Adams Regulatory News (ADA)

28 Apr 2008 07:00

Dawnay, Day Carpathian PLC28 April 2008 Dawnay, Day Carpathian PLC ("Dawnay, Day Carpathian" or the "Company" or the "Group") Preliminary results for the twelve months ended 31 December 2007 Highlights: • The Company is substantially invested, having spent or committed approximately 95% of its funds, leaving the Company ideally placed to be fully invested well ahead of the target investment timetable of 31 December 2008 • Adjusted NAV per share* increased by 8% to 136.7p (2006: 126.7p) • Proposed final dividend of 3.34 pence per share giving a total dividend of 10p per share (2006: 6p) • Net rental and related income increased by 91% to £24.3 million (2006: £12.7 million) • Adjusted profit before tax** increased by 18.5% to £11.5 million (2006: 9.7 million) • Adjusted earnings per share*** 12p (2006: 26.7p) • The portfolio has been revalued at £523.1 million (2006: £368.7 million) as at 31 December 2007, a net uplift of £16 million. Net uplift is the difference between the 31 December 2007 DTZ valuations and those at 31 December 2006 or subsequent cost for those properties acquired during the year • The Group completed a total of eight acquisitions, comprising three retail property portfolios and five retail development sites *Adjusted NAV excludes goodwill and deferred tax on property valuations.**Adjusted profit before tax excludes revaluation gains and losses on property,financial assets and liabilities and foreign exchange.*** Adjusted EPS excludes unrealised deferred tax charge on revaluation surplus Rupert Cottrell, Chairman of Dawnay, Day Carpathian, said: "This has been a verysuccessful period for the Company. We have now largely completed the acquisitionphase of our business plan and as a result we have entered the next phase ofworking on consolidating the portfolio and progressing our development projects.While the current uncertain market conditions dictate a degree of caution, webelieve our portfolio is sufficiently diversified to withstand this and that weare in a good position to improve the overall value of the portfolio thusdelivering meaningful value to shareholders. " Enquiries: Dawnay, Day PanTerra Paul Rogers 020 7834 8060 Balazs Csepregi Cardew Group Tim Robertson 020 7930 0777 Catherine Maitland Numis Securities Charles Farquhar 020 7260 1000 Anthony Richardson Nick Westlake For further information and a copy of the investor presentation please visit theCompany's website at www.dawnaydaycarpathian.com Chairman's Statement I am pleased to report that the Group has made significant progress during 2007. In May 2007, the Company successfully raised a further £100 million (beforeexpenses) by means of a placing (the "Placing") of 83,333,334 new ordinaryshares at 120p per share. Together with the proceeds raised from the Company'sadmission to trading on AIM in July 2005, the Company has now raised proceeds of£240 million (before expenses). At the time of the Placing, the Company alsosought to participate in development and regeneration projects by investing upto 25 per cent of its equity into retail property development and regenerationprojects. The Group has largely completed its investment programme well ahead of thetarget timetable of December 2008 set at the time of the Placing. The Group nowhas a well diversified portfolio of 55 property assets across 7 countries inCentral and Eastern Europe. The Company has built a good reputation and trackrecord within its target markets, developing strong relationships with localbusinesses through its property investment advisor, Dawnay, Day PanTerra. As the Company has now substantially invested the entire net proceeds of thePlacing, the primary focus is on active portfolio and individual assetmanagement, together with development initiatives in order to provide rental andcapital growth opportunities. Operations During the year, the Group completed a total of eight acquisitions, comprisingthree retail property portfolios and five retail development sites. The Marina Mokotow transaction comprises 31 retail units in an upmarketresidential development in Warsaw. In October 2007, the Group also acquired aportfolio comprising two properties in Hungary and two in the Czech Republic,which will provide secure, long term income flow, being let to majorinternational brand retailers on long leases. Finally, in December 2007, theGroup completed the purchase of six supermarkets in Croatia, the Company's firstpurchase in that country. The units, in excess of 32,000 sqm, are let to thelargest retailer in Croatia. As at 31 December 2007, the Group had acquired investment properties at a totalcost of £429.6 million, with an annualised rent roll in excess of £33.5 millionand a blended net initial yield of 7.8%. During the course of the year, the Group also acquired a pipeline of fourdevelopment opportunities in Romania, for a total cost of £37.3 million,allowing the Company to establish a strong presence in that country. All ofthese projects will be undertaken in conjunction with our joint venture, AtriumDevelopments. Current plans provide for the development of over 150,000 sqm,with an end value in excess of approximately £300 million. Heads of terms havealready been agreed with a number of reputable operators and anchor tenants.Construction is expected to span a two to three year period. Further, theCompany is also in advanced negotiations with several banks with whom it hasestablished relationships in relation to the arrangement of developmentfinancing for the projects. In addition, the Group has also entered into a forward purchase agreement to actas a development funding partner in exchange for a 55% interest in a prime, citycentre retail development in Riga, with a planned opening in the second quarterof 2010. This development has secured 100% of the construction financingrequired and the leasing discussions are progressing well. Property Portfolio Summary Investment portfolio +--------------+-----------+-----------------------+-----------+-----------+| Country| Location| Property| Purchase| DTZ|| | | | Price (£m)| valuation|| | | | | (£m)|+--------------+-----------+-----------------------+-----------+-----------+|Czech Republic|Karlovy |Varyada Shopping Centre| 26.8| 38.3|| |Vary | | | |+--------------+-----------+-----------------------+-----------+-----------+|Czech Republic|Czech |MID portfolio : 2 | 28.8| 30.4|| |Republic |properties | | || | |(acquired October 2007)| | |+--------------+-----------+-----------------------+-----------+-----------+|Czech Republic| | | | ||Total | | | 55.6| 68.7|+--------------+-----------+-----------------------+-----------+-----------+|Hungary |Budaors |Antana Logistic Park | 14.2| 16.7|+--------------+-----------+-----------------------+-----------+-----------+|Hungary |Hungary |Plaza Portfolio: 4 | 44.4| 58.9|| | |properties | | |+--------------+-----------+-----------------------+-----------+-----------+|Hungary |Budapest |Ericsson Office | 11.5| 12.3|| | |Building Complex | | |+--------------+-----------+-----------------------+-----------+-----------+|Hungary |Hungary |Interfruct Portfolio: | 55.8| 63.4|| | |23 properties | | |+--------------+-----------+-----------------------+-----------+-----------+|Hungary |Hungary |MID Portfolio: 2 | 20.8| 22.0|| | |properties | | || | |(acquired October 2007)| | |+--------------+-----------+-----------------------+-----------+-----------+|Hungary Total | | | 146.7| 173.3|+--------------+-----------+-----------------------+-----------+-----------+|Latvia |Riga |Blaumana 12 | 8.5| 9.4|+--------------+-----------+-----------------------+-----------+-----------+|Latvia Total | | | 8.5| 9.4|+--------------+-----------+-----------------------+-----------+-----------+|Lithuania |Panevezys |Babilonas Shopping | 23.0| 26.0|| | |Centre | | |+--------------+-----------+-----------------------+-----------+-----------+|Lithuania | | | 23.0| 26.0||Total | | | | |+--------------+-----------+-----------------------+-----------+-----------+|Poland |Poland |Geant Portfolio: 4 | 42.3| 61.4|| | |properties | | |+--------------+-----------+-----------------------+-----------+-----------+|Poland |Warszawa |Promenada Shopping | 94.5| 122.8|| | |Centre | | |+--------------+-----------+-----------------------+-----------+-----------+|Poland |Slupsk |Biedronka Supermarket | 0.8| 1.1|+--------------+-----------+-----------------------+-----------+-----------+|Poland |Warszawa |Marina Mokotow | 4.4| 5.2|| | |(acquired October 2007)| | |+--------------+-----------+-----------------------+-----------+-----------+|Poland Total | | | 142.0| 190.5|+--------------+-----------+-----------------------+-----------+-----------+|Romania |Brasov |Macromall Shopping | 13.1| 13.5|| | |Centre | | |+--------------+-----------+-----------------------+-----------+-----------+|Romania Total | | | 13.1| 13.5|+--------------+-----------+-----------------------+-----------+-----------+|Croatia |Croatia |Agrokor Portfolio: 6 | 40.7| 41.7|| | |properties | | || | |(acquired December | | || | |2007) | | |+--------------+-----------+-----------------------+-----------+-----------+|Croatia Total | | | 40.7| 41.7|+--------------+-----------+-----------------------+-----------+-----------+|Grand Total | | | 429.6| 523.1|+--------------+-----------+-----------------------+-----------+-----------+ The gross lettable area of the portfolio is approximately 400,000 sqm, and theCompany's property investment advisor, Dawnay, Day PanTerra, has identified thepotential to increase this by approximately 20% over the next few years. The revaluation surplus at 31 December 2007 at the individual property levelvaries due to the length of actual ownership of each property. The AntanaLogistic Park and the Ericsson Office Building complex were both acquired withthe intention of implementing regeneration projects to maximise their futurevalue while providing attractive income yields at present. Development portfolio +--------------+-----------+-----------------------+-----------+-----------+| Country| Location| Property| Purchase| DTZ|| | | | Price (£m)| valuation*|| | | | | (£m)|+--------------+-----------+-----------------------+-----------+-----------+|Romania |Arad |Development site with | 8.2| 9.3|| | |permits | | |+--------------+-----------+-----------------------+-----------+-----------+|Romania |Baia Mare |Development site with | 12.4| 13.4|| | |permits | | |+--------------+-----------+-----------------------+-----------+-----------+|Romania |Cluj Napoca|Development site with | 9.7| 11.2|| | |permits | | |+--------------+-----------+-----------------------+-----------+-----------+|Romania |Satu Mare |Development site with | 7.0| 7.5|| | |permits | | |+--------------+-----------+-----------------------+-----------+-----------+|Romania Total | | | 37.3| 41.4|+--------------+-----------+-----------------------+-----------+-----------+* valuation at purchase, and capitalised costs The planned gross lettable area of the four developments in Romania is expectedto exceed 150,000 sqm. When completed, the Riga development will be in excess of 35,000 sqm, and theCompany has invested approximately £20.3m in the project to date, in the form ofan asset backed loan. Financial Results The net rental and related income for the year amounted to £24.3 million, anincrease of 91% over 2006, reflecting a first-time, full year contribution fromthose properties acquired in 2006 and the acquisitions made during 2007. The portfolio has been valued by DTZ Debenham Tie Leung Limited ('DTZ') as at 31December 2007 at £523.1 million, giving a net uplift of £16 million compared tothe 31 December 2006 valuation (or the purchase price if acquired thereafter).The cumulative revaluation surplus amounts to £55.2 million (excluding foreignexchange movements). As the Group's functional currency is the euro, and its presentation currency issterling, the continued strengthening of the euro against sterling had to bepresented in the financial statements in accordance with IFRS. This has resultedin an unrealised foreign exchange loss on its sterling cash deposits of £7.0million over the period, while a net unrealised gain of £23.1 million on theeuro denominated property valuation was classified under the translationreserve. The present strengthening of the euro benefits the shareholders of theGroup as it is the underlying currency for the majority of its rental income. The Company overall generated a net profit before tax of £21.9 million. Adjustedprofit before tax, which excludes any fair value and exchange movements amountedto £11.5 million, an increase of 18% over 2006. Basic earnings per share were 8.3 pence, while the diluted earnings per share is7.3 pence for the year. The adjusted earnings per share excluding the unrealisedtax liabilities is 12 pence for the year. The net asset value per share, adjusted to exclude goodwill and associateddeferred tax liabilities arising on the property valuations, has risen to 136.7pence from 126.7 pence, an increase of 8%. Non-adjusted, net asset value per share has also risen, to 123.9 pence from 114.2 pence at 31 December 2006, anincrease of 8.5%. At 31 December 2007, the Group's borrowings totalled £310.4 million,representing a loan to value ratio of 57% and a loan to cost ratio of 69% of theinvestment property. Following the £30 million refinancing of the AgrokorPortfolio in March 2008, the loan to value ratio has risen to 62% and a loan tocost ratio of 76% of the investment property. The above loan balance alsoincludes land and development related financing at a total amount of £13.7million. All loans are secured against properties and are denominated in euros. Theweighted average interest rate for the year was 5.52%. Hedging instruments arein place for all loans, which swap the variable Euribor rate to fixed rate witha weighted average rate of 3.7%. The Group actively manages its cash flow to deliver maximum returns. At the 2007year end, the Group's current liabilities were temporarily higher than itscurrent assets which was primarily due to the equity invested into the Agrokorproject. The purchase contract provided for the transaction to be rescindedshould debt financing be unavailable. However, as the debt financing wassuccessfully completed, in March 2008 the Group has, as anticipated returned toa positive balance of current assets and liabilities. Dividends A first interim dividend of 3.33 pence per share for the year ending 31 December2007 was declared in April 2007 and was paid in September 2007. A second interim dividend, also of 3.33 pence per share, was declared inNovember 2007 and paid in January 2008. This second interim dividend was thefirst dividend in respect of which the new placing shares issued in Mayqualified for. The Board intends to declare, subject to shareholder approval, a final dividendfor the year, of 3.34 pence per share. This will result in an aggregate dividendpayment of 10 pence per share for the year ending 31 December 2007, whichachieves the Board's previously stated target. In light of the markedly different economic climate, and the impact this has hadon the property sector, the Board has set a new dividend objective for 2008 of8 pence per share which still represents an attractive yield but also takes account of the current market environment. The dividend is expected to befunded partially from value realizations and from income generated by theinvestment properties. Outlook While we believe that the current uncertain market and financial conditions willno doubt continue for some time, in our view the diversity of our portfolio andthe expertise of our property investment advisor will assist us to continue toadd value for shareholders in order to deliver very attractive returns. Having now successfully invested the available funds well ahead of our targettimetable, the immediate focus will be to realise value within our investmentportfolio and to progress our development projects. The key to our continuingsuccess rests upon utilising the property investment advisor's extensive localexperience, and relationships across our markets. In addition, we will progressasset management opportunities including adding additional space to our existingproperties and look to take advantage of the current environment throughopportunities such as distressed sales. We are therefore confident of continuingto deliver value to our shareholders in the current financial year and beyond. Rupert CottrellChairman INCOME STATEMENT 2007 2006 Note Group Group £'000 £'000 Gross rental income 3 27,051 15,799Service charge income 9,635 5,946Service charge expense ( 10,886) ( 6,712)Property operating expenses ( 3,401) ( 2,679)Other property income 1,895 335 __________________________Net rental and related income 24,294 12,689 Changes in fair value of investment property 8 15,983 36,792 Changes in fair value of financial assets andliabilities 1,409 ( 1,147) Net foreign exchange (loss)/gain ( 6,971) 1,388 Administrative expenses 4 ( 4,685) ( 2,140) __________________________Net operating profit before net financing expense 30,030 47,582 __________________________ Financial income 5 7,375 6,839Financial expense 5 ( 15,528) ( 7,660) __________________________Net financing (expense) ( 8,153) ( 821) __________________________ __________________________Net profit before tax 21,877 46,761 Tax 6 ( 6,947) ( 10,739) __________________________PROFIT FOR THE YEAR 14,930 36,022 __________________________Attributable to:Equity holders of the Company 7 16,202 30,706Minority interest 7 ( 1,272) 5,316 Basic and diluted earnings per share for profit attributableto the equity holders of the Company during the year(expressed as Pence per share) Basic earnings per share 7 8.3 p 21.1 pDiluted earnings per share 7 7.3 p 21.0 p STATEMENT OF CHANGES IN EQUITY Share Share Minority Translation Retained Capital Premium Interest Reserve Earnings TotalGROUP Note £'000 £'000 £'000 £'000 £'000 £'000 ________________________________________________________________Balance as at 1 January 2006 1,454 125,556 230 ( 95) 14,675 141,820Profit for the year - - - - 36,022 36,022Minority interest - - 460 - ( 460) -Dividends paid 14 - - - - ( 2,909) ( 2,909)Carried interest allocation tominority shareholders - - 4,856 - ( 4,856) -Translation into presentationcurrency - - - ( 3,372) - ( 3,372) ________________________________________________________________Balance as at 31 December2006 1,454 125,556 5,546 ( 3,467) 42,472 171,561 ________________________________________________________________Balance as at 1 January 2007 1,454 125,556 5,546 ( 3,467) 42,472 171,561Profit for the year - - - - 14,930 14,930Dividends paid and declared 14 - - - - ( 18,342) ( 18,342)Purchase of minorityshareholders' interest - - ( 688) - - ( 688)Minority interest throughacquisitions - - 87 - - 87Carried interest allocation tominority shareholders ( 1,272) - 1,272 -Issue of share capital 11 833 99,167 - - - 100,000Costs of issue 11 - ( 3,315) - - - ( 3,315)Exercise of share-based option 11 6 594 - - - 600Share premium release 11 - ( 44,891) - - 44,891 -Translation into presentationcurrency - - - 23,127 - 23,127 ________________________________________________________________Balance as at 31 December2007 2,293 177,111 3,673 19,660 85,223 287,960 ________________________________________________________________ BALANCE SHEET 2007 2006 Note Group Group £'000 £'000ASSETSNon-current assetsInvestment property 8 523,112 368,692Development property 8 41,428 -Goodwill 25,576 16,578Intangible assets 13 -Costs relating to future acquisitions 291 436Other investments 5,477 -Loans receivable 14,846 -Deferred income tax assets 9 1,027 964 ____________________________________ 611,770 386,670 ____________________________________Current assetsTrade and other receivables 10 12,776 10,368Loans receivable 20 -Cash and cash equivalents 62,103 75,131Financial assets 4,762 2,666 ____________________________________ 79,661 88,165 ____________________________________TOTAL ASSETS 691,431 474,835 ____________________________________EQUITYIssued capital 11 2,293 1,454Share premium 11 177,111 125,556Retained earnings 85,223 42,472Translation reserve/(deficit) 19,660 ( 3,467) ____________________________________Total equity attributable to equityholders of the parent 284,287 166,015 ____________________________________ Minority interest 3,673 5,546 ____________________________________TOTAL EQUITY 287,960 171,561 ____________________________________ LIABILITIESNon-current liabilitiesBank loans 12 233,382 189,535Deferred income tax liabilities 9 56,333 35,336 ____________________________________ 289,715 224,871 ____________________________________ Current liabilitiesTrade and other payables 13 27,884 11,838Bank loans 12 77,055 64,702Provisions 647 729Dividends payable 14 7,638 -Financial liabilities 532 1,134 ____________________________________ 113,756 78,403 ____________________________________ ____________________________________TOTAL LIABILITIES 403,471 303,274 ____________________________________TOTAL EQUITY AND LIABILITIES 691,431 474,835 ____________________________________ 2007 2006CASH FLOW STATEMENT Note Group Group £'000 £'000Cash flows from operating activitiesCash (used in)/ generated from operations 15 ( 13,730) 2,940Income taxes paid ( 1,830) ( 797) ____________________________Net cash (used in)/ generated from operatingactivities ( 15,560) 2,143 ____________________________Cash flows from investing activitiesCapital expenditure on investment properties ( 8,870) ( 34,486)Capital expenditure on development properties ( 8,354) -Capital expenditure on incomplete acquisitions ( 337) ( 436)Capital expenditure on intangible assets ( 13) -Loan advances to unconsolidated entities ( 14,866) -Investment in unconsolidated entities ( 5,419) -Interest received 5,733 4,593Acquisition of subsidiaries ( 41,987) ( 70,937)Acquisition of minority interest in subsidiaries ( 1,035) -Loans advanced to subsidiaries before acquisition - ( 22,476) ____________________________Net cash used in investing activities ( 75,148) ( 123,742) ____________________________Cash flows from financing activitiesProceeds on issue of shares, net of share issuancecosts 97,285 -New bank loans raised 53,019 86,045Interest paid ( 13,796) ( 7,075)Repayments of borrowings ( 50,219) -Dividends paid ( 10,704) ( 7,272) ____________________________Net cash generated from financing activities 75,585 71,698 ____________________________Net decrease in cash and cash equivalents ( 15,123) ( 49,901)Cash and cash equivalents at the beginning of the 75,131 126,145yearExchange gains/(losses) on cash and cash 2,095 ( 1,113)equivalents ____________________________Cash and cash equivalents at the end of the year 62,103 75,131 ____________________________ Abbreviated notes to the Consolidated financial statements 1. Accounting basis Dawnay, Day Carpathian PLC (the "Company") is a company domiciled andincorporated in the Isle of Man on 2 June 2005 for the purpose of investing inthe retail property market in Central and Eastern Europe. The consolidated financial statements for Dawnay, Day Carpathian PLC (the"Group") and financial statements for the Company have been prepared for theyear ended 31 December 2007. The financial information set out above does not constitute the Group'sstatutory accounts for the year ended 31 December 2007. The figures for the yearended 31 December 2007 are extracted from the audited Group financial statements("the financial statements"). A copy of the financial statements, on which theauditors have issued an unqualified report, will be lodged with the Registrar ofCompanies. The results for the year ended 31 December 2007 have been prepared onthe basis of the accounting policies set out in the financial statements. 2. Significant accounting policies The consolidated financial statements have been prepared in accordance with theInternational Financial Reporting Standards (IFRS), details of accountingpolicies adopted by the Group can be found in the financial statements 3. Gross rental income 2007 2006 Group Group £'000 £'000Gross lease payments collected/accrued 27,051 15,799 _________________ The Group leases out its investment property under operating leases. Alloperating leases are for terms of 1 - 15 years. 4. Administrative expenses 2007 2006 Group Group £'000 £'000 Accounting fees 567 401Other administrative expenses 1,564 356Audit fees 521 323Legal fees 445 264Abortive acquisition costs 464 234Non-executive Directors fees 138 135Bank charges and fees 336 89Portfolio management fees 156 87Tax advisory fees 57 85Nominated advisor fees 56 61Public relation fees 49 56Consultancy fees 137 -Custody/trust fees 38 36Irrecoverable VAT 157 13 ______________ 4,685 2,140 ______________ Other administrative expenses include items such as stationary, postage,telecommunications and travel. 5. Net financing expense 2007 2006 Group Group £'000 £'000Interest income from financial institutions 5,907 4,593Interest income from related party 589 -Fair value adjustment of interest rate swaps 879 2,246 ____________________Financial income 7,375 6,839Net interest expenses on bank borrowings ( 14,814) ( 7,597)Finance costs amortised ( 116) -Unwinding of unrealised direct issue costs ofborrowings ( 598) ( 63) ____________________Net financing expense ( 8,153) ( 821) ____________________ 6. Tax 2007 2006Recognised in the Income Statement Group Group £'000 £'000Current tax expenseCurrent year 508 1,108Prior year ( 168) - Deferred tax expenseOrigination of temporary differences 6,607 9,631 _________________Total income tax expense in the Income Statement 6,947 10,739 _________________ 7. Earnings per share Basic earnings per share The calculation of basic earnings per share for the year ended 31 December 2007was based on the profit attributable to ordinary shareholders of £ £16,202,416(2006: £ 30,705,369) and a weighted average number of ordinary shares in issueof 196,169,559 (2006: 145,430,015) Diluted earnings per share The calculation of diluted earnings per share for the year ended 31 December2007 was based on the diluted profit attributable to ordinary shareholders of£14,460,545 (2006: £ 30,705,369) and a weighted average number of ordinaryshares outstanding during the year ended 31 December 2007 of 197,705,853 (2006:146,515,868). 8. Investment property and development property 2007 2007 2007 Investment Development Total property property Group Group Group £'000 £'000 £'000Balance at 1 January 368,692 - 368,692Acquisitions throughbusiness combinations 90,280 30,525 120,805Acquisitions throughdirect asset purchases 7,607 6,814 14,421Additions 1,264 1,540 2,804Increase in fair value 15,983 - 15,983Foreign exchange effect 39,286 2,549 41,835 _______________________________________________Balance at 31 December 523,112 41,428 564,540 _______________________________________________ 2006 2006 2006 Investment Development Total property property Group Group Group £'000 £'000 £'000Balance at 1 January 87,054 - 87,054Acquisitions throughbusiness combinations 215,530 - 215,530Acquisitions throughdirect asset purchases 33,833 - 33,833Additions 654 - 654Increase in fair value 36,792 - 36,792Foreign exchange effect ( 5,171) - ( 5,171) _______________________________________________Balance at 31 December 368,692 - 368,692 _______________________________________________ 9. Deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following items: 2007 2007 2006 2006 Group Group Group Group Assets Liabilities Assets Liabilities £'000 £'000 £'000 £'000Investmentpropertyvaluation - 55,186 - 34,798Interest rateswap valuation - 516 - 324Accruedinterestpayable 37 - 55 -Tax lossesbroughtforward 990 - 909 -Othertemporarydifferences - 631 - 214 _______________________________________ 1,027 56,333 964 35,336 _______________________________________ 10. Trade and other receivables 2007 2006 Group Group £'000 £'000Trade receivables 3,043 2,569Other receivables 4,948 6,447Tax receivable 622 -Prepayments 1,675 1,352Accrued interest on loans 764 -Subsidiary purchase price adjustment receivable 1,724 - _________________________ 12,776 10,368 _________________________ 11. Share capital and share premiumAuthorised: Number of ordinary shares of 1 pence each £'000At 31 December 2006 200,000,000 2,00017 May 2007 - Increaseof authorised share capital 150,000,000 1,500 _____________________________At 31 December 2007 350,000,000 3,500 _____________________________ On 17 May 2007 the authorised share capital of the Company was increased to£3,500,000 by the creation of 150,000,000 ordinary shares of 1 pence each. Number of Share capital Share premium shares Issued £'000 £'000 and fully paidIssued:Ordinary shares of 1p eachBalance at 31 December 2006 145,430,015 1,454 125,55623 February 2007 - shareoption exercised 600,000 6 59418 May 2007 - issue for cash 83,333,334 833 99,16718 May 2007 - placing cost - - ( 3,315)Transfer to distributablereserves - - ( 44,891) ___________________________________________Balance at 31 December 2007 229,363,349 2,293 177,111 ___________________________________________ Holders of the ordinary shares are entitled to receive dividends and otherdistributions and to attend and vote at any general meeting. On 18 May 2007, the Company issued 83,333,334 ordinary shares in relation to itspublic offering at £1.20 per share. The Company incurred costs of £ 3,315,000relating to the issue of shares. These equity transaction costs were deductedfrom equity in accordance with IAS 32: Financial instruments disclosure andpresentation. On 17 May 2007 the Company passed a resolution at an Extraordinary GeneralMeeting, which was subsequently approved by the Court, to cancel 20% of theCompany's' share premium account to create distributable reserves. 12. Interest-bearing loans and borrowings This note provides information about the contractual terms of the Group'sinterest-bearing loans and borrowings. Group Group £'000 £'000Bank loans - non-current 233,382 189,535Bank loans - current 77,055 64,702 ________________________ 310,437 254,237 ________________________ The borrowings are repayable as follows:On demand or within one year 77,055 65,147In the second year 79,963 23,507In the third to fifth years inclusive 122,593 137,759After five years 32,205 29,133 ________________________ 311,816 255,546 ________________________Unrealised direct issue cost of borrowings ( 1,379) ( 1,309) ________________________ 310,437 254,237 ________________________ Less: amount due for settlement within twelve months(shown under current liabilities) ( 77,055) ( 64,702) ________________________Amount due for settlement after twelve months 233,382 189,535 ________________________ The Group has pledged each of its investment properties and its shares in thespecial purpose vehicles holding the investment properties to secure relatedinterest-bearing debt facilities granted to the Group for the purchase of suchinvestment properties. The weighted average cost of debt of the year was 5.52% (2006: 5.28%). 13. Trade and other payables 2007 2006 Group Group £'000 £'000Trade payables 18,531 5,559Tenant deposits 2,285 1,812Accrued interest 2,425 1,290Related party payables 869 1,140Tax payable - 869Accrued expenses 2,833 704Income received in advance 647 391Subsidiary purchase price adjustment payable 294 73 ________________________ 27,884 11,838 ________________________ 14. Dividends 2007 2006 Group Group £'000 £'000First interim dividend (declared and paid) 4,868 2,909Second interim dividend (declared in 2007 and paid in 7,638 -2008)Final dividend (declared and paid during 2007) 5,836 ________________________ 18,342 2,909 ________________________ 14. Dividends (continued) On 23 April 2007 the Directors declared a final dividend of 4 pence per sharefor the year ended 31 December 2006. Two interim dividend declarations of 3.33 pence per share were declared on 23April 2007 and on 27 November 2007. The second interim dividend was paid on 4January 2008. The Board intends to declare, subject to shareholder approval, a final dividendfor the year, of 3.34 pence per share. This will result in an aggregate dividendpayment of 10 pence per share for the year ending 31 December 2007, whichachieves the Board's previously stated target. 15. Notes to the cash flow statement 2007 2006 Group GroupCash (used in)/ generated from operations £'000 £'000Profit for the year 14,930 36,022Adjustments for:Increase in fair value of interest rate swaps ( 1,632) ( 2,246)Increase in fair value of financial liabilities ( 656) 1,147Unwinding of unrealised direct issue costs ofborrowings 598 63Net other finance income 8,433 3,004Increase in fair value of investment property ( 15,983) ( 36,792)Costs relating to future acquisitions written off 439 -Reversal of investment in subsidiaries 30 -Provisions ( 82) -Income tax expense 6,947 10,739Unrealised foreign exchange loss/(gain) 6,971 ( 1,388) _______________________ Operating cash flows before movements in workingcapital 19,995 10,549 _______________________Decrease/ (increase) in receivables 760 ( 3,091)(Decrease)/ increase in payables ( 34,485) ( 4,518) _______________________Cash (used in)/ generated from operations ( 13,730) 2,940 _______________________ 16. Financial Statements Copies of the 2007 financial statements will be sent to all shareholders as soonas practical. These documents will be available to the public at the offices ofthe company: IOMA House, Hope Street, Douglas, Isle of Man, as well as on ourwebsite www.dawnaydaycarpathian.com. This information is provided by RNS The company news service from the London Stock Exchange