RNS Number:6583T
Hampton Trust PLC
24 December 2003
HAMPTON TRUST PLC
INTERIM RESULTS for the period ended 30 September 2003
The results for the six months ended 30 September 2003 show an operating profit
of #387,000 compared to an operating profit from continuing operations for the
six months ended 30 September 2002 of #13,000 due to an increase in development
profits of #593,000 offset by a fall in income from the investment portfolio
which has decreased in size as a result of property sales.
The Group has continued to rationalise its investment portfolio during the
period and sustain its focus on the industrial property sector. During the six
months ended 30 September 2003 six non-core investment properties were sold,
raising net proceeds after fees of #11.4 million and producing total profits
from disposals of #251,000.
The original acquisition of the Fenner Factory at Maerdy ("Maerdy") gave rise to
goodwill amounting to #756,000. Capitalised goodwill of #525,000 remaining at
the time of sale of Maerdy has been written off and charged against the loss on
sale of continuing operations.
The loss on sale of discontinued operations of #185,000 reflects further costs
recognised in the period relating to the sale of Southend Property Holdings PLC
("Southend") in the prior year.
The results are once again dominated by the high cost of the Group's prior
charges and in particular the cost of servicing the 8% Convertible Unsecured
Loan Stock 2020 ("CULS") which contributed #1.18 million to the interest charge
for the period. The Directors have entered in to active discussions with the
institutional holders of all three classes of quoted instruments, being the
CULS, the 51/2% (net) Cumulative Convertible Reedemable Preference Shares and
the Ordinary Shares, in an effort to seek alternative strategies to return value
to the holders of each class. However, the cross holdings between the
instruments and the institutions cause conflict and as such a settlement has
not, as yet, been forthcoming. The Directors will continue to persevere with
these discussions.
On the sale of the factory at Maerdy noted above, it was necessary to break the
#3.8 million 8% fixed rate loan on which the property was secured. This resulted
in one-off loan breakage costs of #331,000 which is also reflected in interest
payable.
As reported in the report and accounts, Southend, a wholly owned subsidiary of
the Group, was disposed of in March 2003. This disposal relieved the Group of
its most significant long-term liability, being the #53.2 million 10.5% Fixed
Mortgage 2025 Debenture Stock resulting in an interest saving for the period of
#2.8 million, and left a receivable due from Southend of #14.6 million which was
written down to #6.4 million at 31 March 2003. The amount is repayable via a
mechanism dependant upon the proceeds for ultimate property disposals by
Southend being greater than defined amounts. In September 2003 Southend and its
subsidiaries were placed in to administration. The Board, however, has taken all
necessary steps to ensure that the Group recovers its receivable and is
currently in discussions with the administrator in this regard. The Group has
also secured representation on the creditor committees of the various
companies. It is understood that a sale of the properties has been agreed
subject to contract by the administrator with an anticipated completion date of
the end of January 2004. If the sale does proceed, this will have an adverse
effect upon the recovery of the receivable. I will report further once I have
any more detailed information.
The period has seen a net cash outflow from operating activities of #1.3 million
compared to a net cash inflow for the six months ended 30 September 2002 of #3.3
million. The difference of #4.6 million between the periods results from the
sale of Southend and an increase of #2.2 million in cash outflow on the Group's
Talbot Gateway development at Baglan Energy Park, Port Talbot, adjacent to
junctions 41 and 42 of the M4 motorway. The outflow enabled the completion on 10
October 2003 of Phase I of the Talbot Gateway development, which is a
prestigious 44,000 sq. ft. office building. Initial marketing has been very
encouraging and we are confident of securing a letting of either the whole, or a
substantial part of the property by the end of the current financial year. The
development has been jointly funded by the Welsh Development Agency (WDA) with a
property development and other grants of #3.5 million which were received in
full prior to 31 March 2003. The amount funded by the Group amounts to #2.7
million at 30 September 2003, which increases to approximately #2.8 million at
completion, while the property was independently valued at the start of 2003 at
#5.25 million on a completed basis. However, due to 'claw-back' provisions in
the Grant Agreement, this inherent 'profit' will not be realised unless the
property is retained until March 2008.
The sale of Southend has also contributed to the significant decrease in cash
outflow from returns on investments and servicing of finance from #5.8 million
to #2.53 million.
Against the current background of uncertain market conditions the Directors of
the Group realise the necessity to return value to the holders of each class of
the quoted instruments and will concentrate their efforts on achieving this
through either attempting to sell the business or an alternative commercial
solution.
HAMPTON TRUST PLC
GROUP PROFIT & LOSS ACCOUNT
Six months to Year to
30 September 31 March
2003 2002 2003
Unaudited Unaudited Audited
#000 #000 #000
Turnover
Continuing operations 4,095 4,120 12,129
Discontinued operations - 2,639 5,411
-------- ------- --------
4,095 6,759 17,540
Cost of sales (1,333) (2,208) (8,246)
-------- ------- --------
Gross profit 2,762 4,551 9,294
Administrative expenses (2,375) (2,394) (4,889)
-------- ------- --------
Operating profit
------------------------------- -------- ------- --------
Continuing operations 387 13 4
Discontinued operations - 2,144 4,401
------------------------------- -------- ------- --------
387 2,157 4,405
Share of associates' operating loss - - (30)
Profit (loss) on sale of investment
properties 251 (20) 126
Profit on sale of fixed asset
investments - 28 28
Loss on sale of discontinued operations (185) (12) (12)
Loss on sale of continuing operations (525) - -
Amounts written off investments (201) (1) (652)
Investment income 28 41 121
Interest payable and similar charges (3,111) (5,939) (11,332)
-------- ------- --------
Loss before taxation (3,356) (3,746) (7,346)
Taxation (7) (12) (45)
-------- ------- --------
Loss after taxation (3,363) (3,758) (7,391)
Dividends (239) (239) (479)
-------- ------- --------
Retained loss for the period (3,602) (3,997) (7,870)
======== ======= ========
Loss per share (2.48p) (3.04p) (5.94p)
======== ======= ========
HAMPTON TRUST PLC
GROUP BALANCE SHEET
30 September 31 March
2003 2002 2003
Unaudited Unaudited Audited
#000 #000 #000
Fixed assets
Goodwill 5,207 6,746 6,160
Tangible assets 73,226 158,925 82,611
Investments 2,140 2,617 2,342
--------- ------- -------
80,573 168,288 91,113
--------- ------- -------
Current assets
Stocks 11,232 15,448 10,313
Property held for resale 4,690 5,253 4,690
Debtors
due within one year 3,070 5,536 3,586
due after one year 6,354 - 6,354
Cash at bank 1,093 2,980 862
--------- ------- -------
26,439 29,217 25,805
Creditors: amounts falling due
within one year (16,922) (42,330) (19,170)
--------- ------- -------
Net current assets (liabilities) 9,517 (13,113) 6,635
--------- ------- -------
Total assets less current liabilities 90,090 155,175 97,748
--------- ------- -------
Creditors: amounts falling due after
more than one year:
Convertible debt (29,650) (29,650) (29,650)
Other creditors (47,602) (103,900) (51,963)
--------- ------- -------
(77,252) (133,550) (81,613)
--------- ------- -------
Net assets 12,838 21,625 16,135
========= ======= =======
Capital and reserves
Called-up share capital 16,189 15,509 16,189
Share premium account 670 670 670
Revaluation reserve 4,785 15,870 5,103
Capital redemption reserve 31,106 31,106 31,106
Other reserve 780 780 780
Profit and loss account (40,692) (42,311) (37,713)
--------- ------- -------
Shareholders' funds
--------- ------- -------
Equity 3,173 12,438 6,709
Non-equity 9,665 9,186 9,426
--------- ------- -------
12,838 21,624 16,135
========= ======= =======
HAMPTON TRUST PLC
CONSOLIDATED CASH FLOW STATEMENT
Six months to Year to
30 September 31 March
2003 2002 2003
Unaudited Unaudited Audited
#000 #000 #000
Net cash (outflow) inflow from
operating activities (1,296) 3,306 7,209
Return on investments and servicing
of finance (2,529) (5,806) (10,017)
Taxation (29) (13) (46)
Capital expenditure and financial
investment 9,650 9,449 7,609
Acquisitions and disposals (666) 388 2,457
------- ------- -------
Cash inflow before management of liquid
resources and financing 5,130 7,324 7,212
Financing (4,916) (4,662) (6,575)
------- ------- -------
Increase in cash in the period 214 2,662 637
======= ======= =======
HAMPTON TRUST PLC
RECONCILIATION OF MOVEMENT IN GROUP SHAREHOLDERS' FUNDS
Six months to Year to
30 September 31 March
2003 2002 2003
Unaudited Unaudited Audited
#000 #000 #000
Total recognised gains and losses
relating to the period (3,297) (3,781) (9,950)
Issue of ordinary share capital - - 680
------- ------- -------
Net reduction in shareholders' funds (3,297) (3,781) (9,270)
Opening shareholders' funds 16,135 25,405 25,405
------- ------- -------
Closing shareholders' funds 12,838 21,624 16,135
======= ======= =======
HAMPTON TRUST PLC
Notes
1. The directors do not propose an interim ordinary dividend (2002 - nil).
Preference dividends totalling #nil (2002 - #nil) were paid in the period and a
further amount of #239,000 (2002 - #239,000) has been appropriated but not paid
due to insufficient distributable reserves.
2. The calculation of loss per share is based on a loss, after having
deducted preference dividends, of #3,602,000 (2002 - #3,997,000) and on
145,275,194 (2002 -131,672,629) ordinary shares, being the weighted average
number of shares in issue during the period less shares owned by the Company's
ESOP Trust which has waived its entitlement to dividends.
3. The results for the six months ended 30 September 2003 and 30 September
2002 are unaudited and do not constitute statutory accounts within the meaning
of Section 240 of the Companies Act 1985. The accounts for the year ended 31
March 2003, which include an unqualified audit report, have been delivered to
the Registrar of Companies.
4. The interim report is being sent to shareholders. In addition copies are
available from the Company's registered office, 30-32 Pall Mall, Liverpool, L3
6AL.
Directors
Graeme Jackson
David A Diemer, MRICS
Edward A Dadley
Richard J I Parker*
Richard Wright*
*non-executive
Secretary
John A Sutherland, FCA
Registered Office
30-32 Pall Mall,
Liverpool L3 6AL
Registrar and transfer office
Capita Registrars
The Registry
Beckenham
Kent
BR3 4TU
Registered in England No. 267163
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