PRESS RELEASE
[ CURRENT FLIGHT STATUS ]
INTERIM RESULTS FOR THE SIX MONTHS ENDED
30 APRIL 2006
Chairman's Statement
During the period under review we have worked extremely hard putting the foundations in place to build a significant property development and consultancy group. However, it is really post year end that the results of this labour have begun to come to fruition so I am including these in the following statement.
Most significantly, the YES! Project, our £250 million mixed-use leisure scheme in South Yorkshire, is now in the final stages of outline planning having been referred back by the Government Office for Yorkshire and Humberside to Rotherham Metropolitan Borough Council (RMBC) for approval. In tandem with this our potential portfolio of partners for the scheme has been strengthened with the addition of utility giant, E.ON, which underpins the project's appeal to major international and national operators.
Our consultancy division is also performing well with advanced negotiations underway with regards to a number of prospects internationally, and an increased number of opportunities being offered.
Results
I am pleased to report the results for the six months to 30 April 2006. T he Company made a reduced operating loss before exceptional items of £261,555 (2005: £643,962) due to its prudent cost control and the fact that the majority of costs in advancing the YES! Project through to planning consent, were incurred in the two previous years. No dividend is being recommended (2005: nil).
Current Trading
The YES! Project
On 12 May we received notice that RMBC's planning board, had voted unanimously in favour of supporting the YES! Project. While this was a major step for us, given the project's size, its greenbelt designation and the local authority's ownership, referral to the Government Office was mandatory and represented an even greater challenge, since ultimately the potential for a public inquiry existed. The proposal was referred to the Government Office for Yorkshire and Humberside as planned and we prepared ourselves for a long wait. Two weeks ago on 14 July 2006, some months ahead of our expectations, we were delighted to announce confirmation that the Government Office had entrusted the local planning authority of RMBC with responsibility for the planning application. Naturally there is more mileage to go before we can begin construction including securing funding and tenants. However this is a key achievement and a very exciting development for us; it rewards the Company's diligence and patience and confirms the board's confidence in the project.
Additionally, at the beginning of July we signed a Memorandum of Understanding (‘MOU') with the major international utility company, E.ON, to collaborate on the development of the project. E.ON will provide resource and support for the next stage of the project and will also look to bring sustainable and environmentally friendly power solutions to the scheme.
The agreement with E.ON follows MOU's signed with other key tenants including Baydrive Group, which owns the TopGolf Ranges, Sony UK Ltd and Venture Xtreme UK Ltd, the specialist extreme sports activity company. We are in advanced negotiations with a number of other partners and major tenants and hope to update the market soon on our progress.
It is difficult to overstate the significance of this project. Not only will it bring considerable employment to the area, but it will also provide enhanced environmental benefits to the whole of South Yorkshire. We believe it will become a major attraction for thecountry, becoming a catalyst for further investment to the area and the forerunner of a whole new genre of property investment.
Consultancy Division
The consultancy division, established to utilise the extensive skills, expertise and contacts of the Directors to offer project consultancy on every aspect of property development and investment, is gaining momentum. New commissions have recently been secured advising on a number of projects both in the UK and internationally. Discussions continue on other prospects.
Funding
The Company previously stated that after receiving ‘Resolutions to Grant' it would seek further funding to progress the YES! Project and for working capital requirements. The Directors continue to assess the various options available and will update the market when the most effective financial arrangement has been agreed. Conclusion
I am pleased to be able to report that our efforts are finally paying off, giving us renewed confidence to take the Company forward aggressively in the coming months and to reward our shareholders for their ongoing support.
Malcolm Savage
Chairman
27 July 2006
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The full Interim Results Report is available as a dowloadable .pdf document here |
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