(MPG.L) Maypole Group PLC Buy/Sell

LONDON, Nov 4 (Reuters) - Maypole Group Plc:

RNS Number : 9779B Maypole Group plc 04 November 2009

Maypole Group Plc

(`Maypole' or the 'Group')

Maypole Group plc completes refinancing

4 November 2009

Maypole Group plc, the AIM quoted UK countryside hotels with restaurants group, today announces that it has completed its refinancing with its existing bankers Clydesdale Bank plc. The refinancing has restructured the Group's debt which will lead to improved cash flow through delayed capital and interest repayments and new funding being brought into the business.

Long Term Loans

The Company's existing long term loan of £7.42m at 7.45% per annum has been re-set at £7.407m at 8.95% per annum (being 5.45% fixed with a 3.5% margin). Capital repayments under the new facility have been deferred until March 2011 with earlier repayments potentially required if the Group meets minimum operating cashflow targets. The loan remains repayable in February 2029.

Leasehold Facilities

The Group currently has two medium term leasehold loan facilities totalling £0.79m at 2% above bank base rate. Some £0.437m of these facilities have been drawn down and were due for repayment in May and July 2012. These facilities, together with £0.45m formerly available under the Group's overdraft facility, have now been combined into one long term loan of £1.25m repayable on 28 February 2022, including a further £0.363m available for drawdown. Interest will be charged at 15% per annum above LIBOR and is to be repaid at the end of the loan. A monthly monitoring fee is also payable.

Overdraft Facility

Following conversion of £0.45m of the Group's on demand overdraft facility into a long term loan, the Group's overdraft facility now stands at £0.15m, expiring in May 2010, at an increased interest rate of 4% per annum above the Clydesdale base rate.

Blocked Account

As security for its loan arrangements and in addition to various charges and guarantees given by Group companies and certain directors, Clydesdale Bank plc has the benefit of £2.05m on a blocked deposit. Interest receivable by the Group on this will be increased from 0.5% to 3.5% per annum, equal to the margin on the long term loan described above.

Deferred Consideration - Transaction with Directors

£250,000 was due to be paid by the Group as deferred consideration to the vendors of Wayford Bridge Inn on 28 February 2009 along with interest accruing at 15% per annum and, since end February 2009, 20% per annum. Simon Bentley and Alastair McEwen, directors of Maypole, have directly assumed the obligation to repay the vendors all such principal and the vendors have accordingly released all security which they held in respect of the Group. In return for this the Group has entered into subordinated unsecured loan agreements with Messrs Bentley and McEwen each for £125,000, with interest accruing at 10% per annum and all principal and interest to be repaid on maturity of the loans in two years' time. The independent directors, having consulted with Blomfield Corporate Finance Ltd, Maypole's nominated adviser, consider that the terms of this re-financing are fair and reasonable insofar as its shareholders are concerned. Simon Bentley is also a substantial shareholder in Maypole.

In addition to the £250,000 advanced by Messrs Bentley and McEwen in connection with the new loan, Mr Bentley and entities associated with him have advanced the following sums to the Company, which are subordinated to the Clydesdale indebtedness and on which interest is being rolled-up to maturity:

Sum Advance date Term Coupon
£100,000 28 January 2009 On demand 18%
*£450,000 3 December 2008 On demand 18%
£600,000 21 October 2008 2 years 18%

**£55,000 25 January 2007 2 years, extended 15%

RNS Number : 9660Z
  Maypole Group plc
  30 September 2009
   

30 September 2009

Maypole Group plc

("Maypole", "Maypole Group" or the "Group")

Unaudited Interim Results for the six months ended 30 June 2009

Maypole Group plc, the AIM quoted UK countryside hotels with restaurants group, is pleased to announce its half year results for the six months ended 30 June 2009.

Highlights:

*     Group sales, on a like for like basis, increased by 5% to £2,569,000 (2008: £2,448,000)

*     Operating profit increased to £140,000 (2008: loss of £119,000)

*     Loss before tax reduced to £364,000 (2008: loss of £507,000)

*     Net cash generated from operating activities £202,000 (2008: £464,000 used by operating activities)

*     The Group is benefiting from cost cutting measures taken in 2008 

*     Trading over the Summer months, since the period end, has exceeded management expectations

Simon Bentley, Chairman of Maypole commented:

"After a difficult second half last year, we are pleased that management actions to improve performance have led to an increase in like for like sales and a return to operating profit with operating expenses tightly controlled.  Against a background of a very testing market, trading since the period end has exceeded our expectations but we remain cautious given the current climate. The Group has agreed the terms of a re-financing with its existing bankers, Clydesdale Bank plc and this will be formalised in the very near future."
    
For further information:

 Maypole Group plc                                       020 7317 8022
 Simon Bentley - Chairman
 Alastair McEwen - Chief Executive

 Blomfield Corporate Finance Ltd                         020 7489 4500
 Peter Trevelyan-Clark / Alan MacKenzie  / Ben Jeynes  

 Alexander David Securities Ltd                          020 7448 9820
 David Scott / Bill Sharp

 Weber Shandwick Financial                               020 7067 0700
 Nick Dibden / Katie Matthews
    

Maypole Group plc Interim Results

Chairman's Statement

Operating Performance

Revenue across all our hotels has seen an improvement on the corresponding period last year. with all but one showing an increased contribution to operating profit. We finished extending the kitchen at The Bridge Inn, Acle at the start of the year and this was followed by the installation of new equipment. This, in conjunction with additional outside seating, has greatly improved the offering there and led to a marked financial improvement.  In addition, to hedge against inclement weather, we erected a permanent marquee at The Bridge Inn. This has been very well received by our patrons.

At The Wayford Bridge Inn, Stalham we also installed new equipment and increased the outside seating. Given the success of the pilot project at The Bridge Inn, we are considering erecting a marquee at this venue as well.  

The Lifeboat Inn, and Old Coach House, Thornham benefitted from the upgrades introduced last year with Wi-Fi installed throughout the properties and the redesign of the restaurant at Old Coach House, respectively.  

The Angel, Lavenham has performed well in the face of very tough competition.  We have undertaken substantial improvements to the kitchen and our promotions have resulted in an overall increase in the number of covers sold.

The Pear Tree Inn, Wiltshire, continues to perform in line with our expectations. We have also made improvements to the kitchen and operating profit has improved on the same period last year. 

Financial Results

The Group reported revenues of £2,569,000 (2008: £2,894,000) although on a continuing basis, following the disposal of Wroxton House Hotel, revenues increased by £121,000 or 4.9%.

We reported an operating profit of £140,000 compared to an operating loss in 2008 of £119,000  This marked improvement is reflective of management's focus on maintaining a tight control on costs with net operating expenses sharply reduced to £1,749,000 (2008: £2,258,000). Group's finance charges were higher than last year however, despite this, the Group succeeded in reducing pre tax losses to £364,000 (2008: loss of £507,000). The Group generated cashflows of £202,000 during the period which compares to a net usage of £464,000 for the corresponding period.  As in 2008, the Board does not propose the payment of an interim dividend.  

Total assets at 30 June 2009 reduced, on a corresponding basis, by £561,000 to £11,464,000 reflecting primarily the disposal of the Group's original investment, the Wroxton House Hotel, which it sold in December 2008.

The Group has agreed the terms of a re-financing with its existing bankers, Clydesdale Bank plc and this will be formalised in the very near future.

Outlook

Set against a backdrop of a very testing market, the Board is pleased with the marked improvement on the corresponding period. Although we remain mindful of the challenges ahead, we expect to continue to derive the benefits from the reorganisation and cost cutting measures we undertook last year, Following a healthy trading performance since the period end, the Board remains cautiously optimistic over the medium to long term.

 Maypole Group plc                                                               
 Condensed Consolidated Statement of Comprehensive Income                        
 For The Period:                                                                 
                                   Note  Six Months ended     Six Months ended   
                                              30 June 2009         30 June 2008  
                                                 Unaudited            Unaudited  
                                                         £                    £  
                                                                                 
 REVENUE                                         2,568,912            2,893,738  
 Cost of sales                                   (680,532)            (754,816)  
 GROSS PROFIT                                    1,888,380            2,138,922  
 Net operating expenses                        (1,748,649)          (2,257,873)  
 OPERATING PROFIT/(LOSS)                           139,731            (118,951)  
 Exceptional costs                                (58,448)                    0  
                                                    81,283            (118,951)  
 Finance costs                                   (445,297)            (388,552)  
 Investment revenue                                     23                  211  
 LOSS ON ORDINARY ACTIVITIES                     (363,991)            (507,292)  
 BEFORE TAXATION                                                                 
 Earnings per Ordinary share       4               (0.23)p              (0.32)p  
 Diluted earnings per Ordinary     4               (0.23)p              (0.32)p  
 share                                                                           

The loss for the period is all attributable to the equity holders of the parent.

 Maypole Group plc                                                           
 Condensed Consolidated Statement of Financial Position                      
 As At                                                                       
                                 Note      30 June 2009    31 December 2008  
                                              Unaudited             Audited  
                                                      £                   £  
                                                                             
 ASSETS                                                                      
 NON CURRENT ASSETS                                                          
 Property, plant and equipment                8,305,398           8,340,449  
 Goodwill                                       376,451             376,451  
 Deferred tax assets                              1,950               1,950  
                                                                             
 TOTAL NON CURRENT ASSETS                     8,683,799           8,718,850  
                                                                             
 CURRENT ASSETS                                                              
 Inventories                                     88,049              98,753  
 Trade and other receivables                    154,704              84,731  
 Prepayments                                    281,715             220,085  
 Cash and bank balances                       2,256,152           2,110,542  
                                                                             
 TOTAL CURRENT ASSETS                         2,780,620           2,514,111  
                                                                             
 TOTAL ASSETS                                11,464,419          11,232,961  
                                                                             
 EQUITY                                                                      
 ISSUED CAPITAL AND RESERVES                                                 
 Issued capital                               2,304,268           2,304,268  
 Retained earnings                          (3,578,477)         (3,214,486)  
                                                                             
 TOTAL EQUITY                               (1,274,209)           (910,218)  
                                                                             
 NON CURRENT LIABILITIES                                                     
 Borrowings                                   7,509,454           7,702,992  
 Deferred tax liabilities                     1,306,267           1,306,267  
                                                                             
 TOTAL NON CURRENT LIABILITIES                8,815,721           9,009,259  
                                                                             
 CURRENT LIABILITIES                                                         
 Trade and other payables        5            1,460,578             837,502  
 Borrowings                                   2,462,329           2,296,418  
                                                                             
 TOTAL CURRENT LIABILITIES                    3,922,907           3,133,920  
                                                                             
 TOTAL LIABILITIES                           12,738,628          12,143,179  
                                                                             
 TOTAL EQUITY AND LIABILITIES                11,464,419          11,232,961  

 Maypole Group plc                                                           
 Condensed Consolidated Statement of Changes in Equity                       
                                                                             
                                        Issued capital    Retained earnings          Total
                                             Unaudited            Unaudited      Unaudited
                                                     £                    £              £
                                                                             
 Balance as at 1 January 2008                2,182,767          (1,898,491)        284,276
                                                                             
 Issue of share capital                        121,501                    -        121,501
 Loss for the period                                 -            (507,292)      (507,292)
                                                                             
 Balance as at 30 June 2008                  2,304,268          (2,405,783)      (101,515)
                                                                             
 Balance as at 1 January 2009                2,304,268          (3,214,486)      (910,218)
                                                                             
 Loss for the period                                 -            (363,991)      (363,991)
                                                                             
 Balance as at 30 June 2009                  2,304,268          (3,578,477)    (1,274,209)
                                                                             
                                                                             

 Maypole Group plc                                                            
 Condensed Consolidated Statement                                             
 of Cash Flows                                                                
 For The Period:                                                              
                                      Six Months ended     Six Months ended   
                                           30 June 2009         30 June 2008  
                                              Unaudited            Unaudited  
                                                      £                    £  
                                                                              
 CASHFLOWS FROM OPERATING                                                     
 ACTIVITIES                                                                   
 Loss for the period                          (363,991)            (507,290)  
 Finance costs recognised in loss               445,274              388,341  
 Depreciation and amortisation of                63,715               62,692  
 non current assets                                                           
                                                                              
                                                144,998             (56,257)  
 Movements in working capital                                                 
 Increase in trade and other                  (131,602)            (108,054)  
 receivables                                                                  
 Decrease in inventories                         10,704               16,027  
 Increase/(decrease) in trade and               485,949             (14,050)  
 other payables                                                               
                                                                              
 Cash generated from/(used by)                  510,049            (162,334)  
 operations                                                                   
 Interest received                                   24                  836  
 Interest paid                                (308,172)            (302,749)  
                                                                              
 Net cash generated from/(used by)              201,901            (464,247)  
 operating activities                                                         
                                                                              
 CASH FLOWS FROM INVESTING                                                    
 ACTIVITIES                                                                   
 Payments for property, plant and              (28,664)            (128,699)  
 equipment                                                                    
 Acquisition of subsidiaries                          -              (5,009)  
                                                                              
 Net cash used in investing                    (28,664)            (133,708)  
 activities                                                                   
                                                                              
 CASH FLOWS FROM FINANCING                                                    
 ACTIVITIES                                                                   
 Proceeds from issues of equity                       -              121,501  
 shares                                                                       
 Proceeds from borrowings                       100,000              841,886  
 Repayment of borrowings                      (118,310)             (69,434)  
                                                                              
 Net cash (used in)/generated by               (18,310)              893,953  
 financing activities                                                         
                                                                              
 Net increase in cash and cash                  154,927              295,998  
 equivalents                                                                  
                                                                              
 Cash and cash equivalents at 1               1,709,016            (352,693)  
 January                                                                      
                                                                              
 Cash and cash equivalents at 30              1,863,943             (56,695)  
 June                                                                         

Notes to the Condensed Consolidated Financial Statements

*     General Information - 

The condensed interim financial statements for the half-year ended 30 June 2009 have not been audited and were approved for issue by the Board on 30 September 2009. The financial information contained in these interim financial statements does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the year ended 31 December 2008 has been extracted from the statutory accounts for the Group for that year. Statutory accounts for the year ended 31 December 2008, upon which the auditors have given an unqualified audit report and which did not contain a statement under Section 237(2) or 237(3) of the Companies Act 1985, have been filed with the Registrar of Companies. The audit report contained an emphasis of matter paragraph regarding the fact that in order to pay its debts as they fall due, the Group was reliant on the financial support of its bankers and the Group's chairman. As reported above, negotiations with the Group's bankers have been successfully concluded and completion of the re-financing with them is expected shortly. Copies of the Interim Report for the half-year ended 30 June 2009 and the Annual Report for the year ended 31 December 2008 are available free of charge from the Company Secretary at the registered office of the Company and on the Company's website at www.maypolehotels.com

2. Basis of Preparation and significant accounting policies

The condensed financial statements have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting.

The same accounting policies, presentation and methods of computation have been followed in these condensed financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2008 except for the adoption in the period of IAS 1 Presentation of Financial Statements (revised September 2007). This standard introduced a number of terminology changes (including revised titles for the condensed financial statements) and a number of changes in presentation and disclosure. The revised standard has had no effect on the reported results or financial position of the group.

3. Taxation

No provision has been made for taxation for the period as there are losses incurred in the period and also losses brought forward.
         
 4  EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the loss on ordinary activities after taxation and on the weighted average number of

ordinary shares in issue during the period.
                                                                                                                               30 June               30 June
                                                                                                                                  2009                  2008
                                                                                                                      pence per share       pence per share 

Basic earnings per

ordinary share

Loss                                                                                                                       (0.23)p               (0.32)p

Diluted earnings per

ordinary share

Loss                                                                                                                       (0.23)p               (0.32)p

                                                                                                                               30 June               30 June
                                                                                                                                  2009                  2008
                                                                                                                                    £                     £ 

Basic earnings per

ordinary share

Earnings used in the calculation of basic earnings per share                                                            (363,991)             (507,292) 

Weighted average number of ordinary shares for the purposes of basic earnings per share                               161,569,058          157,096,256  

Diluted earnings per

ordinary share

The calculation of diluted earnings per share is based on the basic loss per share adjusted to allow for the issue of shares on all share options

granted at a price less than the average market price for the year. They are assumed to be converted at the date of issue.
                                                                                                                               30 June               30 June
                                                                                                                                  2009                  2008
                                                                                                                                    £                     £ 

Weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share            161,569,058           157,096,256 

      5. Trade and other payables

At the period end trade and other payables were higher compared to 31 December due to a greater volume of trade during the months leading up to June 2009 compared to the months leading up to December 2008.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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