RNS Number:5540J
Hurlingham PLC
10 March 2005
Hurlingham PLC
10 March 2005
Results for the year ended 30 September 2004
Chairman's statement
I am pleased to present the annual results of the Group for the year ended 30
September 2004.
Results
These results reflect the continuing transformation of the Group into a business
which can deliver sustainable earnings growth based on an integrated hotel and
travel strategy. Partially as a consequence of the continued investment in our
Custom Travel division, Group turnover for the year increased by 76% to #2.55m
(2003: #1.45m) and the loss on ordinary activities after tax attributable to
shareholders was reduced to #163,000 from #206,000 last year. During the
second half year the Group was profitable for the first time since the 9/11
tragedy. The Board is confident that the investment in the restructuring of the
Custom Travel division together with the strong performance of the Perth hotel
will deliver continuing improvement in the current year.
At the same time, the Board has carried out an impairment review of the carrying
values reflected in its Balance Sheet and has revised the value of the Perth
hotel upwards in line with the independent professional valuation.
Custom Travel
Building on the long established Custom brand, the Group has restructured its
travel division with the creation of a new wholly-owned subsidiary Custom
Flights Ltd., which commenced trading in March 2004, This company operates
on-line to agents and provides flights to major European holiday destinations.
In the seven months from the commencement of trading to the year end, the
turnover of this company was #1.1m and net profit before tax was #10,000 after
providing for #13,000 of depreciation. At the cash-flow level therefore, this
new company is already making positive returns to the Group.
Sales at our hotel booking company, Custom Tours Ltd. declined to #346,000 from
#437,000, but the loss attributed to shareholders was reduced to #85,000 from
#137,000 as we lowered costs and transferred resources to Custom Flights Ltd.
During the second half of the year, we continued the restructuring of this
division with the modernisation of the Plymouth call-centre and the
commissioning of computer systems which will enable agents to access
availability and process bookings via our Custom Tours web-site. This
restructuring will continue during the current year and it is envisaged that
this will enable the company to start growing its market share again with a view
to returning to profitability.
Perth Hotel
I am pleased to report that turnover, occupancy and room rates at the company's
hotel in Perth have all continued to improve, with sales for the year to 30
September 2004 breaking through the #1m mark for the first time. Occupancy for
the year remained constant at 75%, Average Room Rate increased by 3.5% resulting
in turnover of #1,016,000. Operating profit improved by 7.9% to #204,000 up
from #189,000 last year.
Dividend
The Group will be undertaking further investment in the travel division in the
current year and the Board has therefore decided not to pay a dividend for the
year to 30 September 2004, but will review the position at the half-year.
Outlook
During the current year, we will be focusing on developing our travel division
further and seeking to develop earnings growth from the management of hotels
through Bettagrade Ltd.
Charles Llewellyn
Chairman
Consolidated profit and loss account
for the year ended 30 September 2004
2004 2003
# #
Turnover:
Continuing operations 2,556,958 1,454,150
____________ ____________
Cost of sales before goodwill amortisation (1,716,508) (743,187)
Negative goodwill amortisation - 18,584
Goodwill amortisation (25,398) (28,295)
____________ ____________
Cost of sales (1,741,906) (752,898)
____________ ____________
Gross profit 815,052 701,252
Administrative expenses (841,022) (721,360)
____________ ____________
Operating loss from
Continuing operations (25,970) (20,108)
Profit/(loss) on disposal of fixed assets 13,458 (37,184)
____________ ____________
Loss on ordinary activities before interest and taxation (12,512) (57,292)
Net interest payable (150,194) (148,511)
____________ ____________
Loss on ordinary activities before taxation (162,706) (205,803)
Taxation - (304)
____________ ____________
Loss on ordinary activities after taxation (162,706) (206,107)
____________ ____________
Loss per share (8.01)p. (10.23)p.
____________ ____________
Balance sheets
at 30 September 2004
Group Company
2004 2003 2004 2003
# # # #
Fixed Assets
Intangible assets 404,269 429,667 - -
Tangible assets 4,151,163 4,350,854 707,109 958,200
Investments - - 1,818,246 1,765,246
____________ ____________ ____________ ____________
4,555,432 4,780,521 2,525,355 2,723,446
____________ ____________ ____________ ____________
Current Assets
Stock 3,097 4,592 - -
Debtors 430,780 172,238 176,782 133,162
Investments - 252,500 - 252,500
Cash at bank and in hand 577,541 339,231 6,835 44,841
____________ ____________ ____________ ____________
1,011,418 768,561 183,617 430,503
Creditors: due within one year (1,137,760) (633,363) (48,632) (95,403)
____________ ____________ ____________ ____________
Net current (liabilities)/assets (126,342) 135,198 134,985 335,100
Total assets less current
liabilities 4,429,090 4,915,719 2,660,340 3,058,546
Creditors: due after one year (2,005,000) (2,417,241) - (301,257)
____________ ____________ ____________ ____________
Net assets 2,424,090 2,498,478 2,660,340 2,757,289
____________ ____________ ____________ ____________
Capital and reserves
Called up share capital 1,534,280 1,511,697 1,534,280 1,511,697
Share premium account 350,454 350,454 350,454 350,454
Revaluation reserve 466,459 630,258 354,906 584,440
Profit and loss account 72,897 6,069 420,700 310,698
____________ ____________ ____________ ____________
Equity shareholders' funds 2,424,090 2,498,478 2,660,340 2,757,289
____________ ____________ ____________ ____________
C Pettingell FCA
Director
Consolidated cash flow statement
for the year ended 30 September 2004
2004 2003
# # # #
Net cash inflow from operating activities 394,059 92,356
Returns on investments and servicing of finance
Interest received 10,199 8,263
Interest paid (157,552) (143,421)
____________ ____________
Net cash outflow from returns on investments and
servicing of finance (147,353) (135,158)
Taxation
UK corporation tax recovered 52 4,136
Capital expenditure and financial investments
Purchase of operating assets (59,317) (81,069)
Sale of investment properties 515,568 -
____________ ____________
Net cash inflow/(outflow) from capital
expenditure and financial investment 456,251 (81,069)
____________ ____________
703,009 (119,735)
Equity dividends paid 193 (23,707)
____________ ____________
Net cash inflow/(outflow) before financing 703,202 (143,442)
Management of liquid resources
Cash transferred to treasury operations (150,000) -
____________ ____________
Financing
Issue of new shares 22,582 -
New finance leases - 43,471
Bank loans repaid (469,575) (22,374)
Capital element of finance lease rental payments (17,899) (11,503)
____________ ____________
Net cash (outflow)/inflow from financing (464,892) 9,594
____________ ____________
Increase/(Decrease) in cash 88,310 (133,848)
____________ ____________
Reconciliation of net cash flow to movement in net debt
for the year ended 30 September 2004
2004 2003
# #
Increase/(decrease) in cash in year 88,310 (133,848)
Cash outflow/(inflow) from movement in debt 483,756 (10,304)
____________ ____________
Net movement in year 572,066 (144,152)
Net debt at 1 October 2003 (2,308,594) (2,164,442)
____________ ____________
Net debt at 30 September 2004 (1,736,528) (2,308,594)
____________ ____________
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