6th Apr 2006 08:00
Medsea Estates Group PLC06 April 2006 For immediate release 6 April 2006 MEDSEA ESTATES GROUP PLC PRELIMINARY UNAUDITED RESULTS FOR THE YEAR TO 31 DECEMBER 2005 CHAIRMAN'S STATEMENT The year 2005 was one of major investment for the Medsea Group. Recognisingmarket changes, we significantly expanded our infrastructure, launching productsin Italy, Cyprus, Turkey, Portugal and Bulgaria. We also increased our Spanishpresence with a major development in Aguilas, Murcia, and formed alliances withmajor companies in the German, Dutch and Benelux markets. As predicted our subsidiary Euromed, established to broaden the scope of ouractivities, has begun to generate income, and is now in good shape to become asignificant contributor in 2006. During the year we completed the reorganisation of our Resale Department,strengthened our management and marketing team with a number of importantappointments and became the first company in the sector to receive the ISO9001:2000 certificate of quality management. The general downturn in the market earlier in the year caused our turnover tofall by 39% over the previous period in 2004. Also the scale of our investmentin new countries and staff obviously had a major impact on profits, resulting ina small loss of £52,000 (2004:profit of £2.24m). This period of significant activity and investment is now completed and many ofour investments - Italy and the Aguilas development in particular - are alreadymaking significant contributions to turnover. With Euromed set to fulfil itspotential, Medsea's long term future is assured and we look forward to furtherprogress in the coming months. Tony Gatehouse, Chairman, Medsea Group. For further information contact: Medsea Estates Group PLCTony Gatehouse, ChairmanJuan Carlos Rodriguez Martinez, Chief Executive 0034 96 570 40 02 Beaumont Cornish LimitedRoland Cornish 0207 628 3396 Weber Shandwick Square MileTerry Garrett/ Alex White/ John 0207 067 0700Moriarty GROUP PROFIT AND LOSS ACCOUNTFOR THE PERIOD ENDED 31 DECEMBER 2005 Unaudited Audited Total Total Notes 2005 2004 £'000 £'000 Turnover 8,592 14,082 Cost of sales (6,658) (10,020) Gross profit 1,934 4,062 Administrative expenses (2,204) (1,595) Group Operating profit/(loss) 2 (270) 2,467 Share of operating profit in Associate 224 - Exceptional item - (219) Interest receivable and similar income 2 8Interest payable and similar charges 3 (8) (14) Profit/(loss) on ordinary activities before (52) 2,242taxation Tax on profit/(loss) on ordinary 4 (18) (822)activities Profit/(loss) on ordinary activities (70) 1,420after taxation Minority interests 5 (7) (2) Retained profit/(loss) for the year (77) 1,418 Earnings/(loss) per shareBasic (0.11 p) 2.12 p GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESFOR THE PERIOD ENDED 31 DECEMBER 2005 Unaudited Audited 2005 2004 £'000 £'000Statement of total recognised gainsand losses Profit/(loss) for the financial year (77) 1,418 Foreign exchange gain/(loss) (2) 64 Unrealised surplus on revaluation of - 29investment properties Total recognised gains/(losses) (79) 1,511relating to the year GROUP BALANCE SHEETAS AT 31 DECEMBER 2005 Unaudited Audited 2005 2004 £'000 £'000 £'000 £'000 Fixed assetsIntangible assets 5 4Tangible assets 1,135 1,174Investments 4 92Investments in associates 236 - 1,380 1,270Current assetsStock 182 129Debtors 6,718 7,500Cash at bank and in hand 156 1,229 7,056 8,858Creditors: amounts falling due withinone year (3,654) (4,772) Net current assets 3,402 4,086 Total assets less current liabilities 4,782 5,356 Creditors: amounts falling due aftermorethan one year (108) (253) Provisions for liabilities and charges (794) (1,042) 3,880 4,061 Capital and reservesShare capital 7,063 7,063Share premium 22 22Other reserve 118 173Revaluation reserve 95 98Merger reserve (7,058) (7,058)Profit and loss account 3,631 3,761Minority interests 9 2Shareholders' funds - equity 3,880 4,061 GROUP CASHFLOW STATEMENTFOR THE PERIOD ENDED 31 DECEMBER 2005 Unaudited Audited 2005 2004 £'000 £'000 Reconciliation of operating profit to net cash inflow from operating activities Operating profit/(loss) (270) 2,467Share of operating profit in Associate 224 -Exceptional items - (219)Depreciation 121 88Foreign exchange (78) 75Amortisation of intangible fixed assets 2 (64)(Profit)/loss on sale of fixed assets 7 (75)(Increase)/decrease in debtors 635 (3,102)Increase in stock (53) (129)Increase/(decrease) in creditors (988) 1,295Net cash inflow/(outflow) from operating (400) 336activities CASH FLOW STATEMENT Net cash inflow/(outflow) from operating (400) 336activities Returns on investments and servicing of finance (6) (6) Tax paid (362) (440) Capital expenditure and financial investment (125) (81) Acquisitions and disposals - 277 Management of liquid resources (4) (92) Net cash flow before financing (897) (6) Financing (261) 222 Increase/(decrease) in cash (1,158) 216 Reconciliation of net cash flow to movements innet debt Increase/(decrease) in cash (1,158) 216 Cash flow from increase/(decrease) in debt 261 (138) (897) 78 Net debt at 1 January 2005 667 589 Net debt at 31 December 2005 (230) 667 NOTES TO THE FINANCIAL STATEMENTFOR THE PERIOD ENDED 31 DECEMBER 2005 1. Accounting policies Basis of preparation The preliminary statement is not the company's statutory accounts. The auditorshave not yet reported on the accounts for the year ended 31 December 2005 andthose accounts have yet to be delivered to the Registrar of Companies. Theaccounts for the year ended 31 December 2004 have been audited and are availablefor inspection at Companies House. Basis of accounting The financial statements have been prepared under the historical costconvention, as modified by the revaluation of certain fixed assets and inaccordance with applicable United Kingdom accounting standards. Basis of consolidation The group accounts consolidate the accounts of Medsea Estates Group PLC and allits subsidiary undertakings drawn up to 31 December each year. Medsea EstatesGroup PLC acquired shares in Medsea UK Limited and all its subsidiaries on 16July 2004. The accounts have been prepared using merger accounting so that allthe combining entities results are shown from 1 January 2004 and included in thecomparatives. Associates In the group financial statements investments in associates are accounted forusing the equity method. The consolidated profit and loss account includes thegroup's share of the associate's profits while the group's share of the netassets of the associates is shown in the consolidated balance sheet. 2. Operating Profit/(Loss) Unaudited AuditedThe operating profit is arrived at after charging: 2005 2004 £'000 £'000 Depreciation of owned assets 116 86Depreciation of leased assets 5 2Profit/(loss) on disposal of fixed assets 7 (75)Hire of equipment - operating leases - motor 472 509vehiclesHire of equipment - operating leases - land and 160 32buildingsAuditors' remuneration 18 18 3. Interest payable and similar charges Unaudited Audited 2005 2004 £'000 £'000 Bank loans and overdrafts repayable within five 7 13yearsFinance lease interest 1 1 8 14 4. Taxation Unaudited Audited 2005 2004 £'000 £'000Analysis of charge in the year Current tax:Spanish corporation tax on profits of the year 260 413UK corporation tax on profits of the year 6 67Deferred tax (248) 342Tax on profit on ordinary activities 18 822 The tax assessed for the year is higher than the standard rate ofcorporation tax in the UK (30%). The differences are explained below: Unaudited Audited 2005 2004 £'000 £'000Profit on ordinary activities before tax UK 32 72 Spain (84) 2,170 (52) 2,242 Profit on ordinary activities multiplied by (18) 673standard rate of corporation tax in the UK of 30%(2004: 30%)Effects of:Adjustment for foreign tax at a standard rate of 4 10935%Permanent timing differences 32 14Current tax charge for year as above 18 796 The amount of deferred tax that has not been provided on revaluedinvestment properties is £nil (2004: £35,000). 5. Minority interests 5% of the share capital of Euromed Investments SL and 10% of the share capitalof Profile Spain Ltd are held by an external third party. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Craven House Capital