DJAN.L Regulatory News (DJAN)

29 Nov 2007 11:26

Daejan Holdings PLC29 November 2007 29 November 2007 DAEJAN HOLDINGS PLC INTERIM RESULTS ANNOUNCEMENT for the half year ended 30 September 2007 The Board is pleased to present the Interim Statement for the half year ended 30September 2007. 30/9/07 30/9/06 £000 £000--------------------------------------------------------------------------------Profit before tax 16,117 15,566 Profit after tax 28,707 10,903 • Overall, performance for the first half has been satisfactory and continues to develop in line with expectations. The Group's financial position continues to be strong. • An interim dividend of 25p per share will be paid on 7 March 2008 to shareholders on the register on 8 February 2008. • Properties are not revalued at the half year, a full valuation of all the Group's properties will be carried out by external professional valuers at March 2008. Based on current expectations it is unlikely that this revaluation will produce surpluses at the level which have been experienced in recent years. • There have been no significant property sales in the period; profits on disposal relate to lease extensions. • The Group's net deferred tax liabilities have been reduced from 30% to 28% following the reduction in Corporation Tax levels with effect from 1 April 2008. This has resulted in a credit of £17,522,000 to the consolidated income statement. • Our refurbishment and redevelopment projects continue to progress satisfactorily with 164 Shaftesbury Avenue due to complete in December and Worship Street in the City of London on course for completion late next year. • Repair expenditure has been running at a level somewhat below that of recent periods largely as a result of the completion of the current cycle of major works at our Park West property. • There have been no material changes in vacancy and rental levels within our portfolio since 31st March 2007. Rental income has continued in line with expectations. • So far as the outlook for the remainder of the financial year is concerned, the principal risk affecting the Group remains exposure to movements in the valuation of the Group's investment properties. B S E FreshwaterChairman29 November 2007 For further information please contact: Mark Jenner Terry GarrettCompany Secretary Weber Shandwick FinancialDaejan Holdings PLCTel: 020 7836 1555 Tel: 020 7067 0700 Consolidated Income Statement for the six months ended 30 September 2007 Unaudited Unaudited Audited 6 Months 6 Months Year ended ended ended 30/9/07 30/9/06 31/3/07 --------- ---------- -------- £000 £000 £000 Gross Rental Income 42,670 44,521 90,176 Property Operating Expenses (22,951) (26,514) (49,808) --------- ---------- --------Net Rental & Related Income 19,719 18,007 40,368Profit on Disposal of Investment Properties 3,335 5,710 17,169 Net Valuation Gains on Investment Properties 0 0 153,872 Administrative Expenses (4,596) (4,028) (7,630) --------- ---------- --------Operating Profit before Net Financing Costs 18,458 19,689 203,779Fair Value Gains on Financial Instruments and current investments 601 764 2,578Financial Income 1,053 759 1,669Financial Expenses (3,995) (5,646) (9,710) --------- ---------- --------Net Financing Costs (2,341) (4,123) (5,463) --------- ---------- -------- --------- ---------- --------Profit Before Taxation 16,117 15,566 198,316 Income Tax Credit/(Expense) 12,590 (4,663) (56,487) --------- ---------- --------Profit for the Period 28,707 10,903 141,829 ========= ========== ========Attributable to:Equity holders of the parent 28,665 10,643 141,536Minority Interest 42 260 293 --------- ---------- --------Profit for the Period 28,707 10,903 141,829 ========= ========== ========Basic Diluted Earnings per Share 175.9 p 65.3 p 868.6 p ========= ========== ======== Consolidated Interim Statement of Recognised Income & Expense for the six months ended 30 September 2007 Unaudited Unaudited Audited 6 Months 6 Months Year ended ended ended 30/9/07 30/9/06 31/3/07 --------- ---------- --------- £000 £000 £000 Foreign Exchange Losses (4,671) (9,331) (14,505) --------- ---------- ---------Income & Expense Recognised Directly in Equity (4,671) (9,331) (14,505) Profit for the Period 28,707 10,903 141,829 --------- ---------- ---------Total Recognised Income & Expense for the Period 24,036 1,572 127,324 ========= ========== ========= Attributable to :Equity Holders of the Parent 23,994 1,312 127,031Minority Interest 42 260 293 --------- ---------- ---------Total Recognised Income & Expense for the Period 24,036 1,572 127,324 ========= ========== ========= Consolidated Balance Sheet as at 30 September 2007 Unaudited Unaudited Audited 30/9/07 30/9/06 31/3/07 --------- --------- --------- £000 £000 £000Assets------Investment Properties 1,230,834 1,087,656 1,233,885 Other Investments 0 617 617Deferred Tax Assets 1,551 2,384 1,842 --------- ---------- ---------Total Non-Current Assets 1,232,385 1,090,657 1,236,344 --------- ---------- ---------Trade & Other Receivables 36,972 34,226 33,924Investments 231 217 226Cash at Bank 41,711 31,541 31,926 --------- ---------- ---------Total Current Assets 78,914 65,984 66,076 --------- ---------- --------- --------- ---------- ---------Total Assets 1,311,299 1,156,641 1,302,420 ========= ========== =========Equity------Issued Capital 4,074 4,074 4,074Share Premium Account 555 555 555Retained Earnings 881,092 741,971 857,098 --------- ---------- ---------Total Equity Attributable to EquityHolders of the Parent 885,721 746,600 861,727Minority Interest 125 143 135 --------- ---------- ---------Total Equity 885,846 746,743 861,862 --------- ---------- ---------Liabilities-----------Interest Bearing Loans & Borrowings 114,312 122,079 111,940Deferred Tax Liabilities 246,976 218,633 264,686 --------- ---------- ---------Total Non-Current Liabilities 361,288 340,712 376,626 --------- ---------- ---------Bank Overdrafts 183 0 30Interest Bearing Loans & Borrowings 117 2,217 3,188Trade & Other Payables 40,720 45,643 37,729Taxation 23,145 21,326 22,985 --------- ---------- ---------Total Current Liabilities 64,165 69,186 63,932 --------- ---------- ---------Total Liabilities 425,453 409,898 440,558 --------- ---------- ---------Total Equity & Liabilities 1,311,299 1,156,641 1,302,420 ========= ========== ========= Consolidated Statement of Cash Flows for the six months ended 30 September 2007 Unaudited Unaudited Audited 6 Months 6 Months Year Ended ended ended 30/9/07 30/9/06 31/3/07 -------------------- -------------------- -------------------- £000 £000 £000 £000 £000 £000Cash Flows From--------------- Operating Activities --------------------Net Cash Generated from Operations 15,697 16,008 28,716Interest Received 1,053 759 1,673Interest Paid (3,755) (4,879) (9,858)Drawings by Minority Interests in USA partnership (52) (447) (488)U.K. Corporation Tax Paid (5,085) (855) (4,765)Overseas Tax Paid (91) (284) (655) -------- -------- -------Net Cash from Operating Activities 7,767 10,302 14,623Cash Flows from--------------- Investing Activities --------------------Acquisitions and Additions to Investment Properties (3,609) (2,709) (3,488)Proceeds from Sale of Investment Properties 3,774 6,937 19,558 -------- -------- -------Net cash from Investing Activities 165 4,228 16,070Cash Flows from--------------- Financing Activities -------------------New Secured Loans 0 0 20,000Repayment of Secured Loans 0 (24,681) (48,377)Repayment of Mortgage Advances (5,363) (621) (1,186)New Mortgage Advances 7,513 6,188 5,906Dividends Paid 0 0 (10,592) -------- -------- -------Net Cash fromFinancing Activities 2,150 (19,114) (34,249) ---------- ---------- ----------Net Increase/(Decrease) 10,082 (4,584) (3,556) in Cash & Cash EquivalentsCash & Cash Equivalents Brought Forward 31,896 37,285 37,285 Effect of Exchange Rate Fluctuations on Cash Held (450) (1,160) (1,833) --------- -------- ---------Cash & Cash Equivalents 41,528 31,541 31,896 ========= ======== ========= Basis of preparation This interim financial information has been prepared in accordance withInternational Financial Reporting Standard 34 (IFRS) interim financialreporting, applying the accounting policies and presentation that were appliedin the preparation of the company's published consolidated financial statementsfor the year ended 31 March 2007. As required by the Listing Rules of theFinancial Services Authority, the directors have considered the result of theendorsement by the EU of new or changed IFRSs that are applicable or availablefor early adoption in the preparation of the company's next consolidatedfinancial statements for the year ending 31 March 2008 and concluded that theyhave no material effect on either the current or prior periods. The interim financial information in this statement has not been audited orreviewed by auditors pursuant to the Auditing Practices Board guidance on reviewof interim financial information and does not constitute statutory accounts, asdefined in section 240 of the Companies Act 1985. The auditors' report on thestatutory accounts for the year to 31 March 2007 was unqualified and did notcontain a statement under section 237 of the Companies Act 1985. Statutoryaccounts for the year to 31 March 2007 have been delivered to the Registrar ofCompanies. The interim financial statements were approved by the Board ofDirectors on 28 November 2007. The preparation of the interim financialstatements requires management to make assumptions and estimates about futureevents which are uncertain, the actual outcome of which may result in amaterially different outcome from that anticipated. Dividends No dividends were paid in the 6 months to 30 September 2007(6 months to 30September 2006 (Nil) Investment Properties Freehold Long Leasehold Short Leasehold Total 30September2007 £000 £000 £000 £000 Professional Valuation at 1 April 2007 969,833 248,733 15,319 1,233,885Disposals (111) (328) 0 (439)Acquisitions 843 246 0 1,089Additions to Existing Properties 3,272 92 0 3,364Foreign Exchange Movements (5,837) (1,228) 0 (7,065) At 30 September 2007 968,000 247,515 15,319 1,230,834 Properties are not re-valued at the half year. A full valuation of all theGroup's properties will be carried out by external professional valuers at 31March 2008. Related Party Transactions Day-to-day management of the Group's properties in the United Kingdom is mainlycarried out by Highdorn Co Limited and by Freshwater Property ManagementLimited. Mr BSE Freshwater and Mr SI Freshwater are directors of both companiesand are also interested in the share capital of Highdorn Limited. Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are also directors of theparent company of Freshwater Property Management Limited but have no beneficialinterest in either company. The net amounts paid for the provision of various management services charged bythe Group's managing agents Highdorn Co Limited and Freshwater PropertyManagement Limited were £1.6 million (year to 31 March 2007 £2.9 million). At 30 September 2007 £5.0 million was due to Highdorn Co Limited and FreshwaterProperty Management Limited (31 March 2007 £4.4 million). Statement of Director's Responsibilities The Directors confirm that this condensed set of financial statements has beenprepared in accordance with IAS 34 as adopted by the European Union, and thatthe interim management report herein includes a fair review of the informationrequired by DTR 427 and DTR 428. The Directors of Daejan Holdings PLC are listed in the Daejan Holdings PLCAnnual Report for 31 March 2007. A list of current directors is maintained onthe Daejan Holdings PLC website daejanholdings.com. B S E Freshwater Chairman 29 November 2007 Solomon I Freshwater 29 November 2007 This information is provided by RNS The company news service from the London Stock Exchange