TIDMBL03

RNS Number : 5751N

Belvedere Leisure Resorts PLC

01 February 2021

1 February 2021

Belvedere Leisure Resorts plc

("Belvedere" or the "Company" or the "Group")

Final results for the year ended 30 June 2020

Belvedere, the luxury holiday resort developer, announces its final results for the year ended 30 June 2020.

Period Highlights

-- Launch of a 5 year bond on the Aquis Stock Exchange Growth Market giving a 6.25% coupon per annum to raise a total amount of GBP25 million

   --      Initial bond subscription of GBP107,000 

Post Period Highlights

-- Two subsequent bond issues (GBP872,014 on 30 November 2020 and GBP297,900 on 18 January 2021); bonds with aggregate principal amount of GBP1,276,914 now issued

-- Exclusivity agreement to purchase the 160 acre site known as Barnsoul Park, Shawhead, Dumfries & Galloway

-- Negotiations to acquire the original Barncrosh Site, at Barncrosh Farm, Dumfries & Galloway are ongoing

Strategic report for the year ended 30 June 2020

Review of the business

The Directors are satisfied with the results showing a loss for the year, amounting to GBP499,109

The key financial highlights are as follows:

 
               y/e 30 June   y/e 30 June 
                      2020          2019 
 Turnover             GBP0          GBP0 
 Loss before    GBP499,109         GBP80 
  tax 
 

The year ended 30 June 2020 saw a headline increase in expenditure to GBP499,109 due to the work and associated costs involved with the public listing of the Company's bonds onto one of London's recognised stock exchanges, the Aquis Growth Market ("AQSE") which was formerly known as the NEX Exchange.

After almost 12 months of hard work, the Company successfully listed its bonds onto AQSE and was on course with its fundraising strategy. The GBP25 million corporate bond listing was in advanced stages of securing the first significant subscriptions from two funds (one of which filed their subscriptions to the financial services regulatory authority in the Netherlands and were approved), but the subscriptions were postponed due to the outbreak of the COVID-19 pandemic.

Belvedere Leisure Resorts plc have launched a 5 year bond on the Aquis Stock Exchange Growth Market giving a 6.25% coupon per annum to raise a total amount of GBP25 million. The capital raised by the listing of the bond is primarily targeted to be invested in land that the plc own through acquisition and joint venture arrangements to develop a range of luxury holiday resorts to be managed on a long term basis by Landal GreenParks, one of Europe's leading holiday resort operators, with over 90 locations in 9 countries.

This is set to be the first UK purpose built Landal GreenParks resort and the first in the UK to be managed by the holiday giant. The first part of phase one will comprise of 50 lodges plus reception with the second part of phase one to then include more facilities and lodges in line with Landal GreenParks' requirements. Landal GreenParks will be responsible for all bookings, occupancy and management of the resort and revenues will be shared between both parties in line with the 25 year marketing and management services agreement which is legally in force. As a consequence of COVID-19, the Board have been in dialogue with Landal GreenParks and Awaze and they maintain their full support for the Company.

The global pandemic and the business interruption that the Company experienced meant this was an ideal time for the Board to revise its strategy and ownership, to reposition and place itself in a better position to develop and progress amidst these exceptional times that the UK and global economies are enduring. The revised strategy in light of the current economic climate is to also be in a position to acquire distressed assets in the form of UK real estate should investment opportunities arise and the Company be able to capitalise on them, be it by way of development or pure investment. This gives bondholders greater security with the bonds being asset backed by UK land and property

Principal risks and uncertainties

The Directors consider the key risks to the business through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulations, legal and ethical standards is a high priority for the Group and the finance department takes on an important oversight role in this regard, to ensure that a proper internal control framework exists to manage financial risks and that the controls operate effectively.

The key risk to the business at the year-end is the ongoing economic uncertainty and that COVID-19 continues to cause further potential business interruption. With the change in strategy implemented by the Board of Directors, however, progress is being made with regards to widening the Company's project development opportunities and its efforts in stimulating new channels of fundraising are proving most productive.

The Company also manages risks by providing added value to its investors through securing land with asset value and scope for leisure development, then enhancing this asset value and maintaining strong strategic professional and commercial relationships. Given the expected increasing popularity of domestic tourism the Company believes it has even greater strength and opportunity in the next 12 months.

Key Performance Indicators

The main financial metric used by the Directors in assessing business performance remains successful new issuances of bond subscriptions. The Company is now gaining excellent traction and generating interest from funds both domestically and internationally; this and other KPI's are regularly circulated to the key management team and the Company's Directors to ensure full visibility by those helping drive the business forward.

Future Developments

The business is focused on progressing its fundraising strategy and pushing forward on its UK leisure development project opportunity. Management remains wary of the economic climate and have reflected this within its forecasts. The results for the current year to date show the business to be in line with the Board's projections given the timing of its corporate bond listing and the impact that the pandemic has had on industry and the economy. The Directors are cautiously optimistic that their forecasts for the forthcoming 12 months can be achieved.

Since the year ended 30 June 2020, the Company has progressed in accordance with the above, attracting further inward investment into the bonds, have secured the acquisition of land for development and are in the due diligence process to acquire a second location for operation. Momentum is gathering and further bond subscriptions are expected.

On behalf of the Board

Mr P Brazewell

Director

1 February 2021

The Directors of Belvedere Leisure Resorts plc accept responsibility for this announcement.

For further information, please contact:

Belvedere Leisure Resorts plc

Paul Brazewell, Executive Director

Tel: +44 (0) 203 773 1361

Email: invest@belvedereleisureresortsplc.com

Alfred Henry Corporate Finance Limited

AQSE Corporate Advisor

Jon Isaacs

www.alfredhenry.com

Tel: +44 (0) 203 772 0021

IFC Advisory Limited

Financial PR & IR

Tim Metcalfe

Tel: +44 (0) 203 934 6630

Email: belvedere@investor-focus.co.uk

Profit and loss account

for the year ended 30 June 2020

 
                                                                                 Year    Period 
                                                                                ended     ended 
                                                                              30 June   30 June 
                                                                                 2020      2019 
                                                                                  GBP       GBP 
Administrative expenses                                                     (495,272)        (80) 
 
Interest payable and similar 
 expenses                                                                     (3,837)         - 
 
 
 
Loss before taxation                                                        (499,109)        (80) 
 
Tax on loss                                                                         -         - 
 
 
 
Loss for the financial year                                                 (499,109)        (80) 
 
 
 
The profit and loss account has been prepared on the basis that all 
 operations are continuing operations. 
 
 

Balance sheet

as at 30 June 2020

 
                                               2020               2019 
                                          GBP        GBP     GBP     GBP 
 
Current assets 
Debtors                                96,833             50,000 
 
Creditors: amounts falling 
 due within one year                (439,022)               (80) 
 
 
 
Net current (liabilities)/assets               (342,189)          49,920 
 
Creditors: amounts falling 
 due after more than one 
 year                                          (107,000)               - 
 
 
 
Net (liabilities)/assets                       (449,189)          49,920 
 
 
 
Capital and reserves 
Called up share capital                           50,000          50,000 
Profit and loss reserves                       (499,189)              (80) 
 
 
 
Total equity                                   (449,189)          49,920 
 
 
 
 

Statement of cashflows

for the year ended 30 June 2020

 
                                                   2020            2019 
                                              GBP        GBP  GBP   GBP 
 
Cash flows from operating activities 
 
Cash absorbed by operations                        (113,723)         (80) 
Interest paid                                        (3,837)          - 
 
 
 
Net cash outflow from operating 
 activities                                        (117,560)         (80) 
 
Cash flows from financing activities 
Issue of debentures                       107,000               - 
Additional borrowings                      10,640               - 
 
 
 
Net cash generated from/(used 
 in) financing activities                            117,640          - 
 
 
 
Net increase/(decrease) in cash 
 and cash equivalents                                     80         (80) 
 
Cash and cash equivalents at beginning 
 of year                                                (80)          - 
 
 
 
Cash and cash equivalents at end 
 of year                                                   -         (80) 
 
 
 
Relating to: 
Bank overdrafts included 
 in creditors payable within 
 one year                                                  -         (80) 
 
 
 
 

Notes to Preliminary Results for the year ended 30 June 2020

1. The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006. The financial information has been extracted from the statutory accounts of Belvedere Leisure Resorts plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 29 January 2021.

The preliminary announcement of the results for the year ended 30 June 2020 was approved by the board of directors on 1 February 2020.

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February 01, 2021 07:15 ET (12:15 GMT)