TIDMSUH
RNS Number : 2929S
Sutton Harbour Group PLC
07 July 2020
7 July 2020
SUTTON HARBOUR GROUP PLC ("the Group")
Final results for the year ended 31 March 2020
Sutton Harbour Group plc ("Sutton Harbour", "the Company"), the
AIM listed owner and operator of Sutton Harbour in Plymouth and
specialist in waterfront regeneration projects and operation of
waterfront real estate, marinas and Plymouth Fisheries, announces
audited results for the year ended 31 March 2020.
Highlights
-- 4 year bank facility renewal in December 2019, additional GBP2m facility agreed in May 2020
-- Car Parking revenue up 25.5%
-- Tenant occupancy at 95% in March 2020
-- Growth in marina occupancy and revenue following a targeted
marketing communications programme
-- Completion of new fuel and utilities servery infrastructure at Plymouth Fisheries
-- Corey Beinhaker appointed Executive Director and Chief Operating Officer
-- Progress with Harbour Arch Quay scheme; construction now anticipated to begin in 2020
Financial Highlights
Note 2020 2019
Adjusted profit before tax * GBP0.221m GBP0.072m
---------------- --------------------- ---------------------
Net financing costs GBP0.844m GBP0.901m
---------------- --------------------- ---------------------
Net assets GBP46.0m GBP45.7m
---------------- --------------------- ---------------------
Valuation of property portfolio ** GBP46.0m GBP45.8m
---------------- --------------------- ---------------------
Year-end net debt GBP23.5m GBP21.4m
---------------- --------------------- ---------------------
*Before accounting for fair value adjustments to property asset
valuation.
**Comprises investment and owner occupied portfolios.
Excludes land held as development inventory.
Valuation as at 31 January 2020, pre Covid-19 lockdown
measures
Philip Beinhaker, Executive Chairman, commented:
"Development of the Group's trading strategies had begun to bear
fruit with pleasing advancement of the marina, parking and
investment property results. The Group has the base of a unique
portfolio of property assets in a landmark location and as
stability is restored (post Covid-19 lockdown) we are ready to move
forward with planned development of new assets in line with our
strategy for value growth".
For further information, please contact
Sutton Harbour Group plc
Philip Beinhaker - Executive
Chairman
Corey Beinhaker - Chief Operating
Officer
Natasha Gadsdon - Finance Director 01752 204186
Arden Partners (Nomad and Broker)
Paul Shackleton
Benjamin Cryer 020 7614 5924
Executive Chairman's Statement
For Year Ended 31 March 2020
Introduction
I am pleased to report on the Group's results for the year ended
31 March 2020. During this period the Group has moved forward
productively with the pre-construction preparations for the
approved schemes for construction over the short to medium term,
has worked on the promotion of our business activities and those of
our tenants based around Sutton Harbour and has increased
revenue-earning from our established operations. These financial
results show the progress that has, and is, being made. Just before
the end of our financial year the Covid-19 Lockdown measures were
introduced by the UK Government, which adversely effected the last
two weeks of our trading year.
During the strictest period of the lockdown we maintained full
operations at Plymouth Fisheries and Sutton Lock, and we managed
the marina facilities in accordance with government guidance which
required closure of some facilities. The Group has remained in
regular contact with tenants to discuss their operating status and
to be ready to move to reawakening the activities surrounding the
Sutton Harbour area. The core of professional office tenants has
been less affected. Many tenants in the food and beverage sector
have adapted to the situation by offering takeaway services. The
Head Office of Sutton Harbour Group has remained fully operational
with some personnel working remotely.
As the lockdown has been relaxed the Group has worked to restore
operations in accordance with government guidance and as quickly as
adaptations can be made to provide safe facilities. Activity at the
marinas is approaching normality helped by a period of fine weather
and the car parks have now re-opened to welcome visitors to the
area.
To provide additional headroom on bank facilities to assure the
financial resilience of the Group beyond the current projected time
of the crisis, an increased facility of GBP2m above the previous
limit of GBP25m has been successfully negotiated with National
Westminster Bank plc. This additional committed financing has been
made available until May 2021 with the possibility of an extension
for a further year.
Results and Financial Position
The adjusted profit before taxation for the year was GBP0.221m
(2019: GBP0.072m profit) which excludes non-cash fair value
adjustments. In this financial year these adjustments relate to
property asset valuation and further explanation is given in the
paragraph below. The loss before taxation for the year under review
as per the Income Statement, inclusive of the aforementioned
adjustments, was GBP0.756m (2019: GBP1.516m profit). Compared to
the previous year revenue from fuel sales declined by some 24% and
this accounts for the overall fall in revenue to GBP6.558m from
GBP6.893m (2019). The profit margin earned on fuel sales is low
which explains why this does not materially impact operating
profit. Overall, trading operations (excluding regeneration)
contributed GBP2.329m to group costs and overheads (2020:
GBP2.207m). Further detail about trading activities follows later
in the report.
As at 31 March 2020, net assets were GBP46.082m (2019:
GBP45.732m), a net asset value of 39.7p per share (2019: 39.4p per
share). The movement includes the valuation of the Group's property
assets which gave rise to an overall valuation surplus of
GBP0.361m, of which GBP0.494m deficit relates to the investment
property portfolio and GBP0.855m surplus relates to the owner
occupied properties . Further detail is given about property
valuation below. Gearing (Net debt:net assets) as at 31 March 2020
stood at 51.1% (2019: 46.7%). Finance costs of GBP0.844m in the
year (2019: GBP0.902m) reflect the level of bank borrowing
throughout the year.
Net debt (including lease liabilities) increased to GBP23.549m
at 31 March 2020 from GBP21.373m at 31 March 2019. Development
Inventories increased by GBP0.902m reflecting the investment
required to progress the development projects with planning
consented status and other schemes being prepared for planning
submission. A further GBP0.873m was invested in the Group's
infrastructure asset base, the principal project being the
construction of a new fuel and utilities servery at Plymouth
Fisheries.
Taking into account the current level of bank borrowing, the
board does not recommend payment of a dividend on the year's
results.
Property Valuation
The Group engages external independent valuers to undertake the
annual valuation of investment and owner-occupied properties in
January each year and received the updated valuation for 31 January
2020. In normal times this would be an acceptable basis for
valuation for the year-end balance sheet. The uncertainty and
volatility caused by the Covid-19 pandemic and resulting Government
restrictions were not foreseen giving rise to difficulties in
obtaining an uncaveated valuation as at 31 March 2020. After
consultation with the Group's advisors who recognised the
difficulty to obtain a reliable updated valuation in the
exceptional circumstances it was determined that no valuation would
be sought. The lack of an updated valuation has resulted in the
auditors reporting that the audit was limited in scope. The Group's
bankers have agreed to suspend loan to property valuation covenant
testing at least until June 2021 in light of the variable valuation
uncertainty over the next year.
Directors and Staff
In October 2019, Corey Beinhaker was appointed Executive
Director and Chief Operating Officer following a recruitment
process led by the Non-Executive Directors and with advice from an
external recruitment specialist. There have been no other board
changes during the year. Headcount as at 31 March 2020 was 30 (31
March 2019: 31) and remains stable.
Operations Report
Marine
Overall, the marine segment has performed steadily during the
year. The Marinas achieved satisfactory growth in both revenue and
occupancy following a targeted marketing communications programme.
Results from fishing activities were adversely impacted by a
prolonged period of stormy weather at the start of 2020 and greater
fish landings by road to the auction facility which attracts lower
commission and results in lower fuel and ice sales. During the year
new fuel and utilities servery infrastructure was installed to
improve resilience of essential supplies to harbour users. This
GBP800,000 investment was matched by grant funding and completes a
five- year long programme to upgrade facilities at Plymouth
Fisheries. In response to demand for longer and wider marina
berths, a reconfiguration of some pontoons at Sutton Harbour Marina
was completed during the winter months.
Real Estate and Car Parking
The tenant occupancy rate was enhanced throughout the year,
starting at 94% in April 2019 and progressing to 95% by March 2020
after letting of some smaller units to new tenants. Car Parking
revenue was up 25.5% in this financial year against the comparative
period following a number of strategic changes to the management of
the assets and sustained social media to promote the area. The
Covid 19 Lockdown undermined results for the second half of March
with minimal activity in the harbour.
Regeneration
Sutton Harbour During the year the Group has continued with the
pre-construction work for the two major consented schemes around
Sutton Harbour. Harbour Arch Quay, the smaller 14 apartment
building, is close to starting construction subject to finalising
contracts and financing, which is anticipated later this year. The
much larger 170 apartment Sugar Quay development is subject to
gaining planning consent variations and work is targeted to start
on site in 2021.
Former Airport Site As previously reported the site is
safeguarded from development until 2024. The Group continues to
refine proposals for deliverable alternative use of the 113 acre
site which meet the social and economic needs of Plymouth.
Summary and Outlook
Development of the Group's trading strategies had begun to bear
fruit with pleasing advancement of the marina, parking and
investment property results. The full impact of the Covid 19
lockdown and recovery period is unknown and it will take time to
re-establish normal levels of business, but the start of the
re-awakening as of this date, is encouraging. Some operations have
re-opened and virtually all others are planning to follow in July
2020. The Board has reacted quickly to the situation, putting in
place an increased bank facility and taking reasonable measures to
mitigate loss and maintain continuity of operations. The Group has
the base of a unique portfolio of property assets in a landmark
location and as stability is restored we are ready to move forward
with planned development of new assets in line with our strategy
for value growth.
Consolidated Income Statement
For the year ended 31 March 2020
2020 2019
GBP000 GBP000
Revenue 6,558 6,893
Cost of sales (4,229) (4,686)
Gross profit 2,329 2,207
------------ ------------
Fair value adjustments on investment properties and fixed assets (977) 1,444
Administrative expenses (1,264) (1,234)
Operating profit 88 2,417
------------ ------------
Finance income - 1
Finance costs (844) (902)
------------ ------------
Net finance costs (844) (901)
------------ ------------
(Loss)/profit before tax from continuing operations (756) 1,516
Taxation ( charge)/ credit on (l oss) /profit from continuing operations (232) 315
------------ ------------
(Loss)/profit for the year from continuing operations (988) 1,831
------------ ------------
(Loss)/profit for the year attributable to owners of the parent (988) 1,831
============ ============
Basic and diluted (loss)/earnings per share
from continuing operations (0.85p) 1.68p
Consolidated Statement of Other Comprehensive Income
For the year ended 31 March 2020
2020 2019
GBP000 GBP000
(L oss)/profit for the year (988) 1,831
Items that will not be reclassified subsequently to profit or loss:
Revaluation of property, plant and equipment 1,338 1,640
Items that may be reclassified subsequently to profit or loss:
Effective portion of changes in fair value of cash flow hedges - 6
Other comprehensive income for the year, net of tax 1,338 1,646
------------ ------------
Total comprehensive income for the year attributable to owners of the parent 350 3,477
============ ============
Consolidated Balance Sheets
As at 31 March
2020 2019
GBP000 GBP000
Non-current assets
Property, plant and equipment 27,958 26,632
Investment property 18,985 19,425
Inventories 12,810 12,448
59,753 58,505
------------ ------------
Current assets
Inventories 12,217 11,119
Trade and other receivables 2,595 2,283
Tax recoverable 5 (5)
Cash and cash equivalents 792 1,296
15,609 14,693
------------ ------------
Total assets 75,362 73,198
------------ ------------
Current liabilities
Trade and other payables 1,396 1,496
Lease liabilities 63 122
Deferred income 1,544 1,398
Provisions 70 70
3,073 3,086
------------ ------------
Non-current liabilities
Bank loans 24,250 22,500
Lease liabilities 28 47
Deferred government grants 646 646
Deferred tax liabilities 1,254 1,023
Provisions 29 164
26,207 24,380
------------ ------------
Total liabilities 29,280 27,466
------------ ------------
Net assets 46,082 45,732
============ ============
Issued capital and reserves attributable
to owners of the parent
Share capital 16,266 16,266
Share premium 10,695 10,695
Other reserves 13,034 11,696
Retained earnings 6,087 7,075
Total equity 46,082 45,732
============ ============
Consolidated Statement
of Changes
in Equity
For the year ended
31 March 2020
Share Share Revaluation Merger Hedging Retained Total
capital premium reserve reserve reserve earnings equity
------------Other reserves------------
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- ---------------- ----------- ----------- --------- -------
Balance at 1 April
2018 16,162 7,872 6,185 3,871 (6) 5,244 39,328
Comprehensive income
Profit for the year - - - - - 1,831 1,831
Other comprehensive
income
Revaluation of property,
plant and equipment - - 1,640 - - - 1,640
Other comprehensive
income
Effective portion of
changes in fair value
of cashflow hedges - - - - 6 - 6
Total other comprehensive
income 1,640 6 1,646
-------- -------- ---------------- ----------- ----------- --------- -------
Total comprehensive
income - - 1,640 - 6 1,831 3,477
-------- -------- ---------------- ----------- ----------- --------- -------
Transactions with owners
of the
Parent
Issue of shares 104 2,823 - - - - 2,927
Total balance at 31
March 2019 16,266 10,695 7,825 3,871 - 7,075 45,732
======== ======== ================ =========== =========== ========= =======
Balance at 1 April
2019 16,266 10,695 7,825 3,871 - 7,075 45,732
Comprehensive income
Loss for the year - - - - - (988) (988)
Other comprehensive
income
Revaluation of property,
plant and equipment - - 1,338 - - - 1,338
Total other comprehensive
income 1,338 - 1,338
-------- -------- ---------------- ----------- ----------- --------- -------
Total comprehensive
income - - 1,338 - - (988) 350
-------- -------- ---------------- ----------- ----------- --------- -------
Total balance at 31
March 2020 16,266 10,695 9,163 3,871 - 6,087 46,082
======== ======== ================ =========== =========== ========= =======
Consolidated Cash Flow Statement
For the year ended 31 March 2020 2020 2019
GBP000 GBP000
------ ------------
Cash used from total operating activities (455) (1,181)
Cash flows from investing activities
Net expenditure on investment property (52) (60)
Expenditure on property, plant and equipment (823) (243)
Net cash used in investing activities (875) (303)
------ ------------
Cash flows from financing activities
Proceeds from issue of shares - 3,000
Expenses of share issuance - (73)
Interest paid (844) (958)
Loan (repayment) - (1,850)
Loan drawdown 1,750 -
Cash payments of lease liabilities (78) (106)
Net cash generated from financing activities 826 13
------ ------------
Net increase in cash and cash equivalents (504) (1,471)
Cash and cash equivalents at beginning of the
year 1,296 2,767
Cash and cash equivalents at end of the year 9 792 1,296
------ ------------
Reconciliation of financing activities for the year ended 31 March 2020
2020 Cash 2019 Cash flow 2018
flow
GBP000 GBP000 GBP000 GBP000 GBP000
-------- ------- ------- ---------- --------
Bank loans 2 4,250 1 ,750 22,500 (1,850) 2 4,350
Lease liabilities 9 1 ( 78) 169 (106) 275
-------- ------- ------- ---------- --------
Long term debt 2 4,341 1,672 22,669 (1,956) 24,625
-------- ------- ------- ---------- --------
Segment results
For the year ended 31 March 2020
Real
Marine Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
------- -------- ------------ ------------- --------
Revenue 4,323 1,580 655 - 6,558
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 916 1,157 404 (148) 2,329
Fair value adjustment
on investment
properties and
fixed assets (483) (494) - - (977)
------- -------- ------------ ------------- --------
1,352
Unallocated:
Administrative
expenses (1,264)
Operating profit 88
Financial income -
Financial expense (844)
--------
Profit before
tax from continuing
activities (756)
Taxation (232)
--------
Profit for the
year from continuing
operations (988)
--------
Depreciation
charge
Marine 313
Car Parking 26
Administration 1
----
340
----
Year ended 31 Real
March 2019 Marine Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
------- -------- ------------ ------------- --------
Revenue 4,896 1,474 523 - 6,893
Gross profit
prior to non-recurring
items 1,057 941 350 (141) 2,207
Fair value adjustment
on investment
properties and
fixed assets 1,134 310 - - 1,444
------- -------- ------------ ------------- --------
3,651
Unallocated:
Administrative
expenses (1,234)
2,417
Finance income 1
Finance expenses (902)
--------
Profit before
tax from continuing
activities 1,516
Taxation 315
--------
Profit for the year from continuing operations
1,831
Depreciation
charge
Marine 314
Car Parking 33
Administration 11
----
358
----
Notes to the Consolidated Financial Statements
1. General Accounting Policies
Basis of preparation
The results for the year to 31 March 2020 have been extracted
from the audited consolidated financial statements, which are
expected to be published by 7 August 2020.
The financial information set out above does not constitute the
Company's statutory accounts for the years to 31 March 2020 or 2019
but is derived from those accounts. Statutory accounts for the year
ended 31 March 2019 were delivered to the Registrar of Companies
following the Annual General Meeting on 4 September 2019 and the
statutory accounts for 2020 are expected to be published on the
Group's website (www.suttonharbourholdings.co.uk) shortly, posted
to shareholders at least 21 days ahead of the Annual General
Meeting ("AGM") on 9 September 2020 and, after approval at the AGM,
delivered to the Registrar of Companies.
The auditor, PKF Francis Clark, has reported on the accounts for
the year ended 31 March; their report was (i) qualified in respect
of a limitation in scope with the Company and Auditor not having
access to updated property valuations at 31 March 2020 in light of
Covid-19 as detailed in the Executive Chairman's Statement (ii)
includes a reference to the valuation of Plymouth City Airport
(former airport site) to which the auditors drew attention by way
of emphasis without qualifying their report and (iii) contains a
statement under Section 498 (3) of the Companies Act 2006 in
respect of the limitation of scope on those accounts.
2. Adoption of IFRS 16 Leases
The Directors have considered the application of IFRS16 on its
leasing arrangements. The Group has a small number of short term
leases and leases of low value items and therefore continues to
recognise payments made under these agreements on a straight line
basis over the term of the lease. The Group has one leasing
arrangement in relation to a property, which is due to expire in
September 2021. The Directors have concluded that the expected
right of use asset and corresponding lease liability would be
immaterial to the Group's financial statements and have therefore
not adopted the requirements of IFRS16 in relation to this
arrangement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR FLFIVDDIDIII
(END) Dow Jones Newswires
July 07, 2020 09:26 ET (13:26 GMT)
Sutton Harbour (LSE:SUH)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Sutton Harbour (LSE:SUH)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
