Interim Results
March 31 2003 - 1:30AM
UK Regulatory
RNS Number:3785J
IAF Group PLC
31 March 2003
Chairman's Statement
IAF Group plc reports its results for the six month period to 31 December 2002.
Group turnover was #729,000, (2001 - #1.1 million). The company made a small
loss of #40,000 (2001 - loss #89,000) prior to operating exceptional items,
interest and tax. Exceptional costs of #441,000 were incurred in implementing
the reorganisation of IAF's management and administration as announced to
shareholders on 25 October 2002. Approximately #300,000 of the exceptional
costs are contingent on certain events but have been provided in full now. The
loss after tax was #516,000 (2001 - #105,000). The loss per share was 3.4p
(2000 - LPS 0.69p). No interim dividend is recommended (2001 - nil).
Aviation
The industry continues in a very depressed state with over capacity and falling
asset values. It is difficult to see any general recovery during this year and
certainly not until the situation in the middle east is clearer. IAF has
established a new subsidiary in the United States and a small warehouse
operation to co-ordinate and provide a marketing base for the sale of its spare
parts inventory and spare engines.
Real Estate
The company announced on 7 January 2003 that conditional contracts had been
exchanged for the sale of IAF's remaining property in Kiev. Completion is now
expected on 11 April 2003. The proceeds will be applied to repay bank
indebtedness as a result of which IAF is expected to have minimal remaining bank
debt.
Other
Since 31 December 2002 IAF has closed out its remaining foreign exchange forward
contract which provided a cash flow benefit of approximately #540,000 in
February 2003. The cash was used to reduce existing overdraft facilities. The
above contract acted as a hedge of IAF's US dollar assets and therefore the
profit and loss effect is much less than the cashflow effect and will be dealt
with in the full year's accounts. It will be noted that the IAF balance sheet
is now unhedged and therefore any further appreciation of sterling will lead to
corresponding losses on translation of asset values.
Administration expenses in the second half will benefit from the arrangements
put in place from 1 November 2002.
Our objectives remain the generation of cash from either the sale or lease of
our remaining assets but the timing and quantum of such is uncertain.
David L Massie
Executive Chairman
31 March 2003
IAF Group plc Interim Report
Consolidated Profit and Loss Account
for the six months ended 31 December 2002
Six months to Six months to Year to
31 December 31 December 30 June
2002 2001 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
Note
Turnover 1 729 1,102 3,987
Cost of sales (529) (540) (2,593)
Gross profit 200 562 1,394
Administrative expenses
General and other (458) (803) (1,231)
Revaluation and impairment of investment 218 (63) (151)
properties and investments
Provision for bad debts - 7 -
Profit/(loss) on derivative contract - 208 208
Release of profit share participation - - 1,229
Impairment provision against tangible fixed - - (1,101)
assets
(240) (651) (1,046)
Operating (loss)/profit before operationing (40) (89) 348
exceptionals
Operating exceptional item
- redundancy costs (441) - -
(Loss)/profit on disposal of fixed assets - (1) 54
(Loss)/profit on ordinary activities before (481) (90) 402
interest and taxation
Interest receivable 11 13 21
Interest payable (46) (28) (76)
(Loss)/profit on ordinary activities before 1 (516) (105) 347
taxation
Taxation 2 - - (111)
(Loss)/profit on ordinary activities after (516) (105) 236
taxation
Dividends 3 - - -
Retained (loss)/profit (516) (105) 236
Basic and diluted loss/earnings per ordinary 4 (3.40) (0.69) 1.56
share (pence)
Dividends per share (pence) 3 - - -
IAF Group plc Interim Report
Consolidated Balance Sheet
as at 31 December 2002
As at As at As at
31 December 31 December 30 June
2002 2001 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
Fixed assets
Tangible assets 5,693 8,421 6,107
Investments 11 2,235 99
5,704 10,656 6,206
Current assets
Assets held for resale 66 44 55
Debtors - amounts receivable within one year 931 790 834
Debtors - amounts receivable after one year - - -
Investments 499 116 56
Cash at bank and in hand 187 301 453
1,683 1,251 1,398
Creditors
Amounts falling due within one year
Debt (1,564) (1,769) (1,571)
Other (3,054) (3,638) (2,748)
(4,618) (5,407) (4,319)
Net current (liabilities)/assets (2,935) (4,156) (2,921)
Total assets less current liabilities 2,769 6,500 3,285
Creditors
Amounts falling due after one year
Debt - - -
Other - (3,991) -
Provisions for liabilities and charges - - -
2,769 2,509 3,285
Capital and reserves
Called up share capital 15,157 15,157 15,157
Share premium account 4,658 4,658 4,658
Other reserves (5,515) (5,515) (5,515)
Profit and loss account (11,531) (11,791) (11,015)
Equity shareholders' funds 2,769 2,509 3,285
Net assets per share #0.18 #0.17 #0.22
IAF Group plc Interim Report
Consolidated Cash Flow Statement
for the six months ended 31 December 2002
Six months to Six months to Year to
31 December 31 December 30 June
2002 2001 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
Note
Net cash (outflow)/inflow from operating activities 5 (278) (673) (1,092)
Returns on investment and servicing of finance
Interest received 11 13 21
Interest paid (46) (28) (76)
Interest element of finance lease rentals - (2) -
(35) (17) (55)
Taxation
UK corporation tax paid/repaid 63 - (47)
Overseas taxation - - (11)
63 - (58)
Capital expenditure and financial investment
Purchase of tangible fixed assets - (202) (202)
Sale of tangible fixed assets - - 722
Purchase of investments - - -
Sale of investments - - 145
- (202) 665
Equity dividends paid - - -
Financing
Repayment of bank loans - - -
Capital element of finance lease rentals (9) (9) (23)
(9) (9) (23)
(Decrease)/increase in cash 6 (259) (901) (563)
IAF Group plc Interim Report
Notes to Interim Report
Six months to Six months to Year to
31 December 31 December 30 June
2002 2001 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
1 Segmental Information
Turnover
Continuing operations
Aviation 611 765 2,558
Property 114 129 1,357
Other Financial Services 4 208 72
729 1,102 3,987
(Loss)/profit before
taxation
Continuing operations
Aviation 83 69 922
Property 70 59 654
Other Financial Services 219 134 25
372 262 1,601
Non attributable overhead (888) (367) (1,254)
(516) (105) 347
Net assets/(liabilities)
Aviation 3,115 4,045 3,414
Property 856 340 870
Other Financial Services (571) (898) (738)
3,400 3,487 3,546
Non attributable (631) (978) (261)
liabilities
2,769 2,509 3,285
Segmental information by geographical area
Turnover
North America 464 464 1,162
Africa 147 - 923
South America - 57 -
United Kingdom 4 208 859
Rest of Europe 114 373 1,043
729 1,102 3,987
(Loss)/profit before
taxation
North America (64) (43) 742
Africa 147 - 287
South America - 17 -
United Kingdom 219 134 460
Rest of Europe 70 154 112
372 262 1,601
Non attributable overhead (888) (367) (1,254)
(516) (105) 347
Net Assets/(liabilities)
North America 2,583 2,095 3,448
Africa 583 - 437
South America - 632 -
United Kingdom (1,253) (2,038) (1,816)
Rest of Europe 856 1,820 1,216
2,769 2,509 3,285
2 Taxation
No provision has been made for tax on the basis that losses brought forward will be utilised.
3 Interim Dividend
No interim dividend is proposed for the year ending 30 June 2003 (2002 - nil).
4 Earnings per share
The calculation of earnings per share is based on the loss for the period after tax of #516,000 (2001 - loss
of #105,000) and on the number of shares in issue during the period to 31 December 2002 of 15,156,945 (2001 -
15,156,945).
5 Reconciliation of Operating (Loss)/Profit to Net Cash (Outflow)/Inflow from Operating Activities
Six months to Six months to Year
to
31 December 31 December 30 June
2002 2001 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
Operating (loss)/profit (481) (89) 348
Depreciation of tangible fixed assets 414 513 1,057
Impairment of tangible fixed assets - - 1,101
Loss on disposal of fixed assets - 1 -
Impairment of fixed asset investments 88 63 151
Impairment of current asset investments - 18 -
(Increase)/decrease in assets held for resale (11) 516 505
(Increase)/decrease in debtors (97) 363 (195)
(Increase) in current asset investments (443) - (67)
Release of profit share participation - - (1,229)
(Increase)/decrease in creditors 252 (2,058) (2,763)
Net cash (outflow)/from operating activities (278) (673) (1,092)
6 Reconciliation of Net Cash Flow to Movement in Net Debt
(Decrease) in cash in the period (259) (901) (563)
Cashflow from debt and hire purchase finance - - 23
Hire purchase contracts entered into during the period - 11 -
Movement in net (debt)/cash in the period (259) (890) (540)
Opening net debt (1,118) (578) (578)
Closing net debt (1,377) (1,468) (1,118)
7 Net Assets
The calculation of net assets per share is based on the net assets at the end of the period of
#2,769,000 (2001 - #2,509,000) and on the number of shares in issue as at 31 December 2002 of
15,156,945 (2001 - 15,156,945)
8 Preparation of Interim Report
The interim financial information for the six months ended 31 December 2002 was approved by the directors
on 28 March 2003. The interim report is unaudited. Figures for the year ended 30 June 2002 are abridged
from the full financial statements which carry an unqualified auditors' report and which have been filed with
the Registrar of Companies.
9 Financial Information
The financial information in this statement does not constitute statutory accounts within the meaning of the
s.240 of the Companies Act 1985.
10 Distribution
The interim report will be sent to all shareholders.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PUUQCWUPWGQR
