RNS Number:7815E
Teesland Plc
28 September 2007
1 October 2007
Embargoed for 7.00
Teesland plc
("Teesland" or the "Company")
Results for the year to 30 June 2007
Teesland plc (LSE: TLD), the UK and European property fund and asset management
group announces preliminary results for the year ended 30 June 2007.
Highlights:
* Funds under management grew by 25%
* Recurring fees increased by 71% across the year
* Infrastructure extended and improved throughout Europe
* Teesland became part of Valad Property Group in July 2007
FY07 FY06 Growth
Funds under management #4.0bn #3.2 bn +25%
Revenue #38.4m #30.6 m +25%
Other income and trading profits #2.9m #8.4 m -65%
Admin expenses, excluding bid costs #34.1m #25.5 m +33%
Profits, pre tax, interest depreciation, #7.7m #13.9 m +45%
amortisation and bid costs
For further information:
Teesland plc: 020 7659 6666
Mickola Wilson, Chief Executive
Tavistock Communications Limited: 020 7920 3150
Jeremy Carey/ Rachel Drysdale
CHAIRMAN'S STATEMENT
It gives me pleasure to present my first Chairman's statement of the Company
since I assumed the Chairmanship from Kevin McCabe on 12 March 2007.
2007 has been both an interesting and challenging year for Teesland.
Funds and assets under management have continued to grow to #4.0bn (#3.2bn at 30
June 2006) with the main areas of increase being in Continental Europe,
especially Germany and the Nordic Region, where the Nordic Aktiv Fund was
successfully launched and fully invested. This demonstrates the importance of
both the Group's wide spread operating platform and the warehousing
opportunities offered by the SCP joint venture between the Scarborough Group and
Bank of Scotland.
The growing trend towards internationally spread real estate operating business
and the increasing liquidity of international capital has meant that businesses
such as Teesland will attract the interest of real estate groups and investors.
As part of its review of its entire real estate business, SCAMP Holdings (SCAMP)
(a company related to Kevin McCabe) made an Offer for the Company on 21 December
2006.
This Offer was recommended by the Independent Directors of the Company and
became unconditional on 1 February 2007 when SCAMP had achieved a holding in the
Company's shares of 72.3%. Another investor, Polygon now owns a further 26.1% of
the Company's shares. The Group incurred costs of #2.4 m in relation to the
Offer, principally for the services of professional corporate advisors.
Group turnover for the year ended 30 June 2007 was #38.4 million (2006: #30.6
million). An increase of 25% on the previous year.
Profit before tax, bid advisory costs, share of associate's and joint venture's
tax, and amortisation of intangibles for the year was #5.9 million (2006: #12.8
million including the Darien profits effect of #1.2 million a transaction
originally due to occur in 2004/05) a decrease of 54% on the previous year.
During the Offer process, SCAMP announced that it had served notice on Teesland
that it was cancelling the management contract for the SCP initiative in the
year ending June 2008 and that it would not be renewing certain development
project management contracts as they fell due for renewal during the same year.
Due to the uncertainty relating to SCP and other contracts, the Board is not
recommending a dividend for the year (2006: 1.95p per share).
Other significant occurrences during the year were the buy out of the remaining
minority interests in the Group's Nordic and Central European operations which
result in the Group having 100% ownership of its key European operational
platform. In addition the Group acquired Partnership Incorporations Limited
(PIL), a specialist launch manager and operator of regulated collective
investment vehicles, specialising in the real estate sector. PIL should help the
Group to speed up its launch process for new funds as well as enhancing its
specialist regulated activities.
The year ahead will be exciting as the Group looks to build its business, both
in Europe and the UK as well as build its relationship with its new majority
owners Valad Property Group which acquired SCAMP on 10 July 2007.
I would like to take this opportunity to express my gratitude to all colleagues
and staff who have worked so hard during this year. I would like personally to
thank those directors, David Pickard and Dr Stanley Quek who have both stood
down after several years of hard work for the Group and John Sims who has now
become a consultant to the Group rather than a full time director.
CHARLES LEWIS
Chairman
28 September 2007
CHIEF EXECUTIVE'S REVIEW
Investment Funds
The funds under management ("FUM") have increased during the year from #3.2bn
(Euro4.6bn) to #4.0bn (Euro5.9bn) at 30 June 2007. The main increases occurred in the
European markets, with the result that 59% of FUM now derives from Europe.
The funds have continued to provide investors with good performance with Osprey
and The Industrial Trust placed in leading positions within their relevant
index.
The EHI fund completed its acquisition programme by December 2006, creating a
portfolio of over Euro750m in France, Germany, Netherlands and Denmark. The fund
has provided investors with access to these markets at a time of strong growth
and achieved a total return of over 25%.
The EIP portfolio has also provided strong returns as a product of good market
growth and the added value created by a series of asset management initiatives.
The total return for this fund to June 2007 is 34%.
The Nordic Region increased the assets under management by Euro745m to Euro1.2bn. The
Nordic Aktiv fund was launched in November 2006 and completed its acquisition
programme by the spring of 2007. The performance to date has also been
exceptional and this has been well received by its high quality panel of
investors.
In Germany the assets under management also increased to almost Euro1bn, with
further purchases of two large portfolios of mixed commercial property for SCP
(Scarborough Continental Partners) which are being held in a warehouse vehicle
pending the launch of the German Activ Fund planned for Autumn 2007.
In Central Europe, the CEIF fund has continued to expand with Euro138m being
acquired or committed. The fund has also altered its focus slightly by now
adding Romania to the existing core target countries of Poland, the Czech
Republic and Hungary.
In the UK, Osprey continued to grow to reach FUM of #295m by June 2007; it also
continued to provide investors with strong performances with total returns of
17.7%, retaining the fund's position of second place in its category of the HSBC
/AREF Pooled Property Fund Indices.
Our listed fund Teesland Advantage Property Trust TAP with #275m of assets is
now in the mid range of its sector following an equity raising and major
expansion in the early part of 2006.
The Industrial Trust has ended the year with assets of #463m, following a major
programme of sales (#42m) and acquisitions (#33m) designed to improve the
overall quality of the portfolio. The portfolio performance has improved
significantly following the major expansion in 2005 and with a total return of
12.2% to June 2007. The fund achieved 17.3% for the twelve months to June,
making it the best performing industrial specialist fund in the HSBC / AREF
Index.
Similarly the IIP portfolio, a joint venture with GIC has been relatively active
with acquisitions of #2.9m and undertaking a number of sales to rationalize the
portfolio.
Operating Divisions and Joint Ventures
The UK operating divisions include TDM, the project management team, and TAM,
the property management teams, which provide services to the Group's funds and
other third party clients. These divisions have continued to provide a valuable
contribution to profits and enhance the services available to our clients.
The European divisions continued to expand, reflecting growth in assets under
management, with new offices opening in Sweden and Finland in the Nordic Region.
An additional office was established in Budapest, Hungary in 2006 and it is
planned to open an office in Bucharest in the near future.
Ascent insurance brokers, our joint venture with PruPIM continues to expand its
coverage across Europe using the launch of new Teesland funds as a platform for
entry into each market.
Similarly Vine Properties, the property management business, our joint venture
with Collingwood Rigby, added an additional 582 properties during the year to
their assets under management and has reached a very satisfactory level of
profitability for a low margin business and added strength and depth to the
resources available to our clients.
MICKOLA WILSON
Chief Executive
28 September 2007
Operating and Financial Review
THE GROUP'S BUSINESS
Teesland is a European property fund and asset manager providing specialist
services to a range of funds and institutions investing in real estate in the
UK, Western and Central Europe.
The Group is structured as a network of local offices in each country which
provide experienced local market professionals who can both access stock and
deliver hands on asset management. This is coupled with an experienced fund
management team working out of the UK.
The Group principally manages properties which are owned by investors via tax
efficient collective investment vehicles located both on and off shore with a
view to maximising both income and capital returns to those investors.
As part of its fund and asset management business, the Group derives income from
ancillary property related services including "warehousing", project management,
property management and insurance broking.
The Group usually precedes the launch of new funds by assembling a seed corn
portfolio of investments into a "warehouse" vehicle, in conjunction with a joint
venture partner, and invests an amount of its own capital in these vehicles. On
launch of the fund, Teesland participates in the ownership of the property
through a long term minority investment stake. This provides annual investment
income and long term participation in the capital growth of the underlying
investments.
The market for both direct and indirect property investment in the UK and
Continental Europe has continued to grow over the last year. The weight of
capital being invested has created pressure not only in terms of asset prices,
but also on operators in the market to be able to both source stock at
acceptable prices and also provide an asset management capability which can
provide and deliver both income and capital growth from the properties. Teesland
has built an infrastructure of local offices and expertise which should enable
it to deliver both increases in funds under management and above benchmark
returns to investors.
RESULTS FOR THE YEAR
Group turnover for the year ended 30 June 2007 was #38.4 million (2006: #30.6
million). An increase of 25% on the previous year. The level of recurring fees
increased during the year by 71%.
Operating costs increased ahead of revenues during the year as the Group
continued to invest in its infrastructure and have teams in place to manage the
growth in funds, especially in its Continental European platform, as seen by the
growth in staff numbers.
Profit before tax, bid advisory costs, share of associate's and joint venture's
tax, and amortisation of intangibles for the year was #5.9 million (2006: #12.8
million including the Darien profits effect of #1.2 million a transaction
originally due to occur in 2004/05) a decrease of 54% on the previous year.
Unlike 2006, Teesland did not benefit during the year from significant earnings
from the disposal of properties either held for warehousing or development.
Earnings Per Share (EPS) before amortisation of intangibles and bid advisory
costs were 3.24 pence (2006: 7.07 pence of which 6.07 pence was underlying
business with 1.00 pence arising from the transaction deferred from 2004/05).
The major occurrence during the year was the offer made for the Group by SCAMP
Holdings which resulted in that party achieving a stake of 72.3% in the Group.
Teesland incurred costs relating to this bid of #2.4 million. In January 2007,
SCAMP announced that it was either terminating or not renewing certain key
contracts with the Group from early in 2007/08.
The Group's core business is principally carried out by its subsidiary operating
companies in the UK and Europe. The Group does have 50% joint venture interests
in companies which provide ancillary property management, development management
and insurance broking services. These joint ventures delivered profits before
tax in the year of #1.4 million (2006: #2.4 million).
Following the acquisition of the remaining shareholdings in the Nordic operation
during the year the Group's European platform is now 100% owned.
Finance costs represent the cost to the Group of investing borrowed funds into
warehouse ventures. The cost in 2007 of #1.5 million (2006: #1.3 million)
reflects the level of usage of these funds during the year as the Group seeks to
launch new funds.
An analysis of the Group's taxation charge is set out in Note 11 to the
financial statements.
The Group's Capital Structure is as follows:
2007 2006
#000 #000
Shareholders Equity 74,074 71,180
Minority Interests - 510
74,074 71,690
Net Debt 18,543 16,989
Capital Employed 92,617 88,679
The increased level of net debt reflects the Group's policy of investing in
warehouse ventures for future fund launches.
SIGNIFICANT TRANSACTIONS
On 1 November 2006, the Company purchased the remaining 24.9% shareholding in
its Nordic operation for a consideration of 2 million newly issued ordinary
shares of 1 pence each and cash consideration of #476,000, giving 100% ownership
of all of the Group's European infrastructure.
On 11 September 2006, the Group acquired 100% of the ordinary share capital of
Partnership Incorporations Limited, a regulated operator and launch manager of
collective investment schemes, for a total consideration of #2.3 million.
DIVIDENDS
Following the cancellation or non-renewal of certain key contracts for the
Group, the Directors recommend that no dividend be paid in relation to year
ended June 2007 (2006 1.95 pence per share).
TREASURY ACTIVITIES AND POLICIES
The Group's treasury operations are designed to reduce the financial risks of
funding, liquidity, interest and currency rate exposure.
The Group has short term facilities denominated in Sterling which have not been
fully utilised. These facilities are in place to provide additional working
capital for the core business of the Group if it is required. In addition, these
funds are available to finance short term "warehousing" projects prior to fund
launches.
The Group also has a medium term Euro denominated facility which is used to
facilitate the growth of the European office infrastructure and co-invest in
Euro denominated funds.
The Group's financial instruments comprise borrowings, loan assets, cash at bank
and other items including trade receivables and trade payables that arise
directly from its operations. The Group does not engage in instruments of a
speculative nature.
Further details of financial instruments are provided in note 25 to the
financial statements.
The Board regularly reviews and agrees policies for managing risks associated
with treasury activities and financial instruments.
CORPORATE SOCIAL RESPONSIBILITY
The Board recognises the importance of social, environmental and ethical matters
in the conduct of the Group's business. Teesland is committed to environmental
awareness and endeavours to make a positive contribution to the quality of the
environment, both for the present and the future. The Group's environmental
policy is approved by the Board and the Chief Executive who are responsible for
all environmental matters.
PRINCIPAL RISKS AND UNCERTAINTIES
Management throughout the Group uses a common model to identify and assess the
impact of risks to the business under the four key headings of operational,
financial, strategic and external. For each risk the likelihood and consequence
are identified, management controls are confirmed and results reported. The
corporate governance report describes more about the Group's risk management
process. The more significant risks and uncertainties faced by the Group are set
out below.
Competition
There is no guarantee that the Group's competitors will not offer superior
products or services to the market or lower fees. Such companies may have
greater financial, marketing, operational and technological resources than the
Group.
Reliance on Property Market Conditions
The majority of the income the Group receives during the term of its management
contracts is by way of fund and asset management fees. These fees are based upon
the value of the property assets managed by the Group, which could be adversely
affected by a downturn in property market conditions across the various markets
in which it operates. In addition, fees dependent on the timing and amounts of
acquisitions and disposals of property assets may be adversely affected both in
terms of values achieved and the ability to effect transactions against the
background of difficult property market conditions. In addition, the ability to
acquire property in warehouse structures ahead of fund launch could be adversely
affected by property market conditions.
Loss of Major Clients
Whilst the Group enters into long term management contracts for its managed
funds, there is the risk that contracts may not be renewed and the lost business
would need to be replaced.
Attraction and Retention of Key Employees
The future success of the business generated by the Group will be dependent upon
the experience and skills of the Directors and key employees. Some management
contracts require minimum time commitments from key employees and require
suitable replacements to be found within a specified period of a key employee
departing. The loss of key personnel and the inability to recruit further key
personnel could have an adverse affect on the Group's ability to develop new or
maintain existing fund and client relationships.
Warehouse Phase
The financial structure typically used when property assets are first acquired
for prospective new funds involves a commitment of capital by Teesland in equity
of between 2.5% and 10% of the cost with the remainder being funded by a joint
venture partner and through debt. In the event of failure to attract
co-investors and/or if the value of the acquired properties falls, Teesland's
capital is the most at risk. The effect of a highly leveraged structure is that
a relatively small movement in value will have a relatively large effect,
whether beneficial or detrimental, on the tier of capital most at risk. The
Group's Board considers the investment of capital in warehouse ventures,
including the possibility of a fund not launching before any commitment is made.
KEY PERFORMANCE INDICATORS
The Board has assessed that the following KPI's are the most effective measures
of progress towards achieving the Company's strategies and as such towards
fulfilling the Company's objectives.
Key Performance Indicator 2007 2006
Funds Under Management #4.0 billion #3.2 billion
Earnings Per Share (adjusted) 3.24 pence 7.07 pence
Funds Under Management
This measure is of the total value of properties managed by the Group either
within funds or directly. Growth in this measure should lead to an increase in
income from both transactional and long term annualised fees.
Earnings Per Share (Adjusted) (EPS)
EPS is an important measure of both annual performance and growth. EPS is
calculated on several different bases, all of which are disclosed at the foot of
the Group Income Statement. Details of the calculation of EPS are included in
Note 12 to financial statements.
GOING CONCERN BASIS
The Group has net assets of #74 million, including cash of #3.8 million. The
Directors consider that the Group has adequate resources to continue in
operational existence for the foreseeable future and that the financial
statements should be prepared on a going concern basis.
Group income statement
for the year ended 30 June 2007
Year to Year to
30 June 30 June
2007 2006
#'000 #'000
Revenue 38,423 30,573
Administrative expenses before amortisation
expense (34,135) (25,513)
Bid advisory costs (2,411) -
Administrative expenses after bid advisory costs (36,546) (25,513)
Amortisation expense (1,133) (1,920)
-------- --------
Total administrative expenses (37,679) (27,433)
Profit on sale of properties 868 2,144
Profit on disposal of available for sale
investments - 484
Other operating income 565 1,412
-------- --------
Operating profit before associate and joint venture results 2,177 7,180
Share of pre tax profit from associates and joint ventures 1,438 2,437
Share of associates' and joint ventures' tax (522) (1,052)
Share of post tax profit from associates and joint
ventures accounted for using the equity method 916 1,385
Profit on disposal of joint ventures - 1,969
-------- --------
Operating profit after associate and joint venture results 3,093 10,534
Finance revenue 250 589
Finance costs (1,470) (1,294)
-------- --------
(1,220) (705)
-------- --------
Profit before taxation 1,873 9,829
Tax expense (992) (2,083)
-------- --------
Profit for the year 881 7,746
======== ========
Profit for the year attributable to:
Equity holders of the parent 826 7,228
Minority interests 55 518
-------- --------
881 7,746
======== ========
Earnings per share (pence)
Adjusted earnings per share 3.24 7.07
Adjusted earnings per share (diluted) 3.21 7.06
Basic earnings per share 0.66 5.96
Basic earnings per share (diluted) 0.66 5.95
Dividend per share (pence)
Paid 1.95 1.75
Proposed - 1.95
Dividends paid and proposed during the year were #2,373,000 and #nil
respectively (2006 : #2,123,000 and #2,366,000 respectively).
Group statement of recognised income and expense
for the year ended 30 June 2007
Year to Year to
30 June 30 June
2007 2006
#'000 #'000
Income and expense recognised directly in equity
(Losses) / Gains on valuation of available for sale assets (10) 10
Tax on losses / (gains) on valuation of available for
sale assets 3 (3)
Exchange differences on retranslation of foreign operations (51) (18)
-------- --------
Net loss recognised directly in equity (58) (11)
Profit for the year 881 7,746
-------- --------
Total recognised income for the year 823 7,735
======== ========
Attributable to:
Equity holders of the parent 768 7,217
Minority interests 55 518
-------- --------
823 7,735
======== ========
Group balance sheet
at 30 June 2007
2007 2006
#'000 #'000
ASSETS
Non-current assets
Intangible assets 55,348 50,815
Property, plant and equipment 1,436 1,089
Financial assets 16,167 13,367
Deferred tax assets 104 22
Investments accounted for using the equity method 8,040 6,473
-------- --------
81,095 71,766
-------- --------
Current assets
Trade and other receivables 16,021 24,067
Property developments in progress 10,645 8,805
Financial assets 25 400
Cash at bank 3,844 3,509
Income tax assets 72 -
-------- --------
30,607 36,781
-------- --------
-------- --------
Total assets 111,702 108,547
-------- --------
LIABILITIES
Non-current liabilities
Financial liabilities (8,843) (6,332)
Deferred tax liabilities (4,751) (4,537)
-------- --------
(13,594) (10,869)
-------- --------
Current liabilities
Trade and other payables (10,490) (9,470)
Income tax liabilities - (2,352)
Financial liabilities (13,544) (14,166)
-------- --------
(24,034) (25,988)
-------- --------
-------- --------
Total liabilities (37,628) (36,857)
-------- --------
-------- --------
Net assets 74,074 71,690
======== ========
Capital and reserves
Equity share capital 1,256 1,213
Share premium account 56,507 52,453
Available for sale reserve 77 84
Foreign currency translation reserve (7) 11
Retained earnings 16,241 17,419
-------- --------
Teesland plc group shareholders' equity 74,074 71,180
Minority interests - 510
-------- --------
Total equity 74,074 71,690
======== ========
Group cash flow statement
for the year ended 30 June 2007
Year to Year to
30 June 30 June
2007 2006
#'000 #'000
Operating activities
Operating profit after associate and joint venture results 3,093 10,534
Adjusted for:
Decrease / (Increase) in trade and other receivables 9,489 (12,482)
Profit on sale of properties (868) (2,144)
(Increase) / Decrease in trade and other payables (332) 5,929
Profit on disposal of available for sale investments - (484)
Depreciation of plant and equipment 573 420
Amortisation of intangible assets 1,133 1,920
Profit deriving from associates and joint ventures (916) (3,354)
-------- -------
Cash flows from operations 12,172 339
Taxation paid (3,819) (791)
-------- -------
Net cash flow from operating activities 8,353 (452)
-------- -------
Investing activities
Proceeds on sale of properties 6,694 20,596
Purchase of developments in progress (7,665) (3,919)
Purchase of financial assets (1,365) -
Purchase of plant and equipment (897) (758)
Sales of plant and equipment 37 51
Interest received 250 589
Increases in loans and receivables (1,029) (5,266)
Repayment of loans and receivables 474 3,378
Payments to acquire joint ventures (2,619) (9,789)
Proceeds on sale of joint ventures - 7,333
Dividends from joint ventures 1,595 409
Loans to joint ventures and associates (852) -
Cash acquired with subsidiaries 91 32,203
Purchase of subsidiary undertakings (3,085) (1,127)
Repayment of loans from joint ventures and associates 644 -
-------- -------
Net cash flow from investing activities (7,727) 43,700
-------- -------
Financing activities
Proceeds from issue of share capital 1,661 -
Interest paid (1,470) (1,294)
Repayments of borrowings (2,781) (49,608)
New borrowings 4,809 1,638
Dividends paid (2,373) (2,123)
-------- -------
Net cash flow from financing activities (154) (51,387)
-------- -------
Increase / (Decrease) in cash and cash equivalents 472 (8,139)
Cash and cash equivalents at beginning of the year (7,938) 201
-------- -------
Cash and cash equivalents at the year end (7,466) (7,938)
======== =======
1. Finance revenue 30 June 30 June
2007 2006
#'000 #'000
Interest receivable on loans to funds 86 427
Bank interest receivable 102 64
Other interest receivable 62 98
-------- --------
Total finance revenue 250 589
======== ========
Year to Year to
2. Finance costs 30 June 30 June
2007 2006
#'000 #'000
Interest on bank loans and overdrafts 1,258 1,290
Other interest payable 212 4
-------- --------
Total finance costs 1,470 1,294
======== ========
3. Segment information
The Group's geographical segments are based on the location of the Group's
assets and this represents the Group's primary reporting segment. Sales to
external customers disclosed in geographical segments are based on the
geographical location of the assets generating the revenue. It operates in
two geographic markets, the United Kingdom and the Rest of Europe.
The Directors are of the opinion that the Group is engaged in a single
segment of business, being that of integrated property, project, fund and
asset management services.
The following tables present revenue and profit information regarding the
Group's geographical segments for the years ended 30 June 2007 and 30 June
2006.
Year ended 30 June 2007 Rest of
UK Europe Total
#'000 #'000 #'000
Revenue
Sales to external customers 17,887 20,536 38,423
----------------------------
Segment revenue 17,887 20,536 38,423
----------------------------
Results
Segment result (6,251) 6,995 744
Profit on sale of properties 868 - 868
Other operating income 565 - 565
----------------------------
Operating (loss) / profit
before associate and joint
venture results (4,818) 6,995 2,177
----------------------------
Share of post tax profit from associates 78 - 78
Share of post tax profit / (loss) from joint
ventures 846 (8) 838
----------------------------
Operating (loss) / profit
after associate and joint
venture results (3,894) 6,987 3,093
Net finance costs (1,218) (2) (1,220)
----------------------------
(Loss) / Profit before taxation (5,112) 6,985 1,873
Tax expense (992)
--------
Profit for the year 881
--------
Year ended 30 June 2006 UK Rest of Total
Europe
#'000 #'000 #'000
Revenue
Sales to external customers 20,531 10,042 30,573
----------------------------
Segment revenue 20,531 10,042 30,573
----------------------------
Results
Segment result 893 2,247 3,140
Profit on sale of properties 2,144 - 2,144
Profit on disposal of
available for sale investments 484 - 484
Other operating income 1,412 - 1,412
----------------------------
Operating profit before
associate and joint venture results 4,933 2,247 7,180
Share of post tax profit from associates and
joint ventures 1,234 151 1,385
Share of post tax profit from joint ventures 1,969 - 1,969
Operating profit after associate and joint
venture results 8,136 2,398 10,534
Net finance costs (673) (32) (705)
----------------------------
Profit before taxation 7,463 2,366 9,829
Tax expense (2,083)
--------
Profit for the year 7,746
--------
4. Taxation
a) Tax on profit on ordinary activities
Year to 30 Year to 30
June 2007 June 2006
Current tax: #'000 #'000
Tax (credited) / charged in the income statement:
UK Corporation tax 567 2,188
Overseas tax 909 799
Adjustments in respect of previous years (171) (444)
-------- --------
Total current income tax 1,305 2,543
Deferred tax:
Use of tax losses current period - 32
Deferred tax on intangibles (340) (562)
Origination and reversal of temporary differences 27 70
-------- --------
Tax charge in the income statement 992 2,083
-------- --------
Tax relating to items charged to equity:
Deferred tax:
Unrealised (Loss) / Gain on available for sale financial assets (3) 3
-------- --------
(3) 3
-------- --------
b) Reconciliation of the total tax charge
Year to 30 Year to 30
June 2007 June 2006
#'000 #'000
The tax expense in the income statement for the year
is lower than the standard rate of corporation tax
in the UK of 30% (2006: 30%)
The differences are reconciled below.
Profit before taxation 1,873 9,829
-------- --------
Accounting profit multiplied by the UK
standard rate of corporation tax of 30% (2006: 30%) 562 2,949
Effects of:
Permanent differences 786 101
Temporary differences 90 -
Tax over provided in previous years (171) (444)
Share of post tax profit from associates
and joint ventures multiplied by 30% (275) (416)
Differences in overseas tax rates - (107)
-------- --------
Total tax expense reported in the income Statement 992 2,083
======== ========
Year to 30 Year to 30
c) Deferred tax June 2007 June 2006
#'000 #'000
The deferred tax included in the balance sheet is as
follows:
Deferred tax asset
Decelerated capital allowances 104 22
-------- --------
Deferred tax asset 104 22
======== ========
Deferred tax liability
Deferred tax on fair value adjustments 4,698 4,501
Deferred tax on revaluation of available for sale investments 33 36
Deferred tax other 20 -
-------- --------
Deferred tax liability 4,751 4,537
======== ========
5. Earnings per ordinary share
Basic earnings per share amounts are calculated by dividing net profit for the
year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares in issue during the year.
Diluted earnings per share amounts are calculated by dividing the net profit
attributable to ordinary equity holders of the parent by the weighted average
number of ordinary shares in issue during the year plus the weighted average
number of ordinary shares that would be issued if all share options were
exercised.
The following reflects the income and share data used in the basic and
diluted earnings per share computations:
Year to Year to
30 June 2007 30 June 2006
# 000 # 000
Net profit attributable to equity holders of the
parent 826 7,228
-------- --------
826 7,228
======== ========
The calculation of earnings per share is based on the following
weighted average number of shares:
Year to Year to
30 June 2007 30 June 2006
000's 000's
Weighted average number of shares 124,493 121,316
Employee share options 1,137 197
--------- ---------
Diluted weighted average number of shares 125,630 121,513
========= =========
Issued share capital for the above years has been weighted to reflect the date
the shares were issued. There have been no other transactions involving
ordinary shares or potential ordinary shares between the reporting date and
the date of completion of these financial statements.
Reconciliation of the calculation of the basic earnings per share to the
adjusted earnings per share
Year to Year to
30 June 30 June
2007 2006
#'000 #'000
Profit after tax and minority interest 826 7,228
-------- --------
Profits after tax and minority interest used to calculate
basic earnings per share 826 7,228
Amortisation of intangible assets 1,133 1,920
Deferred tax on amortisation (340) (567)
Bid advisory costs 2,411 -
-------- --------
Profits before amortisation, after
tax, used to calculate adjusted
earnings per share 4,030 8,581
======== ========
6. Additional information
Teesland plc is a public limited company incorporated and domiciled in Scotland.
The company's ordinary shares are traded on the London Stock Exchange.
The financial information for the year ended 30 June 2007 and 30 June 2006 is
abridged and has been extracted from the 2007 statutory accounts of Teesland plc
which were approved by the Board of Directors on 28th September 2007, along with
this preliminary announcement, but have not yet been delivered to the Registrar
of Companies. The auditors have issued an unqualified opinion on the 2007
statutory accounts. The 2006 statutory accounts have been delivered to the
Registrar of Companies. The auditors' report on the 2006 statutory accounts was
unqualified.
The financial statements have been prepared under IFRS and are consistent with
the accounting policies from the prior year.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EVLFLDKBEBBZ
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