 1990 in respect of all such financial statements.
|
2. Segmental Information Turnover, cost of sales and operating profit are derived from continuing activities. The Group operates in three markets being Ireland, the United Kingdom and the Czech Republic. The principal activities of the Group are building and property development, plant hire and property rental. These divisions are the basis on which the Group reports its primary segment information. |
||||||||||
|
|
|
--Building and Property Development--- |
Plant Hire |
Property Rental |
Unallocated |
GROUP |
||||
|
|
|
Ireland |
United Kingdom |
Czech Republic |
United Kingdom |
Ireland and United Kingdom |
||||
|
|
|
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
||
|
|
30 April 2008 |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||||
|
|
Turnover
|
64,467 |
94,747 |
- |
20,621 |
499 |
- |
180,334 |
||
|
|
Operating (loss) profit |
(4,989) |
15,878 |
(390) |
4,078 |
499 |
- |
15,076 |
||
|
|
(Loss) profit before taxation |
(3,973) |
12,659 |
(359) |
3,363 |
391 |
- |
12,081 |
||
|
|
||||||||||
|
|
Net assets |
107,606 |
55,269 |
13,932 |
27,942 |
2,293 |
898 |
207,940 |
||
|
|
|
|
|
|
|
|
||||
|
30 April 2007 |
|
|
|
|
|
|
||||
|
|
||||||||||
|
Turnover |
59,471 |
111,111 |
- |
21,144 |
475 |
- |
192,201 |
|||
|
|
||||||||||
|
Operating profit |
16,529 |
24,513 |
(361) |
2,519 |
475 |
- |
43,675 |
|||
|
|
||||||||||
|
|
Profit before taxation |
14,726 |
17,703 |
(331) |
1,816 |
475 |
- |
34,389 |
||
|
|
||||||||||
|
|
Net assets |
114,007 |
88,198 |
10,158 |
29,838 |
2,293 |
559 |
245,053 |
||
|
ABBEY plc |
|||||||||
|
NOTES TO THE PRELIMINARY STATEMENT |
|||||||||
|
30 April 2008 |
|||||||||
|
3. Exceptional items |
|||||||||
|
|
|||||||||
|
30/04/2008 |
30/04/2007 |
||||||||
|
Cost of sales |
€'000 |
€'000 |
|||||||
|
The cost of sales charge for the year is arrived at |
|||||||||
|
after charging: |
|||||||||
|
Write down of inventories to net realisable value |
20,599 |
- |
|||||||
|
Over the last number of months the Group have closely |
|||||||||
|
monitored the carrying value of our land inventories |
|||||||||
|
in Ireland and the United Kingdom as a result of uncertain |
|||||||||
|
market conditions and a weakening sales environment. |
|||||||||
|
Arising from these considerations we estimate that the |
|||||||||
|
original cost of certain development sites have suffered |
|||||||||
|
an impairment. |
|||||||||
|
Gain on disposal of property |
1,306 |
- |
|||||||
|
During the year a gain resulted from the disposal of a |
|||||||||
|
property vested under a Compulsory Purchase order. |
|||||||||
|
As such this gain is not indicative of a trend in financial |
|||||||||
|
performance. |
|||||||||
|
4. Taxation on profit on ordinary activities |
30/04/2008 |
30/04/2007 |
|||||||
|
€'000 |
€'000 |
||||||||
|
The tax charge based on the profit on ordinary |
|||||||||
|
activities comprises: |
|||||||||
|
Irish Corporation Tax at 12.50% |
|||||||||
|
Current |
(350) |
2,190 |
|||||||
|
United Kingdom Corporation Tax at 29.84% (2007:30%) |
|||||||||
|
Current |
5,486 |
8,669 |
|||||||
|
Total current corporation tax |
5,136 |
10,859 |
|||||||
|
Deferred tax |
(423) |
24 |
|||||||
|
Income tax expense |
4,713 |
10,883 |
|||||||
5. Earnings per share: basic and diluted
Earnings per share has been calculated by reference to the weighted average number of shares in issue of 28,139,295 (2007: 29,109,967) and to the profit on ordinary activities after taxation amounting to €12,081,000 (2007: €34,389,000).
The total number of ordinary shares in issue at the year end is 24,626,992 (2007: 28,969,523).
Related Shares:
ABBY.L