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Wiggins interim results Copied from http://boards.fool.co.uk/Message.asp?mid=6318801&sort=postdate ---------------------------------------------------------------------- Hi Fools, PLANESTATION The PlaneStation network currently comprises the following
airports: Odense (Denmark) Tour operators in Denmark, Sweden and Norway are actively
discussing the use of Odense as a base for developing tourism within the
PlaneStation network. Smyrna (Nashville, USA) Smyrna is our first airport acquisition in the USA. We expect to announce several other American airport acquisitions in the coming months. We have applied for permission to extend the Smyrna runway to take Trans-Atlantic flights and expect to receive approval shortly. We are in the process of securing construction funding from government agencies to complete this task. Pilsen (Czech Republic) The Pilsen airport is close to the German border. This area of the Czech Republic has a substantial industrial base and benefits from a buoyant tourist trade to the home of Pilsener beer. CAA approval for civilian use has been received and we are in negotiations with a number of major tenants for this airport. STRATEGIC PARTNERSHIPS Our philosophy has always been to source partners who are
respected industry leaders in specialist fields. As the rate of airport
acquisition is accelerated we will announce a series of strategic alliances
that will ensure that our organisation is properly financed and well managed.
Partnerships will be created with some of the best known and respected
organisations. In particular, our negotiations with a major international
technology group are now very advanced and we expect to be able to make a
formal announcement early FAIRFIELD PARK The company is confident of obtaining outline planning permission at Fairfield in the near future, following which work will commence on the new and exciting development of the hospital and surrounding area. LONDON CITY RACECOURSE In November the Group unveiled the stunning new design for the grandstand that had been prepared by architects Foster and Partners. The detailed design will be available in January 2001 and will demonstrate that London City is set to become a development of truly international standing. BOARD APPOINTMENT As announced, from January 2001 Sir Michael Jenkins will join
the Wiggins board as a non-executive director. Sir Michael is Vice Chairman of
Dresdner Kleinwort Benson, the investment banking arm of the Dresdner Group. RESULTS In the six months ended 30th September 2000 our results were
in line with market expectations at a recorded loss of £6,856,000 (1999
profit re-stated £22,777,000). THE FINANCIAL REPORTING REVIEW PANEL As I reported in the Annual Report for 2000, the Company has
been in discussions with the Financial Reporting Review Panel, who raised
issues about certain items disclosed in our accounts for the year ending 31
March 1999. The Company gave careful consideration to the points raised and
engaged specialist advisers to address those issues. Accordingly, the Company
announced certain changes in the Annual Report for 2000. The Panel has raised
issues by way of formal enquiries into the accounts for the years 1996 to
2000. A number of these issues result from the changes announced in the Annual
Report for 2000. PROSPECTS With four airports contracted and several more expected to be
confirmed in the coming months, PlaneStation is entering a stage of rapid
development that we are confident will be a springboard for more success for
the Group. The development land associated with each airport will open further
exciting NOTE TO THE CHAIRMAN'S STATEMENT Update on the Financial Reporting Review Panel 3. Manston As set out in note 25 (iii) to the Company's 2000 accounts,
the sale of 20 acres to MEPC for £5 million was recorded as a sale in the
year to March 2000, and the 1999 accounts were adjusted accordingly. Financial assets Financial assets
Floating rate on which no
financial assets interest is paid
Fixed rate
financial assets Total
£000 £000 £000 £000
Currency
Sterling 549 - 27,513 28,062
US$ 11 - - 11
Total 560 - 27,513 28,073
Floating rates are linked to base rate and the average period to maturity
of the interest-free debtors of £26,503,000 is 2.4 years.
The interest-free asset are investments with no maturity date.
At 31 March 1999
Financial assets
Floating rate on which no
financial assets interest is paid
Fixed rate
financial assets Total
£000 £000 £000 £000
Currency
Sterling 158 - 1,010 1,168
US$ 98 - - 98
Total 256 - 1,010 1,266
Floating rates are linked to base rate. The interest-free assets are
investments with no maturity date.Financial Liabilities Financial liabilities comprise interest-bearing debt. Short-term creditors are Excluded as permitted by FRS 13. At 31 March 2000 Financial liabilities
Floating rate on which no
financial interest is paid
liabilities Fixed rate
financial
liabilities Total
£000 £000 £000 £000
Currency
Sterling 8,874 13,253 - 22,127
At 31 March 1999
Financial liabilities
Floating rate on which no
financial interest is paid
liabilities Fixed rate
financial
liabilities Total
£000 £000 £000 £000
Currency
Sterling 7,741 3,380 - 11,121
At 31 March 2000
Fixed rate financial liabilities Financial
liabilities on
which no interest
weighted weighted average is paid weighted
average period for which average period
interest rate rate is fixed until maturity
% Months Months
Sterling 9.96 18 -
At 31 March 1999
Fixed rate financial liabilities Financial
liabilities on
which no interest
weighted weighted average is paid weighted
average period for which average period
interest rate rate is fixed until maturity
% Months Months
Sterling 11.07 12 -
The floating rate financial liabilities comprise: Sterling denominated bank borrowings and overdrafts that bear interest at rates based on LIBOR or bank base rates. Obligations under finance leases and hire purchase contracts. (b) Exchange instruments/exposures There are no currency exposures at 31 March 2000 or at 31 March 1999. (c) Fair values The fair value of all financial assets and liabilities at 31 March 2000 and 31 March 1999 was not materially different from their book value. There were no derivative financial instruments in either financial year. (d) Maturity of financial liabilities The maturity of the Group's financial liabilities at 31 March 2000 was as follows: 2000 1999
£000 £000
In one year or less, or on demand 15,576 10,278
In more than one year, but not more than two years 5,404 68
In more than two years, but not more than five years 861 660
In more than five years 286 115
Total 22,127 11,121
(e) Borrowing facilities
The Group has various available borrowing facilities. The committed
facilities in respect of which all conditions precedent have been met at
that date, were as follows:
2000 1999
£000 £000
Expiring in one year or less 20,014 11,069
Three were no facilities which remain undrawn but the facilities have not been exceeded. 6. Pensions Following a query raised by the Panel, the Company accepts that its accounting policy for pension costs requires clarification. The policy should have read: 'Certain employees are members of a company sponsored pension arrangement in their own names, to which the Group makes contributions which are charged against profit when incurred. The Group also operates a pension scheme providing benefits based on final pensionable pay. This scheme is closed to new entrants and there is only one member who is accruing further benefits. Contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over the employees' working lives within the Group.' The Panel has also raised an issue as to the appropriateness of the £160,000 charge in the March 2000 profit and loss account which reflects the contributions made to the defined benefit scheme for that financial period. The actuarial advice received by the Company treats the Wiggins Group plc Retirement Life Assurance and Disability Scheme as a 'live' pension scheme. However, following investigations pursuant to the Panel's query, and having obtained specialist advice, the Company accepts that the scheme cannot be treated as a 'live' scheme under relevant accounting rules. Accordingly, the shortfall of £1.3 million which was being recognised over the expected life of the scheme should have been recognised in the 2000 accounts. The contributions paid to this scheme since August 1999 have now been allocated in part to interest with the remainder discharging the liability now recorded in the accounts. The comparative figures for 2000 in the interim results have been restated accordingly. As a result, the profit for the year ended 31 March 2000 has been reduced by £1,233,000 (six months ended 30 September 1999: £19,000). 7. Restatement of Accounts. In the five year review in note 24 to the 2000 accounts, the Company restated certain figures where it had accepted that errors had previously existed. The Panel considers that this restatement contains insufficient detail. The Panel has therefore requested that the Company issue revised accounts for 1997 to 1999 inclusive to cover those matters affected by issues raised by the Panel. The Company has acceded to this request. Those revised accounts will be issued once the further discussions with the Panel are concluded. As the discussions with the Panel are not yet concluded it is possible that other changes will be made. An announcement will be made when the discussions with the Panel are complete. 8. 1996 accounts In the course of dealing with the Panel's enquiries it has come to the Company's attention that certain contracts entered into in 1996, with a cumulative value of £2,337,000 and profit of £1,086,000, might give rise to further questions concerning revenue recognition. Where revenue was not in fact received for these contracts, this was reversed in the accounts for subsequent years, namely 1997 and 1998. The Company is obtaining specialist advice and will be discussing these issues with the Panel. It may become necessary to revise the 1996 accounts in addition to those for later years. Due to the time since these contracts were entered into the Company has not yet managed to finalise its investigation, and cannot therefore say what effect any revised treatment of these contracts would have on the accounts for previous years. 9. The Panel's enquiries The Panel has indicated that it is minded to seek a ruling of the Court in the near future unless agreement can be reached upon the Panel's issues.
Unaudited Consolidated Interim Results
for the six months ended 30th September 2000
Unaudited Six Unaudited Six Audited
Months to Months to Year to
30.9.00 30.9.99 31.3.00
(Restated) (Restated)
£000 £000 £000
Turnover 3,893 44,743 49,820
Operating (loss)/profit (5,871) 26,105 22,783
Net interest payable (985) (774) (1,910)
(Loss)/profit on ordinary
activities before taxation (6,856) 25,331 20,873
Taxation on (loss)/profit
on ordinary activities - (2,554) (2,066)
(Loss)/profit for the financial
period attributable to shareholders (6,856) 22,777 18,807
Earnings per share - basic (0.80)p 2.74p 2.26p
Earnings per share - diluted (0.80)p 2.70p 2.20p
Statement of total recognised gains and losses
Unaudited Six Unaudited Six Audited
Months to Months to Year to
30.9.00 30.9.99 31.3.00
(Restated) (Restated)
£000 £000 £000
(Loss)/profit for the financial (6,856) 22,777 18,807
period
Prior year adjustment - note 6 (4,204)
Total gains and losses recognised
since the last annual report (11,060)
Unaudited Consolidated Balance Sheet
as at 30th September 2000
Unaudited Six Unaudited Six Audited
As at As at As at
30.9.00 30.9.99 31.3.00
(Restated) (Restated)
£000 £000 £000
Tangible fixed assets 33,702 32,229 33,491
Fixed asset investments 1,772 1,010 1,010
35,474 33,239 34,501
Current Assets
Stocks and work in progress 14,767 13,004 13,907
Debtors:
amounts falling due within one year 14,052 13,659 9,152
amounts falling due after one year 21,779 24,513 26,503
Cash at bank and in hand 1,958 2,369 560
52,556 53,545 50,122
Creditors:
amounts falling due within one year (31,922) (26,206) (31,668)
Net current assets 20,634 27,339 18,454
Total assets less current 56,108 60,578 52,955
liabilities
Creditors:
amounts falling due after more than (7,214) (15,042) (11,389)
one year
NET ASSETS 48,894 45,536 41,566
Capital and reserves
Called up share capital 8,724 8,306 8,306
Reserves 40,170 37,230 33,260
EQUITY SHAREHOLDERS' FUNDS 48,894 45,536 41,566
Unaudited Consolidated Cash Flow Statement
for the six months to 30th September 2000
Unaudited Unaudited Audited
Six Months Six Months Year to
to 30.9.00 to 30.9.99 31.3.00
(Restated) (Restated)
£000 £000 £000
Net cash outflow from operating activities (7,384) (1,054) (805)
Returns on investments and servicing of
finance
Interest received 165 7 25
Interest paid (1,398) (670) (1,305)
Interest element of hire purchase payments (110) (38) (167)
(1,343) (701) (1,447)
Taxation
UK corporation tax paid (45) - (1,167)
Capital expenditure and
financial investment
Purchase of investments (762) - -
Purchase of tangible fixed assets (1,326) (1,457) (5,002)
Proceeds from sale of - - 3
tangible fixed assets
(2,088) (1,457) (4,999)
Financing
Issue of ordinary share capital 14,532 1 6
Capital element of hire (321) (101) (372)
purchase payments
Share issue expenses (348) (1) (6)
Receipt of short term borrowings - 5,314 10,410
Repayment of short term borrowings (2,225) (2,829) (2,865)
Receipt of longer term borrowings 961 6,500 -
12,599 8,884 7,173
Increase/(decrease) in cash 1,739 5,672 (1,245)
Reconciliation of Operating (Loss)/Profit to Net Cash Outflow from Operating
Activities
Unaudited Unaudited Audited
Six Six Year to
Months Months 31.3.00
to to
30.9.00 30.9.99
(Restated) (Restated)
£000 £000 £000
Operating (loss)/profit (5,871) 26,105 22,783
Depreciation and amortisation 382 124 471
(Increase)/decrease in stocks and work in
progress (860) 2,155 1,252
Increase in debtors (282) (34,868) (32,245)
(Decrease)/increase in creditors and other (753) 5,430 6,935
items
Loss on sale of tangible fixed assets - - (1)
Net cash outflow from operating activities (7,384) (1,054) (805)
Analysis of Cash/(Debt)
Unaudited Unaudited Audited
Six Months Six Months Year to
to 30.9.00 to 30.9.99 31.3.00
(Restated) (Restated)
£000 £000 £000
Cash at bank and in hand 1,958 2,369 560
Bank loans and overdrafts (5,454) (2,687) (7,795)
(3,496) (318) (7,235)
Debt due within one year (11,323) (6,674) (7,348)
Debt due after more than one year (1,066) (6,615) (5,016)
Hire purchase (2,590) (1,981) (1,968)
(14,979) (15,270) (14,332)
Total debt (18,475) (15,588) (21,567)
Reconciliation of Net Cash Flow to Movement in Net Debt
Unaudited Unaudited Audited
Six Months Six Months Year to
to 30.9.00 to 30.9.99 31.3.00
(Restated) (Restated)
£000 £000 £000
Movement in cash 1,739 5,672 (1,245)
Cash flow from movement in debt 1,585 (8,884) (7,173)
Change in debt resulting from cash flows 3,324 (3,212) (8,418)
New hire purchase (232) (1,511) (2,284)
Movement in net debt in period 3,092 (4,723) (10,702)
Net debt at commencement of period (21,567) (10,865) (10,865)
Net debt at end of period (18,475) (15,588) (21,567)
Notes:
1) The financial information for the six months ended 30th September
2000 has not been audited, nor has the financial information for the six
months ended 30th September 1999. However, the interim report includes a
review signed by the auditors. The comparative figures for the year ended
31st March 2000 do not constitute the Company's statutory accounts for
that year, but have been extracted from the statutory accounts filed with
the Registrar of Companies which carried an unqualified audit report. The
accounts for the year ended 31 March 2000 have been restated as detailed
in note 6. The report has been prepared in accordance with applicable
accounting standards on a consistent basis using the accounting policies
set out in the 2000 annual report, except for the change in accounting
policy for start-up costs in accordance with UITF abstract 24 'Accounting
for start-up costs' (see note 6).
2) Tax is provided at 30% after taking into account tax losses brought
forward and capital allowances.
3) No dividends have been paid or proposed in respect of the period.
4) The calculation of earnings per Ordinary share is based on the loss
on ordinary activities after taxation of £6,856,000 (half year to 30th
September 1999 - £22,777,000 profit and year to 31st March 2000 £
18.817,000 profit) and on 859,636,405 Ordinary shares (830,525,203 and
830,591,006 respectively) being the weighted average number of shares in
issue in the respective financial periods.
The calculation of diluted earnings per Ordinary share is based on
901,526,990 shares (half year to 30th September 1999 843,837,413 and year
to 31st March 2000 853,702,635)
5) Reconciliation of Movements in Equity Shareholders' Funds.
Unaudited Unaudited Audited
Six Six Year to
Months Months 31.3.00
to to
30.9.00 30.9.99
(Restated) (Restated)
£000 £000 £000
(Loss)/profit for the period (6,856) 22,777 18,807
New shares issued for cash 14,532 - 6
New shares issued for an interest in freehold - 1,845 1,845
land
Share issue costs (348) - (6)
Net addition to equity shareholders' funds 7,328 24,622 20,652
Opening equity shareholders' funds(originally £
45,770,000 before deducting prior year adjustment
of £4,204,000)
41,566 20,914 20,914
Closing equity shareholders' funds 48,894 45,536 41,566
6) Prior Year Adjustment
a. Prepayment
As disclosed in the accounts to 31 March 2000 the development and start-up
cost in connection with the PlaneStation project was reported in the
balance sheet as a prepayment. Whilst the company believes that this
treatment was both appropriate and consistent with earlier years the
publication of UITF Abstract 24 'Accounting for start-up costs ' requires
such costs to be recognised as an expense when incurred. Accordingly the
relevant expenditure of £2,981,000 has been written off in the accounts to
31 March 2000 as a prior year adjustment representing a change in
accounting policy for such costs in accordance with UITF abstract 24.
b. Pension arrangements
Paragraph 6 in the note to the Chairman's statement outlined the facts in
relation to the Company's treatment of pension costs. The Company has now
accrued for a shortfall in the scheme as a prior year adjustment, a creditor
of £1,147,000 for the capital value of the shortfall at 31 March 2000 and £
76,000 representing the interest which had accrued at 31 March 2000 from
the date of the last valuation.
The prior year adjustment is analysed as follows:
£000
Write off prepayment as a result of change in 2,981
accounting policy Provision for pension costs
- capital 1,147
- interest 76
4,204
7) Copies of this report will be sent to shareholders and are available at
the Company's offices at 35 Berkeley Square London W1J 5AB
19th December 2000
Independent Review Report to Wiggins Group plc
We have been instructed by the Company to review the financial information set
out on pages 4 to 10 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board. A review consisted principally of
making inquiries of management and applying analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with the Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.
Financial Reporting Review Panel
In arriving at our review conclusion, we have considered the adequacy of
disclosures made in the financial information concerning the ongoing
discussions with the Financial Reporting Review Panel. A number of these
matters have now been concluded and are reflected within the interim
statement.
The future outcome of the ongoing discussions could require further
modification of the financial information. The Company cannot say at this
stage what effect any revised treatment might have on the interim figures.
Details of the circumstances relating to this are attached in the note to the
Chairman's Statement.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months to
30th September 2000.
HLB Kidsons
Registered Auditors
Chartered Accountants
Chelmsford
19th December 2000
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