Preliminary Results Presentation June 2011

Transcription

1 Preliminary Results Presentation June 2011 Michael Knight Chairman Nigel Godefroy Group Chief Executive Natasha Gadsdon Finance Director

2 Year of progress Air South West Disposed reducing overall risk to the group and further drain on resource Bank New 3 year facilities agreed Marina opportunities Sutton Harbour is the preferred bidder for two new south coast marinas BBC Agreed heads of terms with Sir Robert McAlpine for East Quays scheme Airport In process to address end to exposure to airport losses.

3 Current strategy Re-shape the group Reduce exposure to underperforming businesses Focus on building core businesses for a platform for future growth. Focus on Waterfront Regeneration Sutton Harbour, marinas, waterfront estate and facility management, waterfront development Reduce gearing Sell trading development assets Sell non-core investment in Cumbria LIFT Improve annuity revenues Control costs Unlock value Regenerate other sites around Sutton Harbour and the airport land as conditions permit Resumption of dividend payments.

4 Results headlines 1.608m profit before tax (excluding revaluation) from continuing operations. Stability of asset values Independent valuation by Lambert Smith Hampton at 31 March Solid marine performance Record year for landings at Sutton Harbour Fisheries. Plymouth City Airport results deteriorated Following route withdrawals (London City withdrawn 22 May 2010 and Gatwick withdrawn 31 Jan 2011). Airport land Disposal of third tranche of surplus land in December Dividend not recommended whilst the group re-shapes its activity base and to take account of delays in trading property stock realisations due to slow market conditions.

5 Results summary Trading performance before tax (continuing activities) 1.608m 6.551m Fair value adjustment 0.103m ( 0.539m) Profit before tax (continuing activities) 1.711m 6.012m Tax credit/(charge) 0.244m ( 1.520m) Loss on discontinued activities (Air Southwest) ( 8.407m) ( 2.391m) Dividend per share 0.0p 1.0p Net assets m m Net assets per share 57.3p 68.5p Net debt ( m) ( m) Gearing 58.2% 35.0%

6 Balance Sheet Summary Balance Sheet Non-current assets 50,341 59,217 Current assets - Inventories 13,996 11,315 - Trade and other debtors 2,378 2,687 Liabilities - Bank (21,016) (15,096) - Deferred income (1,481) (3,733) - Provisions (2,636) (225) - Deferred tax and other tax (3,323) (5,131) - Trade and other creditors (2,178) (5,901) Net assets 36,081 43,133 Shape of balance reflects group without ASW. Inventories include provision for road and infrastructure works at airport, see corresponding provision. Group has 19m bank debt > 1year with 2m <1year under new facility terms. Deferred income comprises rent and marina fees paid in advance. Net assets per share 57.3p 68.5p.

7 Business activities review

8 Regeneration The investment portfolio Investment Portfolio Car Parks 3,400 3,350 North Quay House 3,336 3,391 Barbican Market estate 1,970 1,800 Lockyers/NMA estate 3,200 3,205 Fishmarket merchant units 1,935 1,890 Other 6,944 6,914 20,785 20,550 Valuations by Lambert Smith Hampton Investment KPIs Net initial yield 8.15% 8.20% Reversionary yield 8.94% 910% Vacancy rate 14.28% 18.0% ERV vacant units 262, ,000 Ave, unexpired lease 9.2 years 9.6 years Excluding properties at Plymouth City Airport Stable performance shown in resilient valuations. Letting of vacant space in Salt Quay House to Regus for serviced offices. Re-gear of lease to Edinburgh Woollen Mill and rental increase to other tenants. Fishmarket merchant units voids reduced following grant aided refit works. Post year end lettings once completed will reduce vacant space to 6.63% and reduce vacant ERV by 117,000.

9 Regeneration The owner occupied portfolio Owner Occupied Portfolio Marinas 16,995 17,125 Sutton Harbour Fisheries 5,200 4,600 Airport estate 5,451 5,471 North Quay House 2 nd floor Valuations by Lambert Smith Hampton 1,004 1,004 28,650 28,200 Specialised assets valued using income based approach Marinas stable valuation. Fishmarket improvement due to improved earnings by the business. Airport estate includes 500,000 grant aided runway lighting improvements which are not valued. Airport estate valued on existing uses as at 31 March North Quay House 2 nd floor used as group head quarters.

10 Regeneration Development Trading property stock Sites around Sutton Harbour 6,515 Exeter 639 Portland 1,816 Airport land 4,457 Other misc. projects ,630 Sites at Sutton Harbour include East Quays, Salt Quay phase II, North Quay phase II. The group has agreed heads of terms with Sir Robert McAlpine for the sale of East Quay I site for the development of new BBC premises, 28 apartments, 9,500 sq ft office space and 1,400 sq ft retail unit. Expected programme to complete Dec Other sites ready to dispose of: Exeter Quays retail unit Portland site for residential use East Quays II site residential use Airport care home site 4 th tranche surplus airport land due to be sold in current financial year.

11 BBC development at East Quays Regeneration BBC development.

12 Marine activities Record year at Sutton Harbour Fisheries. 4,700 tonnes fish landed (2010: 3,600 tonnes) Marinas business has held up well. Vacancy rate for year ended 31 March 2011 was 11% after creating a further 25 berths in Stronger demand continues for larger vessels and pricing structure and berthing configurement to be revised for next season. Hosting Rolex Fastnet race from August 2011 at Sutton Harbour.

13 Marine activities new opportunities Rationale Existing successful marina operations and waterfront regeneration specialism Utilisation of existing management Recurring annuity income Valuation uplift potential East Cowes opportunity In partnership with SEEDA and harbour commissioners to construct a new breakwater and a 400 berth marina. Millbay (Plymouth) opportunity In partnership with English Cities Fund to construct and operate a new 190 berth marina. Millbay.

14 Plymouth City Airport Plymouth City Airport Limited has 143 unexpired years of lease remaining. Plymouth City Council (PCC) is the freeholder. Under terms on lease the airport company has served notice that it intends to cease operations by the end of PCC to produce viability report before closure can be confirmed. Three months notice to be served to ASW. Group to work with PCC to maximise best value from alternative use of land. Accounting for the airport The airport is considered to be a single cash generating unit (CGU) and the collective assets of the CGU have been considered for impairment given the indication that the airport may close. Recoverable amount, fair value less costs to sell, attributable to the Group is expected to exceed the carrying value of the airport assets. c. 10m. The cost of a road and other infrastructure improvements, together with related professional costs, are provided and allocated between surplus land and operational land on an area basis. These assets are not yet constructed, but are provided and included in the airport carrying value as above.

15 Outlook Plymouth City Airport Managed withdrawal from operations East Quays Much anticipated scheme for BBC to bring forward Realisations for cash and profit Sales of trading property stock and Cumbria LIFT investment Estate management New lettings reducing voids and increasing net income Marketing focus to increase marina occupancy and yields

16 Summary Transport activities Group moving on from the painful exit from ASW and taking short term action to address airport losses. Focus on waterfront regeneration and marine activities. New opportunities which fit with group focus and strategy to increase recurring revenues and build portfolio for investment growth. High quality asset Manage and improve the existing portfolio for growth. Re-shape the group Active and visible process to provide platform for future activities.

17 Contact us at: Sutton Harbour Holdings plc North Quay House Sutton Harbour Plymouth PL4 0RA