3 Jul 2013 11:36
3 July 2013
DAEJAN HOLDINGS PLC
UNAUDITED PRELIMINARY RESULTS ANNOUNCEMENT for the year ended 31 March 2013
The Chairman, Mr B S E Freshwater, today announced Preliminary Results for the year to 31 March 2013.
The financial highlights for the year ended 31 March 2013 are as follows:
2013 | 2012 | |||
£000 | £000 | |||
Investment property | 1,407,544 |
1,254,094 | ||
Net rental and related income from investment property |
44,020 |
39,058 |
| |
Profit before taxation | 111,683 | 41,849 | ||
Total equity | 984,953 | 904,124 | * | |
Equity shareholders' funds per share | £60.44 | £55.46 | * | |
Earnings per share | £5.50 | £2.02 | * | |
*Restated - See Note 2 |
The revaluation of the investment property portfolio at the year end has resulted in a net valuation surplus for the year of £82,694,000 (2012 - £15,683,000). The board is pleased to recommend a final dividend of 54p per share in respect of the year ended 31 March 2013 payable on 8 November 2013 to shareholders on the register on 11 October 2013. This will make a total dividend for the year of 79p (2012 - 76p).
Earnings per share is calculated by reference to profit on ordinary activities after taxation attributable to equity holders of £89,601,000 (2012 - £32,848,000, as restated) and 16,295,357 (2012 - 16,295,357) ordinary shares being the weighted average number of ordinary shares in issue during the year.
DAEJAN HOLDINGS PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2013
Year | Year | ||
ended | ended | ||
31 March | 31 March | ||
2013 | 2012 | ||
Restated* | |||
£000 | £000 | ||
Gross rental income | 97,081 | 92,955 | |
Service charge income | 13,956 | 14,139 | |
Total rental and related income from investment property | 111,037 | 107,094 | |
Property operating expenses | (67,017) | (68,036) | |
Net rental and related income from investment property | 44,020 | 39,058 | |
Profit on disposal of investment property | 6,612 | 16,254 | |
Net valuation gains on investment property | 82,694 | 15,683 | |
Administrative expenses | (10,936) | (11,135) | |
Net operating profit before net financing costs | 122,390 | 59,860 | |
Fair value losses on fixed rate loans and borrowings | (36) | (4,717) | |
Fair value losses on derivative financial instruments | (321) | (2,167) | |
Fair value gains/(losses) on current investments | 8 | (3) | |
Other financial income | 740 | 512 | |
Financial expenses | (11,098) | (11,636) | |
Net financing costs | (10,707) | (18,011) | |
Profit before taxation | 111,683 | 41,849 | |
Income tax | (21,923) | (8,819) | |
Profit for the year | 89,760 | 33,030 | |
Attributable to:- | |||
Equity holders of the parent | 89,601 | 32,848 | |
Minority interest | 159 | 182 | |
Profit for the year | 89,760 | 33,030 | |
Basic and diluted earnings per share | £5.50 | £2.02 |
*See Note 2
DAEJAN HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2013
Year ended | Year ended | |
31 March | 31 March | |
2013 | 2012 | |
Restated* | ||
£000 | £000 | |
Profit for the year | 89,760 | 33,030 |
Foreign exchange translation differences | 3,847 | 204 |
Total comprehensive income for the year | 93,607 | 33,234 |
Attributable to: | ||
Equity holders of the parent | 93,448 | 33,052 |
Minority interest | 159 | 182 |
Total comprehensive income for the year | 93,607 | 33,234 |
*See Note 2
DAEJAN HOLDINGS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2013
Issued share capital | Share premium | Translation reserve | Retained earnings | Equity shareholders' funds | Minority interest | Total equity | |
£000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Balance at 1 April 2011 as previously reported | 4,074 | 555 | 18,416 | 815,055 | 838,100 | 162 | 838,262 |
Impact of change in accounting policy* | - | - | - | 44,876 | 44,876 | - | 44,876 |
Balance at 1 April 2011 as restated* | 4,074 | 555 | 18,416 | 859,931 | 882,976 | 162 | 883,138 |
Profit for the year (restated*) | - | - | - | 32,848 | 32,848 | 182 | 33,030 |
Foreign exchange translation differences | - | - | 204 | - | 204 | - | 204 |
Movements in minority interest | - | - | - | - | - | (26) | (26) |
Dividends to equity shareholders | - | - | - | (12,222) | (12,222) | - | (12,222) |
Balance at 1 April 2012 as restated* | 4,074 | 555 | 18,620 | 880,557 | 903,806 | 318 | 904,124 |
Profit for the year | - | - | - | 89,601 | 89,601 | 159 | 89,760 |
Foreign exchange translation differences | - | - | 3,847 | - | 3,847 | - | 3,847 |
Movements in minority interest | - | - | - | - | - | (394) | (394) |
Dividends to equity shareholders | - | - | - | (12,384) | (12,384) | - | (12,384) |
Balance at 31 March 2013 | 4,074 | 555 | 22,467 | 957,774 | 984,870 | 83 | 984,953 |
*See Note 2
DAEJAN HOLDINGS PLC
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2013
31 March | 31 March | ||
2013 | 2012 | ||
Restated* | |||
£000 | £000 | ||
Assets | |||
Investment property | 1,407,544 | 1,254,094 | |
Deferred tax assets | 8,741 | 8,539 | |
Total non-current assets | 1,416,285 | 1,262,633 | |
Trade and other receivables | 43,150 | 69,578 | |
Current investments | 236 | 220 | |
Cash and cash equivalents | 63,513 | 32,474 | |
Total current assets | 106,899 | 102,272 | |
Total assets | 1,523,184 | 1,364,905 | |
Equity | |||
Issued capital | 4,074 | 4,074 | |
Share premium | 555 | 555 | |
Translation reserve | 22,467 | 18,620 | |
Retained earnings | 957,774 | 880,557 | |
Total equity attributable to equity holders of the parent | 984,870 | 903,806 | |
Minority interest | 83 | 318 | |
Total equity | 984,953 | 904,124 | |
Liabilities | |||
Loans and borrowings | 268,943 | 213,085 | |
Deferred tax liabilities | 174,017 | 152,883 | |
Total non-current liabilities | 442,960 | 365,968 | |
Bank overdrafts | - | 150 | |
Loans and borrowings | 18,256 | 17,941 | |
Trade and other payables | 41,844 | 44,528 | |
Current taxation | 35,171 | 32,194 | |
Total current liabilities | 95,271 | 94,813 | |
Total liabilities | 538,231 | 460,781 | |
Total equity and liabilities | 1,523,184 | 1,364,905 |
*See Note 2
DAEJAN HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2013
Year | Year | |||
ended | ended | |||
31 March | 31 March | |||
2013 | 2012
| |||
£000 | £000 | £000 | £000 | |
Cash flows from operating activities | ||||
Cash receipts from rent and service charges | 123,511 | 111,453 | ||
Cash paid to suppliers and employees | (88,132) | (89,179) | ||
Cash generated from operations | 35,379 | 22,274 | ||
Interest received | 303 | 509 | ||
Interest paid | (11,014) | (11,525) | ||
Distributions to minority interest | (394) | (26) | ||
Overseas tax paid | (294) | (122) | ||
Net cash from operating activities | 23,980 |
| 11,110 | |
Cash flows from investing activities | ||||
Acquisition and development of investment property | (57,668) | (25,618) | ||
Proceeds from sale of investment property | 28,454 | 7,620 | ||
Net cash absorbed by investing activities | (29,214) | (17,998) | ||
Cash flows from financing activities | ||||
Repayment of bank loans | (1,525) | (42,375) | ||
New bank loans and overdrafts | 44,611 | 150 | ||
Repayment of mortgages | (24,363) | (28,900) | ||
New mortgages | 29,374 | 47,283 | ||
Dividends paid | (12,384) | (12,222) | ||
Net cash generated from/(absorbed by) financing activities | 35,713 | (36,064) | ||
Net increase/(decrease) in cash and cash equivalents | 30,479 | (42,952) | ||
Cash and cash equivalents brought forward | 32,324 | 75,296 | ||
Effect of exchange rate fluctuations on cash held |
710 |
|
(20) | |
Cash and cash equivalents | 63,513 | 32,324 | ||
DAEJAN HOLDINGS PLC
Notes
1. The financial information set out in this Preliminary Announcement does not constitute the Company's statutory accounts for the years ended 31 March 2013 or 2012. The financial information for 2012 is derived from the statutory accounts for 2012 which have been delivered to the Registrar of Companies and has been restated as set out below. The Auditors have reported on the 2012 accounts; their report was unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The statutory accounts for 2013 will be finalised on the basis of the financial information presented by the Directors in this Preliminary Announcement and using policies consistent in all material respects with the policies applied in the Company's statutory accounts for 2012, as set out in those accounts as delivered to the Registrar of Companies, except as set out below. The statutory accounts for 2013 will be delivered to the Registrar of Companies following the Company's next Annual General Meeting.
2. With effect from 1 April 2012, the Group has adopted Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12) and changed its accounting policy on measuring deferred tax arising from investment property that is measured using the fair value model in IAS 40 Investment Property. Accordingly, the Group now measures any deferred tax arising from the revaluation of investment property on the basis that the carrying amount will be recovered through sale, i.e. after taking account of indexation. Previously the Group measured any such deferred tax on the basis of recovery through use, i.e. without taking account of indexation.
This change in accounting policy has been applied retrospectively. This has had the effect of reducing the deferred tax liability and increasing retained earnings in the consolidated balance sheet as at 1 April 2011 by £44.9 million. The effect on the consolidated statement of comprehensive income and the consolidated balance sheet in the current year has been to recognise a tax credit of £2.6 million (2012: £3.1 million tax expense) with a corresponding decrease (2012: increase) in deferred tax liability. The effect of this change on basic and diluted earnings per share in the current year has been an increase of £0.16 (2012: £0.19 decrease).
3. The Annual General Meeting will be held at 2:00 pm on Wednesday 28 August 2013 in The Methven Room, CBI, Centre Point, New Oxford Street, London WC1A 1DU.
For further information call:
Mark Jenner
Company Secretary
Daejan Holdings PLC
020 7836 1555
Nick Oborne
Weber Shandwick Financial
020 7067 0700