Availeon PLC - Interim Results
January 29 1999 - 2:31AM
UK Regulatory
RNS No 8310h
AVAILEON PLC
29th January 1999
Availeon Plc
Interim Statement
for the six months ended
30th September 1998
Availeon Plc the fully listed catering group announces interim
results for the six months ended 30th September 1998.
Chairmans Statement
Introduction
On behalf of the Board I have pleasure in presenting the
Companys interim statement for the six months ended 30th
September 1998.
Interim Results & Operational Review
The results for the six months ended 30th September 1998 show
an operating loss of #314,000 (1997: loss #89,000) on turnover
of #1.5m (1997: #1.5m). The catering results reflect not only
the adverse performance at one of our major contracts, where
temporary cutbacks affected hospitality spending, but include
approximately #120,000 in respect of the new marketing
department, introduced in the second half of last year, and
some #60,000 start up costs of two new contracts. This
Division continues however to generate positive contract
contribution.
The pre-tax loss of #427,000 for the period (1997: #174,000)
also includes exceptional costs of #101,000 in respect of the
fund raising referred to below.
Convertible Unsecured Loan Stock
On 21st August 1998 the Company announced the proposed issue
of up to #750,000 nominal of new convertible unsecured loan
stock ("CULS") 2003/6 to B & C Plaza Limited ("BCPL") and
certain nominated individuals. In addition, a further
#150,000 nominal of convertible unsecured loan stock 2003 was
proposed in exchange for an existing #150,000 loan. These
proposals were approved by shareholders at an Extraordinary
General Meeting held on 14th September 1998 and subsequently
BCPL and the nominated individuals subscribed for the first
#250,000 of the CULS and the additional #150,000 was exchanged
for the existing loan.
Under the terms of the agreement with BCPL, they had the
option for a period of two months from the date of the EGM to
subscribe for a further #150,000 of CULS and the option for an
additional three months thereafter to subscribe for the
remaining #350,000 of CULS. BCPL did not take up its option to
subscribe for the next tranche of #150,000 which, under the
terms of the agreement, allowed the Company to seek an
alternative source of funding for the whole or part of the
remaining #500,000.
Subsequently the Board was pleased to announce that Mr
A.K.Robertson agreed with the Company to take up an initial
#150,000 of CULS on 20th January 1999. Discussions are in
progress to place the remaining CULS.
Future Prospects
The Company has invested heavily in winning profitable new
catering contracts and arranging investment finance to support
this aim. The first of these achievements was a five year
extension to the original three year contract with Elstree
Film Studios and a five year extension to a College contract
we have held for a number of years. In addition, we are about
to sign a long-term contract with an MOD establishment as part
of a PFI consortium bid, a five year contract with a London
Borough and a new twelve year contract at Leamington Spa,
where the local authority is undertaking an #8 million
refurbishment of its Royal Pump Room.
Last Autumn we also tendered to the Royal Parks Commission for
the catering services at Londons St Jamess and Green Parks,
situated between Buckingham Palace, Piccadilly and Whitehall.
I am pleased to announce that Hudson Rowe was awarded
preferred bidder status for this contract and that
negotiations are now well advanced to complete contract
signing with The Parks and with a third party to provide
funding for this project. Once signed we will be required to
build a new catering facility in St Jamess Park designed
by Sir Michael Hopkins & Partners, that should be operational
in the Spring of 2000.
Whilst costs associated with winning these contracts, together
with the costs of raising funding during the year, will impact
the current years results, when fully operational these new
contracts will increase our annualised turnover to in excess
of #8million. The results of our strategy to date bode well
for the future.
J R L Smith
Chairman
29th January 1999
Unaudited Consolidated Profit and Loss Account
Six months ended 30th September 1998
6 6 Year
months months ended
Note ended ended
30.9.98 30.9.97 31.3.98
#000s #000s #000s
Turnover 1,466 1,469 2,810
Cost of sales (594) (580) (1,071)
----- ----- -----
Gross profit 872 889 1,739
Administrative expenses (1,186) (978) (2,026)
Other operating income
-- -- 21
----- ----- -----
Operating loss (314) (89) (266)
Expense from interest in
associated undertaking -- (76) (155)
Interest receivable and other 11 -- 2
income
Interest payable and similar (23) (9) (23)
charges
Exceptional items 2 (101) -- --
Loss on ordinary activities (427) (174) (442)
before tax
Tax on loss on ordinary
activities -- -- --
Loss for the period (427) (174) (442)
Loss per share 3 (0.4p)(0.17p) (0.4p)
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 costs associated with
the fund raising during this period.
3 The earnings per share has been calculated on the Groups
loss of #427,000 (1997: #174,000) and on a weighted average of
105,297,785 shares in issue during the period (1997:
103,631,118).
4 Since the 30th September a further #150,000 of
Convertible Unsecured Loan Stock (CULS) have been issued
increasing the total to #550,000. The Directors believe it is
likely that the full amount of the issued CULS will be
converted into Ordinary Shares within the next few months.
5 Copies of this statement are available at the registered
office: Crosby Court, 28 George Street, Birmingham B3 1QG
Unaudited Consolidated Balance Sheet
As at 30th September 1998
31st March 1998
Note #000's #000's #000s #000's
Fixed assets
Intangible assets 615 632
Tangible assets 328 350
Investments
-- 44
943 1,026
Current assets
Stocks 57 49
Investments 44 --
Debtors 425 549
Cash at bank and in hand
9 5
----- -----
535 603
Creditors: Amounts falling due
within one year (965) (1,089)
----- ------
Net current liabilities (430) (486)
----- -----
Total assets less current 513 540
liabilities
Creditors: Amounts falling due (26) (26)
after more than one year
Convertible unsecured loan stock 4 (400) --
Net assets ----- -----
87 514
----- -----
Capital and reserves
Called up share capital 2,106 2,106
Share premium account 9 9
Profit and loss account (2,028) (1,601)
----- -----
Shareholders funds 87 514
----- -----
END
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