Stewart & Wight Regulatory News (STE)

Stewart & Wight PLC

Interim results for the six months ended 30 September 2009

Chairman's Statement

I am pleased to be able to report that the financial statements for the half-year ended 30 September 2009 show that the Company made an operating profit of £409,609 before net financial costs of £22,271. Gross rental income increased to £555,900 compared with £521,404 in the similar period in 2008. Due to the low Bank Rate, the cost of borrowing from the Company's Bank decreased considerably whilst administrative expenses remained fairly static.

No sales or purchases of properties were made during the period. The market in retail commercial property investments has remained steady, if not improving. There is a continuing demand for good class investments and a lack of supply at present time. The Board has decided not to have a revaluation of the Company's property portfolio and the accounts reflect the professional revaluation figure at 31 March 2009.

Unfortunately, the surrender values of the Company's traded endowments have fallen and the decrease is shown in the accounts.

Since the end of the half-year, the Company has sold a small investment property in Morriston for a sum of approximately 6% over the valuation figure in March 2009. The Board has been investigating a number of potential property opportunities and hopes that it will be possible to make a purchase in the near future.

In accordance with previous practice, the Board has decided not to pay an interim dividend on the ordinary shares of the Company.

MICHAEL CONN

Chairman

19 November 2009

Consolidated income statement (unaudited)

for the six months ended 30 September 2009

Six

Six

months to

months to

Year to 

30/09/2009

30/09/2008

31/03/2009

£

£

£

Gross rental income

  555,900 

  521,404 

  1,061,480 

Property operating expenses

(17,705)

(23,764)

(51,646)

Net rental income

  538,195 

  497,640 

  1,009,834 

Valuation gains on investment property

  -  

  -  

  150,000 

Valuation losses on investment property

  -  

(1,705,000)

(1,400,618)

Valuation gains on endowment policies

  -  

  -  

(272,124)

Valuation losses on endowment policies

(92,810)

(307,632)

(29,717)

Administrative expenses

(35,776)

(35,711)

(66,151)

Net operating profit/(loss) before financing 

409,609

(1,550,703)

(608,776)

Financial income 

  112 

  1,528 

  2,168 

Financial expenses

(22,383)

(101,786)

(155,634)

Profit/(loss) before taxation

387,338

(1,650,961)

(762,242)

Taxation (note 5)

(83,929)

368,289

79,787

Profit/(loss) for financial period

303,409

(1,282,672)

(682,455)

Earnings/(loss) per share (note 6)

19.39p

(81.97)p

(43.62)p

Consolidated balance sheet (unaudited)

as at 30 September 2009

30 Sept

30 Sept

31 March

2009

2008

2009

£

£

£

Assets

Non-current assets

Investment property (Note 3)

  15,045,000 

  13,715,000 

  15,045,000 

Non-equity investments (Note 4)

  304,925 

  1,781,626 

  397,375 

Total non-current assets

  15,349,925 

  15,496,626 

  15,442,375 

Current assets

Trade and other receivables

  4,368 

  -  

  -  

Cash and cash equivalents

  658,151 

  26,480 

  499,509 

Total current assets

  662,519 

  26,480 

  499,509 

Total assets

  16,012,444 

  15,523,106 

  15,941,884 

Liabilities

Current liabilities

Interest bearing loan and borrowings

  322,790 

  322,790 

  322,790 

Current tax 

  133,820 

  101,268 

  126,380 

Trade and other payables

  277,525 

  271,733 

  327,942 

Total current liabilities

  34,135 

  95,791 

  777,112 

Non-current liabilities

Interest bearing loan and borrowings

  2,563,325 

  2,810,194 

  2,702,337 

Deferred tax 

  317,775 

  209,896 

  368,286 

Total non-current liabilities

  2,881,100 

  3,020,090 

  3,070,623 

Total liabilities

  3,615,235 

  3,715,881 

  3,847,735 

Net assets

  2,397,209 

  11,807,225 

  12,094,149 

Equity

Capital and reserves

Called up share capital

  89,866 

  89,866 

  89,866 

Other reserves

  25,670 

  25,670 

  25,670 

Share premium reserve

  246,000 

  246,000 

  246,000 

Capital reserve

  241,488 

  241,488 

  241,488 

Revaluation reserve 

  1,912,366 

  1,517,123 

  1,912,366 

Retained earnings

  9,881,819 

  9,687,078 

  9,578,759 

Total equity

  12,397,209 

  11,807,225 

  12,094,149 

Consolidated cash flow statement (unaudited)

for the six months ended 30 September 2009

Six

Six

months to

months to

 Year to  

30/09/2009

30/09/2008

31/03/2009

£

£

 £ 

Operating activities

Profit/(loss) for the period

303,409

(1,282,672)

(682,455)

Adjustments for:

Net valuation losses on investment property

  -  

  1,705,000 

  1,250,618 

Loss on disposal of other investments

  -  

  -  

272,124

Net losses on investments

  92,810 

307,632

29,717

Interest expense

22,271

100,258

  153,466 

Tax expense/(income)

83,929

(368,289)

(79,787)

Operating profit before changes

502,419

  461,929 

  943,683 

in working capital and provisions

Changes in receivables

(4,368)

61,734

61,734

Changes in payables

(50,417)

(30,229)

25,980

Cash generated from operations

447,634

  493,434 

1,031,397

Net interest paid

(22,271)

(100,258)

(153,466)

Tax paid

(127,000)

(84,640)

(189,640)

Cash flow from operating activities

298,363

  308,536 

  688,291 

Investing activities

Purchase of investment property

(875,618)

Purchase of other investments

(360)

(384)

(1,967)

Sale of other investments

  -  

  -  

  1,391,625 

Cash outflow from change in debt

(139,012)

(66,321)

(174,178)

Cash used in investing activities

(139,372)

(66,705)

339,862

Financing activities

Dividend paid

(349)

(349)

(313,642)

Cash flow from finance activities

(349)

(349)

(313,642)

Net increase in cash and cash equivalents

158,642

241,482

714,511

Cash and cash equivalents at 1 April 2009

499,509

(215,002)

(215,002)

Cash and cash equivalents at 30 September 2009

658,151

26,480

499,509

Consolidated statement of changes in equity from

1 April 2008 to 30 September 2009 (unaudited)

Revaluation

Retained

Other 

reserve

earnings

reserves

i) 1 April 2009 to 30 September 2009

£

£

£

As at 1 April 2009

  1,912,366 

  9,578,759 

  513,158 

Profit for the financial period

  -  

303,409

  -  

Dividends to shareholders

  -  

(349)

  -  

As at 30 September 2009

  1,912,366 

  9,881,819 

  513,158 

ii) 1 April 2008 to 30 September 2008

As at 1 April 2008

  3,529,755 

  8,957,467 

  513,158 

Profit for the financial period

  -  

(1,282,672)

 - 

Valuation gains and losses

(2,012,632)

  2,012,632 

 - 

As at 30 September 2008

  1,517,123 

  9,687,427 

  513,158 

As at 1 April 2008

  3,529,755 

  8,957,467 

  513,158 

Profit for the financial period

 - 

(682,455)

 - 

Dividends to shareholders

 - 

(313,642)

 - 

Valuation gains and losses

(1,280,335)

1,280,335

 - 

Gains attributable to assets sold

(337,054)

  337,054 

 - 

As at 31 March 2009

  1,912,366 

  9,578,759 

  513,158 

Stewart & Wight PLC

Notes to the accounts

1

Interim report

This interim report will not appear in any newspaper but

copies will be sent to all shareholders and are available at

the company's registered office. The results for the six 

months ended 30 September 2009 are unaudited. 

The interim report does not constitute full accounts as defined

by the Companies Act 2006 but should be read in conjunction

with the most recent financial statements. Full accounts for 

31 March 2009 have been delivered to the Registrar of Companies, 

bearing an unqualified audit opinion.

2

Basis of preparation

The financial statements have been prepared under the historical cost basis as modified by the 

revaluation of investment properties and non-equity investments.

These accounts have been prepared in accordance with IAS 34.

The accounting policies have been consistently applied and are consistent with those used 

in the previous year.

3

Investment properties

Cost or valuation

At 1 April 2009 and 30 September 2009

  15,045,000 

No investment properties were acquired or disposed of in the period. The Directors' are of the opinion

that the market valuation of the property portfolio has not materially changed and have maintained the

value as provided by a professional valuation at 31 March 2009 as detailed in those accounts.

4

Non-equity investments

Traded endowments

Cost or valuation

At 1 April 2009

  397,375 

Premiums paid

  360 

Deficit on revaluation

(92,810)

At 30 September 2009

  304,925 

5

Taxation

Six

Six

months to

months to

Year to 

30/09/2009

30/09/2008

31/03/2009

Current tax

  134,440 

  101,423 

  231,380 

Deferred tax

(50,511)

(469,712)

(311,321)

Adjustment for prior year

 - 

 - 

154

83,929

(368,289)

(79,787)

The taxation charge has been based on the estimated effective tax rate for the full year.

6

Earnings/(loss) per share

The calculation of earnings/(loss) per share is based on the profit/(loss) for the period of £303,409

(2008: (£1,282,672) and on 1,564,720 shares (2008: 1,564,720) which is the weighted average 

number of shares in issue during the period ended 30 September 2009 and throughout the period 

since 1 April 2008.

7

The registered office of the company is at 845 Finchley Road, London NW11 8NA.