Final Results
August 07 2003 - 3:01AM
UK Regulatory
RNS Number:4148O
Comland Commercial PLC
07 August 2003
COMLAND COMMERCIAL PLC
7 AUGUST 2003 - EMBARGOED FOR 7AM
COMLAND COMMERCIAL PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2003
CHAIRMAN'S STATEMENT
I have pleasure in reporting to you on the year ended 31 March 2003.
RESULTS
In the year to 31 March 2003, operating income, which is primarily rental
income, has increased by 70% to #5.41 million (2002: #3.18 million). Operating
profit has increased by 102% to #3.96 million before the provisions of #1.01
million against our property stock and by 51% after these provisions to #2.95
million (2002: #1.96 million). Pre-tax profits are #0.08 million (2002: #1.62
million) after finance costs of #2.85 million (2002: #1.41 million). No dividend
will be paid.
DEVELOPMENTS
During the year the development of the final buildings of Mercury Park, Wooburn
Green was substantially completed. Mercury Park is a thirteen building
development of approximately 95,000 square feet of lettable space. In October
2002 we let a 7,600 square foot building to Compass Group UK and Ireland Limited
at #28 per square foot on a fifteen year lease. We relocated our Head Office to
Lunar House, Mercury Park in February 2003. In June 2003 we completed a ground
floor lease of Solar House of 2,560 square feet at #28.50 per square foot to
Yokogawa on a five year lease. We have a further building of 7,600 square feet
plus the first floor of Solar House of some 2,836 square feet remaining to be
let. The interest in this remaining space has been limited during the first half
of 2003. Market conditions have improved a little recently and with the use of
letting incentives we hope to find tenants for this space soon.
ACQUISTIONS
During the year ended 31 March 2003 Comland has acquired approximately #25
million of property suitable for development and future trading:
Wethered House, High Street, Marlow
Prospect House, The Broadway, Farnham Common
Plover House, Wode Road, Basingstoke
Units A, B, C & Unit 4, Wessex Road, Bourne End
St. John's Court, Easton Street, High Wycombe
Anglers Court, Spittal Street, Marlow
Unit 1, Thomas Road, Wooburn Green
62 High Street, Marlow
Market House, Market Place, Windsor
14 High Street, Windsor
22-24 King Street, Maidenhead
DISPOSALS
Market conditions in the second half of the year deteriorated and whilst we
continue to seek purchasers for a number of our properties, there is a need to
be patient in an attempt to maximise the return.
BOARD CHANGES
On 19 May 2003 Andrew Ilsley's contract of employment as Managing Director was
terminated by mutual agreement. I would like to thank him for his contribution
during his five years with Comland. I do not intend to replace him in the
foreseeable future.
DOCTORNOW
In April 2003 we started this new business. We have invested approximately
#500,000 in the start up of this new subsidiary. DOCTORnow Limited is a private
medical company providing general practice services of an extremely high quality
to patients unhappy with the National Health Service in our area. This company
trades from Mercury Park in 3,000 square feet of accommodation which has been
equipped to a high standard. It may be some time before this venture is
profitable but I have confidence in the concept and we have installed excellent
management.
THE FUTURE
The fragile and uncertain economy is affecting confidence in the commercial
property market. We currently only have vacant space at Mercury Park and in one
industrial unit. This accounts for less than 3% of our lettable space. However,
we continue to keep a careful watch on the activities of our current tenants.
We remain acquisitive for well-located opportunities and continue to be well
placed to exploit better business conditions in the future and continue our
development programme.
SJ Crossley
Chairman
7 August 2003
CONSOLIDATED PROFIT & LOSS ACCOUNT
for the year ended 31 March 2003
Year ended Year ended
March 31 March 31
Notes 2003 2002
#'000 #'000
Turnover - 940
Cost of sales (1,005) (920)
Gross profit (1,005) 20
Administrative expenses (1,453) (1,239)
Other operating income 5,410 3,177
Operating profit 2,952 1,958
Profit on disposal of subsidiary - 1,076
Loss on disposal of fixed assets (25) (6)
Interest payable and similar charges (2,845) (1,413)
Profit on ordinary activities before taxation 82 1,615
Tax on profit on ordinary activities (54) (151)
Profit on ordinary activities after tax 28 1,464
Ordinary dividend 4 - -
Retained profit for the year 28 1,464
Basic and fully diluted earnings per share 5 0.6p 39.5p
All of the above results derive from continuing activities.
CONSOLIDATED STATEMENT OF RECOGNISED GAINS AND LOSSES
The Group has no recognised gains or losses other than the results for each
year.
CONSOLIDATED BALANCE SHEET
as at the year ended 31 March 2003
As at As at
March 31 March 31
Notes 2003 2002
#'000 #'000
FIXED ASSETS
Tangible assets 363 136
CURRENT ASSETS
Stocks 57,830 30,598
Debtors 3,733 1,935
Cash at bank and in hand 4,995 2,959
66,558 35,492
CREDITORS: Amounts falling due within one year (15,511) (10,203)
NET CURRENT ASSETS 51,047 25,289
TOTAL ASSETS LESS CURRENT LIABILITIES 51,410 25,425
CREDITORS: Amounts falling due after more than one year (42,662) (19,670)
NET ASSETS 8,748 5,755
CAPITAL AND RESERVES
Called-up share capital 456 371
Capital redemption reserve 25 25
Other reserve 2,880 -
Profit and loss account 5,387 5,359
EQUITY SHAREHOLDERS' FUNDS 6 8,748 5,755
CONSOLIDATED CASHFLOW STATEMENT
for the year ended 31 March 2003
Year ended Year ended
March 31 March 31
2003 2002
#'000 #'000
Net cash outflow from operating activities (12,364) (3,809)
Returns on investment and servicing of finance (2,077) (1,413)
Taxation (223) -
Capital expenditure and financial investment (307) 1,146
__________ __________
Net cash outflow before financing (14,971) (4,076)
Financing 16,465 3,774
__________ __________
Increase/(decrease) in cash in the year 1,494 (302)
__________ __________
NOTES
1. The accounting policies adopted are consistent with those in the most
recently published set of financial statements for the year ended 31 March 2002.
2. The summarised financial information has been extracted from the unaudited
accounts of the Group for the year ended 31 March 2003. The above
information does not amount to statutory accounts within the meaning of
the Companies Act 1985. Statutory Accounts for the previous financial year
ended 31 March 2002 have been delivered to the Registrar of Companies. The
auditors' report on those accounts was unqualified and did not contain any
statement under S237(2) or (3) of the Companies Act 1985. The auditors have not
reported on accounts for the year ended 31 March 2003, nor have any such
accounts been delivered to the Registrar of Companies.
3. Copies of the annual report and accounts will be posted to shareholders in
August 2003 and will be available from the Company's Head Office, Lunar House,
Mercury Park, Wooburn Green, High Wycombe, Bucks, HP10 0HH.
4. No final dividend will be payable.
5. Earnings per share have been calculated based on a weighted average of
4,334,742 ordinary shares being in issue during the period to 31 March 2003
(3,707,359 ordinary shares during the period 31 March 2002).
6. The movement in shareholders' funds is analysed as follows:-
#'000
Shareholders' funds as at 1 April 2002 5,755
Issue of ordinary shares 85
Reserve created on the acquisition of Janico Limited,
Latham Investments Limited, Anglers Court 2,880
Limited and Copystation Limited
Profit for the period 28
------
Shareholders' funds as at 31 March 2003 8,748
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