TIDMPKW
RNS Number : 2254Y
Parkwood Holdings PLC
28 August 2009
28 August 2009
Parkwood Holdings plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
Financial Summary - continuing operations
+-----------------------------------------+-------------+-------------+
| | Interim | Restated |
| | 2009 | Interim |
| | | 2008 |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| Revenue | GBP61.1m | GBP59.9m |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| Adjusted operating (loss)/profit | (GBP0.09m) | GBP1.96m |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| Operating (loss)/profit | (GBP0.79m) | GBP1.73m |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| (Loss)/profit before tax | (GBP1.14m) | GBP1.36m |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| Basic (loss)/earnings per share | (7.2p) | 5.3p |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| Dividend proposed per share | nil | 1.4p |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| Order book | GBP500m | GBP531m |
+-----------------------------------------+-------------+-------------+
The adjusted operating (loss)/profit is stated before amortisation and goodwill
impairment.
The 2008 comparatives have been restated to exclude the results of discontinued
operations.
Financial Calendar
Full Year Results Announced March 2010
Annual General Meeting May 2010
This statement is available from the Company's website at
www.parkwood-holdings.co.uk. Shareholders will be notified in writing when the
Interim Report is available unless shareholders have specifically elected to
receive paper copies. Copies can be obtained from the registered office:
Parkwood House
Cuerden Park
Berkeley Drive
Bamber Bridge
Preston
PR5 6BY
For further information, please contact:
Tony Hewitt - Executive Chairman
01772 627111
Mike Quayle - Group Finance Director
Neil Baldwin - Brewin Dolphin Investment Banking 0845
213 4730
Chairman's Statement
Parkwood suffered its first loss in a number of years in the six months to 30
June 2009. This was the result of losses in some trading activities, the
impairment of goodwill and adjustments for additional costs relating to prior
periods. Poor management of certain customer relationships in Glendale during
2008 and early 2009 adversely affected Glendale Facilities Management at the
Defence Animal Centre. Similarly, in February Glendale Recycling lost an
important contract which secured gate fees for the processing of green waste.
Although the majority of the Group's trading is underpinned by long-term
contracts with the public sector, Parkwood is not immune to the current
recession which has affected landscaping activity in Glendale Countryside and
has impacted on discretionary spending patterns in golf, horticulture and
catering.
Parkwood Leisure, however, increased its profits during the period to GBP1.75
million (2008: GBP1.25 million), but otherwise good news has been hard to find.
Although the award of the first 'healthy living' contracts to provide health
trainers for South East Essex PCT and West Berkshire PCT in July was welcome.
The anticipated sale of the equity and subordinated debt in the leisure related
PFI/PPP investments scheduled for June 2009 has been delayed into the third
quarter of this year and is currently in the final stages of due diligence.
Group Results
Revenues were slightly ahead at GBP61.1 million (2008: GBP59.9 million) but an
operating loss of GBP0.8 million was incurred compared to a profit of GBP1.7
million for the same period in the previous year. The loss from continuing
operations before tax amounted to GBP1.14 million, including GBP0.24 million of
amortisation and GBP0.46 million of goodwill impairment. The Group's cash flow
has been successfully managed during the period with net short-term borrowings
kept to a minimum. The sale of the subordinated debt and equity in the PFI/PPP
investments is expected to generate net proceeds of around GBP4.8 million which
will be used to reduce the net debt of the recourse group. Dividends have been
waived again as the Board has felt it prudent not to pay a dividend until this
transaction completes.
The Group's forward order book at the period end was GBP500 million (2008:
GBP531 million).
Board and Management
Both Terry Bowman, the Group Finance Director and Nick Temple-Heald, the Chief
Executive of Glendale left the Company during the period. Mike Quayle was
recruited as the Group Finance Director and joined Parkwood on 6 July 2009. Mike
spent fourteen years working for KPMG before acting as Finance Director for the
Greater Manchester Passenger Transport Executive and then Group Finance Director
of European Colour plc. Parkwood's Board currently consists of three executive
and two non-executive directors.
Leisure
Parkwood Leisure had a successful half year with revenues increasing to GBP29.8
million (2008: GBP26.1 million) and profit before tax increasing to GBP1.75
million (2008: GBP1.25 million).
April saw the start of a large new contract with Wycombe District Council with
revenues in excess of GBP4 million per annum. Over 400 staff transferred to the
company in three leisure centres at High Wycombe, Marlow and Princes Risborough.
In May the refurbishment of the leisure centres in Kidlington and Bicester for
Cherwell District Council were completed under a Design, Build, Operate and
Maintain (DBOM) contract. In July the Mountbatten Leisure Centre was opened,
this project involved a major refurbishment costing GBP17 million which was also
invested under a DBOM arrangement.
Throughout the period Parkwood Leisure generated additional revenues by
assisting clients to fulfil their obligations to facilitate the Government's
initiate to provide free swimming sessions and lessons to those over 65 and
young people under 16.
Health and fitness income under the Expression brand performed well throughout
the period. Memberships totalled 48,700 at the period end (2008: 41,600)
providing GBP1.4 million of direct debit net income per month with an average
fee of GBP33. Food and beverage sales fell below budget as consumers reduced
discretionary expenditure. Growth in revenue and profits is expected in the
second half of the financial year.
Glendale
Glendale, comprising Glendale Grounds Management, Glendale Countryside, Glendale
Golf, Glendale Horticulture, Glendale Recycling and Glendale Facilities
Management operated under a new structure during the period with the objective
of allowing each business to trade more autonomously. The restructuring process
took too long and overhead costs have been high. Poor performance, disputes with
certain clients and accounting adjustments were uncovered in the winter and
early spring and the Chief Executive of the division resigned. The recession has
affected sales in landscaping in Glendale Countryside, the sale of plants from
Coblands, Glendale Horticulture's nursery in Kent, and Golf once again suffered
from poor weather as well as a general decline in food and beverage sales.
Disputes with the MOD over the kennelling of dogs at the Defence Animal Centre
at Melton Mowbray, and with a major supplier of green waste in Devon have also
impacted results. Only the core Grounds Management business of Glendale has
performed well in the period. Glendale Grounds Management commenced two ten
year grounds management contracts, together with the retention of an existing
contract with Birmingham City Council on 23 March 2009, with combined annual
revenues of approximately GBP3.4 million.
Overall revenues for Glendale declined to GBP28.3 million in the period (2008:
GBP30.6 million) and the operating loss for the period amounted to GBP1.5
million (2008: profit GBP0.5 million).
Healthcare
Parkwood Healthcare's revenue for the period was GBP2.4 million (2008: GBP2.3
million) and included the loss making patient transport contract in
Staffordshire which came to an end on 30 July 2009. The loss for the period was
GBP0.33 million (2008: loss GBP0.23 million) which includes the utilisation of a
GBP0.19 million onerous contract provision. For the future the company will
concentrate its business development on the 'healthy living' agenda where it has
won its first two contracts to provide health trainers for South-East Essex PCT
and West Berkshire PCT; these contracts commence in November 2009. Tenders are
also being submitted for weight management and smoking cessation opportunities.
Parkwood Consultancy Services
The recent banking crisis has delayed the signing of the PFI project to build a
GBP23 million leisure centre for Bristol City Council. In July the Council
agreed to proceed to financial close on the project which is scheduled to
complete in late autumn 2009. This delay has adversely affected the revenues of
Parkwood Consultancy Services (PCS) which fell to GBP0.75 million (2008: GBP1.37
million), and resulted in a operating loss of GBP0.16 million for the period
(2008: operating profit GBP0.31 million). Investment income from Special Purpose
Companies (SPC's) was GBP0.25 million (2008: GBP0.28 million).
A number of projects were completed during the period including the construction
of the leisure centres previously mentioned. In addition, a GBP2.6 million
extension and refurbishment of a crematorium and office facilities for Rotherham
Metropolitan District Council was successfully completed. The operation of
cemeteries and crematoriums in Rotherham is now managed by Glendale.
An adjudication process relating to the condition of the kennels at the Defence
Animal Centre, which is operated by Realm Services (DAC) Limited, found against
the company. Consequently both Realm and Glendale Facilities Management, who act
as a sub-contractor to Realm, have spent considerable time and money improving
the facilities at the DAC. Nevertheless, after discussions with the senior
lender to Realm it was decided to place Realm into Administration in August.
This step invokes a 150 day suspension period to the contract to allow time to
reach a resolution with the MoD. The outcome of this process cannot be predicted
with certainty. At this stage no adjustment has been made to Realm's net
carrying value in the Group's consolidated balance of GBP2.67 million before
derivatives.
PCS has also throughout the period been heavily engaged in seeking a buyer for
the subordinated debt and equity of six leisure SPC's. Jeremy Lightfoot, the
Managing Director, is personally managing the process. A buyer has been found
and the principal terms have been agreed. The sale is scheduled for completion
in the early autumn.
Investment, Funding and Strategy
The Group has invested heavily in building its business in the last few years,
investing in PFI/PPP projects, acquisitions, and the continued commitment to
capital investment in new contracts and new business. The banking community is
now more susceptible to corporate risk and Parkwood, like many other businesses,
is currently finding credit harder to obtain, particularly given the downturn in
profits. The Group therefore has revised its strategy to concentrate on cash
management and the realisation of asset value.
A W Hewitt
Executive Chairman
28 August 2009
Financial Review
Profitability has declined during the last six months with an adjusted operating
loss from continuing operations before amortisation and goodwill impairment of
GBP0.09 million (2008: profit GBP1.96 million). Finance costs from continuing
operations for the period were lower at GBP0.5m (2008: GBP0.6 million) due to
lower interest rates. Finance costs include GBP0.25 million related to interest
paid on recourse borrowings. Investment income for the period was GBP0.25
million (2008: GBP0.23 million) and mainly relates to interest received on the
subordinated debt due from the SPC investments held for sale and also interest
earned on cash balances.
The charge for intangible amortisation of GBP0.24 million (2008: GBP0.22
million) is line with the prior period and relates to Realm's PFI contract with
the MoD. The charge for goodwill impairment of GBP0.46 million relates to the
carrying value of goodwill on EcoSci and Trees of Sedlescombe. The EcoSci
business, which forms part of Glendale Recycling, lost a key contract during the
period as referred to in the Chairman's Statement.
Consistent with the treatment in the 2008 Financial Statements, the Leisure
related PFI/PPP investments are separately reported as a discontinued operation
within the income statement. The June 2008 interim results have also been
similarly restated. There was a profit from discontinued operations of GBP0.5
million (2008: loss GBP0.1 million). The increase from the prior period mainly
relates to the non-depreciation of the fixed assets which are held for resale.
The total loss for the period from continuing operations was GBP1.3 million
(2008: profit GBP1 million). This loss was reduced to GBP0.8 million (2008:
profit GBP0.9 million) after including the results of discontinued operations.
Trading Performance
The following table summarises the performance of the Trading Group and the
non-recourse SPC Group, excluding the assets held for sale which are reported
within discontinued operations.
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| | (unaudited) | (unaudited) | (audited) |
| | 6 months to June | Restated | Year ended 31 |
| | 2009 | 6 months to June | December |
| | | 2008 | 2008 |
+--------------------+--------------------------+--------------------------+---------------------------+
| | Revenue | Adjusted | Revenue | Adjusted | Revenue | Adjusted |
| | | operating | | operating | | operating |
| | | profit/(loss) | | profit/(loss) | | profit/(loss) |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Trading Group | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Glendale | 28,339 | (1,318) | 30,637 | 518 | 59,997 | 138 |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Leisure | 29,756 | 1,803 | 26,117 | 1,311 | 53,530 | 3,533 |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Healthcare | 2,444 | (314) | 2,287 | (198) | 4,763 | (363) |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| PCS | 751 | (159) | 1,365 | 309 | 2,108 | 83 |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Central costs not | - | (295) | - | (435) | - | (1,261) |
| recharged | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Total Trading | 61,290 | (283) | 60,406 | 1,505 | 120,398 | 2,130 |
| Group | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| SPC group | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Realm | 1,805 | 198 | 1,858 | 452 | 3,714 | 894 |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| DBOM contracts | 1,145 | - | 622 | - | 1,858 | - |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Total SPC Group | 2,950 | 198 | 2,480 | 452 | 5,572 | 894 |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Inter-segment | (3,136) | - | (2,983) | - | (5,685) | - |
| elimination | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| Total Group | 61,104 | (85) | 59,903 | 1,957 | 120,285 | 3,024 |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
| | | | | | | |
+--------------------+----------+---------------+----------+---------------+-----------+---------------+
The adjusted operating profit/(loss) is stated before exceptional items,
amortisation and goodwill impairment.
Whilst the revenue of the Trading Group increased by 2%, the adjusted operating
profit decreased from GBP1.96 million to a loss of GBP0.09 million as a result
of the underperformance of Glendale and the delay in the Bristol PFI contract
adversely affecting PCS as referred to in the Chairman's Statement. Leisure
continued to perform strongly with increased year on year revenue of 14% due to
Wycombe and increased profits of 40%.
The joint venture losses of GBP0.1 million relate to Verdia Horticulture, the
joint venture between Glendale Recycling and TEG Group plc. The plant is in the
final stages of commissioning and accreditation by the regulatory authorities
and future revenue streams are being sought.
Within the SPC Group, Realm suffered a reduction in adjusted operating profit
from GBP0.45 million to GBP0.2 million due to additional costs associated with
the ongoing dispute with the MoD. The DBOM contracts, consisting of Broadwater
Leisure Limited and Cherwell Leisure Limited, showed an increase in revenue
mainly due to the Cherwell contract which was signed in April 2008.
Summary Group Balance Sheet
The following table shows a summary of the Group's balance sheet analysed
between recourse and non-recourse activities. The discontinued balance sheet
relates to the SPC subsidiaries and joint ventures held for sale. The
non-recourse balance sheet from continuing operations relates solely to the
Group's investment in the Realm SPC.
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | Continuing | Continuing | Discontinued | |Restated |
+------------------+---------------------+-------------------+----------------------+----------+----------+
| | Recourse | Non-recourse | Non-recourse | Total | Total |
+------------------+---------------------+-------------------+----------------------+----------+----------+
| | 30 Jun | 31 Dec | 30 Jun | 31 Dec | 30 Jun 09 | 31 Dec | 30 Jun | 31 Dec |
| | 09 | 08 | 09 | 08 | | 08 | 09 | 08 |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| Non-current | 15,847 | 16,997 | 11,730 | 12,198 | 21,758 | 21,699 | 49,335 | 50,894 |
| assets | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| Investment in | 3,867 | 3,875 | - | - | (3,867) | (3,875) | - | - |
| sub debt of | | | | | | | | |
| assets held for | | | | | | | | |
| resale | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| Current assets | 20,924 | 18,176 | 1,398 | 2,676 | 2,274 | 2,110 | 24,596 | 22,962 |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| Net debt | (8,614) | (7,517) | (5,356) | (7,330) | (18,826) | (19,440) | (32,796) | (34,287) |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| Other | (26,854) | (25,494) | (5,098) | (4,494) | (4,587) | (4,163) | (36,539) | (34,151) |
| liabilities | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| Net assets | 5,170 | 6,037 | 2,674 | 3,050 | (3,248) | (3,669) | 4,596 | 5,418 |
| before | | | | | | | | |
| derivatives | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| Derivatives (net | (64) | (79) | (717) | (943) | (2,119) | (2,817) | (2,900) | (3,839) |
| of deferred tax) | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| Net assets | 5,106 | 5,958 | 1,957 | 2,107 | (5,367) | (6,486) | 1,696 | 1,579 |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
| | | | | | | | | |
+------------------+----------+----------+---------+---------+-----------+----------+----------+----------+
Net assets at 31 December 2008 have been restated to amend the values of certain
derivative contracts within the non-recourse SPC's. The amendment was
principally required due to an error in the valuation provided by the bank which
issued the derivative. The net impact has been to reduce the net asset value at
31 December 2008 from GBP6.05 million to GBP1.58 million. This restatement has
no affect on the profits in the current or prior period since the derivatives
concerned are effective hedges and therefore changes in value are recognised
directly in reserves. The restatement has no affect on the balance sheet of the
recourse group which remains strong at GBP5.1 million.
Once the disposal of the leisure related PFI/PPP investments has been completed
the net liabilities of the discontinued group will be eliminated from the
Group's balance sheet and the net assets of the continuing recourse group will
be further enhanced by the profit generated on disposal.
Cash Flow
The net cash inflow from operating activities for the period was GBP2.3 million
(2008: outflow GBP0.4 million) including GBP1.4 million inflow related to
discontinued operations. Total capital expenditure for the period was GBP1.6
million of which GBP0.8 million was funded through HP contracts. Repayment of
loans and HP obligations amounted to GBP1.7 million and net interest payments
were GBP1.0 million. There was a net cash outflow for the period of GBP1.1
million (2008: outflow GBP6.5 million).
Principal Risks and Uncertainties
The Group's Annual Report for the year ended 31 December 2008 set out the
principal risks and uncertainties affecting the Group and its separate
businesses. The Directors consider that these risks and uncertainties remained
current throughout the six months to 30 June 2009 and will remain so for the
second half of the year with the exception of energy costs within the Leisure
Division. During the period, Leisure secured fixed priced contracts for gas for
a three year period to 2012 and electricity for a two year period to 2011. The
cost of the new contracts are 21% higher than in prior years, which is lower
than the potential increase of 50% referred to in the 2008 Annual Report.
The principal financial risk facing the Group is the availability of bank
funding over the next twelve months. The Group is currently negotiating an
extension to its current overdraft facility for an additional 12 months. In
addition, following the restatement of the net assets as at 31 December 2008, a
formal waiver of covenants is required on the non-recourse loans. The Group is
holding discussions with its bankers about its future borrowing requirements in
light of the anticipated proceeds from the sale of the subordinated debt and
equity in the SPC's and has no reason to believe that the necessary facilities
will not be provided.
Pensions
A formal triennial valuation of the Citrus (formerly LAWDC) defined benefit
pension scheme took place on 31 March 2009. The provisional results of the
valuation will be available before the end of the year and indications from the
scheme actuaries are that there will be an increase in the deficit and an
increase in employer contributions. No adjustments have been made at the half
year due to the uncertainty in the market place of equities and bonds. The
opening IAS 19 assumptions have been applied to the interim balance sheet. Any
increase in the pension scheme deficit will be reflected in the year end 2009
balance sheet and increased employer contributions will be effective from April
2010.
Mike Quayle
Group Finance Director
28 August 2009
Consolidated income statement
Six months ended 30 June 2009
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | Six months ended 30 | Year ended |
| | | | June | 31 December |
| | | | Restated | (audited) |
| | | | | 2008 |
| | | | | GBP000 |
+----------------------------------------+------+---+----------------------------+ +
| Continuing operations | Note | | (unaudited) | | (unaudited) |
| | | | 2009 | | 2008 |
| | | | GBP000 | | GBP000 |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Group revenue | 3 | | 61,104 | 59,903 | 120,285 |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Cost of sales | | | (42,246) | (44,072) | (88,932) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Gross profit | | | 18,858 | 15,831 | 31,353 |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Administrative expenses | | | (19,647) | (14,098) | (29,371) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Operating (loss)/profit | | | (789) | 1,733 | 1,982 |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| EBITDA | | | 2,449 | 4,050 | 7,381 |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Depreciation | | | (2,534) | (2,093) | (4,357) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Amortisation | | | (243) | (224) | (498) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Exceptional item | | | - | - | (360) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Impairment of goodwill | | | (461) | - | (184) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Operating (loss)/profit | | | (789) | 1,733 | 1,982 |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Investment income | | | 253 | 227 | 595 |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Finance costs | 4 | | (506) | (596) | (1,299) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Share of joint venture loss | | | (96) | - | - |
| (net of tax) | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| (Loss)/profit before tax from | | | (1,138) | 1,364 | 1,278 |
| continuing operations | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Taxation | 5 | | (151) | (389) | (716) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| (Loss)/profit for the period | | | (1,289) | 975 | 562 |
| from continuing operations | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Discontinued operations | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Profit/(loss) for the period | | | 467 | (110) | (193) |
| from discontinued operations | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| (Loss)/profit for the period | | | (822) | 865 | 369 |
| attributable to equity shareholders | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| (Loss)/earnings per share | | | Pence per | Pence | Pence per |
| | | | | per | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | share | share | share |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Basic (loss)/earnings per share | | | (7.2p) | 5.3p | 3.1p |
| From continued operations | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| From discontinued operations | | | 2.6p | (0.6p) | (1.1p) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | 7 | | (4.6p) | 4.7p | 2.0p |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| Diluted (loss)/earnings per | | | (7.2p) | 5.2p | 3.1p |
| share | | | | | |
| From continued operations | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| From discontinued operations | | | 2.6p | (0.6p) | (1.0p) |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | 7 | | (4.6p) | 4.6p | 2.1p |
+----------------------------------------+------+---+-------------+--------------+--------------+
| | | | | | |
+----------------------------------------+------+---+-------------+--------------+--------------+
Consolidated statement of comprehensive income
For the six months ended 30 June 2009
+--------------------------------------------------+-------------+-------------+-----------+
| | Restated | Restated |
+--------------------------------------------------+---------------------------+-----------+
| | Six months | Year |
| | ended | ended |
+--------------------------------------------------+---------------------------+-----------+
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | (unaudited) | (unaudited) | 2008 |
| | | | (audited) |
+--------------------------------------------------+-------------+-------------+-----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-------------+-------------+-----------+
| | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| (Loss)/profit for the period | (822) | 865 | 369 |
+--------------------------------------------------+-------------+-------------+-----------+
| | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| Other comprehensive income/(losses): | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| Net actuarial loss on defined benefit | - | - | (66) |
| pension schemes | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| Change in derivative valuations - Cash | 334 | 344 | (1,081) |
| flow hedges | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| Change in derivative valuations - Cash | 971 | (373) | (1,409) |
| flow hedges held-for-sale | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| Income tax relating to components of | (94) | (96) | 303 |
| other comprehensive income | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| Income tax relating to components of | | | |
| other comprehensive income | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| held-for-sale | (272) | 104 | 395 |
+--------------------------------------------------+-------------+-------------+-----------+
| | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| Other comprehensive income/(losses) for | 939 | (21) | (1,858) |
| the period, net of tax | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| Total comprehensive income/(loss) for the | 117 | 844 | (1,489) |
| period | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| | | | |
+--------------------------------------------------+-------------+-------------+-----------+
| | | | |
+--------------------------------------------------+-------------+-------------+-----------+
All recognised income and expense is attributable to the equity holders of the
parent.
Consolidated statement of financial position As at 30 June 2009
+--------------------------------------+--------+---------+-------------+------+------+------+-------+---+
| | | | | Restated | Restated |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| | | | 30 June | 30 | 31 |
| | | | | June | December |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | Note | | 2009 | 2008 | 2008 |
| | | | (unaudited) | (unaudited) | (audited) |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | GBP000 | GBP000 | GBP000 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Non-current assets | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Goodwill | | | 1,903 | 2,681 | 2,364 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Intangible assets | | | 4,509 | 4,716 | 4,752 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Property, plant and equipment | 9 | | 21,043 | 43,471 | 21,940 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Investments in joint ventures | | | - | 5 | - |
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Derivative financial | | | - | 844 | - |
| instruments | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Trade and other receivables | | | 122 | - | 139 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Deferred tax asset | | | - | 320 | - |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Total non-current assets | | | 27,577 | 52,037 | 29,195 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Current assets | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Inventories | | | 3,847 | 3,537 | 3,750 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Trade and other receivables | | | 18,475 | 20,089 | 17,102 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Cash | | | 2,336 | 2,623 | 1,109 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | 24,658 | 26,249 | 21,961 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Assets of disposal group | 8 | | 25,654 | - | 25,068 |
| classified as held-for-sale | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Total current assets | | | 50,312 | 26,249 | 47,029 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Total assets | | | 77,889 | 78,286 | 76,224 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Current liabilities | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Trade and other payables | | | 25,739 | 21,996 | 25,399 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Tax liabilities | | | 2,519 | 500 | 2,657 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Obligations under finance | | | 1,249 | 1,601 | 1,540 |
| leases | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Bank overdrafts | | | 2,669 | 3,980 | - |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Bank loans | | | 4,351 | 1,160 | 1,313 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | 36,527 | 29,237 | 30,909 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Liabilities of disposal group | 8 | | 27,156 | - | 27,679 |
| classified as held-for-sale | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Total current liabilities | | | 63,683 | 29,237 | 58,588 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Non-current liabilities | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Bank loans | | | 6,017 | 32,926 | 11,302 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Retirement benefit | | | 621 | 788 | 621 |
| obligations | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Long-term provisions and | | | 1,907 | 780 | 171 |
| deferred income | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Obligations under finance | | | 2,020 | 2,501 | 1,800 |
| leases | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Derivative financial | | | 1,084 | 2,914 | 1,419 |
| instruments | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Interests in joint ventures | | | 96 | 2,144 | - |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Deferred tax liability | | | 765 | 1,954 | 744 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Total non-current liabilities | | | 12,510 | 44,007 | 16,057 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| Net assets | | | 1,696 | 5,042 | 1,579 |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+--------------------+-------------+-----------+
| | | | | | |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| | | | | Restated | Restated |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| | | | 30 June | 30 | 31 |
| | | | | June | December |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| | Note | | 2009 | 2008 | 2008 |
| | | | (unaudited) | (unaudited) | (audited) |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| | | | GBP000 | GBP000 | GBP000 |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| Equity | | | | | |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| Share capital | | | 187 | 189 | 189 |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| Share premium account | | | 2,227 | 2,227 | 2,227 |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| Investment in own shares | | | (476) | (931) | (729) |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| Capital redemption reserve | | | 410 | 408 | 408 |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| Hedging reserve | | | (781) | (1,491) | (1022) |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| Revaluation reserve | | | 783 | 857 | 819 |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| Retained earnings | | | 1,463 | 3,781 | 2,502 |
+--------------------------------------+--------+---------+-------------+-------------+--------------+
| | | | | |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| | | 3,813 | 5,040 | 4,394 |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| Amounts recognised directly in equity | | | | |
| relating to 8 | | | | |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| assets classified as held-for-sale (hedging | | (2,119) | - | (2,817) |
| reserve) | | | | |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| | | | | |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| Equity attributable to equity holders of the | | 1,694 | 5,040 | 1,577 |
| parent | | | | |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| Minority interest in equity | | 2 | 2 | 2 |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| | | | | |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| Total equity | | 1,696 | 5,042 | 1,579 |
+-----------------------------------------------+---------+-------------+-------------+--------------+
| | | | | |
+--------------------------------------+--------+---------+-------------+------+------+------+-------+---+
Consolidated statement of changes in equity
As at 30 June 2009
+------------------------------------------+---------+------+------+------------+------+------+------+------+------+------+------+------+------+------+------+----------------------------------------------------------------------------------------------------+
| | | Share | Investment | Capital | Hedging | Revaluation | Retained | | |
| | Share | premium | in own | redemption | reserve | reserve | earnings | | |
| | Capital | | shares | reserve | | | | Total | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Balance at 1 January 2009 as originally | 189 | 2,227 | (729) | 408 | 443 | 819 | 2,688 | 6,045 | |
| reported | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Prior period adjustments (note 1) | - | - | - | - | (4,282) | - | (186) | (4,468) | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Balance at 1 January 2009 as restated | 189 | 2,227 | (729) | 408 | (3,839) | 819 | 2,502 | 1,577 | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Changes in equity for 2009 | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Loss for the period | - | - | - | - | - | - | (822) | (822) | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Other comprehensive income: | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Change in derivative valuations - Cash | - | - | - | - | 334 | - | - | 334 | |
| flow hedges | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Change in derivative valuations - Cash | - | - | - | - | 971 | - | - | 971 | |
| flow hedges held-for-sale | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Income tax relating to components of | - | - | - | - | (94) | - | - | (94) | |
| other comprehensive income | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Income tax relating to components of | - | - | - | - | (272) | - | - | (272) | |
| other comprehensive income | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| held-for-sale | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Total comprehensive income for the | - | - | - | - | 939 | - | (822) | 117 | |
| period | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Cancellation of treasury shares | (2) | - | 253 | 2 | - | - | (253) | - | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Transfer to retained earnings | - | - | - | - | - | (36) | 36 | - | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Balance at 30 June 2009 | 187 | 2,227 | (476) | 410 | (2,900) | 783 | 1,463 | 1,694 | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Balance at 1 January 2008 as originally | 193 | 2,227 | (350) | 404 | (82) | 896 | 3,420 | 6,708 | |
| reported | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Prior period adjustments (note 1) | - | - | - | - | (1,388) | - | (186) | (1,574) | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Balance at 1 January 2008 as restated | 193 | 2,227 | (350) | 404 | (1,470) | 896 | 3,234 | 5,130 | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Changes in equity for 2008 | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Loss for the period | - | - | - | - | - | - | 865 | 865 | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Other comprehensive income: | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Change in derivative valuations - Cash | - | - | - | - | 344 | - | - | 344 | |
| flow hedges | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Change in derivative valuations - Cash | - | - | - | - | (373) | - | - | (373) | |
| flow hedges held-for-sale | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Income tax relating to components of | - | - | - | - | (96) | - | - | (96) | |
| other comprehensive income | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Income tax relating to components of | - | - | - | - | 104 | - | - | 104 | |
| other comprehensive income | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| held-for-sale | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Total comprehensive income for the | - | - | - | - | (21) | - | 865 | 844 | |
| period | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Cancellation of treasury shares | (4) | - | - | 4 | - | - | - | - | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Purchase of treasury shares | - | - | (581) | - | - | - | - | (581) | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Share based payments | - | - | | - | - | - | 76 | 76 | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Tax related to share based payments | - | - | - | - | - | - | (25) | (25) | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Transfer to retained earnings | - | - | - | - | - | (39) | 39 | - | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Dividends | - | - | - | - | - | - | (408) | (408) | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| Balance at 30 June 2008 | 189 | 2,227 | (931) | 408 | (1,491) | 857 | 3,781 | 5,040 | |
+------------------------------------------+---------+-------------+------------+-------------+-------------+-------------+-------------+-------------+-----------------------------------------------------------------------------------------------------------+
| | | | | | | | | |
+------------------------------------------+----------------+--------------------------+-------------+-------------+-------------+-------------+-------------+----------------------------------------------------------------------------------------------------+
| | |
| | |
+------------------------------------------+---------+------+------+------------+------+------+------+------+------+------+------+------+------+------+------+----------------------------------------------------------------------------------------------------+
Consolidated statement of cash flows
For the six months end 30 June 2009
+--------------------------------------------+------+-------------+------------+-------------+
| | | Six months ended 30 | Year ended |
| | | June | 31 |
| | | | December |
| | | | 2008 |
| | | | (audited) |
| | | | GBP000 |
+--------------------------------------------+------+--------------------------+ +
| | Note | 09 | | 2008 |
| | | (unaudited) | | (unaudited) |
| | | GBP000 | | GBP000 |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Net cash generated from /(used in) | 10 | 2,332 | (384) | 10,036 |
| operating activities | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Investing activities | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Interest received | | 142 | 130 | 746 |
+--------------------------------------------+------+-------------+------------+-------------+
| Proceeds on disposal of property, | | 26 | 7 | 25 |
| plant and equipment | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Purchases of property, plant and | | (756) | (1,119) | (4,719) |
| equipment | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Subordinated debt repaid by joint | | 8 | - | 6 |
| ventures | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Subordinated debt invested in joint | | - | (204) | (208) |
| ventures | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Sales of own shares by employee | | - | 4 | 7 |
| benefit trust | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Acquisition of subsidiaries (net of | | - | (475) | - |
| cash acquired) | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Net cash used in investing | | (580) | (1,657) | (4,143) |
| activities | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Cash flows from financing | | | | |
| activities | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Interest paid | | (1,123) | (949) | (3,043) |
+--------------------------------------------+------+-------------+------------+-------------+
| Acquisition of treasury shares | | - | (589) | (828) |
+--------------------------------------------+------+-------------+------------+-------------+
| Acquisition of shares by employee | | - | - | (10) |
| benefit trust | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Dividends paid | | - | (408) | (678) |
+--------------------------------------------+------+-------------+------------+-------------+
| Repayments of obligations under | | (835) | (853) | (1,595) |
| finance leases | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Repayment of recourse bank loans | | (473) | (45) | (380) |
+--------------------------------------------+------+-------------+------------+-------------+
| Repayment of non-recourse bank | | (400) | (1,572) | (2,091) |
| loans | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Net cash used in financing | | (2,831) | (4,416) | (8,625) |
| activities | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Net decrease in cash and cash | | (1,079) | (6,457) | (2,732) |
| equivalents | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Cash and cash equivalents at | | 2,368 | 5,100 | 5,100 |
| beginning of period | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Cash and cash equivalents at end of | | 1,289 | (1,357) | 2,368 |
| period | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Comprising: | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| Cash | | 3,958 | 2,623 | 2,368 |
+--------------------------------------------+------+-------------+------------+-------------+
| Bank overdraft | | (2,669) | (3,980) | - |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
| | | 1,289 | (1,357) | 2,368 |
+--------------------------------------------+------+-------------+------------+-------------+
| | | | | |
+--------------------------------------------+------+-------------+------------+-------------+
The consolidated cash flow statement includes the results of discontinued
operations. Notes to the interim financial report
Six months ended 30 June 2009
1. General information
The financial information for the year ended 31 December 2008 set out in this
interim report does not constitute statutory accounts as defined in Section 240
of the Companies Act 1985. The Group's statutory financial statements for the
year ended 31 December 2008 have been filed with the Registrar of Companies.
The financial information in respect of the year ended 31 December 2008 has been
produced using extracts from the statutory accounts prepared under IFRS for this
period as amended by the restatements noted below. The statutory accounts for
this period have been filed with the Registrar of Companies. The auditors'
report on these accounts was unqualified and did not contain a statement under
Sections 237 (2) or (3) of the Companies Act 1985 which deal respectively with
the maintaining of proper accounting books and records and the availability of
information to the auditors.
The balance sheet as at 31 December 2008 has been adjusted to correct an error
arising on a third party valuation of a derivative contract and additional
hedges within the non-recourse SPC Group. The impact of these changes, net of
the associated change in deferred tax, is a reduction in net assets of GBP1.57
million at 31 December 2007, GBP2.15 million at 30 June 2008 and GBP4.47 million
at 31 December 2008. The adjustments have no impact on the reported income
statement for the year to 31 December 2008 since the derivatives met the
effective hedge criteria of IAS 39 and therefore changes in value are taken
directly to reserves.
2. Accounting policies and basis of preparation
The interim financial statements have been approved by the Board and have not
been audited by the auditors.
This condensed consolidated interim financial information for the six months
ended 30 June 2009 has been prepared in accordance with IAS 34, 'Interim
financial reporting', the Listing Rules of the Financial Services Authority and
with the principles of IFRS. The condensed consolidated interim financial
information should be read in conjunction with the annual financial statements
for the year ended 31 December 2008, which have been prepared in accordance with
IFRSs.
Taxes on income in the interim periods are accrued using the tax rate that would
be applicable to expected total annual earnings.
These condensed consolidated interim financial statements have been prepared in
accordance with the accounting policies adopted in the last annual financial
statements for the year to 31 December 2008 except for the adoption of IAS 1
Presentation of Financial Statements (Revised 2007), IFRS 8 Operating Segments
and IFRS 2 (amendment), 'Share based payments' on 'Vesting conditions and
cancellations'.
The Group is currently negotiating an extension to its current overdraft
facility for an additional 12 month period. In addition, following the
restatement of the net assets as at 31 December 2008, a formal waiver of
covenants is required on the non-recourse loans. The Group is holding
discussions with its bankers about its future borrowing requirements in light of
the anticipated proceeds from the sale of the subordinated debt and equity in
the SPC's and has no reason to believe that the necessary facilities will not be
provided. After making reasonable enquiries, the directors have a reasonable
expectation that the Group will have adequate resources to continue in
operational existence for the foreseeable future. Accordingly they continue to
adopt the going concern basis in preparing the interim financial statements.
The adoption of IAS 1 (Revised 2007) does not affect the financial position
or profits of the Group, but gives rise to additional disclosures. The
measurement and recognition of the Group's assets, liabilities, income and
expenses is unchanged, however, some items that were recognised directly in
equity are now recognised in other comprehensive income. IAS 1 (Revised 2007)
affects the presentation of owner changes in equity and introduces a 'Statement
of comprehensive income'. In accordance with the new standard the entity does
not present a 'Statement of recognised income and expenses (SORIE)', as was
presented in the 2008 consolidated financial statements. Further, a 'Statement
of changes in equity' is presented.
The adoption of IFRS 8 has not changed the segments that are disclosed in the
interim financial statements. In the previous annual and interim financial
statements, segments were based on the internal management reporting information
that is regularly reviewed by the chief operating decision maker which is in
line with the new standard.
3. Business segments
For management purposes, the Group is organised into four Trading divisions -
Glendale, Parkwood Leisure, Parkwood Healthcare and Parkwood Consultancy (the
Trading Group). These form the basis on which the Group reports its primary
segment information for statutory and management purposes:
The principal activities, which the directors consider to be the segments of the
business for the purpose of analysis are as follows:
Glendale Provides amenity horticulture, grass cutting, arboriculture and care
of sports pitches, parks and open spaces. The division also includes golf course
management, waste recycling, environmental consultancy, tree moving and
horticulture.
Parkwood Leisure Manages a diverse range of public and private leisure
facilities, including swimming pools, sports halls, gyms, health suites and
catering operations.
Parkwood Consultancy Undertakes PFI, PPP and similar bids on behalf of joint
ventures and the Group. Parkwood Consultancy is also responsible for project
management of contracts and the management of other funds such as the lifecycle
funds associated with the project agreements.
Healthcare Acts as an nursing agency, an ambulance and patient transport
business, and a medical services business dealing both with the NHS and the
private sector.
Non Recourse SPCs Represents Realm Services (DAC) Limited a company created
to carry out the function of concessionaire under a concession agreed with the
Ministry of Defence.
Other Represents Head office and Broadwater Leisure Limited and Cherwell
Leisure Limited companies involved in the construction and management of new
leisure facilities under DBOM contracts.
An analysis of the Group's revenue is as follows.
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | 6 months ended 30 | Year ended |
| | June | 31 |
| | Restated | December |
+-------------------------------------------------------+-----------------------------------------------------------------------------------------+--------------------------------------------+
| Continuing operations | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Provision of green services- Grounds | 24,034 | 26,270 | 50,990 |
| management and parks | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Horticultural | 1,749 | 2,113 | 3,781 |
| revenue | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Tree | 424 | - | 741 |
| moving | | | |
| revenue | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Golf | 2,132 | 2,254 | 4,485 |
| Course | | | |
| management, | | | |
| including | | | |
| retail | | | |
| sales | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Total | 28,339 | 30,637 | 59,997 |
| Glendale | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Provision of leisure management services to | 28,561 | 25,008 | 51,386 |
| Local Authorities | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Provision | 1,195 | 1,109 | 2,144 |
| of | | | |
| private | | | |
| leisure | | | |
| facilities | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Total Leisure | 29,756 | 26,117 | 53,530 |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Provision | 1,320 | 1,331 | 2,700 |
| of | | | |
| patient | | | |
| transport | | | |
| services | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Nursing | 909 | 912 | 1,851 |
| agency | | | |
| sales | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| LINk and | 215 | 44 | 212 |
| Medical | | | |
| Services | | | |
| revenue | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Total | 2,444 | 2,287 | 4,763 |
| Healthcare | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Bid, | 751 | 1,365 | 2,108 |
| project | | | |
| and | | | |
| consultancy | | | |
| management | | | |
| fees | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Service | 2,950 | 2,480 | 5,572 |
| charges | | | |
| made by | | | |
| PFI | | | |
| companies | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Other | (3,136) | (2,983) | (5,685) |
| (including | | | |
| inter-segment | | | |
| revenue | | | |
| elimination) | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| Total | 61,104 | 59,903 | 120,285 |
| revenue | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
| | | | |
+-------------------------------------------------------+--------------------------------------------+--------------------------------------------+--------------------------------------------+
+----------------------------------------------+------------------------------------------+------------------------------------------+------------------------------------------+
| | 6 months ended 30 | Year ended |
| | June | 31 |
| | Restated | December |
+----------------------------------------------+-------------------------------------------------------------------------------------+------------------------------------------+
| Discontinued operations | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+----------------------------------------------+------------------------------------------+------------------------------------------+------------------------------------------+
| | | | |
+----------------------------------------------+------------------------------------------+------------------------------------------+------------------------------------------+
| Service charges made by PFI/PPP companies | 1,683 | 1,587 | 3,192 |
+----------------------------------------------+------------------------------------------+------------------------------------------+------------------------------------------+
| | | | |
+----------------------------------------------+------------------------------------------+------------------------------------------+------------------------------------------+
| | 1,683 | 1,587 | 3,192 |
+----------------------------------------------+------------------------------------------+------------------------------------------+------------------------------------------+
| | | | |
+----------------------------------------------+------------------------------------------+------------------------------------------+------------------------------------------+
| | | | |
+----------------------------------------------+------------------------------------------+------------------------------------------+------------------------------------------+
A geographical segmental analysis of the results is not presented as the Group
operates only in the UK. Inter-segment sales are charged at prevailing market
prices.
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Six months ended | Glendale | Leisure | Healthcare | PCS | Non-recourse | Other* | Discontinued | Total |
| 30 June 2009 | GBP000 | GBP000 | GBP000 | GBP000 | SPCs | GBP000 | operations | 9 |
| | | | | | GBP000 | | GBP000 | GBP000 |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| External revenue | 26,969 | 28,466 | 2,444 | 275 | 1,805 | 1,145 | - | 61,104 |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Inter-segment | 1,370 | 1,290 | - | 476 | (1,338) | (1,492) | (306) | - |
| revenue | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Revenue | 28,339 | 29,756 | 2,444 | 751 | 467 | (347) | (306) | 61,104 |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Operating | (1,318) | 1,803 | (314) | (159) | 198 | (295) | - | (85) |
| (loss)/profit | | | | | | | | |
| before | | | | | | | | |
| amortisation and | | | | | | | | |
| goodwill | | | | | | | | |
| impairment | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Amortisation and | (153) | - | - | - | (206) | (345) | - | (704) |
| goodwill | | | | | | | | |
| impairment | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Operating | (1,471) | 1,803 | (314) | (159) | (8) | (640) | - | (789) |
| (loss)/profit | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Investment income | - | 4 | - | 247 | 1 | 1 | - | 253 |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Interest expense | (235) | (57) | (14) | (165) | (252) | 217 | - | (506) |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Share of results | - | - | - | - | - | (96) | - | (96) |
| of joint ventures | | | | | | | | |
| (net of tax) | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| (Loss)/profit | (1,706) | 1,750 | (328) | (77) | (259) | (518) | - | (1,138) |
| before tax | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Restated Six | Glendale | Leisure | Healthcare | PCS | Non-recourse | Other* | Discontinued | Total |
| months ended | GBP000 | GBP000 | GBP000 | GBP000 | SPCs | GBP000 | operations | 2008 |
| 30 June 2008 | | | | | GBP000 | | GBP000 | GBP000 |
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| External revenue | 29,410 | 25,347 | 2,287 | 379 | 1,858 | 622 | - | 59,903 |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Inter-segment | 1,227 | 770 | - | 986 | (1,414) | (1,040) | (529) | - |
| revenue | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Revenue | 30,637 | 26,117 | 2,287 | 1,365 | 444 | (418) | (529) | 59,903 |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Operating | 518 | 1,311 | (198) | 309 | 452 | (435) | - | 1,957 |
| profit/(loss) | | | | | | | | |
| before | | | | | | | | |
| exceptional | | | | | | | | |
| items, | | | | | | | | |
| amortisation and | | | | | | | | |
| goodwill | | | | | | | | |
| impairment | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Amortisation and | (18) | - | - | - | (206) | - | - | (224) |
| goodwill | | | | | | | | |
| impairment | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Operating | 500 | 1,311 | (198) | 309 | 246 | (435) | - | 1,733 |
| profit/(loss) | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Investment income | - | 32 | - | 282 | (28) | (59) | - | 227 |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Interest expense | (335) | (92) | (34) | (262) | (478) | 605 | - | (596) |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| Profit/(loss) | 165 | 1,251 | (232) | 329 | (260) | 111 | - | 1,364 |
| before tax | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
| | | | | | | | | |
+-------------------+----------+---------+------------+--------+--------------+---------+--------------+-----------+
* Other segment represents DBOMs and Central Costs
4. Finance costs
+------------------------------------------------------------------------+------------+----------------------------+------------+------------+
| | Six months ended 30 June | Restated | |
| | | Six months | |
| | | ended 30 | |
| | | June | Restated |
| | | | Year ended |
| | | | 31 |
| | | | December |
+------------------------------------------------------------------------+-----------------------------------------+------------+------------+
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| | | | |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| Recourse loan interest | 124 | 179 | 344 |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| Non-recourse loan interest | 853 | 880 | 529 |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| Finance and HP lease interest | 123 | 141 | 237 |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| Other finance costs | 7 | 11 | 1,447 |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| | | | |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| | 1,107 | 1,211 | 2,557 |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| | | | |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| Attributable to: | | | |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| | | | |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| Continuing operations | 506 | 596 | 1,299 |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| Discontinued operations | 601 | 615 | 1,258 |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| | | | |
+------------------------------------------------------------------------+------------+-----------------------------------------+------------+
| | 1,107 | 1,211 | 2,557 |
+------------------------------------------------------------------------+------------+----------------------------+------------+------------+
5. Tax
The expected tax benefit arising from the loss in the period has been offset by
non-deductible expenses resulting in a GBP49,000 corporation tax credit for the
interim period to 30 June 2009. The total charge for the period includes an
adjustment of GBP200,000 in respect of prior periods.
6. Dividends
+------------------------------------------------------+---------+-+---------+----------+
| | Six | Six | Year |
| | months | months | ended |
| | ended 30 | ended | 31 |
| | June | 30 June | December |
+------------------------------------------------------+-----------+---------+----------+
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------+---------+-----------+----------+
| | | | |
+------------------------------------------------------+---------+-----------+----------+
| Final 2007 paid May 2008 2.2p per share | - | 408 | 408 |
+------------------------------------------------------+---------+-----------+----------+
| Interim 2008 paid October 2008 1.4p per share | - | - | 270 |
+------------------------------------------------------+---------+-----------+----------+
| | | | |
+------------------------------------------------------+---------+-----------+----------+
| | - | 408 | 678 |
+------------------------------------------------------+---------+-----------+----------+
| | | | |
+------------------------------------------------------+---------+-+---------+----------+
7. (Loss)/earnings per share
(Loss)/earnings per share relate to continuing operations and have been
calculated on (losses)/earnings for the period divided by the weighted average
number of ordinary shares in issue of 18.03 million (December 2008: 18.29
million; June 2008: 18.54 million). The shares options in issue as at 30 June
2009 are anti-dilutive in respect of the basic loss per share calculation and
have therefore not been included.
8. Assets of disposal group classified as held-for-sale and discontinued
operations
On 4 December 2008, the board of directors agreed to seek a buyer for the
Group's wholly owned SPCs Breckland Leisure Limited and Rivendell Leisure
Limited, the 50% holdings in the SPC joint ventures Waterfront Leisure (Crosby)
Limited, Boxwood Holdings Limited and Penzance Leisure Limited. The preferred
bidder is currently undertaking due diligence and the sale is expected to
complete in the autumn.
+----------+----------+----------+----------+----------+----------+-+----------+----------+
| | | |
+---------------------+---------------------+---------------------+
| Profit/(loss) for | Six months ended 30 | Restated | Restated |
| the period from | June | Six months ended 30 | Year ended 31 |
| discontinued | | June | December |
| operations | | | |
+---------------------+---------------------+---------------------+-----------------------+
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+---------------------+---------------------+---------------------+-----------------------+
| | | | |
+---------------------+---------------------+---------------------+-----------------------+
| Revenue | 1,683 | 1,587 | 3,192 |
+---------------------+---------------------+---------------------+-----------------------+
| | | | |
+---------------------+---------------------+---------------------+-----------------------+
| Expenses | (1,197) | (1,717) | (3,449) |
+---------------------+---------------------+---------------------+-----------------------+
| Share of results of | (19) | (23) | 78 |
| joint ventures (net | | | |
| of tax) | | | |
+---------------------+---------------------+---------------------+-----------------------+
| | | | |
+---------------------+---------------------+---------------------+-----------------------+
| Profit/(loss) | 467 | (153) | (179) |
| before tax | | | |
+---------------------+---------------------+---------------------+-----------------------+
| Taxation | - | 43 | (14) |
| | | | |
+---------------------+---------------------+---------------------+-----------------------+
| | | | |
+---------------------+---------------------+---------------------+-----------------------+
| Profit /(loss) for | 467 | (110) | (193) |
| the period from | | | |
| discontinued | | | |
| operations | | | |
+---------------------+---------------------+---------------------+-----------------------+
| | | | |
+---------------------+---------------------+---------------------+-----------------------+
| | | | |
+----------+----------+----------+----------+----------+----------+-+----------+----------+
+-----------------------------------------------------+----------+----------+----------+
| | Six | Six | Year |
| | months | months | ended 31 |
| | ended 30 | ended 30 | December |
| | June | June | |
+-----------------------------------------------------+----------+----------+----------+
| Cash flows from discontinued operations | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
| Net cash flows from operating activities | 1,438 | 957 | 1,796 |
+-----------------------------------------------------+----------+----------+----------+
| Net cash flows from investing activities | (222) | (158) | (453) |
+-----------------------------------------------------+----------+----------+----------+
| Net cash flows from financing activities | (853) | (948) | (3,378) |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
| Net cash flows | 363 | (149) | (2,035) |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
+-----------------------------------------------------+----------+----------+----------+
| | Six | Restated | Restated |
| | months | Six | Year |
| | ended 30 | months | ended 31 |
| | June | ended 30 | December |
| | | June | |
+-----------------------------------------------------+----------+----------+----------+
| Assets of disposal group classified as held for | 2009 | 2008 | 2008 |
| sale | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
| Property, plant & equipment | 21,758 | - | 21,698 |
+-----------------------------------------------------+----------+----------+----------+
| Interests in joint venture | - | - | 1 |
+-----------------------------------------------------+----------+----------+----------+
| Trade and other receivables | 398 | - | 234 |
+-----------------------------------------------------+----------+----------+----------+
| Corporation tax | 1,876 | - | 1,876 |
+-----------------------------------------------------+----------+----------+----------+
| Cash and cash equivalents | 1,622 | - | 1,259 |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
| Total | 25,654 | - | 25,068 |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
+-----------------------------------------------------+----------+----------+----------+
| | Six | Restated | Restated |
| | months | Six | Year |
| | ended 30 | months | ended 31 |
| | June | ended 30 | December |
| | | June | |
+-----------------------------------------------------+----------+----------+----------+
| Liabilities of disposal group classified as held | 2009 | 2008 | 2008 |
| for sale | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
| Trade and other payables | 814 | - | 465 |
+-----------------------------------------------------+----------+----------+----------+
| Borrowings | 20,448 | - | 20,699 |
+-----------------------------------------------------+----------+----------+----------+
| Interest in joint ventures | 2,064 | - | 2,038 |
+-----------------------------------------------------+----------+----------+----------+
| Derivative financial liabilities | 2,941 | - | 3,912 |
+-----------------------------------------------------+----------+----------+----------+
| Deferred tax liabilities | 889 | - | 565 |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
| Total | 27,156 | - | 27,679 |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
Cumulative income and expense recognised directly in equity relating to disposal
group classified as held for sale
+-----------------------------------------------------+----------+----------+----------+
| | Six | Restated | Restated |
| | months | Six | Year |
| | ended 30 | months | ended 31 |
| | June | ended 30 | December |
| | | June | |
+-----------------------------------------------------+----------+----------+----------+
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
| Gains on cash flow hedges | (2,119) | - | (2,817) |
+-----------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------+----------+----------+----------+
9. Property, plant and equipment
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Six months ended 30 | Land and | Assets | Vehicles | Plant | Fixtures | Total |
| June 2008 | buildings | under | GBP000 | and | and | GBP000 |
| | GBP000 | construction | | equipment | fittings | |
| | | GBP000 | | GBP000 | GBP000 | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Opening net book amount | 24,160 | 9,629 | 848 | 5,806 | 3,307 | 43,750 |
| at 1 January 2008 | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Additions | 98 | 1,116 | 7 | 775 | 256 | 2,253 |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Transfers | 8,503 | (9,501) | - | - | 998 | - |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Disposals | - | - | - | - | (5) | (5) |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Depreciation | (619) | (24) | (162) | (1,206) | (515) | (2,526) |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Closing net book amount | 32,142 | 1,220 | 693 | 5,375 | 4,041 | 43,471 |
| at 30 June 2008 | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Six months ended 30 | | | | | | |
| June 2009 | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Opening net book amount | 13,546 | 597 | 719 | 4,758 | 2,320 | 21,940 |
| at 1 January 2009 | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Additions | 12 | 57 | - | 1,205 | 370 | 1,644 |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Disposals | - | - | - | - | (7) | (7) |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Depreciation | (246) | (56) | (172) | (1,262) | (798) | (2,534) |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| Closing net book amount | 13,312 | 598 | 547 | 4,701 | 1,885 | 21,043 |
| at 30 June 2009 | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------+-----------+--------------+----------+-----------+----------+---------+
10. Net cash from operating activities
+---------------------------------------------+-------------+------------+------------+
| | Six months | Six months | Year |
| | ended | ended | ended |
| | 30 June | 30 June | 31 |
| | | | December |
+---------------------------------------------+-------------+------------+------------+
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-------------+------------+------------+
| | | | |
+---------------------------------------------+-------------+------------+------------+
| Operating profit | 212 | 2,328 | 3,276 |
+---------------------------------------------+-------------+------------+------------+
| | | | |
+---------------------------------------------+-------------+------------+------------+
| Cost charged in respect of share | 14 | 15 | 28 |
| remuneration | | | |
+---------------------------------------------+-------------+------------+------------+
| Share of results of joint ventures after | 115 | 23 | (77) |
| taxation | | | |
+---------------------------------------------+-------------+------------+------------+
| Depreciation of property, plant and | 2,534 | 2,093 | 4,357 |
| equipment | | | |
+---------------------------------------------+-------------+------------+------------+
| Depreciation of property, plant and | - | 433 | 851 |
| equipment (held-for-sale) | | | |
+---------------------------------------------+-------------+------------+------------+
| (Gain)/loss on disposal of property, plant | (2) | - | 359 |
| and equipment | | | |
+---------------------------------------------+-------------+------------+------------+
| Impairment of goodwill | 461 | - | 184 |
+---------------------------------------------+-------------+------------+------------+
| Amortisation of intangible assets | 243 | 224 | 498 |
+---------------------------------------------+-------------+------------+------------+
| Decrease in provisions | (63) | (148) | (1,069) |
+---------------------------------------------+-------------+------------+------------+
| | | | |
+---------------------------------------------+-------------+------------+------------+
| Operating cash flows before movements in | 3,514 | 4,968 | 8,407 |
| working capital | | | |
+---------------------------------------------+-------------+------------+------------+
| | | | |
+---------------------------------------------+-------------+------------+------------+
| Increase in inventories | (53) | (204) | (156) |
+---------------------------------------------+-------------+------------+------------+
| (Increase)/decrease in receivables | (1,091) | (3,889) | (982) |
+---------------------------------------------+-------------+------------+------------+
| Increase/(decrease) in payables | 218 | (1,552) | 2,563 |
+---------------------------------------------+-------------+------------+------------+
| | | | |
+---------------------------------------------+-------------+------------+------------+
| Cash generated/(used) by operations | 2,588 | (677) | 9,832 |
+---------------------------------------------+-------------+------------+------------+
| | | | |
+---------------------------------------------+-------------+------------+------------+
| Income taxes (paid)/refunded | (256) | 293 | 204 |
+---------------------------------------------+-------------+------------+------------+
| | | | |
+---------------------------------------------+-------------+------------+------------+
| Net cash generated from /(used in) | 2,332 | (384) | 10,036 |
| operating activities | | | |
+---------------------------------------------+-------------+------------+------------+
| | | | |
+---------------------------------------------+-------------+------------+------------+
Operating profit includes amounts relating to discontinued operations of
GBP1,249,000 (2008: GBP619,000). The closing cash and cash equivalents of
GBP2,336,000 (31 December 2008: GBP1,109,000) and overdraft GBP2,669,000 (2008:
GBPnil) excludes GBP1,622,000 (31 December 2008: GBP1,259,000) which is within
the assets of disposal group held-for-sale (note 8).
11. Investment in own shares
On 30 April 2009, the Company cancelled 200,000 ordinary shares held in treasury
leaving 50,000 ordinary shares remaining in treasury.
12. Related Parties
Transactions between the company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
There has been no change to the nature of related party transactions in the
first six months of the financial year that has materially affected the
financial position or performance of the Group.
13. Post Balance Sheet Events
Realm Services (DAC) Limited ("Realm") was placed into Administration in August
2009. This decision followed discussions with Barclays Bank plc, the senior
lender to Realm, and relates to an outstanding dispute with the Ministry of
Defence on the Defence Animal Centre ("DAC") PFI contract. The dispute relates
to the provision of kennelling for dogs trained at the DAC. The directors and
Barclays believe that placing Realm into Administration is the best course of
action since it invokes a 150 day suspension period to the contract which should
allow time to reach a commercial resolution to the outstanding contractual
issues. The net carrying value of Realm in the Group's consolidated balance
sheet is GBP2.67 million before derivatives. Realm forms part of the Group's
non-recourse activities.
Cautionary Statement
This interim management report has been prepared solely to provide
additional information to shareholders to assess the Group's strategies and the
potential for those strategies to succeed. The interim management report should
not be relied on by any other party or for any other purpose.
Responsibility Statement
We confirm that to the best of our knowledge:
* The condensed set of financial statements, which has been prepared in accordance
with the applicable set of accounting standards, give a true and fair view of
assets, liabilities, financial position and the undertakings included in the
consolidation as a whole; and
* The interim management report includes a fair review of the information required
by DTR 4.2.7R (indication of important events during the first six months and
description of principal risks and uncertainties for the remaining six months of
the year); and
* The interim management report includes a fair review of the information required
by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).
By the order of the Board
C Smith
Company Secretary
28 August 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
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