RNS Number : 9120J
Sutton Harbour Group PLC
16 December 2022
 

 

                                                                                                     16 December 2022       

 

Sutton Harbour Group plc

("Sutton Harbour" or "the Company")

 

Sutton Harbour Group plc, the AIM-listed marine and waterfront regeneration specialist, announces its interim results for the six-month period to 30 September 2022.

 

 

Financial Highlights

 

·      Profit before taxation £0.223m (6 months to 30 September 2021: £0.327m)

·      Gross assets £91.615m (31 March 2022: £89.332m) following investment of £2.524m into property projects

·      Net assets £56.434m (31 March 2022: £56.211m)

·      Net assets per share 43.42p (31 March 2022: 43.26p)

·      Net debt £26.972m (31 March 2022: £24.408m)

·      Gearing 47.8% (31 March 2022: 43.4%)

 

Company Highlights

 

·      Record summer marinas season and strong parking results

·      Significant investment into two strategic projects at Sutton Harbour during first half year

·      Old Barbican (fish) Market refurbishment and two new lettings completed

·      Harbour Arch Quay on target for Spring 2023 completion with exchanges on four apartments

·      Strategic vision for delivery of new developments to realise growth and longer-term sustainability of the core Harbour asset

 

Philip Beinhaker, Executive Chairman, commented:

"The Company's vision for the future sustainability and value growth from the Sutton Harbour and Barbican area is taking shape and good progress has been made on delivery of our strategy in the current financial year to date. Reinvigorating the Barbican side of the Harbour, which is most popular with visitors, has been the visually remarkable refurbishment of the Victorian landmark Old Barbican Market building, adding to the appeal of the area with two new national covenant tenants and a third to complete  shortly; the Company has plans to deliver a new Fisheries Complex in collaboration with the Local Authority to assure the vibrancy of the commercial fishing port activity; the Company is nearing completion of the first new building (Harbour Arch Quay) since 2009; and, this re-initiated development activity will continue with a programme to develop new property on the eastern side of the Harbour, which includes the consented Sugar Quay building. This is a wholistic plan to support value creation for shareholders from the existing Company-owned harbour assets and to assure prosperity of the harbour environ, strengthen the linkages to the City Centre to the North and the Ocean to the South, and to benefit our trading activities (marinas, fisheries, rental properties and car parks) for the medium to long term. The Company has committed significant investment to its plans during this reporting period.  The pace of future investment will be harmonised with economic conditions as they take shape."

 

 

 

For further information, please contact:

 

Sutton Harbour Group plc

+44 (0) 1752 20 4186

Philip Beinhaker, Executive Chairman

Corey Beinhaker, Chief Operating Officer

Natasha Gadsdon, Finance Director

Strand Hanson Limited

(Nominated and Financial Adviser and Broker)

+44 (0) 20 7409 3494

James Dance

Richard Johnson                          

 

 

Related Party Transaction

 

On 15 December 2022 the Company extended the existing related party loan finance, announced on 27 April 2022, by £280,000 to provide additional headroom in the Company's facilities, bringing the total shareholder loan facilities to £2.580m. The unsecured loan facilities are with Beinhaker Design Services Ltd ("BDSL") (assigned from FB Investors LLP), who provided the additional funding, and Rotolok (Holdings) Limited (together the "Loans" or the "Facilities"). The Loans carry a fixed 8% gross annual interest rate with the option, included as a variation at the same time as the above extension, at the discretion of the Company, to capitalise some or all of the interest at a fixed 10% annual interest rate, and are repayable by 31 May 2024. There are no other fees payable to FB Investors LLP and Rotolok (Holdings) Limited under the Facilities.

 

The Loans extension and variation constitutes a related party transaction for the purposes of the AIM Rules, as Beinhaker Design Services Ltd is controlled by the Beinhaker family and Rotolok (Holdings) Limited is connected to non-executive director Sean Swales. The directors, other than Philip Beinhaker, Corey Beinhaker and Sean Swales, having consulted with the Company's nominated adviser, Strand Hanson, consider that the terms of the Loans extension and variation are fair and reasonable insofar as shareholders are concerned.

 

 

INTERIMS RESULTS

 

Executive Chairman's Statement

For the six-month period to 30 September 2022

Results and Financial position

Profit before taxation for the six-month period to 30 September 2022 was £0.223m compared to £0.327m for the comparative period to 30 September 2021. Trading through the first half year was strong, with yet another record marinas season, good seasonal car parks trading, and occupancy of the rented properties upheld. Against these positive results, cost inflation and increases in the interest rates on the corporate debt have resulted in the modest decline in profitability. Energy cost increases did not impact the results until after the end of this reporting period.

 

As at 30 September 2022, net assets were £56.434m (c.43.43 pence per share), up from £56.211m (c.43.26 pence per share) at 31 March 2022. Net Debt has increased to £26.972m, £2.564m more than the position at 31 March 2022 of £24.408m net debt. This increase was fully anticipated as the Company drew down for financing its portion of development finance for construction of Harbour Arch Quay and financed wholly the major refurbishment of the Old Barbican (fish) Market. These investments increase the value of the Company's assets and prospects for debt reduction once construction is completed. As is normal within the Company's annual cash cycle, the cash position typically peaks in late March as marina fees are collected and rents are received and falls to an annual low point by mid-autumn. As at 30 September 2022 gearing stood at 47.8% up from 43.4% as at 31 March 2022.

 

Trading Report

During the first half year, the marinas were mostly occupied to capacity with the occupancy rate as at 30 September 2022 at 98%. The Company sets its prices 6 months in advance of the season and whilst the tariff had been increased after a two year freeze, the increase was below the inflation rate that transpired, and this did result in a lower profit from this business activity than the previous year. Fishing results were on par with last year, albeit to remain competitive in the local market, and to encourage growth in the fishing business, margins on fuel sales have been reduced. Overall, contribution from the Marine trading segment was £0.681m in the six month period to 30 September 2022 (30 Sept 2021: £0.726m).

 

Since the half year end, the Company has started to sell marina berths for the next season starting 1 April 2023. To date sales are on par with the same time last year. It is very encouraging that over half of the berths for the next season have now been paid for in full, with deposits now being received to secure the remaining berths. Prices for the King Point Marina have been raised in line with inflation. Berthing fees at Sutton Harbour are being held to reflect the upcoming disruption that will result from the replacement of the lock gate cills. These works are now planned to take place in two periods: Autumn 2023 and early Spring 2024. The works will necessitate periods of restricted access to the harbour which will impact the normal access and egress for both leisure and commercial harbour users. Preparing for the works has been subject to stakeholder consultation to explore all practical possibilities to mitigate the impact on users and the degree of the disruption. Sutton Lock is a national defence for flood protection and the works are being undertaken and paid for by the Environment Agency.

 

During the period, occupancy of tenanted properties and payment of rents remained consistent. In the second half of the year tenants will decant from North Quay House which after 27 years of continuous occupation requires updating. The Company currently has various interests for new lettings of the building.

 

As expected, power costs from 1 October 2022 rose some 3.5 fold even after allowing for the government subsidy and this will impact the results for the second half year. The Company is working on any savings that can be made, whilst ensuring that normal operations are maintained. The Company recharges a significant proportion of its power consumption to tenants and other facility users and prices have been increased to reflect the higher costs. Debt servicing costs have also risen as bank base rates have increased throughout the period. The Company has no interest rate fixes in place.

 

Development / Regeneration

 

Harbour Arch Quay

The full height concrete structure of the 14 apartment building, Harbour Arch Quay, is now in place. External and internal fitting out works are now starting, and the building is on target for completion in March/April 2023. Four exchanges for apartments have now taken place with three further reservations, including the penthouse, progressing to exchange. Development financing for the completion of the building is being drawn down from a £5m facility now that the Company has made its agreed contributions from its general banking facilities.

 

Former Fish Market

The recently refurbished Old Barbican (fish) Market is now occupied by one tenant, The Cornish Bakery, with Pavers (shoes) due to open shortly and the tenancy for the third unit is pending completion. The refurbishment of this listed property provides a resplendent centre piece to the historic Barbican area and presents as a 'floating glass box' whilst retaining the original elegant Victorian structure. Total rents for the building will be more than 50% higher than with the previous tenancy.

 

Development Lands

The Former Airport Site is a major land resource and strategic asset of the Company within the City of Plymouth. The Company had invested heavily in the site during the time that the airport was operational along with investments in the owned airline company. Financial failure of the aviation operations led to closure of the airport in 2011, a decision ratified by the Local Authority, and revocation of aviation operations licences by the Civil Aviation Authority. The Company has financed the debt resulting from the aviation operations for over a decade and, in addition, the Company faithfully expended funds for the maintenance and protection of the site and the material assets, including the land management, environmental control, security, etc. The approved Joint Local Plan of 2019 provided for the safeguarding of the site for potential aviation uses for a maximum five years, owing to the determination of the strategic importance of the site. Accordingly, the Company is preparing for submission of a masterplan for the re-development of the site with a range of appropriate uses within the timeframe of the safeguard which expires in early 2024. The redevelopment of the site will enable needed land for expansion of:

 

·      the Derriford Hospital (major health centre in the South West and largest employer in Plymouth).

·      Marjon University.

·      Sites for businesses and commercial operations, unable to find lands within the city, and the bases for economic growth.

·      Senior housing, near to the hospital.

·      Student housing near to the University.

·      Market Housing.

 

Financial Structure

The Company has a plan to manage the current debt and to achieve debt reduction. This plan is based on the following sets of actions:

 

1.     The Company is working with its bankers to extend the current banking facilities by one year and will then prepare to secure a longer term agreement to meet medium term financing needs.

2.     Development / Regeneration - The Harbour Arch Quay development at Sutton Harbour is scheduled to be completed in the first half of 2023 and is expected to yield some £3m net of all extended financing and building costs.

3.     To provide additional headroom in the Company's facilities, the Company has extended the Related Party Loan finance by £280,000, bringing the total shareholder loan creditor to £2.580m. The additional loan was advanced by Beinhaker Design Services Limited, a 50% shareholder in FB Investors LLP who own 72.91% share capital of the Company. Philip Beinhaker and Corey Beinhaker, who are both Directors of the Company, are Directors of Beinhaker Design Services Limited. The Directors of the Company regarded as independent from the Related Party Loans, agreed this loan extension was in the best interests of shareholders and the Company due to funding flexibility and being terms competitive to market rates for similar short term flexible finance.

4.     Realisation of the value of the Former Airport Site through development and sales of lands.

5.     Further redevelopment of lands on the east side of Sutton Harbour. The Company has recently secured lands currently used for a wide range of construction related supplies and other storage and land extensively used with limited employment. These lands have been identified by the Plymouth City Council as a regeneration area for a mixture of uses including housing, commercial, business activity and other societal activities. Following the completion of the Harbour Arch Quay, the Company will proceed with development of these industrial lands, including the development of the approved Sugar Quay site, along with lands east of Sutton Road.

6.     Fish Quay - The Company has worked with the PCC, the Fishing Industry and other interested parties for the redevelopment of the Fish Quay. This redevelopment will provide an enhancement to the Fishing industry with renewed and more efficient operations facilities. Also included will be a new retail fish market open to the general public. Enhanced circulation in this south-east sector of the Sutton Harbour area will become a major destination and attraction for residents and visitors to Plymouth. This project will be part of the vision of Plymouth as "Port City" and enhance the connection between the water and the City Centre in Britain's Ocean City.

 

Summary

The Company's vision for the future sustainability and value growth from the Sutton Harbour and Barbican area is taking shape and good progress has been made on delivery of our strategy in the current financial year to date. Reinvigorating the Barbican side of the Harbour, which is most popular with visitors, has been the visually remarkable refurbishment of the Victorian landmark Old Barbican Market building, adding to the appeal of the area with two new national covenant tenants and a third to complete shortly; the Company has plans to deliver a new Fisheries Complex in collaboration with the Local Authority to assure the vibrancy of the commercial fishing port activity; the Company is nearing completion of the first new building (Harbour Arch Quay) since 2009; and, this re-initiated development activity will continue with a programme to develop new property on the eastern side of the Harbour, which includes the consented Sugar Quay building. This is a wholistic plan to support value creation for shareholders from the existing Company-owned harbour assets and to assure prosperity of the harbour environ, strengthen the linkages to the City Centre to the North and the Ocean to the South, and to benefit our trading activities (marinas, fisheries, rental properties and car parks) for the medium to long term. The Company has committed significant investment to its plans during this reporting period.  The pace of future investment will be harmonised with economic conditions as they take shape.

 

Philip Beinhaker

EXECUTIVE CHAIRMAN


 

Consolidated Statement of Comprehensive Income

 


 

6 months to

30 September

2022

(unaudited)

£000

6 months to

30 September

2021

(unaudited)

£000

Year Ended

31 March

2022

(audited)

£000


Revenue

 

4,420

3,845

7,194

 

 




Cost of Sales

 

(3,005)

(2,436)

(4,846)

 

 

 



Gross Profit

 

1,415

1,409

2,348

 

 

 




 

 



Fair value adjustment on fixed assets and investment property

 

-

-

195

Administrative expenses

 

(729)

(731)

(1,193)

 

Operating profit from continuing operations

 

 

686

 

678

 

1,350


 

 



Financial income

 

 



Financial expense

 

(463)

(351)

(789)

 

 

 



Net financing costs

 

(463)

(351)

(789)

 

 

 



 

 

 



Profit before tax from continuing operations

 

223

327

561

Taxation credit on profit from continuing operations

 

-

(62)

(820)


 

 



Profit from continuing operations

 

223

265

(259)






 



Basic profit/earnings per share

 

0.17p

0.22p

(0.20p)

 

 

 



Diluted profit/earnings per share

 

0.17p

0.22p

(0.20p)

 

                        



6 months to

30 September

2021

(unaudited)

£000

6 months to

30 September

2020

(unaudited)

£000

Year Ended

31 March

2021

(audited)

£000




Profit from continuing operations


223

265

(259)

 

 



Other comprehensive income/(expenses)

 



Continuing operations:


 



 Revaluation of property, plant and equipment


-

-

7,016

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


 

 

 

(1,116)

 Effective portion of changes in fair value of cash flow hedges


-

-

-



 



Total other comprehensive income


-

-

5,900

Total comprehensive income for the period attributable to equity shareholders


 

223

 

265

 

5,641


Consolidated Balance Sheet

 


 

As at

30 September

2022

(unaudited)

£000

As at

30 September

2021

(unaudited)

£000

As at

31 March

2022

(audited)

£000




Non-current assets


 



Property, plant and equipment

 

36,224

29,680

36,398

Investment property

 

18,857

17,622

18,195

Inventories

 

13,249

13,151

13,216



68,330

60,453

67,809




Current assets





Inventories


20,779

17,372

18,734

Trade and other receivables


1,515

1,846

1,810

Cash and cash equivalents

 

991

528

970

Tax recoverable

 

-

-

9


 

23,285

19,746

21,523


 


Total assets

 

91,615

80,199

89,332

 

 




Current liabilities

 




Other Loans

 

3,355

-

2,275

Trade and other payables

 

2,361

1,118

1,880

Finance lease liabilities

 

40

48

165

Deferred income

 

1,219

1,111

2,225

Provisions

 

-

-

-


 

6,975

2,277

6,545


 


Non-current liabilities

 

 



Other interest-bearing loans and borrowings

 

24,450

25,175

22,863

Finance lease liabilities

 

118

210

75

Deferred government grants

 

646

646

646

Deferred tax liabilities

 

2,992

1,056

2,992

Provisions

 

-

-

-


 

28,206

27,087

26,576


 

 



Total liabilities

 

35,181

29,364

33,121


 


Net assets

 

56,434

50,835

56,211


 


Issued capital and reserves attributable to owners of the parent

 

 



Share capital                            

 

16,406

16,406

16,406

Share premium


13,972

13,972

13,972

Other reserves


22,180

16,280

22,180

Retained earnings


3,876

4,177

3,653

Total equity


56,434

50,835

56,211


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 2022

16,406

13,972

18,309

3,871

-

3,653

56,211

 

Comprehensive income/(expense)








 

Issue of Shares

-

-

-

-

-

223

223

 

Profit for the period








 

Total comprehensive income/(expense)

6 month period ended 30 September 2022

 

-

 

-

 

-

 

-

 

-

 

223

 

223

 

Balance at 30 September 2022

16,406

13,972

18,309

3,871

-

3,876

56,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 April 2021

16,266

10,695

12,409

3,871

-

3,912

47,153

 

Comprehensive income/(expense)

 

 

 

 

 

 

 

 

Issue of Shares

140

3,277





3,417

 

Profit for the period

-

-

-

-

-

265

265

 

Total comprehensive income/(expense)

6 month period ended 30 September 2021

 

140

 

3,277

 

-

 

-

 

-

 

265

 

3,682

 

Balance at 30 September 2021

16,406

13,972

12,409

3,871

-

4,177

50,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 October 2021

16,406

13,972

12,409

3,871

-

4,177

50,835

 

Comprehensive income/(expense)








 

Profit for the period

-

-

-

-

-

(524)

(524)

 

Other comprehensive income/(expense)








 

Revaluation of property, plant and equipment

-

-

5,900

-

-

-

5,900

 

Total comprehensive income/(expense)

6 month period ended 31 March 2022

 

-

 

-

 

5,900

 

-

 

-

 

(524)

 

5,376

 

Balance at 31 March 2022

16,406

13,972

18,309

3,871

-

3,653

56,211

 

 

 

 

 

 

 

 

 

 

 


Consolidated Cash Flow Statement

 


 

6 months to

30 September

2022

(unaudited)

£000

6 months to

30 September

2021

(unaudited)

£000

Year Ended

31 March

2022

(audited)

£000

 

Cash generated from total operating activities

 

 

(1,321)

 

(1,236)

 

59


 

 



Cash flows from investing activities

 

 



Net expenditure on investment property

 

(662)

(12)

(52)

Expenditure on property, plant and equipment

 

(24)

(109)

(196)

Proceeds from sale of plant and equipment


-

260

262

Net cash used in investing activities

 

 

(686)

 

139

 

14

 

 

 



Cash flows from financing activities

 

 



Proceeds from sale of shares

 

-

3,500

3,500

Expenses of share issuance

 

-

(83)

(83)

Interest paid

 

(557)

(351)

(1,033)

Loan drawdowns/(repayment of borrowings)

 

2,667

(2,300)

(2,337)

Net finance lease (payments)/receipts


(82)

(69)

(78)

Net cash generated from financing activities

 

 

2,028

 

697

 

(31)

 

Net increase/(decrease) in cash and cash equivalents

 

 

21

 

(400)

 

42

 

Cash and cash equivalents at beginning of period

 

 

970

 

928

 

928

 

Cash and cash equivalents at end of period

 

 

991

 

528

 

970

 


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 2022 were approved by the Board of Directors on 19 July 2022 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 2022, 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 2022, 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 2022 is as follows:

 

 

6 months to 30 September 2022

Marine

Real Estate

Car Parking

Regeneration

Total

 

£000

£000

£000

£000

£000

Revenue

3,358

644

418

-

4,420







Gross profit prior to non-recurring items

681

480

254

-

1,415

Segmental Operating Profit before Fair value adjustment and unallocated expenses

-

-

-

-

-

Fair value adjustment on fixed assets and investment property assets


















Unallocated:






Administrative expenses





(729)

Operating profit from continuing operations





686













Financial income






Financial expense





(463)

Profit before tax from continuing operations






Taxation





-

Profit for the year from continuing operations





223

 






Depreciation charge






Marine





172

Car Parking





10

Administration





16






198

 



 

Segment Information (continued)

 

 

6 months to 30 September 2021

Marine

Real Estate

Car Parking

Regeneration

Total

 

£000

£000

£000

£000

£000

Revenue

2,648

776

421

-

3,845







Gross profit prior to non-recurring items

726

559

235

(111)

1,409

Segmental Operating Profit before Fair value adjustment and unallocated expenses

726

559

235

(111)

1,409

Fair value adjustment on fixed assets and investment property assets

-

-

-

-

-













Unallocated:






Administrative expenses





(731)

Operating profit from continuing operations





678













Financial income






Financial expense





(351)

Loss before tax from continuing operations





327

Taxation





(62)

Loss for the year from continuing operations





265

 






Depreciation charge






Marine





171

Car Parking





9

Administration





13






193

 



 

 

Segment Information (continued)

 

 

Year ended 31 March 2022

Marine

Real Estate

Car Parking

Regeneration

Total

 

£000

£000

£000

£000

£000

Revenue

4,771

1,427

736

260

7,194







Segmental Operating Profit before Fair value adjustment and unallocated expenses

1,199

922

389

(162)

2,348

Fair value adjustment on fixed assets and investment property assets

(185)

380

-

-

195













Unallocated:






Administrative expenses





(1,193)

Operating profit from continuing operations





1,350













Financial income






Financial expense





(789)

Profit before tax from continuing operations





561

Taxation





(820)

Profit for the year from continuing operations





(259)

 






Depreciation charge






Marine





335

Car Parking





40

Administration





17






392

 

 

 

30 September 2022

30 September 2021

31 March 2022

 

£000

£000

£000

Segment assets:

 

 

 

Marine

30,747

25,565

31,068

Real estate

19,243

18,740

18,628

Car Parking

6,382

4,954

6,428

Regeneration

33,998

30,029

31,936

Total segment assets

90,370

79,288

88,060

Unallocated assets:

 



Property, plant and equipment

44

77

61

Trade & other receivables

211

306

241

Cash & cash equivalents

991

528

970

Total assets

91,616

80,199

89,332

 



 

Segment Information (continued)

 

 

30 September 2022

30 September 2021

31 March 2022

 

£000

£000

£000

Segment liabilities:

 

 

 

Marine

1,710

1,312

2,622

Real estate

724

429

464

Car Parking

92

93

132

Regeneration

1,284

823

1,234

Total segment liabilities

3,810

2,657

4,452

Unallocated liabilities:

 



Bank overdraft & borrowings

27,963

25,433

25,378

Trade & other payables

415

154

296

Financial Derivatives

-

-

-

Tax payable

1

62

1

Deferred tax liabilities

2,992

1,058

2,994

Total liabilities

35,181

29,364

33,121

 

 

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 25% (2021: 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 (2021: nil).

 

 Earnings per share

 


6 months to

30 September

2022

(unaudited)

pence

6 months to

30 September

2021

(unaudited)

pence

Year Ended

31 March

2022

(audited)

pence

Continuing operations

 



Basic earnings per share

0.17p

0.22p

(0.20p)

Diluted earnings per share*

0.17p

0.22p

(0.20p)


 



 

Basic Earnings per Share:

Basic earnings per share have been calculated using the profit for the period of £223,000 (2021: profit £265,000, year ended 31 March 2022 loss £259,000). The average number of ordinary shares in issue, excluding those options granted under the SAYE scheme, of 129,944,071 (2021: 120,534,234; year ended 31 March 2022: 120,534,234) has been used in our calculation.

 

Diluted Earnings per Share:

Diluted earnings per share uses a weighted average number of 130,182,043 (2021: 120,765,411; year ended 31 March 2022 120,765,411) ordinary shares after adjusting for the effects of share options in issue: 237,972 ordinary shares (2021: 242,063; 31 March 2022: 242,063)

 

Property valuation

Freehold land and buildings and investment property have been independently valued by Jones Lang LaSalle as at 31 March 2022, 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 2023, as in previous years.

 

Cash and cash equivalents


As at

30 September 2022

(unaudited)

£000

As at

30 September 2021

(unaudited)

£000

As at

31 March 2022

(audited)

£000

 

 



Cash and cash equivalents per balance sheet and cash flow statement

991

528

970

 

 

Cash flow statements

 


6 months to

30 September 2022

(unaudited)

£000

6 months to

30 September 2021

(unaudited)

£000

Year Ended

31 March 2022

(audited)

£000

Cash flows from operating activities



 

Profit/(loss) for the period

223

265

(259)

Adjustments for:

 



Taxation

-

-

820

Financial income

-

-

-

Financial expense

463

351

789

Fair value adjustment on fixed assets and investment property

-

 

-

(195)

Depreciation

198

193

392

Amortisation of grants

-

-

(9)

Profit/loss on sale of property, plant and equipment

-

(24)

(29)

Cash generated from operations before changes in working capital and provisions

 

884

 

785

 

1,509

Increase in inventories

(1,862)

(1,202)

(2,629)

Transfer from Inventories to Investment property

-

-

93

Decrease/(increase) in trade and other receivables

304

556

586

(Decrease)/increase in trade and other payables

359

(612)

150

Decrease in deferred income

(1,006)

(708)

406

(Decrease)/increase in provisions

 

(56)

(56)


 



Cash generated from operations

(1,321)

(1,237)

59

 

 

 

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