Last checked at 8 Dec 2009 07:00
8 December 2009
The Conygar Investment Company PLC
Preliminary Results for the year ended 30 September 2009
The Conygar Investment Company PLC, the property trading and development company announces its results for the year ended 30 September 2009.
HIGHLIGHTS
Group transformed in 2009 with acquisitions of £196 million of property assets, raising £69 million of new equity and the sale of £18 million of properties
Acquisition of The Advantage Property Income Trust Limited ("TAP") for £28.1 million. TAP had £151.6 million of property assets and £13.4 million of annual rental income as at 30 September 2009
Property trading continued with the sale of £13.9 million of properties
Successful share placing in September 2009 raised £69 million after expenses to provide funds for further opportunities
Acquired a portfolio of seven office and industrial properties in November 2009 for £44.6 million
Cash available for further opportunities of £65 million and more once recent acquisition is refinanced
Summary Group Net Assets As At 30 September 2009
| £'m | |
| Property Assets | 154.8 |
| Marina Projects | 12.1 |
| Cash | 102.8 |
| Other net assets | 3.0 |
| 272.7 | |
| Bank loans (net of issue costs) | (98.1) |
| Preference shares | (12.6) |
| Net assets | 162.0 |
| NAV per share | 140p |
Since the year end we have sold £4 million of properties and purchased properties for £44.6 million.
Enquiries:
The Conygar Investment Company PLC
Robert Ware: 020 7408 2322
Peter Batchelor: 020 7408 2322
Oriel Securities Limited (Nominated Adviser)
Michael Shaw: 020 7710 7600
Gareth Price: 020 7710 7600
Temple Bar Advisory (Public Relations)
Alex Child-Villiers: 07795 425580
Chairman's & Chief Executive's Statement
Results
The year ended 30 September 2009 has proved to be a significant challenge both in the property and financial markets but one where the Group has taken opportunities to buy and sell selectively and to position itself strongly for the future. Since August we have acquired £196 million of property assets, raised £69 million of new equity and sold some £18 million of properties. Before refinancing some of the recent acquisitions and any additional sales, we still have £65 million of cash available.
The profit before taxation for the year was £13.7 million (2008: £0.1 million loss) which includes £21.8 million profit arising from the unrealised gain from the acquisition of The Advantage Property Income Trust Limited ("TAP"). The Group paid £28.1 million for TAP's net assets of £49.9 million taking advantage of the weak TAP share price. Since the year end, the Group has acquired a further £44.6 million of assets and further opportunities are being pursued.
In September, we raised £69 million net from a share placing which when added to the £34 million cash we already held allows us to pursue further under-valued opportunities and which also significantly broadened our investor base.
Our net asset value per share of 140p compares to 164p per share at 30 September 2008 and reflects both market conditions and our increased number of shares in issue. Given the changes to the Group since last year, it is difficult to compare 2009 with 2008 and draw any meaningful conclusions. In our view, a far better guide is to look at how the Group is placed for the future. As at 30 September 2009, the annual rent roll was £13.4 million which increases to £17.6 million taking into account acquisitions and disposals since the year end.
As before we remain cautious about the property market and whilst we are seeing buying opportunities, we are content to wait for the right transaction. In the meantime, the Group is working at extracting maximum value from TAP and moving ahead with its various development projects so that we shall be well positioned when markets recover.
Acquisition of The Advantage Property Income Trust Limited ("TAP")
In January 2009, we acquired a 28.9% stake in TAP for £5.8 million and subsequently made a successful offer for the whole company. As at the date of this report we had acquired 99.4% and will compulsorily acquire the remaining shares so we shall own 100% by the end of February 2010. TAP has been de-listed and has been integrated into Conygar.
In summary, we acquired £151.6 million of property assets at 30 September 2009 valuation and net assets of £49.9 million. We paid £28.1 million including costs thereby producing a profit upon acquisition of £21.8 million. With £13.4 million of annual rental income, opportunities such as this are few and far between. As we stated in our offer document, TAP needed to dispose of assets in order to address its over-geared position and costs needed to be reduced and we have made good progress in these areas.
Going forward, we will take a far more active approach to the assets, disposing of those where the offers are too good to turn down or where the asset has few, if any, growth opportunities, though we shall also invest where necessary to enhance value. The relatively small lot size of the TAP properties makes them very liquid, whilst the exposure to tenant defaults or other risks are reduced by the spread of over sixty assets.
The Group expects to use TAP as a vehicle for further acquisitions and having dealt so promptly with the level of gearing, we are discussing refinancing options with our existing lenders.
Acquisition After the Year-End
On 18 November 2009, we announced the acquisition of seven freehold and long leasehold buildings for a total cash consideration of £44.6 million. The portfolio consists of:
Brennan House, Farnborough Aerospace Centre, Hampshire
Three units at Aker Village, Kirkhill, Aberdeen
Cambridge Road, Whetstone Business Park, Leicester
Kelvin II, Kelvin Close, Birchwood Park, Warrington
Crystal Drive, Sandwell Business Park, Oldbury, West Midlands
The annual rent roll is approximately £4.41 million representing a net initial yield of 9.9%. The buildings comprise 562,000 square feet of lettable space and occupy some 47 acres so there are development opportunities should demand justify it. All the buildings are fully let and key tenants include Cadbury UK Limited, Aker Solutions ASA, Hewlett Packard Limited and Johnson Controls Limited. The average lease length to the first break is 6 years and the properties offer significant active management and development potential.
A key aspect of our securing this bank sourced portfolio was that we were able to complete the transaction within 10 working days using our cash. However, it is our intention to refinance the portfolio in due course which will release funds for further opportunities.
Trading Properties
In October 2009, we completed on the sale of three of the four remaining properties in Buckingham Street, London WC2 for a combined consideration of £13.9 million. Both disposals were above the March 2009 valuations and are included in the results for the year. However, one building was vacant whilst the other two had a number of impending tenant breaks and the decision was taken that the capital could be better applied towards other opportunities. Following these disposals we are now left with one trading property that has been valued by Knight Frank LLP at £3.2 million. It continues to produce income of £0.2 million, however it is our intention that it will be sold in due course.
Marina Projects
Good progress continues on our three waterfront projects at Pembroke Dock, Holyhead and Fishguard. The planning process for regeneration schemes of this type and scale is understandably complex and the pace of progress can be frustrating. However we certainly are confident that all three projects will be profitable for Conygar, though it is clear that given the current state of the economy we will be cautious before starting any significant development. To date, our investment in the marina projects totals £12.1 million and with limited further expenditure on professional fees the Group should obtain planning consents for projects with a potential for in excess of 1,000 marina berths, 1,200 waterside homes together with associated mixed use supporting development.
It should also be noted that we are also looking at a number of associated opportunities that have arisen out of these projects that may be of interest to the Group and so we remain very positive about this business area.
Financing and Fundraising
As at 30 September 2009, the Group had cash of £102.8 million and had acquired £99.6 million of bank debt with TAP. The bank debt in TAP is non-recourse to the rest of the Group so any exposure is ring-fenced. Our cash is therefore available for other opportunities.
Having acquired a portfolio of assets in November for £44.6 million, the cash is currently £65 million and further funds for investment can be generated through refinancing both the recent acquisition and TAP, so we have considerable firepower.
The share placing in September 2009 was a great success in that we raised £69 million net of expenses. We were particularly pleased at the level of take up amongst both existing and new shareholders. The pricing was at a discount to net assets by virtue of our share price (not a decision we took lightly but it was important for the future growth of the Group), but as we have already seen from the recent portfolio acquisition, the ability to secure excellent opportunities using cash should make up for this over time. It has also introduced us to a new group of institutional and other investors many of whom have indicated to us that further funds may be available should we identify suitable opportunities. Obtaining bank finance is no longer easy, quick or cheap unless you have considerable equity so cash remains king in our view.
Summary Group Net Assets As At 30 September 2009
Given the complexities and illogicalities of current accounting standards we set out below our summary of the Group net assets as at 30 September 2009 showing the various aspects of Conygar:
| £'m | |
| Property Assets | 154.8 |
| Marina Projects | 12.1 |
| Cash | 102.8 |
| Other net assets | 3.0 |
| 272.7 | |
| Bank loans (net of issue costs) | (98.1) |
| Preference shares | (12.6) |
| Net assets | 162.0 |
| NAV per share | 140p |
Since the year end we have sold £4 million of properties and purchased properties for £44.6 million.
Appointment of Director
We are pleased to have appointed Preston Rabl as a director of the Company. Preston was formerly Chairman of Laxey Partners Limited, was previously a partner in stockbrokers Henderson Crosthwaite and a joint founder of WPP plc. He has a wealth of corporate experience and will provide general corporate and financial advice as required.
Prospects
The Board continues to remain confident about the future prospects of the Group. We have transformed the Group in 2009 having made two excellent acquisitions and raised around £69 million through the placing to pursue yet further opportunities.
We remain cautious about apparent signs that the outlook for the economy is improving. Much of it appears to relate to a weight of money chasing a scarce supply of assets. We see little sign that rental levels are actually improving, that unemployment has stopped rising, that sensible finance is returning to the property sector, or that anyone in government or the opposition knows how to deal with our government's excessive borrowing. Therefore any recovery seems fragile and we anticipate further blips along the way. The banks still have huge amounts of exposure to property and whilst we are slowly starting to see bank related deals appear we believe there is still much more to come. The banking sector will in time have to find a suitable solution to its huge property exposure. We hope to be able to help them in this process.
With cash available to invest of over £65 million and more if we include amounts released from refinancing, the Group remains well positioned to make further significant acquisitions.
N J Hamway R T E Ware
Chairman Chief Executive
CONSOLIDATED INCOME STATEMENT
For the year ended 30 September 2009
| Note | Year Ended 30 Sep 09 £'000 | Year Ended 30 Sep 08 £'000 |
| Sales of properties | 13,924 | 8,150 |
| Rental income | 2,544 | 1,225 |
| Revenue | 16,468 | 9,375 |
| Direct costs of: | ||
| Sales of properties | 16,338 | 4,963 |
| Rental income | 728 | 522 |
| Write-down of property inventory | (647) | 2,477 |
| Direct Costs | 16,419 | 7,962 |
| Gross Profit | 49 | 1,413 |
| Gain in respect of acquisition | 21,798 | - |
| Income from trading investments | 335 | - |
| Share of results of joint ventures | (39) | 3 |
| Gain on sale of investment properties | 427 | - |
| Movement on revaluations of investment properties | (468) | - |
| Other gains and losses | (414) | (137) |
| Administrative expenses | (7,950) | (3,615) |
| Operating Profit / (Loss) | 13,738 | (2,336) |
| Finance costs | (702) | - |
| Finance income | 652 | 2,233 |
| Profit / (Loss) Before Taxation | 13,688 | (103) |
| Taxation | 348 | (262) |
| Profit / (Loss) For The Period | 14,036 | (365) |
| Attributable to: | ||
| - equity shareholders | 14,004 | (365) |
| - minority shareholders | 32 | - |
| Basic earnings / (loss) per share 3 | 32.27p | (0.89p) |
| Diluted earnings / (loss) per share 3 | 31.51p | (0.89p) |
All of the activities of the Group are classed as continuing.
CONSOLIDATED Statement of Changes in Equity
For the year ended 30 September 2009
| | Share Capital | Share Premium | Merger Reserve | Equity Reserve | Retained Earnings | Total | Minority Interests | Total Equity |
| | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Group | | | | | | | | |
| | | | | | | | | |
| At 1 October 2007 | 2,007 | 55,492 | - | - | 7,464 | 64,963 | 5 | 64,968 |
| Changes in equity for the year ended 30 September 2009 | | | | | | | | |
| Credit to equity for equity settled share based payment | - | - | - | - | 1,069 | 1,069 | - | 1,069 |
| Net income recognised directly in equity | - | - | - | - | 1,069 | 1,069 | - | 1,069 |
| Loss for the year | - | - | - | - | (365) | (365) | - | (365) |
| | | | | | | | | |
| Total recognised income and expense for the year | - | - | - | - | 704 | 704 | - | 704 |
| Issue of share capital | 75 | 2,498 | - | - | - | 2,573 | - | 2,573 |
| Expenses of issue of equity shares | - | - | - | - | (35) | (35) | - | (35) |
| | | | | | | | | |
| At 30 September 2008 | 2,082 | 57,990 | - | - | 8,133 | 68,205 | 5 | 68,210 |
| | | | | | | | | |
| Changes in equity for year ended 30 September 2009 | | | | | | | | |
| Credit to equity for equity settled share based payment | - | - | - | - | 1,000 | 1,000 | - | 1,000 |
| Net income recognised directly in equity | - | - | - | - | 1,000 | 1,000 | - | 1,000 |
| Profit for the year | - | - | - | - | 14,004 | 14,004 | 32 | 14,036 |
| | | | | | | | | |
| Total recognised income and expense for the year | - | - | - | - | 15,004 | 15,004 | 32 | 15,036 |
| Issue of share capital | 3,725 | 67,250 | 7,595 | - | - | 78,570 | - | 78,570 |
| Expenses of issue of equity shares | - | (2,146) | - | - | - | (2,146) | - | (2,146) |
| Issue of preference shares | - | - | - | 1,258 | - | 1,258 | - | 1,258 |
| Preference share conversion | 2 | - | 45 | (4) | - | 43 | - | 43 |
| Acquisition of subsidiary | - | - | - | - | - | - | 1,085 | 1,085 |
| Other movement | - | - | - | - | (11) | (11) | - | (11) |
| | | | | | | | | |
| At 30 September 2009 | 5,809 | 123,094 | 7,640 | 1,254 | 23,126 | 160,923 | 1,122 | 162,045 |
CONSOLIDATED BALANCE SHEET
At 30 September 2009
| Note | 30 Sep 2009 £'000 | 30 Sep 2008 £'000 |
| Non-Current Assets | ||
| Property, plant and equipment | 7 | 8 |
| Investment properties 5 | 151,589 | - |
| Investment in joint ventures 6 | 5,087 | 5,047 |
| Goodwill 7 | 3,173 | 3,173 |
| Deferred tax assets | 92 | 304 |
| 159,948 | 8,532 | |
| Current Assets | ||
| Development and trading properties 8 | 7,088 | 22,895 |
| Trade and other receivables | 19,077 | 726 |
| Tax receivable | 941 | 134 |
| Cash and cash equivalents | 102,827 | 38,290 |
| 129,933 | 62,045 | |
| Total Assets | 289,881 | 70,577 |
| Current Liabilities | ||
| Trade and other payables | 12,669 | 2,367 |
| 12,669 | 2,367 | |
| Non-Current Liabilities | ||
| Bank loans 9 | 98,124 | - |
| Preference shares 10 | 12,612 | - |
| Derivatives | 4,431 | - |
| 115,167 | - | |
| Total Liabilities | 127,836 | 2,367 |
| Net Assets | 162,045 | 68,210 |
| Equity | ||
| Called up share capital 11 | 5,809 | 2,082 |
| Share premium account | 123,094 | 57,990 |
| Merger reserve | 7,640 | - |
| Equity reserve | 1,254 | - |
| Retained earnings | 23,126 | 8,133 |
| Equity Attributable to Equity Holders | 160,923 | 68,205 |
| Minority interests | 1,122 | 5 |
| Total Equity | 162,045 | 68,210 |
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 September 2009
| Year Ended 30 Sep 09 £'000 | Year Ended 30 Sep 08 £'000 | |
| Cash Flows From Operating Activities | ||
| Operating profit / (loss) | 13,738 | (2,336) |
| Depreciation | 2 | 5 |
| Share of results of joint ventures | 39 | (3) |
| Other gains and losses | 414 | 137 |
| Gain in respect of acquisition | (21,798) | - |
| Share based payment charge | 1,000 | 1,069 |
| Cash Flows From Operations Before Changes In Working Capital | (6,605) | (1,128) |
| Change in trade and other receivables | (12,994) | 2,150 |
| Change in land, development and trading properties | 15,807 | 7,953 |
| Change in trade and other payables | 3,341 | (3,168) |
| Cash (Used In) / Generated From Operations | (451) | 5,807 |
| Finance costs | (627) | - |
| Finance income | 652 | 2,207 |
| Dividends from joint ventures | 10 | 90 |
| Tax paid | (303) | (2,257) |
| Cash Flows (Used In) / Generated From Operating Activities | (719) | 5,847 |
| Cash Flows From Investing Activities | ||
| Acquisition of subsidiary | (2,826) | - |
| Investment in joint venture | (89) | (5,043) |
| Acquisition of minority interest | - | (600) |
| Purchase of plant and equipment | (1) | (2) |
| Cash Flows Used In Investing Activities | (2,916) | (5,645) |
| Cash Flows From Financing Activities | ||
| Issue of shares | 70,318 | - |
| Issue cost of shares | (2,146) | (35) |
| Cash Flows Generated From / (Used In) Financing Activities | 68,172 | (35) |
| Net increase in cash and cash equivalents | 64,537 | 167 |
| Cash and cash equivalents at 1 October | 38,290 | 38,123 |
| Cash and Cash Equivalents at 30 September | 102,827 | 38,290 |
Notes:
| 2009 £'000 | 2008 £'000 | ||||
| Basic weighted average number of shares | 43,398,022 | 40,899,961 | |||
| Diluting potential ordinary shares: Employee share options | 292,926 | - | |||
| Preference shares | 996,134 | - | |||
| Total diluted | 44,687,082 | 40,899,961 |
No adjustment is made for anti-dilutive potential ordinary shares.
| Freehold £'000 | Long Leasehold £'000 | Total £'000 | |
| Fair value acquired with subsidiary | 143,784 | 7,805 | 151,589 |
| Addition | 81 | - | 81 |
| Disposals | (41) | - | (41) |
| Reverse lease premium | (40) | - | (40) |
| Valuation at 30 September 2009 | 143,784 | 7,805 | 151,589 |
The historical cost of the properties acquired is £226,842,000.
The properties were valued by Cushman & Wakefield, independent valuers not connected with the Group, at 30 September 2009 at market value in accordance with the Practice Statements contained in the RICS Appraisal and Valuation Standards published by the Royal Institution of Chartered Surveyors which conform to international valuation standards.
| 30 Sep 09 £'000 | 30 Sep 08 £'000 | |
| At 1 October 2008 | 5,047 | 91 |
| Share of (loss) / profit retained by joint ventures | (39) | 3 |
| Investment in joint venture | 89 | 5,043 |
| Dividends received | (10) | (90) |
| At 30 September 2009 | 5,087 | 5,047 |
The Group has a 50% interest in a joint venture, Conygar Stena Line Limited, which is a property development company. It also has a 50% interest in a joint venture, CM Sheffield Limited, which is a property trading company.
The following amounts represent the Group's 50% share of the assets and liabilities, and results of the joint ventures. They are included in the balance sheet and income statement:
| Year ended 30 Sep 09 £'000 | Year ended 30 Sep 08 £'000 | |
| Assets | ||
| Current assets | 5,093 | 5,061 |
| 5,093 | 5,061 | |
| Liabilities | ||
| Current liabilities | (6) | (14) |
| (6) | (14) | |
| Net Assets | 5,087 | 5,047 |
| Operating loss | (39) | (1) |
| Finance income | - | 5 |
| (Loss) / Profit before tax | (39) | 4 |
| Tax | - | (1) |
| (Loss) / Profit after tax | (39) | 3 |
There are no contingent liabilities relating to the Group's interest in joint ventures, and no contingent liabilities of the ventures themselves.
| Group | ||
| 30 Sep 09 | 30 Sep 08 | |
| £'000 | £'000 | |
| At 1 October 2008 | 3,173 | - |
| Addition | - | 3,173 |
| At 30 September 2009 | 3,173 | 3,173 |
The goodwill arose upon the acquisition of the minority interests in Martello Quays Limited and represents the excess of the consideration over the fair value of the identifiable net assets acquired. The goodwill has been wholly allocated to the development project within Martello Quays Limited, which is considered to represent a single income generating unit. The development project is still at an early stage, but management have prepared forecasts indicating that the net present value of the project exceeds its carrying value when discounted at the Group's weighted average cost of capital.
| Group | Company | |||
| 30 Sep 09 | 30 Sep 08 | 30 Sep 09 | 30 Sep 08 | |
| £'000 | £'000 | £'000 | £'000 | |
| Properties held for resale or development | 8,918 | 25,372 | 3,213 | 3,046 |
| Write-down of property inventory | (1,830) | (2,477) | - | - |
| 7,088 | 22,895 | 3,213 | 3,046 | |
| Group | Company | |||
| 30 Sep 09 | 30 Sep 08 | 30 Sep 09 | 30 Sep 08 | |
| £'000 | £'000 | £'000 | £'000 | |
| Bank loans | 99,609 | - | - | - |
| Debt issue costs | (1,485) | - | - | - |
| 98,124 | - | - | - | |
| Group | Company | |||
| 30 Sep 09 | 30 Sep 08 | 30 Sep 09 | 30 Sep 08 | |
| £'000 | £'000 | £'000 | £'000 | |
| Preference shares | 12,612 | - | 12,612 | - |
| 12,612 | - | 12,612 | - | |
As part of the offer for The Advantage Property Income Trust Limited the Company issued 62,902,335 convertible preference shares of £0.01 each of which 62,687,730 were outstanding at the year end. The preference shares are convertible at any point into ordinary shares at the option of the preference shareholder. The conversion rate is one ordinary share for five preference shares. Any preference shares not converted are redeemable for £0.25 each on 31 December 2011.
Although equity share capital at law, the preference shares are classified as hybrid instruments under IFRS consisting of a discounted debt element of £0.20 per share and an equity element of £0.02 per share which has been credited to an equity reserve. A notional interest element is charged to the income statement over the period to redemption.
|
| 30 Sep 09 | 30 Sep 08 |
|
| £ | £ |
| 140,000,000 (2008 - 100,000,000) Ordinary shares of £0.05 each | 7,000,000 | 5,000,000 |
| 150,000,000 (2008 - nil) Preference shares of £0.01 each | 1,500,000 | - |
Allotted and called up:
| Amounts recorded as equity: | 30 Sep 09 | 30 Sep 08 | ||
| No | £'000 | No | £'000 | |
| Ordinary shares of £0.05 each | 116,172,721 | 5,809 | 41,647,906 | 2,082 |
Amounts recorded as liability:
| 30 Sep 09 | 30 Sep 08 | |||
| No | £'000 | No | £'000 | |
| Preference shares of £0.01 each | 62,687,730 | 627 | - | - |
The Preference shares were issued in connection with the offer for The Advantage Property Income Trust Limited. They are convertible at any stage into Ordinary shares. The conversion rate is one Ordinary share for five Preference shares. Any Preference shares not converted are redeemable for £0.25 each on 31 December 2011.
On 17 August 2009 the Company issued 625,000 ordinary shares of £0.05 each in respect of an exercise of options under the Conygar Share Option Plan. The aggregate consideration was £312,500.
As at 30 September 2009 the Company had issued 6,887,831 ordinary shares of £0.05 each in connection with the offer for The Advantage Property Income Trust Limited. A further 396,576 ordinary shares of £0.05 each were issued in connection with the offer as at the date of these accounts.
On 18 September 2009 the Company issued 66,969,063 ordinary shares at £0.05 each in respect of a placing at £1.05 per share which raised £68,870,516 after expenses of £1,447,000.
On 18 September 2009 the Company issued 42,921 ordinary shares of £0.05 each in respect of a conversion of 214,605 preference shares.
On 26 August 2009 the Group acquired 33.37% of the issued share capital of The Advantage Property Income Trust Limited ("TAP") in addition to the 28.9% it already owned. Subsequent acquisitions resulted in the Group owning 97.85% of TAP as at 30 September 2009. The remaining 2.15% will be compulsorily acquired under Guernsey law to the extent minority interests do not accept the offer. There was no material difference between fair value on initial and subsequent acquisitions and therefore it has all been treated as a single transaction.
TAP is a Guernsey incorporated commercial property investment company owning properties in the UK and the Channel Islands.
The transaction has been accounted for by the purchase method of accounting.
| Net assets acquired | Book Value | Fair Value |
| £'000 | £'000 | |
| Investment properties | 151,589 | 151,589 |
| Trade and other receivables | 5,357 | 5,357 |
| Cash at bank | 3,512 | 3,512 |
| Trade and other payables | (6,950) | (6,950) |
| Financial liabilities | (98,093) | (98,093) |
| Fair value of swap contracts | (4,431) | (4,431) |
| 50,984 | 50,984 | |
| Minority interests | (1,070) | |
| Gain in respect of acquisition | (21,798) | |
| Total consideration | 28,116 | |
| Satisfied by: | ||
| Ordinary shares at fair value | 7,939 | |
| Preference shares at fair value | 13,839 | |
| Cash | 5,950 | |
| Directly attributable costs | 388 | |
| 28,116 | ||
| The fair value of the ordinary shares was arrived at using the closing share price on the date of issue. The fair value of the preference shares was arrived at using appropriate valuation methodologies. | ||
| Net cash outflow arising on acquisition | ||
| Cash consideration | 5,950 | |
| Directly attributable costs | 388 | |
| Cash and cash equivalents acquired | (3,512) | |
| Cash outflow on acquisition | 2,826 | |
TAP contributed £1,235,552 rental income and £249,142 to the Group's profit before tax for the period between the date of acquisition and the balance sheet date.
If the acquisition of TAP had been completed on the first day of the financial year, Group rental income for the period would have been £16,622,000 and Group loss attributable to equity holders of the parent would have been £41,324,000 after charging £52,092,000 unrealised loss on revaluation of investment properties. All of the £52,092,000 unrealised loss on revaluation of investment properties occurred prior to the acquisition by Conygar.
The directors of Conygar accept responsibility for the information contained in this announcement. The best of the knowledge and believe of the directors of Conygar (who have taken all reasonable care to ensure that such in the case) the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.