Availeon PLC - Interim Results
January 23 1998 - 6:56AM
UK Regulatory
RNS No 0772n
AVAILEON PLC
23rd January 1998
AVAILEON PLC
(Formerly Kays Food Group Plc)
INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS
ENDED 30 SEPTEMBER 1997
CHAIRMANS STATEMENT
Introduction
On behalf of the Board I have pleasure in presenting the
Companys interim statement for the six months ended 30
September 1997.
On 30 October 1997 shareholders approved the change of the
Companys name to Availeon Plc. This renaming reflects the
Companys new direction into the support services sector away
from meat manufacturing and retailing. The word Availeon is a
combination of the words Avail and Aeon to signify "always
available to provide service".
Interim Results
The results for the six months show an operating loss of
#89,000 (1996 : loss #44,000) on turnover of #1.5m (1996 :
#5.4m) which partly reflects the cost of relaunching our
catering division to which I refer later in this statement.
The pre tax loss of #174,000 for the period (1996 : profit
#11,000) also includes, for the first time, our proportion of
the unaudited results of our associate company Community
Careline Services Limited, being a loss of #76,000.
Accounting standards require us to write down our investment
by the due proportion of their losses although at this moment
in time the Directors do not believe that the value of our
investment has been so diminished, due to the low entry price
achieved.
Current Operations
The catering division achieved a profit during the period
contributing to the ongoing costs of relaunching "Hudson Rowe"
as the trading name under which we operate. Hudson Rowes new
Marketing Director has been upgrading its image, and creating
a new brochure to reflect our high standard of service,
quality and style. In addition he has already presented a
number of proposals to potential clients which are currently
under consideration.
The new Elstree Studios contract, referred to in my previous
statement, has now been signed, and work commenced this month.
We have also recently been awarded a contract to provide the
catering facilities at Holmes Places new health club shortly
to open in a large office complex at Shortlands, Hammersmith.
Investment in Community Careline Services Limited
Community Careline Services Limited ("CCS"), in which the
Company currently has a 35% interest, has recently been
awarded two significant contracts, but the planned month on
month profitability and break-even has been delayed since
these volume contracts were achieved much later than
anticipated. Consequently there will be need for further
funding and also there is a requirement to strengthen
operational controls to maximise the potential of these
contracts. These issues are currently under discussion with
CCSs management, and our fellow CCS shareholders.
Availeon met its obligations to provide CCS with a secured
loan of #200,000 under the terms of the option agreement
signed with CCS and its shareholders on 31 May 1997, which was
found from our own resources.
Convertible Loan Note
In line with statements previously made we are currently
proposing to create a convertible loan note instrument to be
issued by the Company, details of which will shortly be sent
to shareholders for approval. Funds raised will be used to
reduce current borrowings and provide additional working
capital.
Future Prospects
We expect to expand our catering operations as more new
contracts are achieved and are constantly seeking new
opportunities in other service related sectors. We will also
continue to monitor our investment in CCS.
J.R.L. Smith
Chairman
Unaudited Consolidated Profit and Loss Account
Six months ended 30 September 1997
6 months ended 6 months ended Year ended
30 September 30 September 31 March
1997 1996 1997
Notes #000 #000 #000
Turnover 1,469 5,449 6,926
Cost of sales (580) (3,150) (3,671)
------- ------- --------
Gross profit 889 2,299 3,255
Administrative expenses (978) (2,343) (3,503)
------ ------- -------
Operating loss (89) (44) (248)
Exceptional items 2 - 74 124
Expense from interest in
associated undertaking (76) - -
Interest receivable and
other income - - 5
Interest payable and
similar charges (9) (19) (34)
------ ------ -----
(Loss)/profit on ordinary
activities before tax (174) 11 (153)
Tax on (loss)/profit on
ordinary activities - - -
------ ------ -----
(Loss)/profit for
the period (174) 11 (153)
==== ==== ===
(Loss)/earnings
per share 3 (0.17p) 0.01p (0.2p)
------ ------ -----
Dividends Nil Nil Nil
------ ------ ----
Notes:
1. The results for the half year are unaudited but have been
reviewed by the auditors Baker Tilly, having regard to the
Bulletin Review of Interim Financial Information issued by
the Auditing Practices Board.
2. The exceptional items relate to the profit arising on the
disposal of subsidiary companies.
3. The earnings per share has been calculated on the Groups
loss of #174,000 (1996 - profit of #11,000) and on a
weighted average of 103,631,118 shares in issue during the
period. (1996 - 87,087,199)
4. In the six months ended 30th September 1996 turnover of
#3,451,000, operating loss of #9,000 and profit before tax
of #61,000 related to discontinued activities.
5. Copies of this statement are available at the registered
office: Hobson House, 155 Gower Street, London WC1E 6BJ.
Unaudited Consolidated Balance Sheet
As at 30 September 1997
31 March 1997
#000 #000 #000 #000
Fixed assets
Intangible assets 652 670
Tangible assets 347 358
Investments 95 -
------ ------
1,094 1,028
Current assets
Stocks 42 38
Debtors 545 472
Cash at bank and in hand 21 126
----- -------
608 636
Creditors: amounts falling due
within one year (900) (790)
------ ------
Net current liabilities (292) (154)
------- -------
Total assets less
current liabilities 802 874
Creditors: amounts falling
due after more than one year (19) (27)
------- ------
Net assets 783 847
======= ======
Capital and reserves
Called up share capital 2,106 2,006
Share premium account 12 -
Profit and loss account (1,335) (1,159)
------- -------
Shareholders funds 783 847
======= =======
Contacts:
John Smith, Chairman
Stephen Foale, Finance Director
Availeon Plc 0121-212-2080
Richard Darby
Buchanan Communications 0171-466-5000
END
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