TIDMBLEY
RNS Number : 2928Z
Bailey(C.H.) PLC
14 December 2017
C H Bailey plc
14 December 2017
Chairman's statement and unaudited financial results
for the six months ended 30(th) September 2017
C H Bailey Plc ("the Company" or "the Group"), the diverse group
of businesses, with investments and operations around the world in
Leisure, Property principally in Tanzania, South Africa and Malta
and a UK engineering business, announces its interim results for
the half year ended 30 September 2017.
Group Highlights
-- Turnover down 7% to GBP2.7m (2016: GBP2.9m)
-- Gross profit margin maintained at 30.2%
-- Operating profit down 6% at GBP547k (2016: GBP577k)
-- EBITDA at GBP1.0m is down 8% (2016: GBP1.1m)
-- Finance costs are down 13% at GBP187k (2016: GBP215k)
-- Overall profit GBP421k (2016: GBP361k)
-- Retail and serviced offices in Tanzania under pressure
-- Oyster Bay Suites uptake is improving year on year
-- South Africa development and operations on track
-- Malta property value grows, and "Promise of Sale" agreement
signed for 16 Charles Street at EUR1.725m
-- B.I.E, the UK engineering business sees improving revenues and margins
Chairman's statement
Interim Statement and Results
Our interim results for the 6 month period ended 30 September
2017 show a profit for the period of GBP421,000 up 17% (2016:
GBP361,000). Revenue has decreased by 7% to 2.7m (2016: GBP2.9m)
with gross profit reducing by 7% to GBP818,000 (2016: GBP881,000).
Gross profit margin has been maintained at 30.2%. Operating profit
for the period is GBP547,000 (2016: GBP577,000), a reduction of 6%,
and EBITDA is GBP1,006,000, down by 8% compared to 2016. Finance
costs at GBP187,000 are down 13% compared to previous period.
These results show a combination of reduced revenues and profits
from the serviced commercial and hospitality properties in Tanzania
with adverse currency movements that have been partially mitigated
by the improved trading in the UK engineering business, savings in
administrative costs and increase in the value of the Malta
property.
Administrative costs across the Group at GBP888,000 compared
favourably to GBP944,000 in 2016, with savings made in Tanzania and
South Africa in respect to head office costs.
Tanzania
Tanzania has seen a downturn in the economy due to uncertainty
in the Oil & Gas and Mining sectors. This has affected
international inward investment and demand for commercial real
estate, yet we have been able to maintain both revenues and
occupancy of our serviced offices but we have seen a drop in demand
and revenues for retail space.
The Oyster Bay Suites, our serviced apartments in Dar es Salaam,
continue to increase occupancy levels while our hospitality
business in Tanzania is suffering from subdued tourist demand. We
have trimmed our overheads in order to reduce the impact of the
downturn and have benefited from a positive currency exchange
movement which is reflected in the Group results.
South Africa
The Galenia Estate in Montagu has improved in terms of occupancy
and rate. Customer reviews are excellent and forward bookings
indicate the trend continuing as we enter the high season.
Together with our adjoining Little Bean Farm site, we continue
to explore and appraise further development opportunities in the
medium and long term.
The property we acquired in Cape Town (Glendale Terrace /
Palmyra Road) with large gardens offers us potential to refurbish
the existing house and build some additional accommodation units.
Plans have been submitted to the local authorities for planning
consent.
Malta
The Charles Street property, purchased for EUR585,000 in 2015,
has been sold on a "Promise of Sale" agreement for EUR1.725m and is
expected to complete in early 2018. As the contract is conditional,
the profit has not been recognised in these results. The upward
revision in the Malta property portfolio has contributed to the
positive results.
The St Lucia Street and St Barbara Bastion properties are
attracting interest from potential customers for sale or rental,
and we are hoping to make progress. Our refurbishment plans for the
Archbishop Street property are currently the subject of a planning
appeal.
We believe there are further opportunities for our property
development in Malta, and we will review each of these
opportunities as they arise.
UK operations
Our UK engineering business, Bailey Industrial Engineering
Limited is trading very well. The business is continuing to grow.
Revenues are up by 16% to GBP847,000 and EBITDA is up by 78% to
GBP140,000 as the overheads have been controlled. The business has
a healthy forward order book as our key customers continue to pass
on project work.
A new lease is being negotiated with Associated British Ports,
which we hope to sign shortly.
Outlook
All the indications are that our UK engineering business will
continue to perform well, Tanzania will continue providing positive
returns in difficult times, while South Africa and Malta will offer
the group further development opportunities.
David Wilkinson
Chairman
13 December 2017
Further information:
Harry Sihra, Company Secretary
C H Bailey Plc
Tel: 01633 262961
William Vandyk / Ciaran Walsh
Arden Partners plc
Tel: 020 7614 5900
Consolidated Income Statement
for the six months ended 30 September 2017
Notes September September March
2017 2016 2017
GBP GBP GBP
Continuing operations
Revenue 4 2,713,134 2,923,756 6,126,045
Cost of sales (1,895,053) (2,042,291) (4,363,181)
------------------- ------------------- -------------------
Gross profit 818,081 881,465 1,762,864
Administrative expenses (887,611) (944,185) (1,929,055)
Investment activities and other income 5 616,803 639,630 1,019,169
------------------- ------------------- -------------------
Operating profit 547,273 576,910 852,978
EBITDA* 1,005,883 1,100,589 1,916,723
Depreciation (458,610) (523,071) (1,063,102)
(Loss) on sale of plant and equipment - (608) (643)
------------------- ------------------- -------------------
Operating profit 547,273 576,910 852,978
------------------------------------------- ------ ------------------- ------------------- -------------------
Finance income 6 9,633 901 4,336
Finance costs 7 (187,135) (215,185) (449,040)
------------------- ------------------- -------------------
Profit before taxation 369,771 362,626 408,274
Taxation 50,943 (1,869) (66,876)
Minority interest 57 59 91
------------------- ------------------- -------------------
Profit for the financial period 420,771 360,816 341,489
------------------- ------------------- -------------------
Earnings per share from continuing and
total operations 8 5.50p 4.73p 4.47p
*Earnings before interest, taxation, depreciation, loss on sale
of plant and equipment and profit on sale of property.
Consolidated Statement of
Comprehensive Total Income
for the six months ended 30 September 2017
September September March
2017 2016 2017
GBP GBP GBP
Profit for the financial period 420,771 360,816 341,489
Sale of investment in own shares 10,716 - 24,489
Items that may be reclassified to profit and loss:
Exchange differences (557,308) 822,397 930,953
Total comprehensive income for the period (125,821) 1,183,213 1,296,931
---------------- ----------------- ----------------
Consolidated Balance Sheet
as at 30 September 2017
Notes September September March
2017 2016 2017
GBP GBP GBP
Non-current assets
Property, plant and equipment 9 15,055,952 14,461,315 14,664,816
Operating leases 232,955 92,979 250,049
Trade and other receivables 940,568 855,895 940,361
Deferred tax asset 424,898 268,460 272,219
16,654,373 15,678,649 16,127,445
----------------- ----------------- -----------------
Current assets
Inventory 27,305 19,976 26,035
Trade and other receivables 1,877,446 2,708,367 3,146,436
Current asset investments 10 1,130,238 1,755,653 1,317,557
Cash and cash equivalents 11 1,175,109 1,771,745 1,336,175
4,210,098 6,255,741 5,826,203
Assets classified as held for sale 185,775 197,811 199,797
4,395,873 6,453,552 6,026,000
----------------- ----------------- -----------------
Current liabilities
Trade and other payables (1,970,255) (3,033,874) (2,475,740)
Bank loans and overdrafts 13 (2,257,885) (2,067,491) (2,315,981)
Provisions (225,000) (225,000) (225,000)
(4,453,140) (5,326,365) (5,016,721)
----------------- ----------------- -----------------
Net current assets (liabilities) (57,267) 1,127,187 1,009,279
----------------- ----------------- -----------------
Total assets less current liabilities 16,597,106 16,805,836 17,136,724
Non-current liabilities
Bank loans 13 (3,204,784) (3,503,549) (3,698,065)
Deferred tax liabilities (160,709) (46,013) (81,206)
Net assets 13,231,613 13,256,274 13,357,453
----------------- ----------------- -----------------
Equity
Called-up share capital 11 833,541 833,541 833,541
Share premium account 609,690 609,690 609,690
Capital redemption reserve 5,163,332 5,163,332 5,163,332
Investment in own shares (894,576) (915,616) (904,502)
Translation reserve 60,311 59,535 58,962
Retained earnings 7,458,180 7,504,591 7,595,276
----------------- ----------------- -----------------
Surplus attributable to the parent's
shareholders 13,230,478 13,255,073 13,356,299
Minority interest 1,135 1,201 1,154
Total equity 13,231,613 13,256,274 13,357,453
----------------- ----------------- -----------------
Consolidated Cash Flow Statement
for the six months ended 30 September 2017
Notes September September March
2017 2016 2017
GBP GBP GBP
Cash flows from operating activities
Cash generated from operations 12 1,011,745 625,669 567,181
Interest paid (187,135) (215,185) (449,040)
Overseas tax paid (30,045) (30,380) (60,332)
Net cash flow from operating activities 794,565 380,104 57,809
---------------- ---------------- ---------------
Investing activities
Sale of property, plant and equipment - 6,586 7,862
Purchase of property, plant and equipment (760,300) (779,658) (1,121,728)
Deposit on purchase of property - - (600,000)
Sale of investments 541,905 22,186 1,255,205
Purchase of investments (446,112) (21,372) (635,491)
Interest received 9,633 901 4,336
Net cash flow from investing activities (654,874) (771,357) (1,089,816)
---------------- ---------------- ---------------
Financing activities
Investment in own shares 10,716 12,492 24,489
Movement in bank loans (324,642) (268,823) (218,378)
Movement in directors' loans (3,800) 222,155 139,640
Movement in capital element of finance leases - (1,934) (1,934)
Net cash flow from financing activities (317,726) (36,110) (56,183)
---------------- ---------------- ---------------
Net (decrease) in cash and cash equivalents (178,035) (427,363) (1,088,190)
Cash and cash equivalents at beginning of period (979,806) 134,045 134,045
Exchange differences 75,065 (2,428) (25,661)
Cash and cash equivalents at end of period 13 (1,082,776) (295,746) (979,806)
---------------- ---------------- ---------------
Reconciliation of net cash flow to movement in net
(debt) in the period
Net (decrease) in cash and cash equivalents (178,035) (427,363) (1,088,190)
Net cashflow from the movement in debt 324,642 270,757 220,312
---------------- ---------------- ---------------
Movement in net (debt) during the period 146,607 (156,606) (867,878)
Net (debt) at the beginning of period (4,677,871) (3,281,513) (3,281,513)
Exchange differences 243,704 (361,176) (528,480)
Net (debt) at the end of period 13 (4,287,560) (3,799,295) (4,677,871)
---------------- ---------------- ---------------
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2017
Called-up Share Capital Investment Translation Retained Minority Total
share premium redemption in own reserve earnings interest
capital account reserve shares
GBP GBP GBP GBP GBP GBP GBP GBP
At 31 March
2016 833,541 609,690 5,163,332 (929,955) 54,470 6,328,290 1,155 12,060,523
Transactions with owners recorded
directly in equity
Sale on
investment
in own
shares - - - - - 24,489 - 24,489
Cost of
investment
in own
shares - - - 25,453 - (25,453) - -
Income
statement
Profit for
the
financial
period - - - - - 341,489 (91) 341,398
Items that may be reclassified
to profit and loss
Exchange
differences - - - - 4,492 926,461 90 931,043
------------------ ------------------ --------------------- --------------------- ----------------------- ---------------- ---------------- ----------------------
At 31 March
2017 833,541 609,690 5,163,332 (904,502) 58,962 7,595,276 1,154 13,357,453
Transactions with owners recorded
directly in equity
Sale on
investment
in own
shares - - - - - 10,716 - 10,716
Cost of
investment
in own
shares - - - 9,926 - (9,926) - -
Income
statement
Profit for
the
financial
period - - - - - 420,771 (57) 420,714
Items that may be reclassified
to profit and loss
Exchange
differences - - - - 1,349 (558,657) 38 (557,270)
------------------ ------------------ --------------------- --------------------- ----------------------- ---------------- ---------------- ----------------------
At 30
September
2017 833,541 609,690 5,163,332 (894,576) 60,311 7,458,180 1,135 13,231,613
------------------ ------------------ --------------------- --------------------- ----------------------- ---------------- ---------------- ----------------------
Notes to the Accounts
1. General information
Legal status and country of incorporation
C. H. Bailey plc, company number 190106, is incorporated in
England and Wales under the Companies Act 2006.
Basis of preparation
These financial statements have been prepared in accordance with
International Accounting Standards (IAS) and International
Financial Reporting Standards (IFRS) as adopted by the European
Union and with the Companies Act 2006. Therefore these financial
statements comply with the AIM rules.
The financial statements are prepared using the historical cost
basis of accounting except for:
-- Properties held at the date of transition to IFRS which are stated at deemed cost; and
-- Assets held for sale which are stated at the lower of fair
value less anticipated disposal costs and carrying value.
Going concern
The directors have prepared these financial statements on the
fundamental assumption that the group is a going concern and will
continue to trade for at least 12 months following the date of
approval of the financial statements.
Further information explaining why the directors believe the
group is a going concern is given in the principal risks and
uncertainties of the Strategic Report.
Accounting period
The current period is for 6 months ended 30 September 2017 and
the comparative period is for the 6 months ended 30 September
2016.
Functional and presentational currency
The financial statements are presented in pounds sterling
because that is the functional currency of the primary economic
environment in which the group operates.
Initial Adoption of International Financial Reporting
Standards
These are the group's ninth consolidated financial statements
that have been prepared in accordance with IFRS. The group's
transition date for adoption of IFRS is 1st April 2006. The group
has taken advantage of the following exemptions on transition to
IFRS as permitted by paragraph 13 of IFRS 1:
-- The requirements of IFRS 3 - Business Combinations - have not
applied to business combinations that occurred before the date of
transition to IFRS;
-- The carrying value of freehold and leasehold properties are
based on previously adopted UK GAAP valuations and these are now
taken as deemed cost on transition to IFRS.
International Financial Reporting Standards adopted for the
first time this accounting period
There were no new standards or amendments to standards adopted
for the first time this year that had a material impact on the
results or the group.
Future adoption of International Financial Reporting
Standards
A number of new standards, amendments and interpretations to
existing standards have been published by the ISAB but are not yet
effective and have not been applied early by the group. It is
anticipated that the following pronouncements relevant to the
group's operations will be adopted in the group's accounting
policies for the first period beginning after the effective date of
the pronouncement once adopted by the European Union:
-- IFRS 9 Financial instruments (effective 1 January 2018);
-- IFRS 14 Regulatory deferral accounts (not yet adopted by European Union);
-- IFRS 15 Revenue from contracts with customers (effective 1 January 2018);
-- IFRS 16 Leases (effective 1 January 2019);
-- Recognition of deferred tax assets for unrealised losses
(amendment IAS 12)(not yet adopted by European Union);
-- Classification and measurement of share based payment
transactions (amendment IFRS 2)(not yet adopted by European
Union);
-- Disclosure initiative (amendment IAS 7)(not yet adopted by European Union);
-- Annual improvements to IFRS 2014-2016 cycle (not yet adopted by European Union);
-- IFRIC interpretation 22 Foreign currency transactions and
advance considerations)(not yet adopted by European Union).
The company will assess the potential impact of these standards
once the final version has been endorsed by the European Union.
Whilst work has not yet been completed on the above standards, the
directors do not currently foresee any material impact on the
financial statements of the group as a result of adopting these
standards.
2. Significant accounting policies
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the company and entities controlled by the company
(its subsidiaries) made up to 30 September 2017. Control is
achieved where the company has the power to govern the financial
and operating policies of an investee so as to obtain benefits from
its activities.
Minority interests in the net assets of consolidated
subsidiaries are identified separately from the group's equity
therein. Minority interests consist of the amount of those
interests at the date of the original business combination (see
below) and the minority's share of changes in equity since the date
of the combination. Losses applicable to the minority in excess of
the minority's interest in the subsidiary's equity are allocated
against the interests of the group except to the extent that the
minority has a binding obligation and is able to make an additional
investment to cover the losses.
The results of subsidiaries acquired or disposed of during the
year are included in the consolidated income statement from the
effective date of acquisition or up to the effective date of
disposal, as appropriate.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used
into line with those used by the group.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
Business combinations and goodwill
The acquisition of subsidiaries is accounted for using the
acquisition method. The assets, liabilities and contingent
liabilities that meet the conditions for recognition under IFRS 3
are recognised at their fair value at their acquisition date except
for non-current assets (or disposal groups) that are classified as
held for sale in accordance with IFRS 5 which are recognised and
measured at fair value less costs to sell. Any excess of the cost
over the asset valuation as calculated above is recognised as
goodwill.
In accordance with the options that are available under IFRS 1
on transition to IFRS, the group elected not to apply IFRS 3
retrospectively to past business combinations that occurred before
the date of transition to IFRS.
Accordingly goodwill that had previously been offset against
reserves under UK GAAP has not been recognised in the opening IFRS
balance sheet. The interest of any minority shareholders in the
acquiree is initially measured at the minority's proportion of the
net fair value of the assets, liabilities and contingent
liabilities recognised.
Investments in associates and trade investments
The results of entities over which the group is not in a
position to be able to exercise significant influence despite
holding a significant shareholding are not accounted for as
associates and therefore are not equity accounted. The companies
are classified as trade investments and are carried as available
for sale financial assets which are measured at cost, as the
directors consider that fair value cannot be reliably measured,
other than impairment losses which are recognised in the income
statement. Dividend income is recognised in the income statement on
a cash basis when received.
Property, plant and equipment
Property is carried at deemed cost at the date of transition to
IFRS based on the previous UK GAAP valuations. Plant and equipment
held at the date of transition and subsequent additions to
property, plant and equipment are stated at purchase cost including
directly attributable costs. The group does not have a revaluation
policy. Freehold land is not depreciated. Depreciation of other
property, plant and equipment is provided on a straight line basis
using rates calculated to write down the cost of each asset over
its estimated useful life as follows:
Property:
Freehold buildings 2%
Leasehold buildings 5% or period of the lease
Plant and equipment Between 10% and 25%
Annual reviews are made of estimated useful lives and material
residual values.
Investment and development property
Properties are externally valued on the basis of fair value at
the balance sheet date. Investment property is recorded at
valuation whereas trading property is stated at the lower of cost
and net realisable value. Any surplus or deficit arising is
recognised in investment activities in the income statement.
The cost of properties in the course of development includes
attributable interest and other associated outgoings. Interest is
calculated on the development expenditure by reference to specific
borrowings. Interest is not capitalised where no development
activity is taking place. A property ceases to be a development
property on practical completion.
Investment property disposals are recognised on completion.
Profits and losses are recognised in investment activities in the
income statement. The profit on disposal is determined as the
difference between the net sale proceeds and the carrying amount of
the asset at the commencement of the accounting period plus capital
expenditure in the period.
Where investment properties are appropriated to trading stock,
they are transferred at market value. If properties held for
trading are appropriated to investment, they are transferred at
book value.
Lessee accounting
Initial rental payments in respect of operating leases are
included in current and non-current assets as appropriate and
amortised to the income statement over the period of the lease.
Ongoing rental payments are charged as an expense in the income
statement on a straight line basis until the date of the next rent
review. Finance leases are capitalised and depreciated in
accordance with the accounting policy for property, plant and
equipment. As permitted by IFRS 1 at the date of transition to
IFRS, the carrying value of long leasehold properties are based on
the previous UK GAAP valuations and this has been taken as deemed
cost. Rental costs arising from operating leases are charged as an
expense in the income statement on a straight line basis over the
period of the lease.
Non-current assets held for sale
Non-current assets are reclassified as assets held for sale if
they are immediately available for sale in their current condition
and their carrying value will be recovered through a sale
transaction on which is highly probable to be completed within 12
months of the initial classification. Assets held for sale are
valued at the lower of carrying value at the date of initial
classification and fair value less costs to sell.
Impairment of non-financial assets
Goodwill is tested annually for impairment or more frequently if
there are any changes in circumstances or events that indicate that
a potential impairment may exist. Goodwill impairments cannot be
reversed. Property, plant and equipment are reviewed for
indications of impairment when events or changes in circumstances
indicate that the carrying amount may not be recovered. If there
are indications then a test is performed on the asset affected to
assess its recoverable amount against carrying value. An asset
impaired is written down to the higher of value in use or its fair
value less cost to sell.
Deferred and current taxation
The charge for taxation is based on the taxable profit or loss
for the year and takes into account taxation deferred because of
differences between the treatment of certain items for taxation and
for accounting purposes. Full provision is made for the tax effects
of these differences.
Current income tax assets or liabilities comprise those claims
from, or obligations to, fiscal authorities relating to current or
prior periods that are unpaid at the balance sheet date. They are
calculated according to the tax rates and tax laws applicable to
the fiscal periods to which they relate based on the taxable profit
for the year. Deferred tax is calculated using the liability method
on temporary differences. This involves the comparison of the
carrying amounts of assets and liabilities in the consolidated
financial statements with their respective tax bases. Deferred tax
assets and liabilities are calculated using tax rates that have
been enacted, or substantively enacted, by the year end balance
sheet date. The measurement of deferred tax reflects the tax
consequences that would follow the manner in which the group
expects, at the end of the reporting period, to recover or settle
the carrying value of its assets and liabilities. Deferred tax
assets and liabilities are not discounted.
The carrying amount of the deferred tax assets is reviewed at
each reporting balance sheet date to ensure that it is probable
that sufficient taxable profits will be available to allow the
asset to be recovered. Assets and liabilities, in respect of both
deferred and current tax, are only offset when there is a legally
enforceable right to offset and the assets and liabilities relate
to taxes levied by the same taxation authority.
Deferred and current tax is charged or credited in the income
statement except when it relates to items charged directly to
equity in which case the associated tax is also dealt with in
equity.
Stocks
Stocks are valued at the lower cost of purchase and net
realisable value. Cost comprises actual purchase price and, where
applicable, associated direct costs incurred bringing the stock to
its present location and condition. Net realisable value is based
on estimated selling price less further costs expected to be
incurred to completion and disposal. Provision is made for
obsolete, slow moving or defective items where appropriate.
Financial instruments
Financial assets and financial liabilities are recognised on the
consolidated balance sheet when the group becomes a party to the
contractual provisions of the instrument.
Financial assets are recognised and derecognised on a trade date
where the purchase or sale of an asset is under a contract whose
terms require delivery of the investment within the timeframe
established by the market concerned. Financial assets are
classified as "loans and receivables", "held to maturity"
investments, "available for sale" investments or "assets at fair
value through the profit and loss" depending upon the nature and
purpose of the financial asset. The classification is determined at
the time of the initial recognition.
Financial assets are normally classified as "loans and
receivables" and are initially measured at fair value including
transaction costs incurred. The only financial assets currently
held at "fair value through profit or loss" are the current asset
investments.
Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a
residual interest in the assets of the group after deducting all of
its liabilities. There are currently no financial liabilities held
at "fair value through profit or loss".
Loans and receivables
Trade receivables, loans and other receivables are measured on
initial recognition at fair value and, except for short term
receivables where the recognition of interest would be immaterial,
are subsequently re-measured at amortised cost using the effective
interest rate method. Allowances for irrecoverable amounts, which
are dealt with in the income statement, are calculated based on the
difference between the asset's carrying amount and the present
value of estimated future cash flows, calculated based on past
default experience, discounted at the effective interest rate
computed at initial recognition where material.
Derivative financial instruments and hedge accounting
The group has loans held in US dollars which are disclosed in
borrowings and are at fixed rates of 6.25% and 8%. The other group
loans and overdrafts are subject to floating interest rates based
on LIBOR plus the most competitive margin available. The group's
policy is not to hedge its international assets with respect to
foreign currency balance sheet translation exposure, nor against
foreign currency transactions. The group generally does not enter
into any forward exchange contracts and it does not use financial
instruments for speculative purposes. The group does not hold any
derivative financial instruments or embedded derivative financial
instruments at either period end.
Cash and cash equivalents
Cash and cash equivalents includes cash-in-hand, cash at bank
and short term highly liquid investments that are readily
convertible into known amounts of cash within three months from the
date of initial acquisition with an insignificant risk of a change
in value.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at
each balance sheet date. Financial assets are impaired where there
is objective evidence that, as a result of one or more events that
occurred after the initial recognition of the financial assets, the
estimated future cash flows of the investment have been
impacted.
Other financial liabilities
Other financial liabilities, including trade payables, are
measured on initial recognition at fair value and, except for short
term payables where the recognition of interest would be
immaterial, are subsequently re-measured at amortised cost using
the effective interest rate method.
Bank loans
Interest bearing bank loans are recorded at the proceeds
received less capital repayments made. Finance charges are
accounted for on an accruals basis in the profit and loss account
using the effective interest rate method. They are included within
accruals to the extent that they are not settled in the period in
which they arise.
Provisions
Provisions are created where the group has a present obligation
(legal or constructive) as a result of a past event where it is
probable that the group will be required to settle that obligation.
Provisions are measured at the directors' best estimate of the
expenditure required to settle the obligation at the balance sheet
date. Provisions are only discounted to present value where the
effect is material.
Net funds
Net funds is defined as cash and cash equivalents, bank and
other loans including finance lease obligations and derivative
financial instruments stated at current fair value.
Revenue recognition
Revenue
Revenue represents the fair value of the consideration received
and receivable for services provided and goods supplied to third
party customers. In respect of long term contracts and contracts
for on-going services, revenue is recognised as the contract
progresses on the basis of work completed. Revenue excludes value
added tax.
Investment and interest income
Dividend income is recognised in the income statement when the
shareholder's right to receive payment has been established.
Interest income from bank deposit accounts is accrued on a time
basis calculated by reference to the principal on deposit and
effective interest rate applicable.
Foreign currencies
Transactions in foreign currencies are recorded at the rate of
exchange at the date of the transaction. Monetary assets and
liabilities in foreign currencies are translated into pounds
sterling at the financial reporting year end rates. Non monetary
items that are measured in terms of historical cost in a foreign
currency are not re-translated.
The results of overseas subsidiary undertakings, associates and
trade investments are translated into pounds sterling at average
rates for the year unless exchange rates fluctuate significantly
during that year in which case exchange rates at the date of
transactions are used. The closing balance sheets are translated at
the year end rates and the exchange differences arising are
transferred to the group's translation reserve as a separate
component of equity and are reported within the consolidated
statement of changes in equity. All other exchange differences are
included within the consolidated income statement in the year.
Intercompany foreign exchange differences are included in operating
profit unless deemed to be as permanent as equity in which case are
included in reserves.
Operating profit
Operating profit is defined as the profit for the year from
continuing operations after all operating costs and income but
before finance income, finance costs, and taxation. Operating
profit is disclosed as a separate line on the face of the income
statement.
Normalised operating profit is the same as the above but
excludes non-recurring items, for example profit on the sale of
property. Normalised operating profit is reconciled to operating
profit on the face of the income statement.
Other gains and losses
Other gains and losses are material items that arise from
unusual non-recurring events. They are disclosed separately, in
aggregate, on the face of the income statement after operating
profit where, in the opinion of the directors, such disclosure is
necessary in order to fairly present the results for the financial
period.
Finance costs
Finance costs are recognised in the income statement on the
accruals basis in the year in which they are incurred.
3. Use of critical accounting assumptions and estimates
Estimates and judgements are continually evaluated and assessed
based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
given the circumstances prevailing when the accounts are
approved.
The group makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom
equal the related actual results. The area where the group
considers estimates and assumptions to have a significant risk of
causing material adjustment to the carrying value of assets and
liabilities is in the valuation of investment properties.
4. Segmental information
Revenue continuing Operating profit Depreciation and loss EBITDA Net assets
operations (loss) continuing (profit) on sale of
operations plant and equipment
GBP GBP GBP GBP GBP
Classes of
business
Engineering:
September 2017 846,902 111,347 29,000 140,347 335,665
September 2016 730,468 40,043 39,000 79,043 233,063
March 2017 1,597,994 153,517 75,584 229,101 332,221
Tourism and
serviced
units:
September 2017 1,866,232 273,801 403,565 677,366 6,880,888
September 2016 2,189,324 367,718 473,430 841,148 6,312,883
March 2017 4,526,769 687,217 953,427 1,640,644 6,770,202
Investment
and
development
property:
September 2017 - 509,524 26,045 535,569 4,637,662
September 2016 3,964 (88,289) 11,249 (77,040) 4,025,896
March 2017 1,282 40,311 34,734 75,045 4,087,975
Management:
September 2017 - (347,399) - (347,399) 1,377,398
September 2016 - 257,438 - 257,438 2,684,432
March 2017 - (28,067) - (28,067) 2,167,055
Total:
September 2017 2,713,134 547,273 458,610 1,005,883 13,231,613
September 2016 2,923,756 576,910 523,679 1,100,589 13,256,274
March 2017 6,126,045 852,978 1,063,745 1,916,723 13,357,453
Geographical
segments
United
Kingdom:
September 2017 884,054 (169,902) 29,000 (140,902) 644,374
September 2016 774,970 16,814 39,000 55,814 827,884
March 2017 1,688,040 116,807 75,584 192,391 850,407
Africa:
September 2017 1,829,080 348,707 403,565 752,272 6,784,749
September 2016 2,144,822 112,932 473,430 586,362 6,048,740
March 2017 4,436,723 403,162 953,427 1,356,589 6,603,227
Malta and
Rest of the
World:
September 2017 - 368,468 26,045 394,513 5,802,490
September 2016 3,964 447,164 11,249 458,413 6,379,650
March 2017 1,282 333,009 34,734 367,743 5,903,819
Total:
September 2017 2,713,134 547,273 458,610 1,005,883 13,231,613
September 2016 2,923,756 576,910 523,679 1,100,589 13,256,274
March 2017 6,126,045 852,978 1,063,745 1,916,723 13,357,453
`
5. Investment activities and other income
September September March
2017 2016 2017
GBP GBP GBP
Current asset investments valuation movement (91,526) 245,981 426,784
Investment and development property valuation movement 639,960 - 297,836
(Increase) in provision on current asset investments - (12,135) (12,135)
Net foreign exchange (loss) gain - inter-company loans (196,184) 656,250 805,578
Net foreign exchange gain (loss)- monetary items 225,347 (328,661) (549,740)
Income from current asset investments 39,206 78,195 50,846
616,803 639,630 1,019,169
----------------- ----------------- ----------------
6. Finance income
September September March
2017 2016 2017
GBP GBP GBP
Bank deposits 9,633 901 4,336
---------------- ----------------- ----------------
7. Finance costs
September September March
2017 2016 2017
GBP GBP GBP
Bank loans 187,135 214,553 448,395
Finance leases - 632 645
187,135 215,185 449,040
---------- ----------------- ------------------ ------------------
8. Earnings per share
The earnings per share has been calculated by reference to the
weighted average number of ordinary shares of 10p each in issue of
7,650,389 (September 2016: 7,631,438) (March 2017: 7,637,031) which
excludes own shares held. The share options in issue have no
dilutive effect on the weighted average number of ordinary
shares.
9. Property, plant and equipment
Freehold land and Leasehold land and Plant and equipment Investment and Total
buildings buildings under 50 development property
years
GBP GBP GBP GBP GBP
Cost
At 1 April
2017 2,622,719 11,454,381 3,958,127 2,932,580 20,967,807
Exchange
differences ( 33,507) ( 752,534) ( 213,640) 97,761 ( 901,920)
Additions 529,028 - 29,652 201,620 760,300
Valuation
movement - - ( 83,933) 723,893 639,960
Disposals - ( 731,267) - - ( 731,267)
At 30
September
2017 3,118,240 9,970,580 3,690,206 3,955,854 20,734,880
----------------------- -------------------- --------------------- ---------------------- ----------------
Depreciation
At 1 April
2017 35,489 3,478,932 2,781,130 7,440 6,302,991
Exchange
differences ( 676) ( 192,827) ( 158,151) 248 ( 351,406)
Charge for
year 9,252 236,474 189,347 23,537 458,610
Disposals - ( 731,267) - - ( 731,267)
At 30
September
2017 44,065 2,791,312 2,812,326 31,225 5,678,928
----------------------- -------------------- --------------------- ---------------------- ----------------
Carrying
value
September
2017 3,074,175 7,179,268 877,880 3,924,629 15,055,952
March 2017 2,587,230 7,975,449 1,176,997 2,925,140 14,664,816
10. Current asset investments
September September March
2017 2016 2017
GBP GBP GBP
Listed investments 1,124,237 1,749,653 1,311,556
Unlisted investments 6,001 6,000 6,001
----------------- ------------- -------------
1,130,238 1,755,653 1,317,557
----------------- ------------- -------------
Investments are carried at fair value at the balance sheet
date.
11. Called-up share capital
September September March
2017 2016 2017
GBP GBP GBP
Issued and fully
paid:
8,335,413 ordinary shares of 10p
each 833,541 833,541 833,541
--------------- ----------- ---------------
On 26 September 2017, the company issued 7,520 ordinary shares
of 10 pence to the directors in lieu of fees payable of GBP10,716.
The company retains as treasury shares 677,709 shares of 10 pence
at a cost of GBP894,576 (March 2017: 685,229 shares of 10 pence at
a cost of GBP904,502). The company did not buy back any shares for
cancellation during the year. At 30 September 2017, the company has
one class of ordinary shares, which carry no right to fixed income.
The share options outstanding have been recognised in accordance
with IFRS 2.
12. Cash generated from operations
September September March
2017 2016 2017
GBP GBP GBP
Operating profit continuing operations 547,273 576,910 852,978
Depreciation 458,610 523,071 1,063,102
Loss on the sale of property, plant and equipment - 608 643
Current asset investments valuation movement 91,526 (245,981) (426,784)
Investment and development property valuation
movement (639,960) - (297,836)
Provision on current asset investments - 12,135 12,135
Exchange differences (211,078) (234,447) (70,124)
------------------- ------------------- -----------------
Cash generated from operations before movements in
working capital 246,371 632,296 1,134,114
Operating leases (454) 4,338 (151,755)
(Increase) in inventories (1,270) (125) (6,184)
Decrease (increase) in trade and other receivables 1,268,783 (535,274) (457,809)
(Decrease) increase in trade and other payables (501,685) 524,434 48,815
Cash generated from operations 1,011,745 625,669 567,181
------------------- ------------------- -----------------
13. Analysis of net funds (debt)
September September March
2017 2016 2017
GBP GBP GBP
Cash and cash equivalents 1,175,109 1,771,745 1,336,175
Bank loans and overdrafts (2,257,885) (2,067,491) (2,315,981)
-------------- --------------- ---------------
(1,082,776) (295,746) (979,806)
Bank loans - non-current (3,204,784) (3,503,549) (3,698,065)
Net (debt) funds (4,287,560) (3,799,295) (4,677,871)
-------------- --------------- ---------------
14. Significant investment in subsidiaries
Percentage of ordinary share capital Principle activities
held
Industrial:
Bailey Industrial Engineering Limited
(UK) 100% Engineering
Leisure:
Bay Travel Limited (UK) 100% Travel agency
Industrial Investment Corporation SA 100% Tourism
Property Proprietary Limited (South
Africa)
Leonardo Da Vinci Knowledge Tourism Ltd
(Malta) 99% Property development
IIC (Malta) Ltd (Malta) 100% Property development
Cordura Limited (Tanzania) 100% Tourism and serviced units
Kimbiji Bay Limited (Tanzania) 100% Property development
Other activities:
Industrial Investment Corporation 100% Holding company
Limited (Bermuda)
Kimbiji Bay Limited (Malta) 100% Holding company
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKNDPOBDDDBD
(END) Dow Jones Newswires
December 14, 2017 02:00 ET (07:00 GMT)
C.H. Bailey (LSE:BLEY)
過去 株価チャート
から 6 2024 まで 7 2024
C.H. Bailey (LSE:BLEY)
過去 株価チャート
から 7 2023 まで 7 2024
