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HAL - Halogen Holdings Societe Anonyme - The results for the half-year ended
31st March 2008 are attached.
Halogen Holdings Societe Anonyme
(Incorporated in Luxembourg. RC Number B39773)
Share code: HAL ISIN LU0216267913
Registered Office
6 rue Adolphe Fischer,
L-1520, Luxembourg
28th June 2008
Dear Shareholder,
The results for the half-year ended 31st March 2008 are attached.
Our operating costs are driven by the need to comply with the requirements of
the exchanges on which our shares are listed and also the cost of complying with
the legal requirements in Luxembourg, the country in which the company is
domiciled. Costs have increased slightly from the same period last year, mainly
due to increased professional fees and the decrease in the value of sterling
against the euro. Most of the bills from our professional advisers are invoiced
in euros.
We have been taking professional advice on how we can restructure the group to
mitigate compliance costs, and as a first step, following shareholder approval
at the last AGM, we intend to give notice that the listing in Harare will be
cancelled. The Harare section of the share register will then be merged with
the section held by Capita Registrars. Shareholders on that branch of the
register will be given due notice of the cancellation of the listing.
A trading update from our associated company, Heartstone Inns, is included
below.
508,110 of the 621,586 May 2008 warrants to subscribe for shares in Halogen have
been exercised, raising approximately GBP502,000 for the Group. The remainder
of the warrants lapsed unexercised. In accordance with the authority granted at
the EGM on 28th September 2007, 1,016,220 additional warrants will be issued to
those subscribers, on the basis of 2 new warrants for every warrant exercised,
with an exercise price of Euro1.25 and an exercise date of 31st May 2011.
At the AGM on 28th March 2008, the company`s year end was changed to 31st March
and the next report to shareholders will be an interim report for the period
ending 30th September 2008. The next statutory accounts will be prepared for
the 18 month period to 31st March 2009. The next AGM will be held on Friday
26th September 2009.
Prospects
We have seen a slow down in the rate at which Heartstone is managing to acquire
additional pubs due to a scarcity of suitable pubs coming onto the market. If
this continues, it will push back the date at which Heartstone will become
consistently profitable.
We will continue to investigate opportunities to minimise operating costs for
the Group, which might involve changes to the domicile of the group and further
changes to the arrangements for trading Halogen shares.
David Marshall
Chairman
HEARTSTONE INNS - TRADING UPDATE - 6 MONTHS ENDED 31ST MARCH 2008
Overview
Throughout the period Heartstone continued to operate three (latterly four),
high quality, food-led, rural pubs. Trading over the latter part of 2007 was in
line with industry norms and sales over December were ahead 1% against 2006, a
result with which we feel reasonably satisfied.
Since the beginning of 2008 we have started to feel the impact of consumers
reigning in their spending. At this stage it is difficult to quantify the
impact of the broader economic situation beyond saying that we are certainly
experiencing a slowdown.
We continue to ensure that we keep a range of pub food staples at accessible
price points and to fine tune our lead drinks prices to stay in line or below
local competition. As freehold operators we are able to shop around to obtain
the most favourable buying terms and we have been able to mitigate the impact of
increases in some food and liquor input prices.
Acquisition of The Hare & Hounds
On the 10th January 2008, we completed the purchase of The Hare & Hounds in
Devon. The acquisition of this single very large unit has more than doubled the
pro forma turnover of the group. This unit was acquired for a total
consideration of GBP2.8 million and comes with the benefit of planning consent
for a substantial expansion of the trading space. We have inherited a strong
local management team and the transition to Heartstone ownership was
accomplished smoothly. The Hare & Hounds is a high-volume, food led, business,
which specialises in carvery food, and it has built up a strong following on the
back of its reputation for the high quality of its service and food. Trading
since 10th January has been robust and we are satisfied that The Hare & Hounds
is an excellent addition to the group. The unit is trading at its physical
capacity at peak times and Heartstone is considering plans to build a restaurant
extension in order to allow future sales growth.
Trading outlook
In common with the whole industry, like for like trading in April was poor,
owing to a combination of general economic gloom, the timing of Easter bank
holidays, and indifferent weather. May saw a strong recovery in sales which
were broadly in line with 2007. July 2008 brings the first anniversary of the
smoking ban in England, thus slightly easing the pressure on like for like
sales. Given reasonable weather over the next few months (last year`s having
been exceptionally poor), we feel confident of strong trading in the summer.
Further Information
Further information on Heartstone and its pubs can be found on its web site:
www.heartstoneinns.co.uk
Heartstone has a 31st December year end and copies of its accounts to 31st
December 2007 are available on application by e-mail to halogen@city-group.com
Unaudited consolidated group profit and loss account
Half years ended Year
ended
31st 31st 30th
March March Septembe
r
2008 2007 2007
GBP000 GBP000 GBP000
Operating costs (103) (85) (187)
Operating loss before interest and (103) (85) (187)
taxation
Interest 7 46 108
Exchange (losses)/gains (11) 5 (4)
Share of results of associate (162) - (10)
Loss before exceptional item and (269) (34) (93)
taxation
Exceptional item - profit on sale of - 1,672 1,317
subsidiary
(Loss)/Profit before taxation (269) 1,638 1,224
Taxation (1) (2) (3)
(Loss)/Profit after taxation and (270) 1,636 1,221
retained for the period
Reconciliation of headline loss per
share
(Loss)/Earnings per share (pence) (13)p 88 p 65 p
Less exceptional item, net of tax and - (90)p (70)p
minority interests (pence)
Headline loss per share (pence) (13)p (2)p (5)p
Consolidated Statement of recognised gains and losses and changes in equity
Net (loss)/profit for the period (270) 1,636 1,221
Shares issued - - 136
Exchange differences - (6) 2
(270) 1,630 1,359
Shareholders` funds at start of the 3,324 1,965 1,965
period
Shareholders` funds at end of the 3,054 3,595 3,324
period
Unaudited consolidated group balance sheet
31st 31st 30th
March March Septembe
r
2008 2007 2007
GBP000 GBP000 GBP000
Non current assets
Investments 2,838 867 3.000
Current assets
Investment - - 178
Trade and other receivables 1 18 376
Cash and bank balances 292 3,115 26
293 3,133 580
Current liabilities
Accounts payable (77) (405) (256)
Net current assets 216 2,728 324
Total assets, less current liabilities 3,054 3,595 3,324
Capital and Reserves
Called up share capital 1,226 1,090 1,226
Legal resources 123 109 109
Exchange reserve 267 217 267
Revenue reserve 1,438 2,179 1,722
Shareholders` funds 3,054 3,595 3,324
Net assets per share GBP1.5 GBP1.9 GBP1.6
1 3 5
Unaudited consolidated group cash flow statement
Half years ended Year
ended
31st 31st 30th
March March September
2008 2007 2007
GBP000 GBP000 GBP000
Operating activities
Cash absorbed by normal trading (117) (74) (342)
activities
Interest received and other investment 7 45 108
income
Taxation - (2) (3)
(110) (31) (237)
Investment activities
Acquisition of interest associate - - (3,010)
Proceeds on disposal of shares net of 376 - -
costs
Net proceeds on disposal of subsidiary - 2,096 2,213
Less shares in Central African Gold - (868) (868)
plc as part of proceeds
Net cash inflow from investment 376 1,228 (1,665)
activities
Net increase/(decrease) in funds 266 1,197 (1,902)
Net funds at start of period 26 1,924 1,924
Effect of foreign exchange rate - (6) 4
changes
Net funds at end of period 292 3,115 26
Notes
1 Accounting Policy
The results and the cash flow statement for the half year ended 31st March
2008 are unaudited and comply with IAS 34 - Interim Financial Reporting.
They have been prepared on the basis of accounting policies adopted in the
accounts for the year ended 30th September 2007 which comply with
International Financial Reporting Standards in all respects and Luxembourg
law. The results for the year to 30th September 2007 are an abridged
version of the Group`s full accounts for that year, which have been filed
with the relevant authorities.
2 Earnings/(Loss) per share
Earnings/(Loss) per share are based on the result and 2,019,362 shares in
issue. Headline earnings are basic earnings adjusted for exceptional
items.
3 Capital Expenditure
There was no capital expenditure during the period (2007 - nil) and there
were no capital expenditure commitments at 31st March 2008 (2007 - nil).
4 Segmental analysis
A segmental analysis is not presented, there being no operating
subsidiaries. The only segment not arising directly from central
operations is the share of the results of the associated company.
Luxembourg
30 June 2008
Sponsor
Sasfin Capital (A division of Sasfin Bank Limited)
Date: 30/06/2008 16:00:01 Produced by the JSE SENS Department.
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