Golf Club Holdings - Interim Results
September 17 1998 - 6:19AM
UK Regulatory
RNS No 1116b
GOLF CLUB HOLDINGS PLC
17th September 1998
Interim Results for the Six Months Ended 28th June 1998
6 months to 6 months to
28th June 1998 29th June 1997
Clubs' Turnover (#'000) (Note 1) 1,465 618
Operating Profit 306 47
Net Asset Value (#'000) 7,211 (4,610)
No. of Members 3,466 735
The outlook for Golf Club Holdings is positive and encouraging.
In April 1988 the Company was transformed with the acquisition
of three further clubs, Batchworth Park Golf Club at
Rickmansworth, South Winchester Golf Club, and the Vale Golf and
Country Club at Evesham. The profit and loss statement for the
period ending 30th June incorporates three months' results for
these clubs. The increase in the net asset value to #7.2
million, and the near five-fold increase in members more
adequately reflect the enhanced position today of Golf Club
Holdings.
Since mid April 1998 a number of significant steps have been
taken to ensure the establishment of a well structured,
profitable and forward looking business.
The Board has been strengthened with the appointment of Allan
Tait and Hugh Dixon as Directors and David Gray as Finance
Director.
An integrated management reporting system has successfully been
introduced throughout the Group.
New banking arrangements have been negotiated, with reduced
costs and administration savings.
Cost savings, partly through purchasing arrangements, have been
realised.
The number of shares in issue was consolidated on a 10 for 1
basis in July 1998.
Since June 1997 the balance sheet has been significantly
strengthened with the conversion of all outstanding loan stock
into preference shares.
The acquisition of Vale Royal Abbey Golf Club, the fifth club in
the Group, was completed on April 24th 1998.
Trading in the current period is encouraging. 130,000 rounds
have been played in the year to date on the Group's courses and
the second half of the calendar year is traditionally more
active than the first half.
Vale Royal Abbey Golf Club will open for play on October 1st
1998 and membership sales are going well.
A number of developments are under consideration at the
Company's clubs, with planning permission having been granted
for two schemes.
As indicated in the circular issued on 17th March 1998 the plan
to reconstruct the balance sheet in order to enable the company
to pay dividends will be actioned.
Discussions are taking place for further acquisitions in the
still fragmented market for golf clubs in the Leisure Industry.
The achievements of the period under review, the hard work of
all staff and current developments under consideration give the
Board of Golf Club Holdings encouragement for the prospects of
the Company.
MP Knight
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 MONTHS ENDED 28TH JUNE 1998
6 months to 6 months to 6 months to
28th June 28th June 28th December
1998 1997 1998
unaudited unaudited unaudited
#'000 #'000 #'000
Turnover - continuing operations (Note 1) 867 618 1,288
Operating Profit 306 47 197
Net interest (payable)/receivable (187) (290) (387)
Interest adjustment (Note 2) - 407 407
Profit on disposal of subsidiary - 84 84
Profit on disposal of investments 54 - -
Profit on ordinary activities
before taxation 173 248 301
Taxation (Note 3) - - -
Profit after Tax 173 248 301
Preference Dividend (Note 6) (89) - -
84 248 301
Preference Shares issued in lieu of
Unpaid Dividend (Note 7) (107) - -
Deficit carried forward (23) 248 301
Earnings per share (Basis 1) 0.04p 0.59p 0.71p
Earnings/(Loss) per share (Basis 2) (0.01p) 0.59p 0.71p
The earnings per share are based upon the consolidated after tax
profits and the weighted average number of shares in issue,
being 218,957,190 (June and December 1997 42,196,845). The
calculation does not take account of the 10 for 1 share
consolidation in July 1998. Basis 1 represents the earnings per
share after deducting the preference dividend (see Note 6).
Basis 2 is calculated after the further deduction of the one-off
issue of shares in lieu of an unpaid dividend (see Note 7).
Summary Consolidated Balance Sheet
At 28th June At 29th June At 28th December
1998 1998 1997
#'000 #'000 #'000
Fixed Assets 19,504 5,622 5,607
Current Assets 719 1,026 614
Creditors falling due within one year(4,141) (2,094) (934)
Net Current Liabilities (3,422) (1,068) (320)
Creditors falling due after (8,871) (9,164) (4,893)
more than one year
Total Net Assets 7,211 (4,610) 394
Share Capital and Reserves 7,211 (4,610) 394
NOTES
Batchworth Park Golf Club and South Winchester Golf Club are
managed by Group companies, hence their turnover and profits are
included for statutory purposes as management fees. The
underlying turnover at the four clubs owned and operated by the
Company was #1,465,000 including turnover for the three acquired
clubs from the date of acquisition, 15th April 1998.
At 31st December 1996 a provision for interest payable on loan
notes was made in compliance with FRS4. As a result of the
capitalisation of these loan notes this provision was released
to profit in the six months to 29th June 1997.
No provision has been made for taxation since it is estimated
that no liability will arise in view of previous years' losses.
This interim statement for the six months ended 28th June 1998
is unaudited and was approved by the directors on 17th September
1998. The financial information set out above does not
constitute statutory accounts within the meaning of section 240
of the Companies Act 1985. The information at 28th December
1997 has been extracted from statutory accounts relating to the
year ended 28th December 1997 which have been filed with the
Registrar of Companies.
The accounting policies remain as stated in the Annual Report
for the year ended 28th December 1997.
This represents the preference dividend accrued for the period
from 15th April 1998 to 28th June 1998.
This represents a one-off issue of 106,726 preference shares in
lieu of the sum of #106,726 being part of the dividend accrued
but unpaid in respect of the period 25th July 1997 to
31st March 1998, as laid out in the circular to shareholders
dated 17th March 1998.
The Company is in the process of assessing the risks arising
from the issue of year 2000 compliance, and is satisfied that
its core financial systems are compliant. When this assessment
is complete the Company will consider the likely impact on the
business, develop action plans to deal with the key risks and
estimate the costs to be incurred.
Copies of this interim report are being sent to shareholders.
Copies of this interim report will be available to the public
free of charge from the office of Grant Thornton, Grant Thornton
House, Melton Street, Euston Square, London NW1 2EP, during
normal office hours, Saturdays and Sundays and Bank Holidays
excepted, for 14 days from today.
Contact: Martin Knight
0171 491 4652 or 0860 553 455
END
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