Caledonian Tst. Regulatory News (CNN)

31 Mar 2006 15:39

Caledonian Trust PLC31 March 2006 For immediate release31 March 2006 Caledonian Trust plc Interim results for the six months ended 31 December 2005 Chairman's Statement The Group made a pre-tax profit of £155,125 in the six months to 31 December2005 compared to £276,076 for the same period last year. Earnings per share were1.31p and NAV per share was 205.3p compared to 3.51p and 205.8p respectively at30 June 2005 and 2.42p and 171.0p at 31 December 2004. Rental Income rose£35,204 due primarily to rent from the small parade of shops in Scotland Street,Tradeston, bought in January 2005. Interest payable of £146,399 is similar tolast year but interest receivable declined marginally to £125,419 as cashbalances have been reduced to fund acquisitions of properties. Administrationexpenses rose by a reported £92,768 due to rises of about £30,000 inprofessional fees relating to design and planning consultancies and of about£50,000 in property costs, principally repairs at Ashton Road, Rutherglen andincreased rates at St Margaret's House Edinburgh. The sale of Ashton Roadproduced a £299,625 surplus compared to £321,143 from property sales last year.An unchanged interim dividend of 1.0p will be paid. The Group's current major strategy is the acquisition and creation ofdevelopment opportunities, particularly those with a reasonable probability ofachieving high returns and a small probability of a nil or, at worst, a negativereturn. Since 30 June 2005 we have bought or have under missive seven suchdevelopment opportunities and have two under offer. At Comrie in west Perthshirewe have purchased a smallholding, Tomperran, containing two modern detachedhomes, a steading and an acre of land zoned for industrial development withinthe settlement, and 30 acres of pastureland adjacent to the settlement boundedto the north by the A85 main road to Crieff and to the south by the river Earn.We expect to gain permission for up to twelve houses within the curtilage of theexisting buildings and hope to have the industrial area rezoned and to developsome of the pastureland. In east Perthshire we have purchased Myreside, afarmhouse and a steading just off the A90 Perth Dundee road, where we expect toobtain consent for ten houses. In north Perthshire at Strathtay we havepurchased a 4.6acre greenfield site of which 1 acre is inside the currentvillage settlement and up to 2.5 acres may be included in it in a future LocalPlan. Ardpatrick in west Argyll is the largest of four properties under missivecomprising a 1,000 acre estate occupying the whole of the small peninsula nearTarbert. The estate comprises a mansion house, built in three separate phasesand easily divisible, 11 estate houses or former houses, a farm steading andother buildings for potential residential development and ten to fifteenpossible new housing sites in locations considered suitable in the FinalisedDraft Local Plan. The property enjoys considerable water frontage, commandsstriking views, and includes a grassland farm, an oak forest, a private beach, anamed island and coastal salmon fishing and other sporting rights.Notwithstanding the current very poor condition, the break up and medium-termdevelopment value of the estate is considerable. We have two rural developmentsites near St Andrews in missive. The first, Nydie Farm Steading nearStrathkinness, has consent for five units on a ten acre site and is capable offurther development. The second, Larennie Farm, lies behind the famous Peat Innand comprises a steading for up to ten units, a cottage and 104 acres of arableland, some of which we will promote for development. Our smallest property undermissive is Wester Camgourhan, a farm steading set in 9 acres overlooking LochRannoch, where at least two or three high-value houses should be obtained. We continue to make progress with our applications for planning consent. Ireported in December 2005 that in August 2005 we obtained consent for 45 largedetached houses near Dunbar and that later in 2005 we had obtained a newplanning consent for Belford Road, Edinburgh, for 20,000ft2 of residentialdevelopment together with parking for 20 cars. We await consent for 28 morehouses near Dunbar, eight houses at Wallyford near Edinburgh and 191flats and10,000ft2 business space at Tradeston, central Glasgow. Our joint development of39 small detached and semi-detached houses at Herne Bay, Kent, is on time and onbudget. UK economic conditions appear propitious. Although growth in GDP slowed from3.2% in 2004 to 1.8% in 2005, The Economist's poll of forecasters predicts 2.1%growth in 2006 rising to 2.5% in 2007. The Budget forecast is for 2.25% growthin 2006 - below the post-war trend of 2.5% - but for a rise to 3.0% in both 2007and 2008. Over recent years growth above trend level has been highly dependenton disproportionate rises in consumption and in government spending neither ofwhich is likely to continue. The Budget forecast implies a rise in businessinvestment and in net overseas trade for which prospects appear unfavorable. TheBudget forecast fails to take account of the structural fall in productivitylargely due to Government investment in public sector's assets whose returnshave been low. Growth will be at lower levels than of recent years. The FT House Price Index MA. seasonally adjusted has risen consistently eachmonth since June 2005 and at a slightly increasing rate to about 0.8% now afterfalling in each of the previous three months prior to June 2005. The annual risewas 3.4% in February 2006, equivalent to the Nationwide's prediction for 2006.Lloyds TSB Scottish Price Index rose by 13.5% in 2005 after a rise of 18.8% on2004: Lloyds say "the Scottish housing market remains in robust health". Giventhe favorable economic outlook, including stable interest rates, the housingmarket continues to be attractive, especially in Scotland. Over twelve months commercial property had given an excellent return of 12.9%,but down from the 19.0% reported last year and below the current 18.5% equityreturn. On the CBRE Index yields in 2005 dropped by 0.9 points to 5.4%, althoughrents rose only 2.7%. With interest rates stable and real rental growthunlikely, further drops in yields seem unlikely and property returns in 2006 arelikely to be significantly lower: an Estates Gazette survey forecasts 7.1%. Group prospects for profits and for asset growth continue to be asymmetrical.Rental income is less than administrative expenses and net interest payable andprofits are determined by relatively volatile property sales. Asset growth willbe significantly influenced by the timing of planning approvals some of whichshould be gained in 2006. I D Lowe Chairman 30 March 2006 For further information please contact: Douglas Lowe, Chairman and Chief Executive Tel: 0131 220 0416 Mike Baynham, Finance Director Tel: 0131 220 0416 Alasdair Robinson, Noble & Company Limited Tel: 0131 225 9677 Unaudited Consolidated Profit & Loss Account for the six months to 31 December 2005 6 Months to 6 Months to Year to 31 Dec 2005 31 Dec 2004 30 June 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000INCOME-continuing operationsRental Income 385 350 707Trading property sales - 1,997 -Other trading sales 61 203 278 446 2,550 985OPERATING COSTSCost of trading property sales - (1,676) -Cost of other sales (61) (174) (262)Administrative Expenses (509) (415) (851) (570) (2,265) (1,113) OPERATING (LOSS)/PROFIT (124) 285 (128)Profit on disposal of investmentproperty 300 - 501Profit on disposal of investment - - 86Interest receivable 125 141 280Interest payable (146) (150) (292) PROFIT ON ORDINARY ACTIVITIES BEFORETAXATION 155 276 447 Taxation - - 35 PROFIT ON ORDINARY ACTIVITIES AFTERTAXATION 155 276 412 Earnings per ordinary share 1.31p 2.42p 3.51p Diluted earnings per ordinary share 1.31p 2.42p 3.51p Unaudited Consolidated Balance Sheet As at 31 December 2005 As at 31 Dec As at 31 Dec As at 30 June 2005 2004 2005 (unaudited (unaudited) (audited) restated) restated restated £'000 £'000 £'000Fixed assetsInvestment Properties 24,487 18,998 23,142Investments - 91 -Equipment & vehicles 4 4 4 24,491 19,093 23,146Current assetsDebtors 1,044 142 1,018Cash at bank and in hand 3,579 6,233 4,762 4,623 6,375 5,780Creditors: Amounts falling duewithin one year (3,594) (3,975) (3,583) Net current assets 1,029 2,400 2,197 Total assets less current liabilities 25,520 21,493 25,343 Creditors: Amounts falling dueafter more than one year (1,006) (1,056) (710) Net assets 24,514 20,437 24,633 Capital and reservesCalled up share capital 2,377 2,377 2,377Share premium account 2,745 2,745 2,745Capital redemption reserve 175 175 175Revaluation reserve 4,551 376 4,647Profit and loss account 14,666 14,764 14,689 Shareholders' funds equity 24,514 20,437 24,633 Unaudited Consolidated Cash Flow Statement for the six months to 31 December 2005 6 Months to 6 Months to Year to 31 Dec 2005 31 Dec 2004 30 June 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net cash inflow/(outflow) fromoperating activities 218 (254) (1,959)Returns on investments andservicing of finance (34) (36) (36)Equity dividends paid (178) (148) (267)Capital expenditure and financialinvestment (1,142) 625 1,015 __________ __________ __________ Cash inflow before management ofliquid resources and financing (1,136) 187 (1,247) Financing (42) (261) (294) __________ __________ __________ Decrease in cash in period (1,178) (74) (1,541) Reconciliation of net cash flow tomovement in net debt Decrease in cash in the period (1,178) (74) (1,541) Cash (outflow )/inflow frommovement in debt (42) 569 602 __________ __________ __________ Movement in net debt in the period (1,220) 495 (939)Net cash at the start of the period 878 1,816 1,817 __________ __________ __________Net cash/ at the end of the period (342) 2,311 878 __________ __________ __________ Notes to the unaudited consolidated cash flow statement (a)Reconciliation of operating profit to net cash outflow from operatingactivities 6 Months to 6 Months to Year to 31 Dec 2005 31 Dec 2004 30 June 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Operating (loss)/profit (124) 285 (128)Profit on disposal of property - (321) -(Increase)/decrease in debtors (25) (19) (897)Increase/(decrease) in creditors 367 (199) (934) ___________ __________ __________Net cash inflow/(outflow) fromoperating activities 218 (254) (1,959) (b)Analysis of cash flows Returns on investment andServicing of FinanceInterest received 125 141 280Interest paid (159) (177) (316) ___________ __________ __________ (34) (36) (36) Capital expenditure andfinancial investmentPurchase of tangible fixed assets (1) - (3,447)Purchase of investment property (2,070) (1,316) -Sale of investment property 929 1,941 2,236Sale of investments - - 176Contribution to dilapidations - - 2,050received ___________ __________ __________ (1,142) 625 1,015 FinancingPurchase of ordinary share capital - - -capitalIssue of ordinary share capital - 308 308Debt due within a yearIncrease/(decrease) in short term (338) (373) 940debt debtDebt due beyond a year(Decrease) in long-term debt 296 (196) (1,542) ___________ __________ __________ (42) (261) (294) Unaudited Statement of Total Recognised Gains and LossesFor the six months to 31 December 2005 6 Months to 6 Months to Year to 31 Dec 2005 31 Dec 2004 30 June 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Profit for period 155 276 412 Unrealised surplus/ onrevaluation of properties - - 4,178 Total gains and losses recognisedrelating to the period 155 276 4,590 Notes 1 The figures for the six months to 31 December 2005 and 31 December 2004 do not constitute the company's statutory accounts within the meaning of Section 240 of the Companies Act 1985 (as amended) and are unaudited. The figures for the year to 30 June 2005 do not constitute full accounts. The audited accounts for that year were unqualified and have been delivered to the Registrar of Companies. 2 The interim statement has been prepared in accordance with the accounting policies set out in the group's statutory accounts for the year ended 30 June 2005. As a result of the adoption of FRS21 "Events after the balance sheet date", a prior year adjustment has been made in respect of the recognition of proposed dividend. The adjustments have resulted in an increase of £119,000 in the reported net assets at 31 December 2005 (June 2005 = £178,000, December 2004 = £119,000) 3 The calculation of earnings per ordinary share is based on the reported profit for the six months to 31 December 2005 and on the weighted average number of ordinary shares in issue in the period being 11,882,921. 4 An interim dividend of 1.0p per share will be paid on 28 April 2006 to shareholders on the register on 7 April 2006. 5 Copies of the Interim Results for the six months to 31 December 2005 will be posted to shareholders shortly and will be available, free of charge, from the company's Nominated Adviser, Noble & Company Limited, 76 George Street, Edinburgh, EH2 3BU, for a period of one month from the date thereof. This information is provided by RNS The company news service from the London Stock Exchange