Innobox Plc (the "Company")
Interim results for the six months ended 31 October 2006
29 November 2006
Chairman's statement
I report the Company's results for the half year ended 31 October 2006. The
loss for the period after taxation and minority interests was �259,125 (2005:
loss of �265,971), which represents a loss per share of 0.71p (2005: loss per
share of 1.24p).
The Company currently owns and operates two pub / hotel / restaurant sites,
which are: The Moss Cottage in Ripley, Derbyshire and The Royal Oak in
Leominster, Herefordshire. We also own the freehold interest of The Three Tuns
in Pettistree, Suffolk, which is leased out to private tenants under a three
year lease agreement, and the freehold property at Fishmore Hall near Ludlow,
Shropshire which is currently in the process of being sold.
Since my statement at the time of the annual results, difficult market
conditions have unfortunately continued and this has meant that we again
incurred trading losses in the interim period.
We still manage to achieve good hotel occupancy levels during the week, but
continue to see lower than anticipated levels of week-end break bookings. This
has had a negative impact on turnover. Overall we believe that our
rationalisation and cost cutting measures have ensured that our sites are
positioned to return to profitability when market conditions improve, and we
hope that a break even position can be achieved in the short term.
As reported in my last statement the previously planned refurbishment and
development of Fishmore Hall is unfortunately no longer moving forward and the
decision to sell the site was taken. The site is currently being marketed by
two joint agents and we have received an encouraging level of interest and we
hope to be able to announce a sale of this site shortly.
As I commented in my annual statement, the Board had reviewed the need for the
Company to be able to raise finance and the necessary resolutions to reorganise
the share capital were approved at the EGM held on 9 October 2006. Following
the release of these interim results, the Directors propose to seek further
equity funding to provide working capital for the continuity of the Company
until the trading conditions improve.
Finally, I would like to take this opportunity to thank my colleagues and our
dedicated employees for their hard work during these continuing difficult
trading times.
A Baker
Non Executive Chairman
29 November 2006
Consolidated Profit and Loss Account for the six months ended 31 October 2006
Notes 6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2006 2005 2006
(unaudited) (unaudited) (audited)
� � �
Turnover 375,717 487,603 939,936
Cost of sales (269,073) (372,383) (739,035)
----------- ----------- -----------
Gross profit 106,644 115,220 200,901
Administrative expenses - (297,969) (318,711) (697,748)
continuing
Administrative expenses - - (5,816) (500,000)
exceptional
----------- ----------- -----------
Total administrative (297,969) (324,527) (1,197,748)
expenses
----------- ----------- -----------
Operating loss (191,325) (209,307) (996,847)
Loss on sale of investments - (16,642) (16,929)
Interest receivable - 3,038 4,079
Interest payable (67,800) (74,581) (138,588)
----------- ----------- -----------
Loss on ordinary activities (259,125) (297,492) (1,148,285)
before taxation
Taxation 5 - - -
----------- ----------- -----------
Loss for period (259,125) (297,492) (1,148,285)
Minority interests - 31,521 (66,472)
----------- ----------- -----------
Retained loss (259,125) (265,971) (1,214,757)
----------- ----------- -----------
Basic loss per share 6 (0.71) (1.24) (5.04)
(pence)
----------- ----------- -----------
The Company has no recognised gains or losses other than the losses for the
periods.
Consolidated Balance Sheet as at 31 October 2006
Note As at As at As at
31 October 31 October 30 April 2006
2006 2005 (audited)
(unaudited) (unaudited) �
� �
Fixed assets
Tangible fixed assets 1,995,443 2,846,773 2,005,858
Intangible fixed assets - 185,417 -
Investments - 34,112 -
----------- ----------- -----------
1,995,443 3,066,302 2,005,858
Current assets
Stocks 12,517 22,163 23,378
Debtors 41,951 110,324 85,687
Investments 627,260 - 627,260
Cash at bank and in hand 2,617 63,454 31,317
----------- ----------- ------------
684,345 195,941 767,642
----------- ----------- ------------
Creditors:
Amounts falling due within (2,015,655) (1,341,603) (1,875,936)
one year
----------- ----------- ------------
Net current liabilities (1,331,310) (1,145,662) (1,108,294)
----------- ----------- ------------
Total assets less current 664,133 1,920,640 897,564
liabilities
Creditors:
Amounts falling due after
more than one year
(856,864) (1,295,453) (831,170)
----------- ----------- ------------
Net (liabilities)/assets (192,731) 625,187 66,394
----------- ----------- ------------
Capital and reserves
Called up share capital 730,000 430,000 730,000
Share premium 1,062,364 1,070,364 1,062,364
Profit and loss account (1,985,095) (777,184) (1,725,970)
----------- ----------- ------------
Shareholders' funds 7 (192,731) 723,180 66,394
Minority interests - (97,993) -
----------- ----------- ------------
Total capital employed (192,731) 625,187 66,394
----------- ----------- ------------
Consolidated Cash Flow Statement for the six months ended 31 October 2006
Notes 6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2006 2005 2006
(unaudited) (unaudited) (audited)
� � �
Net cash inflow from 8 57,075 334,015 212,542
operating activities
Return on investments and
servicing of finance
Interest received - 3,038 4,079
Interest paid (66,856) (73,005) (134,987)
Interest element of finance (944) (1,576) (3,601)
lease rentals
----------- ----------- ------------
(67,800) (71,543) (134,509)
Capital expenditure and
financial investment
Payments to acquire tangible (46,205) (230,039) (394,987)
fixed assets
Proceeds from disposal of
investments
- 219,646 253,471
----------- ----------- ------------
Net cash (outflow)/inflow (56,930) 252,079 (63,483)
before financing
Financing
Issue of ordinary shares for - - 292,000
cash
Issue of minority interest - 1,000 1,000
shares for cash
Repurchase of minority - (2,255) (2,255)
shares for cash
Part disposal of minority - 24,445 24,445
interests
Capital element of bank loan (9,535) (262,500) (271,563)
repayments
Capital element of finance (5,072) (4,655) (9,183)
lease rentals
----------- ----------- ------------
(Decrease)/increase in cash 9 (71,537) 8,114 (29,039)
in the period
----------- ----------- ------------
Notes to the Interim Report for the six months ended 31 October 2006
1 Accounting policies
The interim financial statements have been prepared in accordance with
applicable accounting standards and under the historical cost
convention. The principal accounting policies of the Company have
remained unchanged from those set out in the Company's 2006 annual
report and financial statements.
2 Basis of consolidation
The consolidated interim financial statements consolidate those of the
Company and its subsidiary undertakings. Intra-group transactions have
been eliminated in full.
3 Basis of preparation
The financial information set out in this report does not constitute
statutory accounts as defined in section 240 of the Companies Act
1985. The figures for the year ended 30 April 2006 have been extracted
from the statutory financial statements, which have been filed with the
Registrar of Companies. The auditors' report on those financial
statements was unqualified.
4 Dividends
No dividend is proposed for the six months ended 31 October 2006.
5 Taxation
On the grounds that year to date losses have been made which are not
expected to be relieved in the forthcoming period, there is no taxation
charged or credited to the profit and loss account in this period.
6 Loss per share
The calculation of the basic loss per share is based on the loss on
ordinary activities after tax and minority interests and on the
weighted average number of shares in issue during the period. The
impact of share options is anti dilutive. The loss and weighted
average number of shares used in the calculations are set out below:
Weighted average number
of shares
Loss per
share
Loss
(pence)
�
Basic earnings per
share:
6 months ended 31 (259,125) 36,500,000 (0.71)
October 2006
6 months ended 31 (265,971) 21,500,000 (1.24)
October 2005
Year ended 30 April (1,214,757) 24,089,041 (5.04)
2006
7 Reconciliation of movements in
equity shareholders' funds
6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2006 2005 2006
(unaudited) (unaudited) (audited)
� � �
Loss on ordinary activities (259,125) (265,971) (1,214,757)
after taxation
Share subscription - - 300,000
Share subscription costs - - (8,000)
----------- ----------- ------------
Net reduction in shareholders' (259,125) (265,971) (922,757)
funds
Equity shareholders' funds 66,394 989,151 989,151
brought forward
----------- ----------- ------------
Equity shareholders' funds at
the end of the period
(192,731) 723,180 66,394
----------- ----------- ------------
8 Reconciliation of operating loss
with net cash flow from
operating activities
6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2006 2005 2006
(unaudited) (unaudited) (audited)
� � �
Operating loss (191,325) (209,307) (996,847)
Depreciation, amortisation and 56,620 57,730 621,750
impairment
Decrease in stocks 10,861 3,034 1,819
Decrease in debtors 43,736 473,302 497,939
Increase in creditors 137,183 9,256 87,881
----------- ----------- ------------
Net cash inflow from operating 57,075 334,015 212,542
activities
----------- ----------- ------------
9 Reconciliation of net cash
flow to movement in net funds
6 months 6 months Year
ended ended ended
31 October 31 October 30 April
2006 2005 2006
(unaudited) (unaudited) (audited)
� � �
Decrease in cash for the (71,537) 8,114 (29,039)
period
Repayment of bank loans 9,535 262,500 271,563
Repayment of finance lease and 5,072 4,655 9,183
hire purchase contracts
------------ ------------ ------------
Movement in net funds for the (56,930) 275,269 251,707
year (note 10)
Net funds at the beginning of (2,042,556) (2,294,263) (2,294,263)
the period
------------ ------------ ------------
Net funds at the end of the (2,099,486) (2,018,994) (2,042,556)
period
------------ ------------ ------------
10 Analysis of changes in net
funds
As at Cash flow As at
1 May 31 October
2006 2006
(audited) (unaudited)
� � �
Cash at bank and in hand 31,317 (28,700) 2,617
Bank overdraft (189,118) (42,837) (231,955)
------------
(71,537)
Bank loans (1,771,862) 9,535 (1,762,327)
Loan notes (98,000) - (98,000)
Finance leases and hire (14,893) 5,072 (9,821)
purchase contracts
------------ ------------ ------------
(2,042,556) (56,930) (2,099,486)
------------ ------------ ------------
11 Copies of the Interim Results are available for download from the
Company's website at www.innobox.co.uk or by request from the
Company's registered office, Meriden House, 6 Great Cornbow,
Halesowen, West Midlands B63 3AB.
Enquiries:
Russell Stevens 07860 562621
Chief Executive, Innobox Plc russell@innobox.co.uk
Tim Feather 0113 246 2611
Hanson Westhouse LLP tim.feather@hansonwesthouse.com
END
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