SUTTON HARBOUR GROUP PLC — Earnings Release 2014

Jun 17, 2014

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RNS Number : 7535J

Sutton Harbour Holdings PLC

17 June 2014

17 June 2014

SUTTON HARBOUR HOLDINGS PLC ("the Group")

Preliminary results for the year ended 31 March 2014

Sutton Harbour Holdings plc ("Sutton Harbour", "the Company"), the AIM listed waterfront regeneration and destination specialist, announces preliminary results for the year ended 31 March 2014.

Highlights

·      The opening of the new, partially complete 171 berth King Point Marina at Millbay in September 2013 and subsequent letting of the 2,012 sq ft first floor premises to a restaurant operator

·      Commissioning and preparation, with the Company's architects, of a 'Vision for Sutton Harbour' tool and research pack to target specific high quality end users

·      Four new lettings around Sutton Harbour equating to 9,015 sq ft

·      Creation of a new masterplan for new uses on the former airport site, after the planning inspector determined the local planning authority should give proper consideration to the use of the site

·      The sale of one acre of land adjacent to the former airport site

·      The successful applications for match funded support from the Marine Management Organisation for major infrastructure renewals at the fishmarket and in Sutton Harbour.

Financial

·      Revenues at £7.045m (2013: £7.039m)

·      Adjusted gross profit* £2.491m (2013: £2.720m)

·      Gross profit £2.137m (2013: £1.742m)

·      Adjusted profit before tax** of £0.308m (2013: £0.725m)

·      Profit/(loss) before tax £0.265m (2013: £(3.679m))

·      Year-end net debt £20.2m (2013: £17.4m); gearing: 52.5% (2013: 47.5%)

·      Net assets  £38.6m (2013: £36.6m) or 40.0p (2013: 38.0p) per share

* Before accounting for onerous leases, impairments and administration costs

**Before accounting for onerous leases, impairments and fair value adjustments on investment property

Graham Miller, Chairman, commented:

"I am delighted to report a period of good progress for the Group.  We have a clear vision for the regeneration of the Sutton Harbour area and the further growth of our trading operations.  The stability of our core business combined with the significant potential for development within our asset portfolio is key to enhancing long term shareholder value.

Three months into the new financial year, the trading businesses are performing in line with expectations. We are focused on plans to realise land assets and develop other sites to release cash and to grow the asset base and we are  committed to a medium term programme of capital investment with matched grant funding to support and grow revenue from existing facilities.

With a general improvement in the UK economy and a keen focus on our core businesses, we are now well placed to take advantage of increasing demand for our real estate portfolio and to drive revenue increases from marine-related and car parking trading businesses."

For further information, please contact

Sutton Harbour Holdings plc Jason Schofield - Chief Executive Natasha Gadsdon - Finance Director	01752 204186
Arden Partners Richard Day James Felix	020 7614 5917
Yellow Jersey John Moriarty Philip Ranger	07971 402224

Chairman and Chief Executive's Statement

Year Ended 31 March 2014

Introduction from Chairman

In this, my first full year results statement as Chairman of Sutton Harbour Holdings, I am delighted to report a period of good progress for the Group. We have a clear vision for the regeneration of the Sutton Harbour area and the further growth of our trading operations. The stability of our core businesses combined with the significant potential for development within our asset portfolio is key to enhancing long term shareholder value.

Shareholders Overview

Achievements during the year included:

·      The opening of the new, partially complete 171 berth King Point Marina at Millbay in September 2013 and subsequent letting of the 2,012 sq ft first floor premises to a restaurant operator

·      Commissioning and preparation, with the Company's architects, of a 'Vision for Sutton Harbour' tool and research pack to target specific high quality end users

·      Four new lettings around Sutton Harbour equating to 9,015 sq ft

·      Creation of a new masterplan for new uses on the former airport site, after the planning inspector determined the local planning authority should give proper consideration to the use of the site

·      The sale of one acre of land adjacent to the former airport site

·      The successful applications for match funded support from the Marine Management Organisation for major infrastructure renewals at the fishmarket and in Sutton Harbour.

As economic conditions improve, these activities support our strategies to position the Group as a leading marine, waterfront regeneration and destination specialist in Southern England. Whilst the Group is strongly focused on the management and further development of its core assets around Sutton Harbour, it continues to work towards the realisation of its long leasehold interest in 113 acres of land  located at the former airport site in the Derriford area of Plymouth.

Results and Financial Position

We have been encouraged by a noticeable increase in activity levels within our core businesses which have led to an increasing revenue trend during the year. The Group continues to contend with rising costs of utilities and these results incorporate the £279,000 impact of an unexpected rating reassessment of the harbour of which £229,000 relates to the three previous years. The Group continues to challenge the basis of this rating assessment and has successfully claimed business rates rebates, in respect of the former airport site, of an approximately equivalent amount after satisfying the Valuation Office that the Derriford site was no longer rateable as an operational airport facility.

Despite January and February 2014 seeing some of the worst storms ever recorded across the South West coast, the Group experienced no noteworthy damage, and suffered no material impact on trading.  During this period the secure marina at Sutton Harbour received additional vessels taking refuge behind the lock gates, whilst the disruption to fishing led to reduced activity at the fishmarket.

The Group commissioned property asset valuation reports from its valuers, Jones Lang LaSalle, as at 31 March 2014. The outcome of the complete valuation, as at the year end, gives rise to an overall surplus of £1.304m since 31 March 2013, of which £2.699m surplus was recorded in the first half year, followed by a £1.395m deficit in the second half year which resulted from the harbour rating re-assessment recently received from the Valuation Office. As at 31 March 2014, the new King Point Marina continued to be held as an Asset in the Course of Construction at cost as it was not fully complete.

During the year the Group successfully let the 5,490 sq ft 5th Floor of Salt Quay House to a regional firm of Chartered Accountants, and, as expected and previously reported, this resulted in the crystallisation of an onerous lease. The letting of the 4th Floor, also at Salt Quay House, was agreed on a profit share basis with the tenant, Regus, a number of years ago and an onerous lease provision taking into account current underperformance and expected future occupancy has also been created. The income statement therefore includes creation of a one off non-cash provision of £354,000 which will be released over the remaining years of the lease until the Group's tenancy expires in September 2021.

The Group's net assets as at 31 March 2014 increased by 5.5% to £38.6m (2013: £36.6m), expressed as 40.0p per share (2013: 38.0p per share). Net bank debt stood at £20.2m (2013: £17.4m) with gearing, expressed as a percentage of net assets at 52.5% (2013: 47.5%). During the year, the main capital project was the construction of King Point Marina which accounted for £2.4m of the £2.8m increase in net debt. All covenant tests were met during the year.

The Group achieved an increase in gross profit to £2.137m (2013: £1.742m). Of this result, £1.218m (2013: £0.853m) was recorded in the first half year.  Excluding fair valuation adjustments, impairments to inventory and provisions the profit before tax was £0.308m (2013: £0.725m).  The consolidated profit before tax was £0.265m compared to a loss of £3.679m in the previous period.

The Board does not recommend payment of a final dividend on the year's results (2013: £nil) but remains conscious of the importance of a dividend to many shareholders. The Group continues to work towards the successful realisation of development sites with the objective of reducing debt levels and consequent saving in debt servicing costs. Achievement of this objective and the prospects of future investment opportunities will be a major factor in determining future dividend policy.

Directors and Staff

As previously reported, the Group undertook an extensive search process last summer to find a successor for Chairman, Michael Knight. Following this process Graham Miller was appointed on 23 September 2013 as Non-executive Director and Chairman and Michael Knight stepped down from the board after eight years; six of which he served as Non-executive Chairman. There have been no other changes to the board during the year and the composition remains Chairman, two Non-Executive Directors and two Executive Directors (including Chief Executive).

Staffing, including the Executive Directors, has increased slightly to a headcount of 38 (2013:35) at the year end to provide additional resource to support manning of the new King Point Marina.  On behalf of the Board we wish to register our appreciation for the efforts of our staff over the last year and their continued flexibility to adapt to the changing needs of the business.

Summary

The Group has a clear strategy to develop the core revenue streams which provide underlying security of earnings with the opportunity to benefit from land realisations as and when values are judged to be optimal. Good progress has been made with preparatory work required to support full planning applications to enable it to act positively as market conditions recover. The Group has also developed its medium term infrastructure renewal programme to ensure continuity and quality of trading operations. Reduction of the Group's indebtedness through realisation of development land inventory remains a priority to reduce interest charges which will give an immediate benefit to earnings and will provide the opportunity for the Group to make new investments.

Operations Report

Marine

Performance at the Plymouth Fisheries was on a par with the previous year despite the exceptional storm conditions experienced during January and February 2014. The overall value of fish landings at the fishmarket during the financial year reached £15.35m, compared to the previous year at £15.40m.

Next year the Fisheries Complex, completed in 1995, will be 20 years old, with the lock structure having been now in place for 22 years. Certain essential plant and installations are now beginning to show their age and the Group will be embarking on a grant aided infrastructure improvement plan, supported by the Marine Management Organisation, over the next two years. In the coming year the Group will install a new ice plant facility to ensure continuity of ice supply to the fishing trade and will also complete replacement of new floating walkways within the lock. At present, the lock footbridge is temporarily closed whilst the bearings are changed, with the expectation of it re-opening before the summer holiday period. Improvements to chiller stores, metering of power and water and upgrading of other facilities are expected to follow thereafter. The infrastructure renewal programme, which will ensure the continuity and future growth of fisheries trading activity, is expected to cost approximately £1.2m, with c.£500,000 of grant support currently agreed.

Berthing income at Sutton Harbour Marina increased by 2% compared to the previous season, with average occupancy at 82.8% (2013: 84.2%).  Whilst it is not yet fully operational, since the opening of the new King Point Marina in September 2013, the stability in occupancy rates at Sutton Harbour has provided assurance that the new facility is sufficiently differentiated to attract new berth-holders outside of our existing customer base.  The severe storms at the start of 2014 resulted in a number of vessels taking refuge in Sutton Harbour Marina, proving the significant benefits provided by the lock gates, and this generated additional revenue which compensate for shortfalls in fishing related income.

Between 11 and 14 June 2014, Sutton Harbour welcomed the participants of the prestigious La Solitaire Du Figaro yacht race. This is a high profile single-handed event widely regarded as a development event for the major international solo yachting spectacle, the Vendee Globe. The arrival of the race was expected to draw additional visitors to the area and assist in raising the profile of Sutton Harbour as a destination venue.

King Point Marina is performing in line with management expectations and is meeting its start-up phase performance targets. The facility once fully commissioned will, subject to berth size configuration, have space for up to 171 vessels. At present pontoons which can cater for up to 81 vessels, or 910 metres of berthing, are 58% occupied. Since the year end, the first floor marina restaurant 'The Dock' has opened, which provides an excellent amenity for marina customers and also for passengers waiting to embark the cross channel ferry.

Real Estate

The occupancy rate has increased slightly compared to last year to 86.4% as at 31 March 2014 (2013: 85.2%) despite losing two restaurant tenants holding four units between them. One of these units was immediately assigned to a new tenant. Two vacant office units were filled, the Quay Point pitch was let to 'Real Food Kitchen' and a surrender and re-letting of one 5,490 sq ft office on significantly improved terms was achieved. The Group continues to actively market four ground floor units comprising 7,400 sq ft, 4,000 sq ft of quality office space and a 6,900 sq ft historic building adjacent to the harbour which could accommodate a variety of uses. Occupier interest currently being shown in all these premises is stronger than has been experienced in recent years as confidence returns to regional markets.

Car Parking

Car parking revenues have again shown encouraging growth, with gross revenues up 7.8% to £0.374m (2013: £0.347m). During the year we have added new machines with card payment facilities which have been popular with customers. The car parks have significant potential for future revenue growth as new developments take shape in the Sutton Harbour area. This year we have presented car park results as a new business segment, to separately identify the performance of this trading activity from the real estate segment which records performance and position of the investment property portfolio.

Regeneration - Sutton Harbour

The Group remains committed to its stated strategy to further develop Sutton Harbour into a destination of national significance. The Group envisages a waterfront destination with wide appeal that continues to deliver employment space, residential accommodation and leisure retail together with food and beverage operations all against the heritage backdrop and that of being a busy working fishing port.

Last year we reported that we had begun working on a framework plan for the next phase of developments around Sutton Harbour. This plan identified a number of significant development opportunities which could deliver approximately 350,000 sq ft of new waterfront space. Working with our architects, this framework plan has now been articulated into a detailed vision document. With property markets showing signs of improving, the Group is now well placed to market specific sites to target end users having completed this essential pre-planning work.

The Group is expecting to submit 'The Boardwalk' scheme to the local planning authority this Summer after taking into account feedback on the previous proposal. The revised scheme is formulated to deliver a c.14,000 sq ft of restaurant space on a pier-like 'boardwalk' structure  adding to the mix of dining options for visitors to the historic Barbican area of Sutton Harbour.

The largest vacant site available around Sutton Harbour is at East Quay (approximately 1.3 acres). The Group continues to talk with a number of interested parties and will market the site's benefits to new parties now that the 'Vision' work (as above) is complete.  This is a very high quality site and the Board will be selective to ensure the ultimate development delivers value to the Group and contributes positively to the overall vision for the Sutton Harbour area.

Regeneration - Former Airport Site

It is now three years since the last commercial flights operated from the former airport site, and two and a half years since the facility closed in December 2011. The Group has still received no financially substantiated proposition to restart commercial airport operations from the site. In February 2014 the Group published on its website comprehensive reports informed by independent consultants which provided firm evidence of the impracticalities of the former airport site to facilitate any self-sustaining commercial aviation operation either now or in the future.

We reported last year that the Planning Inspector stated in his report that the local planning authority's existing draft Area Action Plan for the Seaton and Derriford Area of Plymouth was unsound. Various landowners in the area have now begun to promote schemes for new uses including residential, retail and employment development. The Group believes that the 113 acre former airport site represents the best opportunity in the area to deliver this wide range of uses. The Group is working towards a full planning application together with a number of supporting technical reports.

Whilst the Group's clear objective is to realise value from its interest in the former airport site, it continues to manage and maintain the site. The Group has now received rebates of non-domestic rates to reflect the reduced size of the site after surplus land sales and the closed status since December 2011.

The table below summarises the key estate management and regeneration statistics.

	As at 31 March 2014	As at 31 March 2013
Total estate portfolio valuation	£38.475m	£36.962m
Owner occupied portfolio valuation	£22.900m	£21.741m
Investment portfolio valuation	£15.575m	£15.221m
Number of investment properties	70	70
Contracted rent (per annum)	£1.232m	£1.250m
Net initial yield	8.90%	9.12%
Reversionary yield	10.56%	10.84%
Occupancy rate	86.40%	85.20%
Estimated rental value (ERV) of vacant units	£0.250m	£0.248m
Average unexpired lease	9.9 Years	9.9 Years
Gross car parks revenue	£0.374m	£0.347m
Development inventory Sites around Sutton Harbour Portland	£7.687m £0.406m	£7.482m £0.405m
Former airport site	£11.508m	£11.476m
Total	£19.601m	£19.363m

Operations Outlook

Three months into the new financial year, the trading businesses are performing in line with expectations. The Group is focused on its plans towards realisation of land assets and development of other sites to release cash and to grow the asset base. The Group is also committed to a medium term programme of capital investment with matched grant funding to support and grow revenue from existing facilities. With a general improvement in the UK economy and a keen focus on its core businesses, the Group is now well placed to take advantage of increasing demand for its real estate portfolio and to drive revenue increases from marine-related and car park trading businesses.

Graham Miller                                                                     Jason Schofield

Chairman                                                                               Chief Executive

17 June 2014

Consolidated Income Statement

For the year ended 31 March 2014

	2014 £000	2013 £000
Revenue	7,045	7,039
Cost of sales before impairment of assets	(4,554)	(4,319)
Onerous leases, impairment of assets	(354)	(978)
Cost of sales	(4,908)	(5,297)
Gross profit	2,137	1,742
Administrative expenses	(1,324)	(1,329)
Fair value adjustments on investment property	311	(3,426)
Operating profit/(loss)	1,124	(3,013)
Other gains and losses	-	69
Finance income	1	6
Finance costs	(860)	(741)
Net finance costs	(859)	(735)
Profit/(loss) before tax from continuing operations	265	(3,679)
Taxation credit on profit/(loss) from continuing operations	1,058	830
Profit/(loss) for the year from continuing operations	1,323	(2,849)
Profit/(loss) for the year attributable to owners of the parent	1,323	(2,849)
Basic earnings/(loss) per share
from continuing operations	1.37p	(2.96)p
Diluted earnings/(loss) per share
from continuing operations	1.37p	(2.96)p

Consolidated Statement of Comprehensive Income

For the year ended 31 March 2014

	2014	2013
	£000	£000
Profit/(loss) for the year	1,323	(2,849)
Other comprehensive income:
Revaluation of property, plant and equipment	993	(2,593)
Deferred taxation on income and expenses recognised directly in the  Consolidated Statement of Comprehensive Income	(374)	374
Effective portion of changes in fair value of cash flow hedges	50	127
Other comprehensive income/(expense) for the year, net of tax	669	(2,092)
Total comprehensive income/(expense) for the year attributable to  owners of the parent	1,992	(4,941)

Consolidated Balance Sheet

As at 31 March 2014

	2014	2013
	£000	£000
Non-current assets
Property, plant and equipment	27,104	23,916
Investment property	15,575	15,221
	42,679	39,137
Current assets
Inventories	19,688	19,459
Trade and other receivables	1,572	1,092
Cash and cash equivalents	205	495
Tax recoverable	-	-
	21,465	21,046
Total assets	64,144	60,183
Current liabilities
Bank loans	-	17,850
Trade and other payables	1,369	1,426
Deferred income	1,413	1,353
Provisions	53	100
Derivative financial instruments	-	182
	2,835	20,911
Non-current liabilities
Bank loans	20,430	-
Deferred government grants	706	696
Deferred tax liabilities	1,330	2,014
Provisions	157	-
Derivative financial instruments	132	-
	22,755	2,710
Total liabilities	25,590	23,621
Net assets	38,554	36,562
Issued capital and reserves attributable to owners of the parent
Share capital	16,069	16,069
Share premium	5,368	5,368
Other reserves	13,288	12,245
Retained earnings	3,829	2,880
Total equity	38,554	36,562

Consolidated Statement of Changes in Equity

For the year ended 31 March 2014

	Share capital	Share premium	Revaluation reserve	Merger reserve	Hedging reserve	Retained earnings	Total equity
			------------Other reserves------------
	£000	£000	£000	£000	£000	£000	£000
Balance at 1 April 2012	16,069	5,368	11,149	3,871	(309)	5,355	41,503
Comprehensive income/(expense)
Loss for the year	-	-	-	-	-	(2,849)	(2,849)
Other comprehensive income/(expense)
Revaluation of property, plant and equipment	-	-	(2,593)	-	-	-	(2,593)
Deferred taxation on revaluation of property, plant and equipment	-	-	-	-	-	374	374
Effective portion of changes in fair value of cash flow hedges	-	-	-	-	127	-	127
Total other comprehensive income/(expense)	-	-	(2,593)	-	127	374	(2,092)
Total comprehensive income/(expense)	-	-	(2,593)	-	127	(2,475)	(4,941)
Transactions with owners of the parent
Share-based payments - value of employee services	-	-	-	-	-	-	-
Dividends	-	-	-	-	-	-	-
Transactions with owners of the parent	-	-	-	-	-	-	-
Total balance at 31 March 2013	16,069	5,368	8,556	3,871	(182)	2,880	36,562
Balance at 1 April 2013	16,069	5,368	8,556	3,871	(182)	2,880	36,562
Comprehensive income/(expense)
Profit for the year	-	-	-	-	-	1,323	1,323
Other comprehensive income/(expense)
Revaluation of property, plant and equipment	-	-	993	-	-	-	993
Deferred taxation on revaluation of property, plant and equipment	-	-	-	-	-	(374)	(374)
Effective portion of changes in fair value of cash flow hedges	-	-	-	-	50	-	50
Total other comprehensive income/(expense)	-	-	993	-	50	(374)	669
Total comprehensive income/(expense)	-	-	993	-	50	949	1,992
Transactions with owners of the parent
Share-based payments - value of employee services	-	-	-	-	-	-	-
Dividends	-	-	-	-	-	-	-
Transactions with owners of the parent	-	-	-	-	-	-	-
Total balance at 31 March 2014	16,069	5,368	9,549	3,871	(132)	3,829	38,554

Consolidated Cash Flow Statement

For the year ended 31 March 2014

	2014	2013
	£000	£000
Cash generated from total operating activities	361	62
Tax received	-	201
Net cash generated from total operating activities	361	263
Cash flows from investing activities
Proceeds from sale of property, plant and equipment	11	113
Proceeds from sale of shares in associate	-	120
Net expenditure on investment property	(20)	(51)
Expenditure on property, plant and equipment	(2,198)	(1,121)
Interest received	1	6
Net cash used in investing activities	(2,206)	(933)
Cash flows from financing activities
Interest paid	(1,025)	(843)
Loan drawdown/(repayment of borrowings)	2,580	(500)
Net cash generated from/(used in) financing activities	1,555	(1,343)
Net decrease in cash and cash equivalents	(290)	(2,013)
Cash and cash equivalents at beginning of the year	495	2,508
Cash and cash equivalents at end of the year	205	495

Notes

Segment Results

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 the Group has only one geographical segment, with all operations being carried out in the United Kingdom.

The Board of Directors assesses the performance of the operating segments using operating profit. The segment information provided to the Board of Directors for the reportable segments for the year ended 31 March 2014 is as follows:

Year ended 31 March 2014	Marine	Real Estate	Car Parking	Regeneration	Total
	£000	£000	£000	£000	£000
Revenue	4,801	1,440	374	430	7,045
Gross profit prior to non-recurring items	1,024	1,040	258	169	2,491
Non-recurring items:
Onerous leases	-	(354)	-	-	(354)
	1,024	686	258	169	2,137
Fair value adjustment on investment property	-	311	-	-	311
	1,024	997	258	169	2,448
Unallocated:
Administrative expenses					(1,324)
Operating profit					1,124
Other gains and losses					-
Financial income					1
Financial expense					(860)
Taxation					1,058
					1,323
Depreciation charge
Marine					49
Real Estate					-
Car Parking					8
Regeneration					-
Administration					14
					71

Year ended 31 March 2013	Marine	Real Estate	Car Parking	Regeneration	Total
	£000	£000	£000	£000	£000
Revenue	4,758	1,591	347	343	7,039
Gross profit prior to non-recurring items	1,348	795	239	338	2,720
Non-recurring items:
Impairment of assets dedicated to leases	-	(176)	-	-	(176)
Impairment of property assets	-	(164)	-	(638)	(802)
	1,348	455	239	(300)	1,742
Fair value adjustment on investment property	-	(3,426)	-	-	(3,426)
	1,348	(2,971)	239	(300)	(1,684)
Unallocated:
Administrative expenses					(1,329)
Operating loss					(3,013)
Other gains and losses					69
Financial income					6
Financial expense					(741)
Taxation					830
					(2,849)
Depreciation charge
Marine					23
Real Estate					26
Car Parking					3
Regeneration					-
Administration					16
					68

Assets and liabilities
	31 March 2014 £000	31 March 2013 £000
Segment assets:
Marine	23,788	21,373
Real Estate	15,859	15,831
Car Parking	3,421	2,586
Regeneration	20,508	19,529
Total segment assets	63,576	59,319
Unallocated assets: Property, plant & equipment                                     Trade & other receivables                                     Cash and cash equivalents	90 273 205	129 240 495
Total assets	64,144	60,183

	31 March 2014 £000	31 March 2013 £000
Segment liabilities:
Marine	1,930	1,487
Real Estate	519	1,657
Car Parking	18	25
Regeneration	1,068	234
Total segment liabilities	3,535	3,403
Unallocated liabilities: Bank overdraft & borrowings                                          Trade & other payables                                          Financial derivatives	20,430 162 132	17,850 172 182
Deferred tax liabilities Tax payable	1,330 1	2,014 -
Total liabilities	25,590	23,621
Additions to property, plant and equipment
Marine	2,321	1,757
Real Estate	-	-
Car Parking	17	4
Regeneration	5	-
Unallocated	-	14
Total	2,343	1,775

Unallocated assets included in total assets and unallocated liabilities included in total liabilities are not split between segments as these items are centrally managed.

Unallocated expenses include central administrative costs that cannot be split between the various business segments because they are incurred in assisting the Group generate revenues across all business segments.

Revenue can be divided into the following categories:

	2014	2013
	£000	£000
Sale of goods	2,737	2,790
Sale of land and property	430	343
Rental income	1,585	1,715
Provision of services	2,293	2,191
	7,045	7,039

No revenues from any one customer represented more than 10% of the Group's revenue for the year.

Going Concern

The Group's forecasts and projections, taking account of reasonably foreseeable possible changes in trading performance, show that the Group should be able to operate within the level of the facilities and covenants over a period of at least twelve months from the date of the announcement.  The covenants measure interest cover, net asset cover and debt to fair value.

After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group, therefore, continues to adopt the going concern basis in preparing its financial statements.

Directors' Statement

The preliminary results for the year ended 31 March 2014 and the results for the year ended 31 March 2013

are prepared under International Financial Reporting Standards as adopted by the European Union (IFRS). The accounting policies adopted in this preliminary announcement are consistent with the Annual Report for the year ended 31 March 2013.

The financial information set out in this preliminary announcement does not constitute the Company's statutory accounts for the years ended 31 March 2014 or 31 March 2013. The financial information for the year ended 31 March 2013 is derived from the Annual Report delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

The Board of Sutton Harbour Holdings plc approved the release of this audited preliminary announcement on 17 June 2014.

The preliminary financial information has been extracted from the Annual Report and audited Financial Statements for the year ended 31 March 2014, which will be posted to shareholders in due course and will be delivered to the Registrar of Companies following the Annual General Meeting of the Company.  These audited Financial Statements include the auditors' report which is unqualified and did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report. The auditors' report does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The report will also be available on the investor relations page of our website (www.suttonharbourholdings.co.uk).  Further copies will be available on request and free of charge from the Company Secretary at Tin Quay House, Sutton Harbour, Plymouth, PL4 0RA.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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