Preliminary Results for year ended 31 March 2015

C. H. Bailey plc

Preliminary Results for the year ended 31 March 2015

C. H. Bailey plc ("C. H. Bailey", the "Company" or together with its subsidiaries the "Group"), a diverse group of international businesses, with investments and operations in leisure, property and engineering with its current key markets being Tanzania, Malta and the UK announces its audited preliminary results for the year ended 31 March 2015.

Group Financial Summary

CH Bailey plc

Bryan Warren, Company Secretary +44 (0) 1633 262 961

Arden Partners plc

Nick Ellis, James Felix, Ciaran Walsh

+44 (0) 207 614 5900

Chairman's Statement

Your Company in the year under review made a profit after tax of £5.8million (2014: loss £1.4million). The profit is mainly attributable to the completion in March 2015 of the second and final part of the St George's Bay Hotel sale in Malta.

The Group has also seen a recovery in the traditional engineering division and our investment activities in the global markets, however, the main focus of the Group is to purchase, develop and operate property to provide high end accommodation, serviced office and retail space. In March 2015, the Company completed the purchase of a further property in Malta that will continue to meet those criteria going forward.

Results

Revenues over the period have increased by 14% to reach £4.9 million. However, the gross profits have reduced due to increased cost of sales predominantly caused by the severance and redundancy costs of closing the operation in Malta, as well as a substantial increase in Tanzania of the depreciation within the cost of sales. The increase has occurred following the completion of the Phase III development which houses The Oyster Bay Suites, serviced offices, a bank and a premium restaurant. Excluding depreciation, administration costs for the year have decreased.

The overall earning per share was 76.74p (2014: loss 18.4p).

Africa

Revenue derived from our business in Tanzania was £3,173,552, (2014: £2,582,661) representing approximately 64.4% of total Group revenue. The completion of Phase III and the resulting revenue streams should have a greater impact on turnover in 2015/16 as will revenue from The Oyster Bay Suites which were officially opened in April 2015 and where occupancy has been increasing steadily on a monthly basis.

As previously stated in interim results, sales in the Tanzanian hospitality division have been badly affected by numerous factors including the Ebola outbreak in West Africa which has blighted certain parts of Africa. Sales and forward bookings for the coming season have also decreased due to elections in Tanzania and the UK, the currency markets, negative press on elephant poaching and terrorism in neighbouring Kenya.

The Board believe this is part of an African cycle and will affect trading in the short term. Our hospitality sales are now only 19% (2014: 22%) of the Tanzanian revenues and we are hopeful that with The Oyster Bay Suites there will be a recovery next year in Tanzania where the Board anticipate further growth in the serviced commercial and retail property market.

The sale of Mikumi Wildlife Camp has not yet been finalised and we continue to press the purchaser to complete on the final part of the sale. We are still awaiting the final payment to be made before we can progress the sale further and we are discussing with the potential purchaser means to quicken the already delayed process.

Corporate Social Responsibility

This year together with READ International and the Hassan Maajar Trust, we have continued with our programme to renovate primary and secondary school classrooms and create school libraries at schools in the local areas close to where we have operations.

At Kimbiji primary school, 45 kms south of Dar es Salaam we have now renovated seven class rooms and provided desks and chairs for the children and teachers.

At the Kisaki secondary school which is the major town on the northern boundary of the Selous Game Reserve we have renovated a class room, which we then converted into a new school library and supplied English and Swahili educational books and materials.

In Dar-es-salaam we continue to support the TLM Trust and the children's cancer oncology ward at the Muhimbili University hospital.

Malta

As previously announced, the second part of the of the St George's Bay Hotel assets sale has now been completed and the Company's hotel operation has now ceased in Malta. However, we continue to look at other properties on the island and the purchase of 16-18 Charles Street in Valletta has been completed. At the Charles Street property we intend to operate a small boutique hotel and we have already applied for an amendment to the granted planning consent having received the Malta Tourism Authority clearance for a boutique hotel.

The Board is hopeful that given the proposed government upgrade to the surrounding area in Valletta, Charles Street will add to both the revenue and profitability of the Group within the next couple of years when planning and construction is complete. The Board is also evaluating further acquisition and development opportunities in Valletta which, has recently been confirmed as the EU Capital of Culture 2018.

Industrial

Revenue derived from our engineering division in the United Kingdom increased to £1,388,891 (2014: £1,309,556). The operating loss was reduced to £74,819 (2014: loss £274,033). Since March this year, there has been a growth in sales and profitability which is encouraging although the industrial sector in South Wales remains challenging. We are cautiously optimistic that this growth and profitability will continue throughout this financial year.

Principal objectives and strategy

Your Company's principal objective is to achieve profitability from the existing asset base to allow further investment when opportunities arise and provide a return on investment to shareholders or increase the value of the investment to shareholders. We intend to do this through growth, by purchasing, developing, operating and trading in property in the existing geographical areas in which we operate or new areas where we have knowledge and associations with. It is envisaged that the properties will not be specifically targeted but we will focus on the hospitality, leisure, residential, retail and commercial sectors for development and operating opportunities.

Further development of business.

As reported in the Company's interim statement, we feel that the strategies put in place to diversify our revenue streams are beginning to bear fruit. We will continue to look at further projects in Africa and Europe, including the beach front property of Kimbiji, which is 45 minutes from Dar es Salaam and for which we are now reviewing several possible development concepts. There are also further opportunities in Malta, previously mentioned above.

Board and senior management matters

Mrs S A Bailey has decided not to stand for re-election as a director. Mrs Bailey has been a very valuable ambassador for the company for over 60 years and has made many contacts during her time as a director and the Board would like to thank her for her significant contribution and wish her all the very best for the future.

Mr Rod Reynolds will also be leaving the Company as a Director in September due to his business and other personal commitments and interests overseas. His input, tenacity and focused approach has been invaluable and this has helped the Company re-focus and develop a core business from within the Group.

As announced earlier today, the Board appointed Mr David Wilkinson as a non-executive director of the Company. As David was appointed pursuant to Article 22.2 of the Articles of Association, he holds office until the AGM at which time, he retires and will stand for re-election. The intention is that, with effect from the end of the AGM and subject to David being re-elected, I will stand down as chairman and David will become the non-executive chairman of the Company and I will move across to a chief executive role.

David has been with Ernst & Young (E&Y) for over 35 years and a partner for the last 24 years. He has been based in London and Bristol and was responsible for creating the E&Y entrepreneur of the year awards and specialised in helping companies grow and carry out corporate transactions, including acquisitions and floatations.

Dividend

Based on the results, the Board recommends the payment of a special dividend for the year of 20 pence (2014: nil). This dividend reflects a return on the profit on the sale of the property in Malta. The Board intends to reinvest the remainder of the sale proceeds into new and existing property development opportunities. As previously mentioned we hope to now create consistent trading profits so that we can offer our shareholders a return via an increase in share price or, subject to profitability, a dividend payment.

Subject to approval by shareholders at the Annual General Meeting to be held on 8 September 2015, the final dividend will be paid on 16 November 2015. The ex-div date is 22 October 2015 and the record date is 23 October 2015.

People

As always, the success of any Group is down to the hard work and dedication of the people employed. I take this opportunity to thank the team on the Board's behalf for all of their collective efforts over the last year.

Outlook

The Group continues to face a number of challenges. The Board will seek to strengthen the management team while we consider investing in our existing asset base as well as potential new investments. We are also confident in our strategy of achieving and maintaining profitability and the Board believes the Company is well positioned to grow in the future.

Charles Bailey

3rd August 2015

Consolidated Income Statement

for the year ended 31 March 2015

*Earnings before interest, taxation, depreciation, profit on sale of plant and equipment and profit on sale of property.

Consolidated Statement of

Comprehensive Total Income

for the year ended 31 March 2015

Balance Sheets

as at 31 March 2015

Consolidated Cash Flow Statement

for the year ended 31 March 2015

Consolidated Statement of Changes in Equity

for the year ended 31 March 2015

.

Notes to the Accounts

1. General information

Legal status and country of incorporation

C. H. Bailey plc, company number 190106, is incorporated in England and Wales under the Companies Act 2006. The address of the registered office is given on page 37. The principal activities are set out in the Directors' Report on pages 5 to 10.

Basis of preparation

These financial statements have been prepared in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as adopted by the European Union and with the Companies Act 2006. Therefore these financial statements comply with the AIM rules.

The financial statements are prepared using the historical cost basis of accounting except for:

· Properties held at the date of transition to IFRS which are stated at deemed cost; and

· Assets held for sales which are stated at the lower of fair value less anticipated disposal costs and carrying value.

Going concern

The directors have prepared these financial statements on the fundamental assumption that the group is a going concern and will continue to trade for at least 12 months following the date of approval of the financial statements.

2. Segmental information

3. Investment activities and other income

4. Profit (loss) before taxation

The following have been charged (credited) in arriving at the profit (loss) before taxation:

The profit on the sale of property arises on the sale of the hotel complex in Malta.

5. Employee information

The average number of employees employed during the year was:

Staff costs, including directors' remuneration:

Total directors' emoluments were as follows:

 A bonus was paid to Charles Bailey for the completion of the sale of St Georges Bay Hotel in Malta. The bonus was signed off by the Remuneration Committee on the 9th December 2014. The group does not operate any other profit share or bonus schemes for directors.

In addition to the above, £1,430 (2014: £3,799) was charged to group companies for services provided by QED Enterprise Limited, a company controlled by David Orchard. David Orchard retired as a director on 30 September 2014.

6. Taxation

The tax charge for the financial year can be reconciled to the profit before tax per the income statement multiplied by the standard applicable corporation tax rate in the UK of 21% as follows:

7. Earnings (loss) per share

The earnings per share has been calculated by reference to the weighted average number of ordinary shares of 10p each in issue of 7,607,755 (2014: 7,607,755) which excludes own shares held. The share options in issue have no dilutive effect on the weighted average number of ordinary shares.

8. Profit on sale of property

On 17 March 2015, completion took place on the sale of the remaining property at the hotel complex at St Georges Bay, Malta for €13,743,283, pursuant to the agreement made on 9 September 2011 which gave the purchaser to 30 March 2015 to complete on the purchase for this amount. As a deposit of €400,000 had already been paid, the balance €13,343,283 was received on 17 March 2015.

9. Cash generated from operations

10. Related party transactions

At 31 March 2015, the group owed Charles Bailey £39,680 (2014: £889,236) on which there was interest charged to the income statement of £48,135 (2014: £32,154).

The group has made loans totalling 30,000 Euros (2014: 95,000 Euros) to Sefranda Limited, a company controlled by Dr. A. Galea, a director of St Georges Bay Hotel Limited. Transactions between the company and its subsidiary undertakings, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

11. Dividend payments

The directors propose to pay a final dividend in respect to the year ended 31 March 2015 of 20 pence per ordinary share). The financial statements for the year ended 31 March 2015 do not reflect this dividend.

12. Preliminary Statement

This preliminary statement will not be posted to shareholders; however, a copy will be available on the Company's website, www.chbaileyplc.co.uk. This preliminary announcement does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The annual report and accounts for the year ended 31 March 2015 and the comparatives under IFRS have not yet been filed with the Registrar of Companies.

The full Annual Report & Financial Statements, together with the notice convening the company's the annual general meeting to be held at the Hilton London Heathrow Airport, Terminal 4, Heathrow Airport, Hounslow, Middlesex TW6 3AF on the 8th September 2015 at 2.00pm, is being posted to shareholders and can be expected to be received by 11th August 2015. However, it will be available for viewing and download on the Group's website from today.

The statutory financial statements for the year ended 31 March 2014, prepared under adopted IFRS, have been reported on by the group's auditors and delivered to the registrar of companies. The auditors' report was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

This announcement contains forward looking statements which are made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated.