RNS Number : 5178H
Sutton Harbour Group PLC
04 December 2020
 

 

                                                                           4 December 2020  

 

Sutton Harbour Group plc (formerly Sutton Harbour Holdings plc)

("The Company", "Sutton Harbour")

 

Sutton Harbour Group plc, the AIM-listed marine and waterfront regeneration specialist, announces its interim results for the six-month period to 30 September 2020.

 

 

Financial Highlights

 

·      Profit before taxation £0.058m (6 months to 30 September 2019: £0.281m)

·      Net assets £46.140m (31 March 2020: £46.082)

·      Net assets per share 39.8p (31 March 2020: £39.7p)

·      Net debt £24.472m (31 March 2020: £23.591m)

·      Gearing 53.0% (31 March 2020: 51.1%)

 

Company Highlights

 

·      Finalising pre-construction preparations for consented schemes at Harbour Arch Quay

·      Preliminary planning submission for a new 200+ unit residential led scheme to the east of Sutton Harbour

·      Strong trading performance by the Marinas despite Covid crisis disruption

·      A further £2.0million borrowing facility through to May 2021 to provide working capital during the Covid pandemic

 

"The first half year has been used productively to get development projects ready to start and to deliver new homes as the country emerges from the Covid crisis. The Group has remained operational throughout the crisis period with appropriate safety measures put in place to manage infection risk and in accordance with UK Government advice. Inevitably, the restrictions have had an impact on trading revenues but to date our business activities have shown resilience to recover as more normal operations can resume. The Group has intensified its efforts to promote the marinas and lifestyle attributes of Sutton Harbour to increase its profile as a 'staycation' destination and to position the location benefits of the new developments scheduled to go ahead in 2021."

Philip Beinhaker, Executive Chairman

 

 

 

For further information, please contact:

 

 

Sutton Harbour Group plc                        01752 204186      

Philip Beinhaker - Executive Chairman

Corey Beinhaker - Chief Operating Officer

Natasha Gadsdon - Finance Director

 

 

Arden Partners                                          020 7614 5900

Paul Shackleton

Benjamin Cryer


Executive Chairman's Statement

For the six-month period to 30 September 2020

 

Results and Financial position

Profit before taxation for the six month period to 30 September 2020 was £0.058m, down £0.223m from £0.281m for the comparative period to 30 September 2019.

As at 30 September 2020, net assets were £46.140m compared to £46.082m, as last reported as at 31 March 2020, and this represents a net asset value of 39.8p per share (31 March 2020: 39.7p per share). There has been no re-valuation of assets during the reporting period, with the next external independent valuation due to be undertaken at the financial year end.

Net debt has increased to £24.472m, up by £0.881m from £23.591m at 31 March 2020. This budgeted movement reflects the lower point in the annual cash cycle (as rents and annual berthing fee receipts peak between January and April) and expenditure on pre-construction costs in connection with new development schemes due to be submitted to the local planning authority in the coming weeks and with other previously consented schemes. This has resulted in a rise in gearing to 53.0% as at 30 September 2020 up from 51.1% as at 31 March 2020.

To ensure continuity of financing the Group had already entered into a new 4 year facility agreement in December 2019 and a further £2.0million borrowing facility through to May 2021 to provide working capital during the Covid pandemic. Funding for consented projects will be funded by separate development financing.

Trading Report

The Group's business activities have been affected by the Covid pandemic during the first half year but with impacts varying across the different trading segments. The marinas have performed well with overall results exceeding the comparative period last year arising from an increase in annual berths sales. The car parks were materially affected by the lock-down for the period of April, May and June, and this is the main reason for the fall in group revenue during the first half year; trade bounced back quickly to normal seasonal levels once lockdown restrictions ended.  Fisheries' operations continued throughout the lockdown, albeit that fish prices were relatively low and landings were reduced as the export market weakened. The shortfall in fisheries revenues has been partly compensated by the improved lettings of on-site stores and commercial units. The Group has continued to work with tenants, assisting in some cases by agreeing to payment plans. Following the release from lock-down restrictions, the retail activity during the summer months returned to high level of utilisation by the visiting public enjoying the leisure activity. The Group owns a 7,500 sq ft unit currently occupied by Edinburgh Woollen Mill (in administration) and arrears have accumulated since 1 April 2020. We await the outcome of the administration but can report that a number of high quality enquires to rent this iconic waterfront unit have been received. Pre-season marina bookings have started at a high level of retention of existing berth-holders committing to stay for 2021/22. Occupancy of the investment property estate has upheld well throughout the first half year with further new lettings expected to complete before the financial year end.

Regeneration

Finalisation of pre-construction preparations for the planning consented scheme at Harbour Arch Quay, Sutton Harbour, have continued in recent months. Selection of the construction management team and finalisation of the detailed drawings are in process. It is expected that, subject to completion of finance, this 14 apartment building at will start on site during 2021, with marketing of the units to be launched in the springtime of the New Year. In addition, the Group has submitted the preliminary applications for additional 200+ residential units with retail and live/work space, a public east-west walkway and a new urban square, on a site immediately to the east of the approved Sugar Quay development at Sutton Harbour. Efforts are being made to secure planning consent in the first half of 2021. The Sugar Quay site proposal is being re-submitted to the Planning Authority after changes to the original application have been made to remove the basement parking and to relocate it to the adjacent new development on the site immediately to the east.

Summary

The first half year has been used productively to get development projects ready to start and to deliver new homes as the country emerges from the Covid crisis. The Group has remained operational throughout the crisis period with appropriate safety measures put in place to manage infection risk and in accordance with UK Government advice. Inevitably, the restrictions have had an impact on trading revenues but to date our business activities have shown resilience to recover as more normal operations can resume. The Group has intensified its efforts to promote the marinas and lifestyle attributes of Sutton Harbour to increase its profile as a 'staycation' destination and to position the location benefits of the new developments scheduled to go ahead in 2021.

 

Philip Beinhaker

EXECUTIVE CHAIRMAN


 

Consolidated Statement of Comprehensive Income

 



6 months to

30 September

2020

(unaudited)

£000

6 months to

30 September

2019

(unaudited)

£000

Year Ended

31 March

2020

(audited)

£000



Revenue


2,873

3,820

6,558






Cost of Sales


(1,874)

(2,379)

(4,229)






Gross Profit


999

1,441

2,329









Fair value adjustment on fixed assets and investment property


-

(26)

(977)

Administrative expenses


(547)

(672)

(1,264)

 

Operating profit from continuing operations


 

452

 

743

 

88






Financial income



-

-

Financial expense


(394)

(462)

(844)






Net financing costs


(844)











Profit before tax from continuing operations


(756)

Taxation credit on profit from continuing operations


-

-

(232)






Profit from continuing operations


58

281

(988)









Basic profit/earnings per share


-

0.02p

(0.85p)






Diluted profit/earnings per share


-

0.02p

(0.85p)

 

                        



6 months to

30 September

2020

(unaudited)

£000

6 months to

30 September

2019

(unaudited)

£000

Year Ended

31 March

2020

(audited)

£000




Profit from continuing operations


58

281

(988)





Other comprehensive income/(expenses)




Continuing operations:





   Revaluation of property, plant and equipment


-

-

1,338

   Deferred taxation on income and expenses recognised directly in the       consolidated statement of comprehensive income



 

 


   Effective portion of changes in fair value of cash flow hedges


-

-

-






Total other comprehensive income


-

-

1,338

Total comprehensive income for the period attributable to equity shareholders


 

58

 

281

 

350


Consolidated Balance Sheet

 



As at

30 September

2020

(unaudited)

£000

As at

30 September

2019

(unaudited)

£000

As at

31 March

2020

(audited)

£000




Non-current assets





Property, plant and equipment


27,694

26,855

27,958

Investment property


18,989

19,571

18,985

Inventories


12,878

12,610

12,810



59,561

59,036

59,753




Current assets





Inventories


12,748

11,552

12,217

Trade and other receivables


2,363

2,104

2,595

Cash and cash equivalents


177

244

792

Tax recoverable


-

-

5



15,288

13,900

15,609




Total assets


74,849

72,936

75,362





Current liabilities





Trade and other payables


1,098

1,053

1,396

Finance lease liabilities


62

65

63

Deferred income


936

936

1,544

Provisions


63

75

70



2,159

2,129

3,073




Non-current liabilities





Other interest-bearing loans and borrowings


24,250

23,000

24,250

Finance lease liabilities


337

40

10

Deferred government grants


646

646

646

Deferred tax liabilities


1,255

1,023

1,254

Provisions


62

85

29



26,550

24,794

26,207






Total liabilities


28,709

26,923

29,280




Net assets


46,140

46,013

46,082




Issued capital and reserves attributable to owners of the parent





Share capital                              


16,266

16,266

16,266

Share premium


10,695

10,695

10,695

Other reserves


13,034

11,696

13,034

Retained earnings


6,145

7,356

6,087

Total equity


46,140

46,013

46,082


Consolidated Statement of Changes in Equity

 


Share capital

Share premium

Revaluation reserve

Merger reserve

Hedging reserve

Retained earnings

TOTAL

 




       ----------Other Reserves----------






£000

£000

£000

£000

£000

£000

£000

 









 

Balance at 1 April 2020

16,266

10,695

9,163

3,871

-

6,087

46,082

 

Comprehensive income/(expense)








 

Profit for the period

-

-

-

-

-

58

58

 

Total comprehensive income/(expense)

6 month period ended 30 September 2020

 

-

 

-

 

-

 

-

 

-

 

58

 

58

 

Balance at 30 September 2020

16,266

10,695

9,163

3,871

-

6,145

46,140

 









 









 

Balance at 1 April 2019

16,266

10,695

7,825

3,871

-

7,075

45,732

 

Comprehensive income/(expense)








 

Profit for the period

-

-

-

-

-

281

281

 

Other comprehensive income/(expense)








 

Revaluation of property, plant and equipment

-

-

-

-

-

-

-

 

Effective portion of changes in fair value of cash flow hedges








 

Total other comprehensive income/(expense)  6 month period ended 30 September 2019

-

-

-

-

-

281

281

 

Total comprehensive income/(expense)

6 month period ended 30 September 2019

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

Balance at 30 September 2019

16,266

10,695

7,825

3,871

-

7,356

46,013

 









 









 

Balance at 1 October 2019

16,266

10,695

7,825

3,871

-

7,356

46,013

 

Comprehensive income/(expense)








 

Profit for the period

-

-

-

-

-

(1,269)

(1,269)

 

Other comprehensive income/(expense)








 

Revaluation of property, plant and equipment

-

-

1,338

-

-

-

1,338

 

Effective portion of changes in fair value of cash flow hedges

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

Total other comprehensive income/(expense)  6 month period ended 31 March 2020

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

Total comprehensive income/(expense)

6 month period ended 31 March 2020

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

Transactions with owners of the parent








 

Issue of shares

-

-

-

-

-

-

-

 

Balance at 31 March 2020

16,266

10,695

9,163

3,871

-

6,087

46,082

 









 

 


Consolidated Cash Flow Statement

 



6 months to

30 September

2020

(unaudited)

£000

6 months to

30 September

2019

(unaudited)

£000

Year Ended

31 March

2020

(audited)

£000

 

Cash generated from total operating activities


 

(599)

 

(481)

 

(455)






Cash flows from investing activities





Net expenditure on investment property


(4)

-

Expenditure on property, plant and equipment


75

(609)

Proceeds from sale of plant and equipment


-

-

-

Net cash used in investing activities


 

71

 

(609)

 

(875)






Cash flows from financing activities





Proceeds from sale of shares


-

-

Expenses of share issuance


-

-

Interest paid


(396)

(462)

Loan drawdowns/(repayment of borrowings)


309

500

Net finance lease (payments)/receipts


-

-

Net cash generated from financing activities


 

(87)

 

38

 

826

 

Net increase/(decrease) in cash and cash equivalents


 

(615)

 

(1,052)

 

Cash and cash equivalents at beginning of period


 

792

 

1,296

 

Cash and cash equivalents at end of period


 

177

 

244

 

792

 


Notes to Interim Report

 

General information

 

This consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 March 2020 were approved by the Board of Directors on 6 July 2020 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain any statement under section 498 of the Companies Act 2006.

 

Copies of the Group's financial statements are available from the Company's registered office, Sutton Harbour Office, Guy's Quay, Sutton Harbour, Plymouth, PL4 0ES and on the Company's website www.sutton-harbour.co.uk.

 

This consolidated interim financial information has not been audited.

 

 

Basis of preparation

 

The consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretation Committee (IFRIC) interpretations as endorsed by the European Union, and those parts of the Companies Acts 2006 as applicable to companies reporting under IFRS.

 

Accounting policies

Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 March 2020, as described in those annual financial statements.

 

Accounting estimates and judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.



 

Segment information

 

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.

 

The Board of Directors considers the business from an operational perspective as having only one geographical segment, with all operations being carried out in the United Kingdom.

 

The Board of Directors considers the performance of the operating segments using operating profit. The segment information provided to the Board of Directors for the reportable segments for the period ended 30 September 2019 is as follows:

 

 

6 months to 30 September 2020

Marine

Real Estate

Car Parking

Regeneration

Total


£000

£000

£000

£000

£000

Revenue

1,969

676

228

-

2,873







Gross profit prior to non-recurring items

561

448

100

(110)

999

Segmental Operating Profit before Fair value adjustment and unallocated expenses

561

448

100

(110)

999

Fair value adjustment on fixed assets and investment property assets

-

-

-

-

-













Unallocated:






Administrative expenses





(547)

Operating profit from continuing operations





452













Financial income






Financial expense





(394)

Profit before tax from continuing operations





58

Taxation





-

Profit for the year from continuing operations





58







Depreciation charge






Marine





168

Car Parking





11

Administration





11






190

 



 

Segment Information (continued)

 

 

6 months to 30 September 2019

Marine

Real Estate

Car Parking

Regeneration

Total


£000

£000

£000

£000

£000

Revenue

2,662

762

396

-

3,820







Gross profit prior to non-recurring items

637

534

270

-

1,441

Segmental Operating Profit before Fair value adjustment and unallocated expenses

637

534

270

-

1,441

Fair value adjustment on fixed assets and investment property assets

-

-

-

-

-













Unallocated:






Administrative expenses





(698)

Operating profit from continuing operations





743













Financial income






Financial expense





(462)

Loss before tax from continuing operations





281

Taxation





-

Loss for the year from continuing operations





281







Depreciation charge






Marine





150

Car Parking





14

Administration





5






169

 



 

 

Segment Information (continued)

 

 

Year ended 31 March 2020

Marine

Real Estate

Car Parking

Regeneration

Total


£000

£000

£000

£000

£000

Revenue

4,323

1,580

655

-

6,558







Gross profit prior to non-recurring items

916

1,157

404

(148)

2,329

Segmental Operating Profit before Fair value adjustment and unallocated expenses

 

 

 

916

 

 

 

1,157

 

 

 

404

 

 

 

(148)

 

 

 

2,329

Fair value adjustment on fixed assets and investment property assets

(483)

(494)

-

-

(977)






1,352







Unallocated:






Administrative expenses





(1,264)

Operating profit from continuing operations





88













Financial income





-

Financial expense





(844)

Profit before tax from continuing operations





(756)

Taxation





(232)

Profit for the year from continuing operations





(988)







Depreciation charge






Marine





313

Car Parking





26

Administration





1






340

 

 


30 September 2020

30 September 2019

31 March 2020


£000

£000

£000

Segment assets:




Marine

23,304

23,731

23,858

Real estate

19,660

19,815

19,640

Car Parking

5,323

4,423

5,267

Regeneration

25,746

24,267

25,115

Total segment assets

74,033

72,236

73,880

Unallocated assets:




Property, plant and equipment

83

87

80

Trade & other receivables

556

368

610

Cash & cash equivalents

177

245

792

Total assets

74,849

72,936

75,362

 



 

Segment Information (continued)

 


30 September 2020

30 September 2019

31 March 2020


£000

£000

£000

Segment liabilities:




Marine

1,184

1,196

1,960

Real estate

560

417

550

Car Parking

90

72

108

Regeneration

823

951

903

Total segment liabilities

2,657

2,636

Unallocated liabilities:




Bank overdraft & borrowings

24,649

23,105

24,341

Trade & other payables

148

157

163

Financial Derivatives

-

-

-

Tax payable

-

1

-

Deferred tax liabilities

1,255

1,024

1,255

Total liabilities

28,709

26,923

29,280

 

 

Unallocated assets included in total assets and unallocated liabilities included in total liabilities are not split between segments as these items are centrally managed.

 

Taxation

 

The Company has applied an effective tax rate of 19% (2019: 19%) based on management's best estimate of the tax rate expected for the full financial year and is reflected in a movement in deferred tax.

 

Dividends

 

The Board of Directors do not propose an interim dividend (2019: nil).

 

 Earnings per share

 


6 months to

30 September

2020

(unaudited)

pence

6 months to

30 September

2019

(unaudited)

pence

Year Ended

31 March

2020

(audited)

pence

Continuing operations




Basic earnings per share

-

0.02p

(0.85p)

Diluted earnings per share*

-

0.02p

(0.85p)





 

Basic Earnings per Share:

Basic earnings per share have been calculated using the profit for the period of £58,000 (2019: profit £281,000, year ended 31 March 2020 loss £988,000). The average number of ordinary shares in issue, excluding those options granted under the SAYE scheme, of 115,944,071 (2019: 115,944,071; year ended 31 March 2020: 115,944,071) has been used in our calculation.

 

Diluted Earnings per Share:

Diluted earnings per share uses an average number of 115,944,071 (2019: 115,944,071; year ended 31 March 2020 115,944,071) ordinary shares in issue, and takes account of the outstanding options under the SAYE scheme in accordance with IAS 33 'Earnings per share'.  There are no outstanding options under expire SAYE schemes.

 

Property valuation

Freehold land and buildings and investment property have been independently valued by Jones Lang LaSalle as at 31 January 2020, in accordance with the Practice Statements in the Valuations Standards (The Red Book) published by the Royal Institution of Chartered Surveyors. 

 

A further valuation will be commissioned for the year ending 31 March 2021, as in previous years.

 

Cash and cash equivalents


As at

30 September 2020

(unaudited)

£000

As at

30 September 2019

(unaudited)

£000

As at

31 March 2020

(audited)

£000





Cash and cash equivalents per balance sheet and cash flow statement

177

244

792

 

Provisions

 

 


Onerous leases

Total


£000

£000




Balance at 1 April 2019

                            243

243

Provisions utilised

(83)

(83)

Balance at 30 September 2019

160

160




Provisions made

-

-

Provisions utilised

(61)

(101)

Balance at 31 March 2020

99

59




Provisions made

26

66

Provisions utilised

-

-

Balance at 30 September 2020

125

125




Current

63

63

Non-current

62

62


125

125

 



 

 

Cash flow statements

 


6 months to

30 September 2020

(unaudited)

£000

6 months to

30 September 2019

(unaudited)

£000

Year Ended

31 March 2020

(audited)

£000

Cash flows from operating activities



 

Profit/(loss) for the period

58

281

(756)

Adjustments for:




Taxation

-

-

-

Financial income

-

-

-

Financial expense

396

442

844

Fair value adjustment on fixed assets and investment property

-

-

977

Depreciation

190

169

340

Amortisation of grants

-

-

-

Profit/loss on sale of property, plant and equipment

-

7

2

Cash generated from operations before changes in working capital and provisions

 

644

 

899

 

1,407

Increase in inventories

(599)

(635)

(1,460)

Decrease/(increase) in trade and other receivables

234

251

(312)

(Decrease)/increase in trade and other payables

(236)

(366)

(100)

Decrease in deferred income

(607)

(556)

145

(Decrease)/increase in provisions

(35)

(74)

(135)





Cash generated from operations

(599)

(481)

(455)

 

 

 

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