Final Results
August 28 2003 - 10:26AM
UK Regulatory
RNS Number:1382P
Bolton Group (International) Ld
28 August 2003
PRELIMINARY RESULTS
Bolton Group (International) Limited ("Bolton Group" or "the Group") the real
estate holding and development group, announces its preliminary unaudited
results for the year ended 30 April 2003.
For further information, please contact:
Bolton Group (International) Limited Tel: 020 7499 7922
Peter Derby, Chairman
CHAIRMAN'S STATEMENT
Results
Group turnover for the year ended 30 April 2003 was #219,000 (2002: #599,000),
resulting in an operating loss of #218,000 (2002: operating profit #416,000).
The loss before and after tax was #338,000 (2002: profit before and after tax
#357,000). Accordingly, the Board does not recommend the payment of a dividend
at this time.
Review of operations
In my last annual report, I said that one of our subsidiaries, Urania Securities
Ltd ("Urania"), had lost a significant proportion of its income following the
loss, in March 2002, of its major tenant at Angel House in London. Whilst every
effort was made to attract new tenants, it was not possible to secure any offers
for the available space and, in April 2003, notice was received in that one of
the remaining two tenants would be exercising its option to vacate in October
this year.
Since March 2002, Urania has been exposed to substantial liabilities in respect
of business rates together with significant service charge expenses in respect
of the vacant space. The office rental market has continued to experience a
material decline, offering no immediate or early prospect of achieving any
profit from this investment.
In view of the increasing liabilities in Urania, the directors took the decision
to dispose of the company. Urania and Bolton Group Plc, which has made no
contribution to the Group for many years, have been sold for #160,000 - the
consideration equalling the sum of their net asset values.
Future
The directors have for some time been of the opinion that the Group would be
unable to generate increased shareholder value through its core business of
property investment in the commercial sector in the UK.
The Group will continue to invest in property which offers attractive yields for
the foreseeable future and a number of investment opportunities have been
identified in Mainland China. Since the year end, the Group has purchased three
properties and a further four purchases are due for completion by November 2003.
As part of it ongoing strategy to diversify the Group, the Board acquired an
8.3% interest in Megacom Holdings Limited ("MHL") in July 2003. MHL is an
investment holding company with business interests in China, specialising in
full services advertising, sales of print media (with a particular focus on
travel-related periodicals like in-flight magazines and hotel magazines) and in
the marketing and sales of innovative media vehicles, including an On-Premises
Advertising System (OPAS), a closed circuit audio-video advertising system,
pioneered by MHL in key retail channels in China.
The Board will continue to pursue its strategy of seeking investment
opportunities in areas offering a greater potential for growth.
Peter Derby
Chairman
28 August 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 30 April 2003
Note Unaudited Audited
2003 2002
#000 #000
Turnover 219 599
Administrative expenses (437) (190)
Other operating income - 7
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Operating (loss)/profit (218) 416
Proceeds from disposal of shares - 62
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(Loss)/profit on ordinary activities before
interest and taxation (218) 478
Interest receivable - 20
Interest payable (120) (141)
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(Loss)/profit on ordinary activities
before taxation (338) 357
Tax on (loss)/profit on ordinary activities - -
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Retained (loss)/profit on ordinary activities
after taxation (338) 357
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(Loss)/earnings per share 3 (0.56)p 0.59p
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Diluted(loss)/earnings per share 3 (0.56)p 0.59p
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All transactions arose from continuing operations during the current and
previous year.
CONSOLIDATED BALANCE SHEET
As at 30 April 2003
Note Unaudited Audited
2003 2003 2002 2002
#000 #000 #000 #000
Fixed assets
Tangible assets 2,660 4,595
Current assets
Debtors 139 13
Cash at bank and in hand 24 630
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163 643
Creditors: amounts falling due within one
year (2,713) (2,865)
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Net current liabilities (2,550) (2,222)
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Net assets 110 2,373
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Capital and reserves
Called up share capital 606 606
Share premium account 1,534 1,534
Revaluation reserve (1,363) 562
Other reserves 5,724 5,724
Profit and loss account (6,391) (6,053)
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Shareholders' funds - equity 4 110 2,373
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CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 April 2003
Unaudited Audited
2003 2002
#000 #000
Cash flow statement
Net cash (outflow)/inflow from
operating activities (361) 787
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Returns on investments and servicing of
finance
Interest received - 20
Interest paid (120) (143)
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Net cash outflow from returns on
investments and servicing of finance (120) (123)
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Capital expenditure and financial investments
Purchase of tangible fixed assets (5) (42)
Recovered proceeds from the sale of shares - 62
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Net cash (outflow)/inflow from capital expenditure
and financial investments (5) 20
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Net cash (outflow)/inflow before financing (486) 684
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Financing
Repayment of borrowings (120) (120)
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Net cash outflow from financing (120) (120)
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(Decrease)/increase in cash in the year (606) 564
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NOTES TO THE PRELIMINARY ANNOUNCEMENT
1. The financial information set out in the announcement does not constitute
the company's accounts for the years ended 30 April 2003 or 2002. The financial
information for the year ended 30 April 2002 is derived from the statutory
accounts for that year, which have been delivered to the Registrar of Companies.
The auditors reported on those accounts; their audit opinion was unqualified and
did not contain a statement under section 237(2) or (3) Companies Act 1985. The
statutory accounts for the year ended 30 April 2003 will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting.
2. The company has prepared these preliminary results on the basis of
accounting policies consistent with those in the full financial statements,
which have yet to be published.
3. The calculation of (loss)/earnings per share as disclosed in the profit
and loss account is based on a loss of #338,000 (2002: profit #357,000) being
the loss for the year divided by the weighted average number of shares
60,580,355 (2002: 60,580,355), in issue during the year.
The diluted (loss)/earnings per share is based on the loss after taxation of
#338,000 (2002: profit #357,000). As the share options in existence during the
year were exercisable at above the average share price they are not dilutive.
The adjusted weighted average number of shares was 60,580,355
(2002: 60,580,355).
4. Reconciliation in equity shareholders' funds
2003 2002
#000 #000
Opening shareholders' funds 2,373 3491
(Loss)/profit on ordinary activities after taxation (338) 357
Impairment of investment property (1,925) (1,475)
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Closing equity shareholders' funds 110 2,373
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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