Final Results

The Board of Sutherland Health is pleased to announce its Final Results for the year ended 31 March 2010

 

                                                                                                                                          11 AUGUST 2010
                                                            SUTHERLAND HEALTH GROUP PLC
                                                 (“Sutherland Health Group” or “the Company”)
                                                                      PLUS Symbol: SHGP


                                                                         FINAL RESULTS


The Board of Sutherland Health Group, a national supplier of patient hygiene, sexual health and diagnostic products to customers including the NHS, is pleased to announce its Final Results for the year ended 31 March 2010.


Highlights


• Sales growth of 6% to £956,509
• Gross profit increased by 18% to £500,523
• Gross margin increased from 46.9% to 52.3%
• Overheads reduced by 7% to £454,556
• Maiden profit of £29,336 (2009: loss of £81,912)

Commenting on today’s news, Chairman, John French, said:


“The period to the 31 March 2010 has seen the Company reach a significant milestone in that we have achieved a maiden profit, turning a loss from the previous year of £81,912 into a profit of £29,336.


The new financial year has started well contributing to a performance that is ahead of last year in the first quarter. With the launch of the new gynaecology diagnostics still to come in the second half of our financial year, we look forward to updating shareholders on our continued progress”


The directors do not recommend payment of a final dividend.


The following information contained in this announcement has been extracted from audited information.


                                                           SUTHERLAND HEALTH GROUP PLC
                                                                  CHAIRMAN'S STATEMENT
                                                     FOR THE YEAR ENDED 31 MARCH 2010


The Chairman presents his statement for the period.


Dear Shareholder


I am pleased to report on the progress of the Company. We have seen another year of growth, and this is a year in which I am particularly pleased to report that we have achieved our maiden profit.


Highlights


• Sales growth of 6% to £956,509
• Gross profit increased by 18% to £500,523
• Gross margin increased from 46.9% to 52.3%
• Overheads reduced by 7% to £454,556
• Maiden profit of £29,336 (2009: loss of £81,912)


The Company has in the last twelve months reached a significant milestone in that we have achieved a maiden profit. This has been not only by sales growth, but as you will note from the highlights shown above, the gross profit has grown at a greater rate than sales due to gross margin improvements being made by excellent cost controls on our product range by the management. Overheads have also been kept under control and this year saw a 7% reduction in our costs as corporate costs in particular were re-negotiated along with several other suppliers.


Review of activities

April 2009

The start of the financial year began with positive news of the award of a new contract for our Condomania division. Reading, West Berkshire, and Wokingham councils teamed up with NHS Berkshire West to introduce a condom distribution scheme developed in partnership with our Company. Condomania® condoms are being purchased by the scheme to enable young people under the age of 19 to obtain free condoms by producing a membership card called a C Card. When young people register with the scheme they will become entitled to their C Card, that acts as a passport to getting free condoms, sexual health advice and information.


May 2009

We announced that the Condomania division had been awarded a Framework Agreement to supply its Condomania® condoms and Sutherland® Lubricating Jelly to NHS Trusts in England. The Framework Agreement commenced on 1st April 2009 and continues to 31st March 2011, with an option to be extended for a further 24 months possibly taking the Agreement up to 31st March 2013. This contract meant that the Company had been successful in gaining 100% listing of both product ranges in the Agreement.


July 2009

In July 2009, the Company closed a placing of shares that raised in total £456,530 at a price of 2p per share. This was a tremendous show of support from our shareholders, when for many companies it was an extremely difficult time to raise new funds. It was particularly pleasing that our shareholders contributed the total sum including an investment of £186,500 from our Chief Executive George Sutherland and I converted loan stock and subscribed for equity for a total of £3000.


November 2009


On the 25th November 2009, we announced the Condomania division had been awarded a Framework Agreement to supply two products on the Obstetric and Gynaecological Sundries and Accessories Contract with NHS England that became effective 1st October 2009 and runs until 30th September 2012. The Agreement has an option to run for a further 12 months.


The Vision® Vaginal Infection Swab was the first of these products that is a point of care professional probe for use by health professionals that detects in a matter of seconds whether a woman has Bacterial Vaginosis,Trichomonas, or other parasitic infections. It can be used when a patient has an abnormal vaginal discharge, but can also be used to routinely check women who have a history of pre-term delivery in pregnancy, before IVF procedures, and other vaginal procedures.


The second product, Vision® Amniotic Leak Detector is a diagnostic panty liner worn by pregnant women that has a patented technology proven in clinical trials that can warn if any amniotic fluid leak has been detected on the panty liner. This helps to protect the mother and baby and also helps to reduce the risk of complications or premature birth. The product is recommended for use in both high risk and normal pregnancies.


The Company has been going through the normal approval procedures required for the two diagnostics and when launched, which should be at some time during the current financial year, we feel confident that both products will engender a high level of interest from all health professionals whether working in the NHS or within the private sector.


January 2010

To accelerate the sales, marketing and business development activities the Company announced a placing of shares to raise up to £250,000 at a price of 2.5p per share. This placing closed on 11th May 2010 having raised £217,000.


Financial Review


During the period to 31st March 2010 the Company achieved a turnover of £956,509 (2009 £903,842) representing an increase in sales of 6% over the previous year, producing a gross profit of £500,523 (2009 £423,791). Administrative expenses were £398,822 (2009 £453,221) after charging £27,445 (2009 £25,992) for amortisation and depreciation, and a foreign exchange loss of £1,920 (2009 loss £15,639). The pre-tax profit was £29,336 (2009 loss £81,912) and the profit per ordinary share was 0.05p (2009 loss 0.18p). Cash at the bank on the balance sheet as at the 31st March 2010 was £61,148 (2009 £12,925).


Post Balance Sheet


Since the end of the period, on the 28th April 2010 the Company announced that it had appointed Corinne Oldcorn as Sales and Marketing Assistant who has specific responsibilities to assist in increasing distribution of products to new and existing trade sectors.


The Board also announced it had signed a Relationship Letter with Thames Valley Innovation and Growth (TVIG). The Company has been selected by TVIG as it meets the required criteria of being an innovative and a growth company located in the Thames Valley. The Company will receive funding for specialist consultancy to further its research into new market opportunities.


On the 28th June 2010 our preliminary results for the year were announced and that our Sutherland Health division had been awarded a contract by NHS England to supply its nutritional supplement Thixo-D® Original with effect from 1st May 2010 for a period of 12 months.


Thixo-D® Original is a nutritional supplement that is an instant food and drink thickener for the management of dysphagia, a medical term that is used to refer to difficulties in swallowing certain foods or liquids. It is estimated that 30 to 40% of elderly people staying in nursing homes have some degree of dysphagia. The product is available on prescription and can also be purchased over the counter from pharmacies.


On the 11th May 2010 the Directors closed a placing of shares at 2.5p for new ordinary shares raising £217,000, and we are pleased to welcome two new Investment Funds, Worship St Investments Plc and the T1ps Small Companies EIS Fund who both join Majedie Investments Plc as institutional shareholders of the Company. Two of the Directors Hugh Robertson and I, both invested £5,000 and £10,000 respectively.


Outlook


We have been busy preparing new products ready for launch, most of which will contribute to the current financial year. At the same time we have been researching and building new distribution opportunities for both our existing and new products. The new financial year has started well with the previously mentioned improvements in the Company contributing to a performance that is ahead of last year in the first quarter.


The members of your Board and the staff have been able to deliver continued sales growth and a maiden profit, despite being in a prolonged difficult economic downturn in the UK. My thanks go to the whole team who I know have worked particularly hard this year to achieve these encouraging results. I also would like to take this opportunity to thank the Company’s advisers and in particular our shareholders who have been very supportive in our drive for growth and profitability.


F J French
Chairman
27 July 2010


                                                           SUTHERLAND HEALTH GROUP PLC
                                       REGISTERED NUMBER: 05255086 (ENGLAND & WALES)
                                             CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                FOR THE YEAR ENDED 31 MARCH 2010

   
                                                                                                                                    2010                   2009
                                                                                                                                          £                         £


TURNOVER                                                                                                           956,509               903,842


Cost of sales                                                                                                      (455,986)            (480,051)

GROSS PROFIT                                                                                                    500,523               423,791


Selling and distribution costs                                                                                (55,734)              (52,934)
 

Administrative expenses                                                                                    (398,822)            (435,221)


Other operating income                                                                                           7,386                 13,840


OPERATING PROFIT/(LOSS)                                                                                53,353              (50,524)
 

Interest receivable                                                                                                           -                        471


Interest payable                                                                                                  (24,017)               (31,859)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE


TAXATION                                                                                                             29,336                (81,912)


Tax on profit/(loss) on ordinary activities                                                                         -                             -


PROFIT/(LOSS) FOR THE FINANCIAL YEAR                                                                                                                     29,336              (81,912)


EARNINGS PER SHARE IN PENCE                                                                          0.05p                 (0.18)p


DILUTED EARNINGS PER SHARE IN PENCE 
                                                          0.05p                 (0.16)p


All amounts relate to continuing operations.


There were no recognised gains and losses for 2010 or 2009 other than those included in the Profit and Loss Account.


                                                        SUTHERLAND HEALTH GROUP PLC
                                     REGISTERED NUMBER: 05255086 (ENGLAND & WALES)
                                                       CONSOLIDATED BALANCE SHEET
                                                                AS AT 31 MARCH 2010


                                                                                                                        2010                               2009
                                                                                                             £                £                   £               £
FIXED ASSETS


Intangible fixed assets                                                                               314,709                         339,345


Tangible fixed assets                                                                                      7,849                              6,851

                                                                                                                     322,558                        346,196


CURRENT ASSETS


Stocks                                                                                                         159,044                           96,136


Debtors                                                                                                         187,526                       239,681


Cash at bank and in hand                                                                             61,148                           12,925

                                                                                                                    407,718                         348,742


CREDITORS: amounts falling due within
one year                                                                                                   (492,845)                      (491,620)


NET CURRENT LIABILITIES                                                                       (85,127)                     (142,878)


TOTAL ASSETS LESS CURRENT LIABILITIES                                           237,431                         203,318


CREDITORS: amounts falling due after
more than one year                                                                                 (239,585)                       (269,724)


NET LIABILITIES                                                                                       (2,154)                         (66,406)


CAPITAL AND RESERVES


Called up share capital                                                                              110,016                          104,083


Share premium account                                                                             866,990                          838,007
 

Other reserves                                                                                          111,478                          111,478


Profit and loss account                                                                         (1,090,638)                    (1,119,974)

SHAREHOLDERS' DEFICIT                                                                         (2,154)                         (66,406)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 July 2010.


G M Sutherland
Director


                                                           HERLAND HEALTH GROUP PLC
                                      REGISTRED NUMBER: 05255086 (ENGLAND & WALES)
                                                              CASH FLOW STATEMENT
                                               FOR THE YEAR ENDED 31 MARCH 2010


                                                                                                                        2010                               2009
                                                                                                                              £                                     £


Net cash flow from operating activities                                                        87,185                              7,687


Returns on investments and servicing of finance                                      (24,017)                         (31,388)


Capital expenditure and financial investment                                              (3,541)                           (2,767)


CASH INFLOW/(OUTFLOW) BEFORE FINANCING                                  59,627                          (26,468)


Financing                                                                                                       3,170                           (20,095)


INCREASE/(DECREASE) IN CASH IN THE YEAR                                    62,797                            (46,563)


                     RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/DEBT
                                                 FOR THE YEAR ENDED 31 MARCH 2010


                                                                                                                      2010                                2009
                                                                                                                            £                                      £


Increase/(Decrease) in cash in the year                                                     62,797                           (46,563)


Cash outflow from decrease in debt and lease financing                            31,746                           222,324


MOVEMENT IN NET DEBT IN THE YEAR                                                    94,543                           175,761
 

Net debt at 1 April 2009                                                                         (272,980)                        (448,741)


NET DEBT AT 31 MARCH 2010                                                            (178,437)                        (272,980)


The Directors of the Issuer accept responsibility for this announcement.

For further information:


John French, Chairman
Sutherland Health Group plc
E: john@sutherlandhealth.com
T: 07836 722 482


Bridge Hall
E: corpfin@bridgehall.co.uk
T: 020 7337 9705
 

Bishopsgate Communications Ltd.
Robyn Samuelson /Gemma O’Hara
E: shg@bishopsgatecommunications.com
T: 020 7562 3350


Notes to Editors:


Sutherland Health Group Plc is a national supplier of patient hygiene, sexual health and diagnostic products to the UK National Health Service (NHS) and other UK customers. Its aim is to supply innovative solutions to current health issues by studying current trends and working alongside leading professionals who also work within the health sector.


The company is committed to developing and marketing high quality brands and products that will benefit health professionals and consumers alike in many areas of health. The Group has established its own brands Condomania® Condoms, Sutherland® Lubricating Jelly and Vision® pregnancy diagnostics that have already become established within the NHS business.


The Company has also developed the Sutherland® patient hygiene range which is on contract with NHS England and NHS Northern Ireland that can reduce the risk to patients of cross infection.


The Group is ISO and MHRA registered, and at present principally operates within the United Kingdom.


For further information on the Company visit www.sutherlandhealth.com

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