REG - Sutton Harbour Grp - Interim Results
06/12/2021 13:20
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RNS Number : 7079U Sutton Harbour Group PLC 06 December 2021
6
December 2021
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 2021.
Financial Highlights
· Profit before taxation £0.327m (6 months to 30 September 2020:
£0.058m)
· Net assets £50.835m (31 March 2021: £47.153m)
· Net assets per share 39.12p (31 March 2021: £40.67p)
· Net debt £24.905m (31 March 2021: £26.874m)
· Gearing 49.0% (31 March 2021: 57.0%)
Company Highlights
· £3.5 million equity raise by way of Open Offer in August 2021
· Acquisition of further strategic land in September 2021
· Preliminary site works started on the 14 apartment Harbour Arch
Quay, construction to start January 2022
· 19% increase in marina revenue compared to last year
· Recovery of car parks trading to pre-Covid levels
Philip Beinhaker, Executive Chairman
"With the staged relaxation of UK Government imposed measures to manage the
Covid pandemic, the Group has accelerated its efforts to start its first
development project around Sutton Harbour in over a decade. During the first
half year, the Group has made encouraging progress with its trading business
activities and with the pipeline of development projects which it now intends
to bring forward in accordance with its strategic vision. The Board was
delighted to see the broad base of shareholders who participated in the recent
'Open Offer' equity raise."
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
Elliot Mustoe
Executive Chairman's Statement
For the six-month period to 30 September 2021
Results and Financial position
Profit before taxation for the six month period to 30 September 2021 was
£0.327m compared to £0.058m for the comparative period to 30 September 2020
and £0.281m for the period to 30 September 2019. This demonstrates strong
recovery by the Company since the disruption caused by three national
lockdowns ordered by the UK Government to contain the spread of Covid-19
during our trading year to 31 March 2021.
As at 30 September 2021, net assets were £50.835m (39.1pence per share), up
from £47.153m (40.7pence per share) at 31 March 2021. The increase reflects
the issuance of 14 million new ordinary shares which raised £3.5m of new
equity capital in August 2021. There has been no revaluation of assets during
the reporting period, with the next external independent valuation due to be
undertaken at the financial year end.
Net Debt has fallen to £24.905m, £1.969m less than the position at 31 March
2021 of £26,874 net debt. Debt reduced following the equity raise in August
2021, however purchase of some strategic land, ongoing costs associated with
active development projects and autumn being a lower point in the Group's
annual cash cycle (as rents and berthing fee receipts peak between November
and April) have utilised some of the funds raised. As at 30 September 2021
gearing stood at 49.0% down from 57.0% as at 31 March 2021.
Trading Report
The Group's trading businesses have proved resilient during the first half
year with marina berthing revenues up 19% on the previous year, despite no
increase in prices, car park revenues back to 2019 levels and rent incomes
restored with agreed deferred payments being honoured. Trading at Plymouth
Fisheries has continued to be slow and slightly trailing its pre- Covid level.
The exceptional growth in marina revenues results from the capacity occupation
at Sutton Harbour Marina and 95% occupation at King Point Marina. Leisure
boating in the UK has experienced a resurgence in popularity since the Covid
crisis and the current outlook for this sector remains robust. Some minor
alterations will be made to some berths at King Point Marina over the coming
winter to accommodate the larger vessels of boat-owners currently on our
waiting list.
Trading at the car parks was re-established quickly during the first quarter
and continued strongly throughout the second quarter as the area attracted
good visitor footfall and local bars, restaurants and other attractions were
visibly busy.
Performance of the investment property estate has remained steady, with little
vacant space to let. The lease of Old Barbican Market to Edinburgh Woollen
Mill expired in May 2021 and the Group recovered vacant possession of the
building. Planning consent has now been granted to partition the 7,500 sq ft
floorplate into three 2,500 sq ft units, two of which are already reserved to
national covenant tenants. The 3(rd) unit is being actively marketed. Overall,
once fully let, the property will achieve c. 50% more rent than under the
previous tenancy. During the first half year the Group sold a small investment
property, which was not regarded as a part of the core Sutton Harbour estate,
at a profit.
The slowing trend in landings at Plymouth Fisheries has been consistent for a
few years. With the current Fisheries Complex now 27 years old, the Group is
working together with Plymouth City Council and other stakeholders on a plan
to gain public funding for a modern Fishery Complex better suited to the needs
of the industry now and into the future.
Regeneration
The Group is pleased to report that it has started the preliminary site works
on the 14 apartment Harbour Arch Quay scheme. The year-long construction
programme will commence in January 2022 with marketing of the apartments to
start early in the New Year. The building is financed by separate lending
secured on the development with part to be funded from the recent equity
raise. The Group has submitted variations to the original plans for both the
Sugar Quay and Sutton Road East residential schemes, which between them will
provide c. 300 new homes, for planning determination in early 2022. Changes to
the Sutton Road East design followed the acquisition of an adjoining site in
September 2021 which allowed improvements to pedestrian and vehicular access
and circulation through the development.
Summary
With the staged relaxation of UK Government imposed measures to manage the
Covid pandemic, the Group has accelerated its efforts to start its first
development project around Sutton Harbour in over a decade. During the first
half year, the Group has made encouraging progress with its trading business
activities and with the pipeline of development projects which it now intends
to bring forward in accordance with its strategic vision. The Board was
delighted to see the broad base of shareholders who participated in the recent
'Open Offer' equity raise.
Philip Beinhaker
EXECUTIVE CHAIRMAN
Consolidated Statement of Comprehensive Income
6 months to 6 months to Year Ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
£000 £000 £000
Revenue 3,845 2,873 5,400
Cost of Sales (2,436) (1,874) (3,638)
Gross Profit 1,409 999 1,762
Fair value adjustment on fixed assets and investment property - - (2,211)
Administrative expenses (731) (547) (1,171)
Operating profit from continuing operations 678 452 (1,620)
Financial income -
Financial expense (351) (394) (753)
Net financing costs (351) (394) (753)
Profit before tax from continuing operations 327 58 (2,373)
Taxation credit on profit from continuing operations (62) - 198
Profit from continuing operations 265 58 (2,175)
Basic profit/earnings per share 0.22p 0.02p (1.88p)
Diluted profit/earnings per share 0.22p 0.02p (1.88p)
6 months to 6 months to Year Ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
£000 £000 £000
Profit from continuing operations 265 58 (2,175)
Other comprehensive income/(expenses)
Continuing operations:
Revaluation of property, plant and equipment - - 3,245
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 - - 3,245
Total comprehensive income for the period attributable to equity shareholders
265 58 1,070
Consolidated Balance Sheet
As at As at As at
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
£000 £000 £000
Non-current assets
Property, plant and equipment 29,680 27,694 29,766
Investment property 17,622 18,989 17,845
Inventories 13,151 12,878 12,962
60,453 59,561 60,573
Current assets
Inventories 17,372 12,748 16,359
Trade and other receivables 1,846 2,363 2,396
Cash and cash equivalents 528 177 928
Tax recoverable - - 6
19,746 15,288 19,689
Total assets 80,199 74,849 80,262
Current liabilities
Trade and other payables 1,118 1,098 1,730
Finance lease liabilities 48 62 141
Deferred income 1,111 936 1,819
Provisions - 63 56
2,277 2,159 3,746
Non-current liabilities
Other interest-bearing loans and borrowings 25,175 24,250 27,475
Finance lease liabilities 210 337 186
Deferred government grants 646 646 646
Deferred tax liabilities 1,056 1,255 1,057
Provisions - 62 -
27,087 26,550 29,363
Total liabilities 29,364 28,709 33,109
Net assets 50,835 46,140 47,153
Issued capital and reserves attributable to owners of the parent
Share capital 16,406 16,266 16,266
Share premium 13,972 10,695 10,695
Other reserves 16,280 13,034 16,280
Retained earnings 4,177 6,145 3,912
Total equity 50,835 46,140 47,153
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 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 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 October 2020 16,266 10,695 9,163 3,871 - 6,145 46,140
Comprehensive income/(expense)
Profit for the period - - - - - (2,233) (2,233)
Other comprehensive income/(expense)
Revaluation of property, plant and equipment - - 3,246 - - - 3,246
Total comprehensive income/(expense)
6 month period ended 31 March 2021 - - 3,246 - - (2,233) 1,013
Balance at 31 March 2021 16,266 10,695 12,409 3,871 - 3,912 47,153
Consolidated Cash Flow Statement
6 months to 6 months to Year Ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
£000 £000 £000
Cash generated from total operating activities (1,237) (599) (2,536)
Cash flows from investing activities
Net expenditure on investment property (12) (4) (10)
Expenditure on property, plant and equipment (109) 75 (161)
Proceeds from sale of plant and equipment 260 - -
Net cash used in investing activities
139 71 (171)
Cash flows from financing activities
Proceeds from sale of shares 3,500 - -
Expenses of share issuance (83) - -
Interest paid (351) (396) (754)
Loan drawdowns/(repayment of borrowings) (2,300) 309 3,225
Net finance lease (payments)/receipts (69) - 372
Net cash generated from financing activities
697 (87) 2,843
Net increase/(decrease) in cash and cash equivalents (401) (615) 136
Cash and cash equivalents at beginning of period 928 792 792
Cash and cash equivalents at end of period 527 177 928
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 2021 were approved by the Board
of Directors on 5 July 2021 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 2021, 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 2021, 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 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 726 559 235 (111) 1,409
expenses
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)
Profit before tax from continuing operations 327
Taxation (62)
Profit for the year from continuing operations 265
Depreciation charge
Marine 171
Car Parking 9
Administration 13
193
Segment Information (continued)
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 561 448 100 (110) 999
expenses
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)
Loss before tax from continuing operations 58
Taxation -
Loss for the year from continuing operations 58
Depreciation charge
Marine 168
Car Parking 11
Administration 11
190
Segment Information (continued)
Marine Real Estate Car Parking Regeneration Total
Year ended 31 March 2021
£000 £000 £000 £000 £000
Revenue 3,509 1,542 349 - 5,400
Gross profit prior to non-recurring items 770 1,020 110 (138) 1,762
Segmental Operating Profit before Fair value adjustment and unallocated
expenses
770 1,020 110 (138) 1,762
Fair value adjustment on fixed assets and investment property assets (1,061) (1,150) - - (2,211)
(449)
Unallocated:
Administrative expenses (1,171)
Operating profit from continuing operations (1,620)
Financial income -
Financial expense (753)
Profit before tax from continuing operations (2,373)
Taxation 198
Profit for the year from continuing operations (2,175)
Depreciation charge
Marine 336
Car Parking 31
Administration 32
399
30 September 2021 30 September 2020 31 March 2021
£000 £000 £000
Segment assets:
Marine 25,565 23,304 25,846
Real estate 18,740 19,660 18,715
Car Parking 4,954 5,323 4,861
Regeneration 30,029 25,746 29,343
Total segment assets 79,288 74,033 78,765
Unallocated assets:
Property, plant and equipment 77 83 70
Trade & other receivables 306 556 499
Cash & cash equivalents 528 177 928
Total assets 80,199 74,849 80,262
Segment Information (continued)
30 September 2021 30 September 2020 31 March 2021
£000 £000 £000
Segment liabilities:
Marine 1,312 1,184 2,062
Real estate 429 560 689
Car Parking 93 90 19
Regeneration 823 823 1,142
Total segment liabilities 2,657 2,657 3,912
Unallocated liabilities:
Bank overdraft & borrowings 25,433 24,649 27,802
Trade & other payables 154 148 337
Financial Derivatives - - -
Tax payable 62 - 1
Deferred tax liabilities 1,058 1,255 1,256
Total liabilities 29,364 28,709 33,308
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 6 months to Year Ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
pence pence pence
Continuing operations
Basic earnings per share 0.22p 0.02p (0.85p)
Diluted earnings per share* 0.22p 0.02p (0.85p)
Basic Earnings per Share:
Basic earnings per share have been calculated using the profit for the period
of £265,000 (2020: profit £58,000, year ended 31 March 2020 loss
£2,175,000). The average number of ordinary shares in issue, excluding those
options granted under the SAYE scheme, of 120,534,234 (2020: 115,944,071; year
ended 31 March 2021: 115,944,071) has been used in our calculation.
Diluted Earnings per Share:
Diluted earnings per share uses a weighted average number of
120,765,411 (2020: 116,100,126; year ended 31 March 2021 116,130,728)
ordinary shares after adjusting for the effects of share options in issue:
242,063 ordinary shares (2020: 102,273; 31 March 2021: 218,063)
Property valuation
Freehold land and buildings and investment property have been independently
valued by Jones Lang LaSalle as at 31 January 2021, 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 2022, as
in previous years.
Cash and cash equivalents
As at As at As at
30 September 2021 30 September 2020 31 March 2021
(unaudited) (unaudited) (audited)
£000 £000 £000
Cash and cash equivalents per balance sheet and cash flow statement 527 177 928
Provisions
Onerous leases Total
£000 £000
Balance at 1 April 2020 99 99
Provisions made 26 26
Balance at 30 September 2020 125 125
Provisions made - -
Provisions utilised (69) (69)
Balance at 31 March 2021 56 56
Provisions made - -
Provisions utilised (56) (56)
Balance at 30 September 2021 - -
Cash flow statements
6 months to 6 months to Year Ended
30 September 2021 30 September 2020 31 March 2021
(unaudited) (unaudited) (audited)
£000 £000 £000
Cash flows from operating activities
Profit/(loss) for the period 265 58 (2,373)
Adjustments for:
Taxation - - -
Financial income - - -
Financial expense 351 396 753
Fair value adjustment on fixed assets and investment property - - 2,211
Depreciation 193 190 399
Amortisation of grants - - -
Profit/loss on sale of property, plant and equipment (24) - 3
Cash generated from operations before changes in working capital and
provisions
785 644 933
Increase in inventories (1,202) (599) (4,294)
Decrease/(increase) in trade and other receivables 556 234 199
(Decrease)/increase in trade and other payables (612) (236) 334
Decrease in deferred income (708) (607) 275
(Decrease)/increase in provisions (56) (35) (43)
Cash generated from operations (1,237) (599) (2,536)
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