TIDMSUH
RNS Number : 7079U
Sutton Harbour Group PLC
06 December 2021
6 December 2021
Sutton Harbour Group plc (formerly Sutton Harbour Holdings
plc)
("The Company", "Sutton Harbour")
Sutton Harbour Group plc, the AIM-listed marine and waterfront
regeneration specialist, announces its interim results for the
six-month period to 30 September 2021.
Financial Highlights
-- Profit before taxation GBP0.327m (6 months to 30 September 2020: GBP0.058m)
-- Net assets GBP50.835m (31 March 2021: GBP47.153m)
-- Net assets per share 39.12p (31 March 2021: GBP40.67p)
-- Net debt GBP24.905m (31 March 2021: GBP26.874m)
-- Gearing 49.0% (31 March 2021: 57.0%)
Company Highlights
-- GBP3.5 million equity raise by way of Open Offer in August 2021
-- Acquisition of further strategic land in September 2021
-- Preliminary site works started on the 14 apartment Harbour
Arch Quay, construction to start January 2022
-- 19% increase in marina revenue compared to last year
-- Recovery of car parks trading to pre-Covid levels
Philip Beinhaker, Executive Chairman
"With the staged relaxation of UK Government imposed measures to
manage the Covid pandemic, the Group has accelerated its efforts to
start its first development project around Sutton Harbour in over a
decade. During the first half year, the Group has made encouraging
progress with its trading business activities and with the pipeline
of development projects which it now intends to bring forward in
accordance with its strategic vision. The Board was delighted to
see the broad base of shareholders who participated in the recent
'Open Offer' equity raise."
For further information, please contact:
Sutton Harbour Group plc 01752 204186
Philip Beinhaker - Executive Chairman
Corey Beinhaker - Chief Operating Officer
Natasha Gadsdon - Finance Director
Arden Partners 020 7614 5900
Paul Shackleton
Elliot Mustoe
Executive Chairman's Statement
For the six-month period to 30 September 2021
Results and Financial position
Profit before taxation for the six month period to 30 September
2021 was GBP0.327m compared to GBP0.058m for the comparative period
to 30 September 2020 and GBP0.281m for the period to 30 September
2019. This demonstrates strong recovery by the Company since the
disruption caused by three national lockdowns ordered by the UK
Government to contain the spread of Covid-19 during our trading
year to 31 March 2021.
As at 30 September 2021, net assets were GBP50.835m (39.1pence
per share), up from GBP47.153m (40.7pence per share) at 31 March
2021. The increase reflects the issuance of 14 million new ordinary
shares which raised GBP3.5m of new equity capital in August 2021.
There has been no revaluation of assets during the reporting
period, with the next external independent valuation due to be
undertaken at the financial year end.
Net Debt has fallen to GBP24.905m, GBP1.969m less than the
position at 31 March 2021 of GBP26,874 net debt. Debt reduced
following the equity raise in August 2021, however purchase of some
strategic land, ongoing costs associated with active development
projects and autumn being a lower point in the Group's annual cash
cycle (as rents and berthing fee receipts peak between November and
April) have utilised some of the funds raised. As at 30 September
2021 gearing stood at 49.0% down from 57.0% as at 31 March
2021.
Trading Report
The Group's trading businesses have proved resilient during the
first half year with marina berthing revenues up 19% on the
previous year, despite no increase in prices, car park revenues
back to 2019 levels and rent incomes restored with agreed deferred
payments being honoured. Trading at Plymouth Fisheries has
continued to be slow and slightly trailing its pre- Covid
level.
The exceptional growth in marina revenues results from the
capacity occupation at Sutton Harbour Marina and 95% occupation at
King Point Marina. Leisure boating in the UK has experienced a
resurgence in popularity since the Covid crisis and the current
outlook for this sector remains robust. Some minor alterations will
be made to some berths at King Point Marina over the coming winter
to accommodate the larger vessels of boat-owners currently on our
waiting list.
Trading at the car parks was re-established quickly during the
first quarter and continued strongly throughout the second quarter
as the area attracted good visitor footfall and local bars,
restaurants and other attractions were visibly busy.
Performance of the investment property estate has remained
steady, with little vacant space to let. The lease of Old Barbican
Market to Edinburgh Woollen Mill expired in May 2021 and the Group
recovered vacant possession of the building. Planning consent has
now been granted to partition the 7,500 sq ft floorplate into three
2,500 sq ft units, two of which are already reserved to national
covenant tenants. The 3(rd) unit is being actively marketed.
Overall, once fully let, the property will achieve c. 50% more rent
than under the previous tenancy. During the first half year the
Group sold a small investment property, which was not regarded as a
part of the core Sutton Harbour estate, at a profit.
The slowing trend in landings at Plymouth Fisheries has been
consistent for a few years. With the current Fisheries Complex now
27 years old, the Group is working together with Plymouth City
Council and other stakeholders on a plan to gain public funding for
a modern Fishery Complex better suited to the needs of the industry
now and into the future.
Regeneration
The Group is pleased to report that it has started the
preliminary site works on the 14 apartment Harbour Arch Quay
scheme. The year-long construction programme will commence in
January 2022 with marketing of the apartments to start early in the
New Year. The building is financed by separate lending secured on
the development with part to be funded from the recent equity
raise. The Group has submitted variations to the original plans for
both the Sugar Quay and Sutton Road East residential schemes, which
between them will provide c. 300 new homes, for planning
determination in early 2022. Changes to the Sutton Road East design
followed the acquisition of an adjoining site in September 2021
which allowed improvements to pedestrian and vehicular access and
circulation through the development.
Summary
With the staged relaxation of UK Government imposed measures to
manage the Covid pandemic, the Group has accelerated its efforts to
start its first development project around Sutton Harbour in over a
decade. During the first half year, the Group has made encouraging
progress with its trading business activities and with the pipeline
of development projects which it now intends to bring forward in
accordance with its strategic vision. The Board was delighted to
see the broad base of shareholders who participated in the recent
'Open Offer' equity raise.
Philip Beinhaker
EXECUTIVE CHAIRMAN
Consolidated Statement of Comprehensive Income
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Revenue 3,845 2,873 5,400
Cost of Sales (2,436) (1,874) (3,638)
Gross Profit 1,409 999 1,762
-------------- -------------- -----------
Fair value adjustment on fixed assets
and investment property - - (2,211)
Administrative expenses (731) (547) (1,171)
Operating profit from continuing operations 678 452 (1,620)
Financial income -
Financial expense (351) (394) (753)
Net financing costs (351) (394) (753)
Profit before tax from continuing
operations 327 58 (2,373)
Taxation credit on profit from continuing
operations (62) - 198
Profit from continuing operations 265 58 (2,175)
============== ============== ===========
Basic profit/earnings per share 0.22p 0.02p (1.88p)
Diluted profit/earnings per share 0.22p 0.02p (1.88p)
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Profit from continuing operations 265 58 (2,175)
Other comprehensive income/(expenses)
Continuing operations:
Revaluation of property, plant and
equipment - - 3,245
Deferred taxation on income and expenses
recognised directly in the consolidated
statement of comprehensive income
Effective portion of changes in fair - - -
value of cash flow hedges
Total other comprehensive income - - 3,245
-------------- -------------- -----------
Total comprehensive income for the
period attributable to equity shareholders 265 58 1,070
============== ============== ===========
Consolidated Balance Sheet
As at As at As at
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Non-current assets
Property, plant and equipment 29,680 27,694 29,766
Investment property 17,622 18,989 17,845
Inventories 13,151 12,878 12,962
-------------- -------------- -----------
60,453 59,561 60,573
-------------- -------------- -----------
Current assets
Inventories 17,372 12,748 16,359
Trade and other receivables 1,846 2,363 2,396
Cash and cash equivalents 528 177 928
Tax recoverable - - 6
-------------- -------------- -----------
19,746 15,288 19,689
-------------- -------------- -----------
Total assets 80,199 74,849 80,262
-------------- -------------- -----------
Current liabilities
Trade and other payables 1,118 1,098 1,730
Finance lease liabilities 48 62 141
Deferred income 1,111 936 1,819
Provisions - 63 56
2,277 2,159 3,746
-------------- -------------- -----------
Non-current liabilities
Other interest-bearing loans and
borrowings 25,175 24,250 27,475
Finance lease liabilities 210 337 186
Deferred government grants 646 646 646
Deferred tax liabilities 1,056 1,255 1,057
Provisions - 62 -
27,087 26,550 29,363
-------------- -------------- -----------
Total liabilities 29,364 28,709 33,109
-------------- -------------- -----------
Net assets 50,835 46,140 47,153
============== ============== ===========
Issued capital and reserves attributable
to owners of the parent
Share capital 16,406 16,266 16,266
Share premium 13,972 10,695 10,695
Other reserves 16,280 13,034 16,280
Retained earnings 4,177 6,145 3,912
-------------- -------------- -----------
Total equity 50,835 46,140 47,153
============== ============== ===========
Consolidated Statement of Changes in Equity
Share Share Revaluation Merger Hedging Retained TOTAL
capital premium reserve reserve reserve earnings
----------Other Reserves----------
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------- --------- ------------- --------- --------- ---------- --------
Balance at 1 April 2021 16,266 10,695 12,409 3,871 - 3,912 47,153
Comprehensive
income/(expense)
Issue of Shares 140 3,277 3,417
Profit for the period - - - - - 265 265
Total comprehensive
income/(expense)
6 month period ended 30
September 2021 140 3,277 - - - 265 3,682
--------- --------- ------------- --------- --------- ---------- --------
Balance at 30 September
2021 16,406 13,972 12,409 3,871 - 4,177 50,835
--------- --------- ------------- --------- --------- ---------- --------
Balance at 1 April 2020 16,266 10,695 9,163 3,871 - 6,087 46,082
Comprehensive
income/(expense)
Profit for the period - - - - - 58 58
Total comprehensive
income/(expense)
6 month period ended 30
September 2020 - - - - - 58 58
--------- --------- ------------- --------- --------- ---------- --------
Balance at 30 September
2020 16,266 10,695 9,163 3,871 - 6,145 46,140
--------- --------- ------------- --------- --------- ---------- --------
Balance at 1 October 2020 16,266 10,695 9,163 3,871 - 6,145 46,140
Comprehensive
income/(expense)
Profit for the period - - - - - (2,233) (2,233)
Other comprehensive
income/(expense)
Revaluation of property,
plant and equipment - - 3,246 - - - 3,246
Total comprehensive
income/(expense)
6 month period ended 31
March 2021 - - 3,246 - - (2,233) 1,013
--------- --------- ------------- --------- --------- ---------- --------
Balance at 31 March 2021 16,266 10,695 12,409 3,871 - 3,912 47,153
--------- --------- ------------- --------- --------- ---------- --------
Consolidated Cash Flow Statement
6 months 6 months Year Ended
to to
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
---- -------------- -------------- -----------
Cash generated from total operating
activities (1,237) (599) (2,536)
-------------- -------------- -----------
Cash flows from investing activities
Net expenditure on investment
property (12) (4) (10)
Expenditure on property, plant
and equipment (109) 75 (161)
Proceeds from sale of plant 260 - -
and equipment
-------------- -------------- -----------
Net cash used in investing activities 139 71 (171)
-------------- -------------- -----------
Cash flows from financing activities
Proceeds from sale of shares 3,500 - -
Expenses of share issuance (83) - -
Interest paid (351) (396) (754)
Loan drawdowns/(repayment of
borrowings) (2,300) 309 3,225
Net finance lease (payments)/receipts (69) - 372
Net cash generated from financing
activities 697 (87) 2,843
-------------- -------------- -----------
Net increase/(decrease) in cash
and cash equivalents (401) (615) 136
Cash and cash equivalents at
beginning of period 928 792 792
Cash and cash equivalents at
end of period 527 177 928
============== ============== ===========
Notes to Interim Report
General information
This consolidated interim financial information does not
comprise statutory accounts within the meaning of section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
March 2021 were approved by the Board of Directors on 5 July 2021
and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified and did not contain any
statement under section 498 of the Companies Act 2006.
Copies of the Group's financial statements are available from
the Company's registered office, Sutton Harbour Office, Guy's Quay,
Sutton Harbour, Plymouth, PL4 0ES and on the Company's website
www.sutton-harbour.co.uk.
This consolidated interim financial information has not been
audited.
Basis of preparation
The consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 March 2021, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) and
International Financial Reporting Interpretation Committee (IFRIC)
interpretations as endorsed by the European Union, and those parts
of the Companies Acts 2006 as applicable to companies reporting
under IFRS.
Accounting policies
Except as described below, the accounting policies applied are
consistent with those of the annual financial statements for the
year ended 31 March 2021, as described in those annual financial
statements.
Accounting estimates and judgements
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making
judgements that are not readily apparent from other sources. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised, if the revision
affects only that period, or in the period of the revision and
future periods, if the revision affects both current and future
periods.
Segment information
Management has determined the operating segments based on the
reports reviewed by the Board of Directors that are used to make
strategic decisions.
The Board of Directors considers the business from an
operational perspective as having only one geographical segment,
with all operations being carried out in the United Kingdom.
The Board of Directors considers the performance of the
operating segments using operating profit. The segment information
provided to the Board of Directors for the reportable segments for
the period ended 30 September 2019 is as follows:
6 months to
30 September
2021 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
------- ------------ ------------ ------------- -------
Revenue 2,648 776 421 - 3,845
Gross profit
prior to non-recurring
items 726 559 235 (111) 1,409
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 726 559 235 (111) 1,409
Fair value adjustment
on fixed assets
and investment
property assets - - - - -
Unallocated:
Administrative
expenses (731)
Operating profit
from continuing
operations 678
Financial income
Financial expense (351)
-------
Profit before
tax from continuing
operations 327
Taxation (62)
-------
Profit for the
year from continuing
operations 265
=======
Depreciation
charge
Marine 171
Car Parking 9
Administration 13
-------
193
=======
Segment Information (continued)
6 months to
30 September
2020 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
------- ------------ ------------ ------------- -------
Revenue 1,969 676 228 - 2,873
Gross profit
prior to non-recurring
items 561 448 100 (110) 999
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 561 448 100 (110) 999
Fair value adjustment
on fixed assets
and investment
property assets - - - - -
Unallocated:
Administrative
expenses (547)
Operating profit
from continuing
operations 452
Financial income
Financial expense (394)
-------
Loss before
tax from continuing
operations 58
Taxation -
-------
Loss for the
year from continuing
operations 58
=======
Depreciation
charge
Marine 168
Car Parking 11
Administration 11
-------
190
=======
Segment Information (continued)
Year ended 31
March 2021 Marine Real Estate Car Parking Regeneration Total
GBP000 GBP000 GBP000 GBP000 GBP000
-------- ------------ ------------ ------------- --------
Revenue 3,509 1,542 349 - 5,400
Gross profit
prior to non-recurring
items 770 1,020 110 (138) 1,762
Segmental Operating
Profit before
Fair value adjustment
and unallocated
expenses 770 1,020 110 (138) 1,762
Fair value adjustment
on fixed assets
and investment
property assets (1,061) (1,150) - - (2,211)
(449)
Unallocated:
Administrative
expenses (1,171)
Operating profit
from continuing
operations (1,620)
Financial income -
Financial expense (753)
--------
Profit before
tax from continuing
operations (2,373)
Taxation 198
--------
Profit for the
year from continuing
operations (2,175)
========
Depreciation
charge
Marine 336
Car Parking 31
Administration 32
--------
399
========
30 September 30 September 31 March
2021 2020 2021
GBP000 GBP000 GBP000
Segment assets:
Marine 25,565 23,304 25,846
Real estate 18,740 19,660 18,715
Car Parking 4,954 5,323 4,861
Regeneration 30,029 25,746 29,343
Total segment assets 79,288 74,033 78,765
Unallocated assets:
Property, plant and equipment 77 83 70
Trade & other receivables 306 556 499
Cash & cash equivalents 528 177 928
Total assets 80,199 74,849 80,262
============= ============= =========
Segment Information (continued)
30 September 30 September 31 March
2021 2020 2021
GBP000 GBP000 GBP000
Segment liabilities:
Marine 1,312 1,184 2,062
Real estate 429 560 689
Car Parking 93 90 19
Regeneration 823 823 1,142
------------- ------------- ---------
Total segment liabilities 2,657 2,657 3,912
Unallocated liabilities:
Bank overdraft & borrowings 25,433 24,649 27,802
Trade & other payables 154 148 337
Financial Derivatives - - -
Tax payable 62 - 1
Deferred tax liabilities 1,058 1,255 1,256
------------- ------------- ---------
Total liabilities 29,364 28,709 33,308
============= ============= =========
Unallocated assets included in total assets and unallocated
liabilities included in total liabilities are not split between
segments as these items are centrally managed.
Taxation
The Company has applied an effective tax rate of 19% (2019: 19%)
based on management's best estimate of the tax rate expected for
the full financial year and is reflected in a movement in deferred
tax.
Dividends
The Board of Directors do not propose an interim dividend (2019:
nil).
Earnings per share
6 months to 6 months Year Ended
to
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
pence pence pence
-------------- -------------- -----------
Continuing operations
Basic earnings per share 0.22p 0.02p (0.85p)
Diluted earnings per share* 0.22p 0.02p (0.85p)
Basic Earnings per Share:
Basic earnings per share have been calculated using the profit
for the period of GBP265,000 (2020: profit GBP58,000, year ended 31
March 2020 loss GBP2,175,000). The average number of ordinary
shares in issue, excluding those options granted under the SAYE
scheme, of 120,534,234 (2020: 115,944,071; year ended 31 March
2021: 115,944,071) has been used in our calculation.
Diluted Earnings per Share:
Diluted earnings per share uses a weighted average number of
120,765,411 (2020: 116,100,126; year ended 31 March 2021
116,130,728) ordinary shares after adjusting for the effects of
share options in issue: 242,063 ordinary shares (2020: 102,273; 31
March 2021: 218,063)
Property valuation
Freehold land and buildings and investment property have been
independently valued by Jones Lang LaSalle as at 31 January 2021,
in accordance with the Practice Statements in the Valuations
Standards (The Red Book) published by the Royal Institution of
Chartered Surveyors.
A further valuation will be commissioned for the year ending 31
March 2022, as in previous years.
Cash and cash equivalents
As at As at As at
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
------------- ------------- ----------
Cash and cash equivalents per
balance sheet and cash flow
statement 527 177 928
============= ============= ==========
Provisions
Onerous leases Total
GBP000 GBP000
--------------------------- ----------------------
Balance at 1 April 2020 99 99
Provisions made 26 26
Balance at 30 September
2020 125 125
=========================== ======================
Provisions made - -
Provisions utilised (69) (69)
--------------------------- ----------------------
Balance at 31 March 2021 56 56
=========================== ======================
Provisions made - -
Provisions utilised (56) (56)
--------------------------- ----------------------
Balance at 30 September - -
2021
=========================== ======================
Cash flow statements
6 months to 6 months to Year Ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------- -------------- -----------
Cash flows from operating
activities
Profit/(loss) for the period 265 58 (2,373)
Adjustments for:
Taxation - - -
Financial income - - -
Financial expense 351 396 753
Fair value adjustment on fixed
assets and investment property - - 2,211
Depreciation 193 190 399
Amortisation of grants - - -
Profit/loss on sale of property,
plant and equipment (24) - 3
Cash generated from operations
before changes in working
capital and provisions 785 644 933
Increase in inventories (1,202) (599) (4,294)
Decrease/(increase) in trade
and other receivables 556 234 199
(Decrease)/increase in trade
and other payables (612) (236) 334
Decrease in deferred income (708) (607) 275
(Decrease)/increase in provisions (56) (35) (43)
Cash generated from operations (1,237) (599) (2,536)
============== ============== ===========
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END
IR FSIFDMEFSEFE
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