30th Apr 2008 07:00
Hotel Corp (The) PLC30 April 2008 The Hotel Corporation plc Preliminary Results for the year ended 31 December 2007 The Hotel Corporation plc, the AIM listed investment company owning 49.9% ofDawnay Shore Hotels plc ("DSH"), announces its preliminary results for 2007.These results also include the final results for DSH for 2007. Highlights The Hotel Corporation • Profit before movement in unrealised investments of £2.5m (2006: £2.05m). • Net assets per share of 246p (2006: 290p). • Final dividend of 4.5p per share (2006: 4.5p), giving 7.2p for 2007 (2006: 7.15p). DSH • Leased hotels for 45 years providing a secure income stream which is inflation indexed and has further potential for rises depending on hotel profit performance. • Strong pipeline of further developments, with plans for approx. 800 rooms (more than 20% of estate), of which 363 rooms have planning permission. Barclay Douglas, Chairman of The Hotel Corporation plc, said: "We welcome DSH's successful transformation into an investment property companyspecialising in hotels. I believe it will prove to be an astute move. "The lease arrangements with Barcelo provide DSH with excellent prospects forincome growth into the long term, underpinned by a strong covenant. Rentalincome is scheduled to increase from £28m to £30m from the beginning ofSeptember 2008 and if Barcelo continues to make progress in improving hotelprofitability, this income will begin to rise rapidly after a further two years.There are also good prospects for increasing rental income by carrying out thedevelopment programme. "Your Company is well-placed to grow value for shareholders." Press enquiries The Hotel Corporation 0207 638 9571Barclay Douglas Shore Capital and Corporate 020 7468 7911(Nominated Adviser to the Company)Graham Shore Citigate Dewe Rogerson 0207 638 9571Sara Batchelor Notes to Editors The Hotel Corporation plc The Hotel Corporation is an AIM listed company which was established as a meansfor investors in publicly quoted companies to gain an interest in Dawnay ShoreHotels plc. It is currently a 49.9% shareholder in DSH. DSH currently owns aportfolio of 20 four star regional hotels in the United Kingdom. These hotelsare now leased to the Barcelo Group The Hotel Corporation is an Isle of Man company, with its principal place ofbusiness and registered office in Douglas, Isle of Man. Dawnay Shore Hotels plc Paramount Group of Hotels was established in 1994 and was acquired by DawnayShore Hotels plc in July 2004. Following further acquisitions it now owns 20four star hotels across Scotland, Northern England, Central England, SouthernEngland and Wales, including the Lygon Arms in the Cotswolds, the Carlton Hotelin Edinburgh, The Marine in Troon, The Majestic in Harrogate, The Imperial inTorquay, The Imperial in Blackpool and the Oxford Hotel in Oxford. The hotels offer extensive banqueting, conference and leisure facilities andmany of them have architectural and historical significance. The Group has some2,872 bedrooms and around 20,000 square metres of conference and meeting roomsand offers extensive facilities to both corporate and leisure guests. The Barcelo Group Barcelo Corporacion Empresarial, S.A. is a privately owned Spanish hospitalitycompany. The activities of the company include the management and operation ofover 130 hotels across more than 14 countries under an ownership, leasing ormanagement basis as well as the operation of retail travel agencies. TheBarcelo Group also promotes projects broadly related to the tourism and hotelindustries, owning shares in other companies. The Barcelo Group carries out itsactivities in Spain, the Dominican Republic, Costa Rica, Nicaragua, the UnitedStates, Mexico, the Czech Republic, Turkey and Switzerland, among othercountries. Chairman's Statement I am pleased to report on the final figures for the twelve months ended 31December 2007. As the company's principal asset comprises its interest in Dawnay Shore Hotelsplc (DSH), this statement will focus both on the company's own results and thenon those of DSH. The balance sheet of DSH as at 31 December 2007, incomestatement and consolidated cash flow statement of DSH for the period ended 31December 2007 are also provided in this statement. Results of the Company Revenue for the year, including bank interest, was £2.73m (2006: £2.28m) andfollowing administrative expenses but before unrealised gains and losses, profitamounted to £2.50m (2006: £2.05m). In addition, an investment loss amounting to£15.2m (2006: gain of £49.2m) arising from the measurement of the company'sinvestment in the ordinary shares of DSH at their fair value has beenrecognised, in accordance with International Financial Reporting Standards.Including this investment loss, total loss before tax was £12.7m (2006: profitof £51.2m). No tax is payable for the period due to the zero corporate taxationprovisions in the Isle of Man. Basic and diluted earnings per share were(36.5p) (2006: 147.9p) including these investment gains, and 7.2p (2006: 5.9p)without it. The company has valued its shareholding in DSH on the basis of the net assetvalue of DSH as set out in that company's accounts. DSH's accounts include avaluation of its portfolio of 20 hotels of £531m. The valuation was carried outby Colliers Robert Barry & Co, third party independent valuers, as at 31December 2007. This translates into a net asset value per share in the capitalof DSH of 400p (2006: 492p per share), after allowing for the carried interestattributable to the Founder shares in DSH. This compares with the price of 110pat which the company last acquired shares in DSH in January 2005. Dividend The Company has proposed a final dividend of 4.5p per ordinary share (2006:4.5p), making a total of 7.2p for the year (2006: 7.15p). The ex-dividend datewill be 7th May 2008 and the record date 9th May 2008. Payment will be made toshareholders on Monday 16th June 2008. This amount reflects the profits for theyear before investment gains and tax. Dawnay Shore Hotels plc Introduction During 2007 DSH successfully implemented a strategic review, changing itsbusiness from being an owner and operator of hotels and becoming solely an ownerof hotel property receiving income from property rents. It leased its portfolioof 20 prominent conference and leisure hotels to Barcelo Group ("Barcelo"), aleading Spanish hospitality company, and transferred the operation of the hotelsto Barcelo. As a result, DSH has become a property investment company specialising inhotels. DSH has gained a secure and growing income stream from a blue chiptenant. The Board of DSH envisages that the Company's future growth will comenot only from further development of the existing property portfolio, but alsofrom acquiring additional hotels to which a similar approach can be applied.The Board believes that DSH's strategic alliance with Barcelo will play animportant part in the Company's growth. Financial Performance DSH's results for 2007 reflect the changes in its business during the year. Thetransfer of the business became effective on 6 September 2007. During theperiod up to that date from 1 January 2007, some eight months, the Companytraded as a hotel operator and for the remaining almost four months as aproperty company. Turnover as a hotel operator excluded the months in the runup to Christmas which is normally the best period for trading. Turnoverfollowing the transfer to Barcelo is broadly representative of the company'sfinancial position in the first year of the lease and showed the Companygenerating an operating profit before revaluation of £7.9m. As discussed below, DSH has had the properties professionally revalued as at 31December 2007 and, as a result, is now carrying its properties at a total valueof £531m. As part of this process, each individual property has been assigned anew value, in some cases eliminating the brought forward valuation surplus andconsequently leading to a charge to the profit and loss account. This charge,£7.08m, is a non-cash item which is shown as a "deficit on revaluation". Theremainder of the effects of revaluation (a deficit of £18.36m) have been takenagainst the valuation surplus in the balance sheet, after which the surplus was£149.4m, being the revaluation reserve as at 31 December 2007. Net interest payable increased by £5.5m, principally because the totalborrowings of the Company increased during the year. The additional borrowingswere taken on largely to fund capital improvements; details of the majorprojects are given below. Interest payable also includes amortisation of loanarrangement costs, which has been accelerated in 2007 reflecting the review ofcapital structure discussed below, and payments to bondholders of the Company'sdeep discounted bonds. Bank borrowings at the end of the year wereapproximately £337m, 63.5 percent of the value of investment properties held. Capital Expenditure During 2007 the Company had an active programme of capital expenditure, both toincrease capacity and improve the facilities at its properties. This programmeincreased the number of rooms during the year from 2,708 to 2,872, representingan increase of 6%. A summary of the major capital projects is given in thefollowing table. Major capital projects completed in 2007 Hotel Project Walton Hall Hotel and Spa, Warwickshire 72 extra bedrooms / new conference centre and upgrade of existing bedrooms/conference facilities and communal facilities. The Lygon Arms Hotel, Cotswolds 8 extra bedrooms and refurbishment of main hall/ reception/ lounges and 13 existing bedrooms. Majestic Hotel, Harrogate 11 extra bedrooms, new conference room and creation of 4 treatment rooms and refurbishment of conference room Redworth Hall Hotel, Durham 43 extra bedrooms and refurbishment of 42 existing bedrooms Shrigley Hall Hotel, Cheshire Refurbishment of 68 existing bedrooms/reception and investment in golf course. Imperial Hotel, Blackpool Refurbishment of 42 bedrooms and corridors Cheltenham Park Hotel, Cheltenham Refurbishment of restaurant. Daventry Hotel, Northamptonshire 17 extra bedrooms and refurbishment of 38 existing bedrooms/ restaurant/bar/reception/conference facilities Hinckley Island Hotel, Leicestershire 13 extra bedrooms and refurbishment of conference rooms New Leases and Property Revaluation As mentioned above, DSH's strategic review was successfully concluded with theleasing of its hotels to Barcelo Group. The leases place full repairing andinsuring obligations on the tenant and provide guaranteed rental growth over thefirst four years which is inflation-indexed thereafter and can also increase ifhotel EBITDA performs well. For the purposes of preparing its annual financial statements for 2007, DSH hashad the property subject to these leases professionally revalued. Thisportfolio, which excludes land held for non-hotel development, has beenre-valued for this purpose at £527m. The Board of DSH considers that thecurrent value of the land held for development is a further £4m. This new valuation is a reduction of £29m from the valuation of £556m given inAugust 2007, immediately after the leases were granted. Compared to the generalsoftening in property yields across the UK hotel market this reduction in valueof 5.2 per cent acknowledges the secure and growing income stream combined withthe strength of the covenant and the attractive inflation-linking features. Review of Capital Structure When the Company announced the outcome of the strategic review on 24 August2007, the Board also announced that it intended to review the Company's capitalstructure. It commented that the secure income generated by the leases offeredthe opportunity to the Company to increase its borrowing. This would provide anopportunity, in due course to repay bondholders, fund future capital expenditureand also, possibly, to return further value to shareholders. During the period since the announcement, the Company has had discussions withits bankers in order to progress these possibilities. These discussions havenot yet been concluded and are continuing. Development plans In the past DSH has successfully exploited the potential for gains in valuethrough developing the portfolio by adding extra rooms and conferencefacilities. This programme is expected to continue and at present DSH has plansto add approximately 800 rooms (over 20 per cent of the current estate) of which363 rooms have already received the necessary planning or listed buildingconsent. There are also schemes for 2,500 sq.m (over 50% of which has planningconsent) of additional meeting rooms and upgrades for several leisure clubs.The lease agreement provides a formula for these improvements to be added toDSH's rental income. The economics of adding these rooms is highly attractivefor both parties. The value of the development potential of the portfolio isnot typically fully recognised in a professional valuation and DSH thereforebelieves that fulfilling the programme will add significantly to net assetvalue. Strategy and Plans Having concluded the leases with Barcelo, DSH has transformed its financialposition. The effect is to increase DSH's net cashflow before interest in thefirst year of the leases because DSH will no longer bear the overhead costs ofthe Paramount Group nor (other than an agreed contribution) need to fundmaintenance expenditures. Cashflow will grow further in subsequent yearsaccording to the leases' formula and is supported by Barcelo's strong covenantrather than being dependent on the potential cyclicality of the hotel business. This gives the Company a strong platform from which to build further growth invalue. The most obvious and immediate way to do this is through carrying outthe development programme discussed above. Discussions with Barcelo indicatethat they are also keen to progress these additions, which offer an attractiveprospect to both parties to the lease. There are also a number of possibilities for additions to the current 20 hotelproperties in the portfolio. We are conscious that a number of portfolios weremarketed over the latter part of 2006 and during 2007 which were not sold. As amajor successful hotel property specialist with good access to the financialmarkets, we remain open to taking advantage of attractive opportunities. Prospects The Company is well-placed to grow value for shareholders. It has an attractiveportfolio of assets which are let to a progressive tenant with a strongcovenant. Under the terms of the leases, the rental income will increase to£30m (from £28m) from the beginning of September 2008. If Barcelo continues tomake progress in improving hotel profitability, and we believe that there aregood prospects that they will, this income will begin to rise rapidly after twofurther years, but is in any event inflation linked (UK RPI) after the fourthyear. There are also good prospects for increasing rental income by carryingout the Company's development programme. Annual General Meeting Notice convening the Annual General Meeting of The Hotel Corporation, to be heldat Burleigh Manor, Peel Road, Douglas, Isle of Man, IM1 5EP, will be enclosedwith the Company's report and accounts to be despatched to shareholders shortly.Included will be resolutions seeking shareholders approval of the Company'sinvesting strategy as required by AIM and for the repurchase of our own shares. Barclay DouglasChairman 29th April 2008 The Hotel Corporation plc Preliminary Results for the Year Ended 31 December 2007 Income Statement 2007 2006 £'000 £'000Continuing Operations Revenue 2,615 2,185Administrative expenses (226) (231) Profit from operations 2,389 1,954 Bank interest receivable 111 92Investment (losses)/gains - unrealised (15,153) 49,169 (Loss)/Profit before tax (12,653) 51,215 Taxation - - (Loss)/Profit after tax for the year from continuing operations (12,653) 51,215 Earnings Per Share 2007 2006 Basic and diluted (36.5p) 147.9p Dividends 2007 2006 £'000 £'000 Paid 2,493 2,025 Proposed 1,558 1,558 Balance Sheet Assets 2007 2006 £'000 £'000 £'000 £'000Non-Current Assets Investments 82,823 97,976 Current Assets Trade and other Receivables 10 10 Cash and Cash Equivalents 2,332 2,321 2,342 2,331 Total Assets 85,165 100,307 Equity & Liabilities Capital & Reserves Share Capital 1,731 1,731 Share Premium Account 33,300 33,300 Retained Earnings 50,106 65,252 85,137 100,283 Current Liabilities Trade and other payables 28 24 Total Equity & Liabilities 85,165 100,307 The financial statements were approved by the Board of Directors and authorisedfor issue on 29th April 2008. They were signed on its behalf by; Barclay Douglas David Craine Statement of Changes in Equity Share Share Retained Total Capital Premium Earnings Account £'000 £'000 £'000 £'000 Balance at 31st December 2005 1,731 33,308 16,062 51,101 Profit for Year - - 51,215 51,215 Preliminary Expenses - (8) - (8) Dividend - - (2,025) (2,025) Balance at 31st December 2006 1,731 33,300 65,252 100,283 Loss for Year - - (12,653) (12,653) Dividend - - (2,493) (2,493) Balance at 31st December 2007 1,731 33,300 50,106 85,137 Cash Flow Statement 2007 2006 £,000 £'000 Net Cash Inflow/(Outflow) From Operating Activities 407 (41) Investing Activities Interest Received 111 92 Proceeds received on the maturity of Investments 1,986 1,986 Net cash from Investing Activities 2,097 2,078 Financing Activities Preliminary Expenses - (8) Dividends Paid (2,493) (2,025) Net cash used in Financing Activities (2,493) (2,033) Net increase in cash and cash equivalents 11 4 Cash and cash equivalents at beginning of year 2,321 2,317 Cash and cash equivalents at end of year 2,332 2,321 Notes to the Financial Statements For the Year Ended 31st December 2007 1. Basis of accounting The financial statements in this announcement have been prepared in accordancewith International Financial Reporting Standards (IFRS). The statements do notconstitute statutory accounts within the meaning of the Isle of Man CompaniesActs 1931 - 2004. The statutory accounts for the period ended 31 December 2007are finalised on the basis of the financial information presented by thedirectors in this preliminary announcement and will be delivered to theCompanies Registry in the Isle of Man following the Company's Annual GeneralMeeting. 2. Investments Classified as: 2007 2006 £'000 £'000Fair Value through Profit or Loss Investments 66,273 81,426Held to Maturity 16,550 16,550 82,823 97,976 Fair Value through Profit or Loss Investments 2007 2006 £'000 £'000Unlisted Investments at Fair ValueFair value at Start of Year 81,426 32,257Additions at cost - -(Decrease)/Increase in fair value (15,153) 49,169Fair value at 31st December 66,273 81,426 The unlisted investment shown above represents a holding of 16,550,000 ordinaryshares of £1 par value in Dawnay Shore Hotels plc, which comprises 49.92% of theissued share capital of that company, which is incorporated and registered inthe United Kingdom. Investments in the ordinary shares of Dawnay Shore Hotelsplc ("DSH") held at the balance sheet date are measured at their fair value. In determining the fair value attributable to the ordinary shares in DSH, theDirectors have drawn upon the net asset value of DSH as set out in the financialstatements of that company and have utilised that net asset value for eachordinary share held in DSH by the Company, making an appropriate adjustment forthe carried interest attributable to the founder shares in DSH (as defined inthe Hotel Corporation plc prospectus issued on 9th July 2004). The financialstatements of DSH include a valuation as at 31st December 2007 of the portfolioof hotels that has been provided by an independent professional valuer andprepared in accordance with the rules of RICS. Any resultant gain or loss in the value of the Company's equity investment inDSH is recognised in the Income Statement. Investments held to maturity 2007 2006 £'000 £'000Cost and net book valueAt Start of Year 16,550 16,550Additions - -Amortisation of discount 1,986 1,986Matured during year (1,986) (1,986)At 31st December 16,550 16,550 The investments included above represent unlisted investments in unsecured deepdiscount bonds issued by DSH (Finance) plc, a subsidiary of Dawnay Shore Hotelsplc, maturing at nominal value over a period of 5 years. The bonds have a couponrate of nil percent. The maturity profile of the bonds held at 31st December 2007 is shown below: Maturing Nominal Value 2007 2006 £'000 £'000 Within one year 1,986 1,986One to two years 17,543 1,986Two to three years - 17,543 Total 19,529 21,515 3. Earnings per Share 2007 2006 Basic and Diluted Earnings per Share (36.5p) 147.9p This comprises: Basic and diluted earnings per share from operations and bank interest 7.2p 5.9p Basic and diluted earnings per share from investment (losses)/gains (43.7p) 142.0p The calculation of basic earnings per share is based on the following data: Earnings 2007 2006 £'000 £'000 Profit from Operations 2,389 1,954Bank Interest 111 92 2,500 2,046 Investment (Losses)/Gains (15,153) 49,169 Net (Loss)/Profit for Year (12,653) 51,215 Number of Shares 2007 2006 Weighted average number of ordinary shares for the 34,619,050 34,619,050purpose of basic and diluted earnings per share. There were no convertible instruments in existence as at 31st December 2007 andtherefore diluted earnings per share does not differ from the basic earnings pershare. 4. Notes to the Cashflow Statement Reconciliation of Profit from Operations to Net Cash from Operating Activities. 2007 2006 £'000 £'000 Profit from Operations 2,389 1,954Decrease in Receivables - 9Increase (Decrease) in Trade and other payables 4 (18)Amortisation of Discount on Purchase of investments (1,986) (1,986)Net cash inflow (outflow) from operating activities 407 (41) Net cash inflows from operating activities includes cash from dividends receivedof £630,662. 5. Events after the Balance Sheet Date On 29th April 2008 the Company proposed a dividend of 4.5 pence per share.The ex-div date will be 7th May 2008 and a record date of 9th May 2008.Payment will be made to shareholders on Monday, 16th June 2008. 6. Information relating to Dawnay Shore Hotels plc The profit and loss account and consolidated cash flow statement of DSH for theyear ended 31 December 2007 together with the balance sheet of DSH as at 31December 2007 are provided on the following pages and have been prepared inaccordance with applicable United Kingdom accounting standards. These should beread in conjunction with the preliminary results of the company. Additional Information The following additional information has been supplied to the company by DawnayShore Hotels plc and should be read in conjunction with the preliminary resultsof the company Dawnay Shore Hotels PlcConsolidated Profit and Loss AccountYear ended 31st December 2007 Year Period ended ended 31 31 Discontinued Continuing December December activities activities 2007 2006 £'000 £'000 £'000 £'000 TURNOVER 67,649 9,342 76,991 101,228Cost of sales (8,028) - (8,028) (12,166) GROSS PROFIT 59,621 9,342 68,963 89,062Administrative expenses (56,463) (1,433) (57,896) (70,334)Administrative expenses - exceptional - (7,077) (7,077) -(Deficit on revaluation of properties) OPERATING PROFIT 3,158 832 3,990 18,728 Loss on sale of fixed assets (116) (2) 3,874 18,726Interest receivable and similar income 140 160Interest payable and similar charges (29,160) (23,622) LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (25,146) (4,736)Tax on loss on ordinary activities 8,018 1,474 LOSS FOR THE FINANCIAL PERIOD (17,128) (3,262)Equity dividend paid (1,260) (398) RETAINED LOSS FOR THE FINANCIAL PERIOD (18,388) (3,660) As the Group ceased to carry on the business of hoteliers on its own account on6 September 2007, the results of the hotel operations up to that date includingthe prior period are shown as discontinued. Dawnay Shore Hotels PlcConsolidated Balance Sheet31st December 2007 As at 31 As at 31 December December 2007 2006 £'000 £'000FIXED ASSETSIntangible assets - goodwill 9,002 9,523Tangible assets 531,060 527,550Investments - - 540,062 537,073 CURRENT ASSETSStocks - 862Debtors 819 9,995Cash at bank and in hand 6,979 2,407 7,798 13,264 CREDITORS: amounts falling due within one year (24,129) (22,947) NET CURRENT (LIABILITIES)/ASSETS (16,331) (9,683) TOTAL ASSETS LESS CURRENT LIABILITIES 523,731 527,390 CREDITORS: amounts falling due after more than (362,496) (321,389)one yearPROVISION FOR LIABILITIES AND CHARGES (3) (8,021) NET ASSETS 161,232 197,980 CAPITAL AND RESERVESCalled up share capital 1,658 1,658Share premium account 32,137 32,137Revaluation reserve 149,425 168,043Profit and loss account (21,988) (3,858) EQUITY SHAREHOLDERS' FUNDS 161,232 197,980 Dawnay Shore Hotels plcConsolidated Statement of Total Recognised Gains and LossesYear ended 31st December 2007 Year Period ended 31 ended 31 December December 2007 2006 £'000 £'000 Retained loss for the financial period (17,128) (3,660)Unrealised (deficit)/surplus on revaluation of properties (18,360) 137,022 Total recognised gains and losses relating to the period (35,488) 133,362 Note of Consolidated Historical Cost Profits and LossesYear ended 31st December 2007 Year Period ended 31 ended 31 December December 2007 2006 £'000 £'000 Reported loss on ordinary activities before taxation (25,146) (4,736)Difference between historical cost depreciation charge and actual 258 159depreciation charge for the year calculated on the revalued amount Historical cost loss on ordinary activities before taxation (24,888) (4,577) Historical cost loss for the year retained after taxation and dividends (18,130) (3,501) Dawnay Shore Hotels plcConsolidated Cash Flow StatementYear ended 31st December 2007 Year Period ended 31 ended 31 December December 2007 2006 £'000 £'000 Net cash inflow from operating activities 23,947 24,530 Returns on investments and servicing of financeInterest received 140 160Interest paid (18,059) (19,488)Interest paid on finance leases (36) (57)Dividends paid (1,260) (398) Net cash outflow from returns on investments and (19,215) (19,783)servicing of finance TaxationCorporation tax paid - - Capital expenditurePurchase of tangible fixed assets (35,485) (23,169)Sale of tangible fixed assets 226 34 Net cash outflow from capital expenditure and financial investment (35,259) (23,135) AcquisitionsPurchase of subsidiary undertakings - (197) Net cash outflow from acquisitions - (197) Net cash outflow before financing (30,527) (18,585) FinancingNew term loans raised 105,626 17,802New loan note issued - 114Term loans repaid (63,033) -Bonds repaid (2,751) (3,091)Loan notes repaid (3,709) -New term loan issue costs (663) -Repayment of principal under finance leases (371) (307) Net cash inflow from financing 35,099 14,518 Increase/(decrease) in cash 4,572 (4,067) Note - Dawnay Shore Hotels plc The accounting policies used in arriving at these figures are consistent withthose which will be published with the full financial statements. There are nochanges in accounting policies from those used in the prior period. Thefinancial information in this announcement has been prepared under thehistorical cost convention, adjusted for the revaluation of tangible assets inaccordance with the accounting policies set out in the Company's Report andAccounts for the prior period. Such information does not constitute statutoryaccounts within the meaning of section 240 of the Companies Act 1985 for theyear ended 31 December 2007 and period ended 31 December 2006. The financialinformation for the prior period ended 31 December 2006 is derived from thestatutory accounts for that period which have been delivered to the Registrar ofCompanies. The auditors reported on those accounts; their report was unqualifiedand did not contain a statement under s237(2) or (3) of the Companies Act 1985.The statutory accounts for the year ended 31 December 2007 have been prepared onthe basis of the financial information presented by the directors in thispreliminary announcement and will be delivered to the Registrar of Companiesfollowing the company's annual general meeting. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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