25 Nov 2010 11:37
25 November 2010-----------------------------------------------------------------------------------------------
DAEJAN HOLDINGS PLC
INTERIM RESULTS ANNOUNCEMENT for the half year ended 30 September 2010
The Board is pleased to present the Interim Statement for the half year ended 30 September 2010.
30/9/10 | 30/9/09 | 31/3/10 | |||
£000 | £000 | £000 | |||
Profit before tax | 29,306 | 16,163 | 61,129 | ||
Profit after tax | 20,491 | 11,513 | 45,655 | ||
Basic Diluted Earnings per Share | 125.7p | 70.6p | 280.1p | ||
Equity Shareholders' Funds per Share | £49.19 | £46.40 | £48.17 |
·; Profit before tax for the period was £29.3million (2009: £16.2million) after accounting for valuation movements in investment properties and financial instruments. There have been no material changes in overall vacancy and rental levels within the portfolio since March 2010 and the total rental income has continued in line with expectations.
·; An interim dividend of 25p per share will be paid on 4 March 2011 to shareholders on the register on 4 February 2011.
·; The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisers. The valuation surplus of £20.3 million (2009: £4.6 million deficit) arises almost entirely in the UK with US property values showing no significant overall movement in US Dollar terms. Uncertainty continues to dominate the immediate outlook for the property market and the positive movement since 31 March 2010 may not be continued in the remainder of the financial year.
·; Contracts for the redevelopment of Africa House, WC2 have now been signed, with work on site due to start in January 2011. Completion of the work to provide 130,000 square feet of prime office space is scheduled for late 2012.
·; The principal risk factors affecting the remainder of the financial year continue to be exposure to movements in the valuation of the Group's investment properties and any increase in voids due to the current economic circumstances.
·; The Group's prudent approach to risk has resulted in its continued stability and low-gearing of 14.7%. Current development activities are already fully funded and the Group remains well placed to take advantage of new opportunities as they arise.
B S E Freshwater
Chairman
25 November 2010
For further information please contact:
Mark Jenner | Nick Dibden / Clare Thomas |
Company Secretary | Weber Shandwick Financial |
Daejan Holdings PLC | |
Tel: 020 7836 1555 | Tel: 020 7067 0700 |
Consolidated Income Statement for the six months ended 30 September 2010 | |||||||||||||
Unaudited | Unaudited | Audited | |||||||||||
6 Months | 6 Months | Year | |||||||||||
Ended | Ended | ended | |||||||||||
30/9/10 | 30/9/09 | 31/3/10 | |||||||||||
£000 | £000 | £000 | |||||||||||
Total Rental & Related Income | 50,987 | 47,676 | 99,913 | ||||||||||
Property Operating Expenses | (30,467) | (26,249) | (55,983) | ||||||||||
Net Rental & Related Income | 20,520 | 21,427 | 43,930 | ||||||||||
Profit on Disposal of Investment Properties | 3,386 | 2,435 | 5,073 | ||||||||||
Net Valuation Gains/(Losses) on Investment Properties | 20,291 | (4,555) | 24,997 | ||||||||||
Administrative Expenses | (4,899) | (4,714) | (10,013) | ||||||||||
Net Operating Profit before Net Financing Costs | 39,298 | 14,593 | 63,987 | ||||||||||
Fair Value (Losses)/Gains on Financial Instruments and Current Investments | (4,552) | 6,651 | 8,262 | ||||||||||
Financial Income | 243 | 395 | 571 | ||||||||||
Financial Expenses | (5,683) | (5,476) | (11,691) | ||||||||||
Net Financing Costs | (9,992) | 1,570 | (2,858) | ||||||||||
Profit Before Taxation | 29,306 | 16,163 | 61,129 | ||||||||||
Income Tax Expense | (8,815) | (4,650) | (15,474) | ||||||||||
Profit for the Period | 20,491 | 11,513 | 45,655 | ||||||||||
Attributable to : | |||||||||||||
Equity Holders of the Parent | 20,486 | 11,500 | 45,636 | ||||||||||
Minority Interest | 5 | 13 | 19 | ||||||||||
Profit for the Period | 20,491 | 11,513 | 45,655 | ||||||||||
Basic Diluted Earnings per Share | 125.7 | p | 70.6 | p | 280.1 | p | |||||||
Consolidated Statement of Comprehensive Income for the six months ended 30 September 2010 | ||||||||||
Unaudited | Unaudited | Audited | ||||||||
6 Months | 6 Months | Year | ||||||||
ended | ended | ended | ||||||||
30/9/10 | 30/9/09 | 31/3/10 | ||||||||
£000 | £000 | £000 | ||||||||
Profit for the Period | 20,491 | 11,513 | 45,655 | |||||||
Foreign Exchange translation differences | (3,951) | (14,681) | (8,063) | |||||||
Total Comprehensive Income for the Period | 16,540 | (3,168) | 37,592 | |||||||
Attributable to : | ||||||||||
Equity Holders of the Parent | 16,540 | (3,167) | 37,580 | |||||||
Minority Interest | 0 | (1) | 12 | |||||||
Total Comprehensive Income for the Period | 16,540 | (3,168) | 37,592 | |||||||
Consolidated Statement of Changes in Equity for the six months ended 30 September 2010
Issued | Share | Equity | |||||
Share | Premium | Translation | Retained | Shareholders | Minority | Total | |
Capital | Account | Reserve | Earnings | Funds | Interest | Equity | |
£000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Balance at 1 April 2009 | 4,074 | 555 | 29,112 | 725,552 | 759,293 | 135 | 759,428 |
Profit for the Year | 0 | 0 | 0 | 45,636 | 45,636 | 19 | 45,655 |
Other Comprehensive Income for the Year | 0 | 0 | (8,056) | 0 | (8,056) | (7) | (8,063) |
Distributions to Minority Interest | 0 | 0 | 0 | 0 | 0 | (4) | (4) |
Dividends to Equity Shareholders | 0 | 0 | 0 | (11,897) | (11,897) | 0 | (11,897) |
Balance at 31 March 2010 | 4,074 | 555 | 21,056 | 759,291 | 784,976 | 143 | 785,119 |
Balance at 1 April 2010 | 4,074 | 555 | 21,056 | 759,291 | 784,976 | 143 | 785,119 |
Profit for the Period | 0 | 0 | 0 | 20,486 | 20,486 | 5 | 20,491 |
Other Comprehensive Income for the Period | 0 | 0 | (3,946) | 0 | (3,946) | (5) | (3,951) |
Investment by Minority Interest | 0 | 0 | 0 | 0 | 0 | 22 | 22 |
Dividends to Equity Shareholders | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at 30 September 2010 | 4,074 | 555 | 17,110 | 779,777 | 801,516 | 165 | 801,681 |
Consolidated Balance Sheet as at 30 September 2010 | |||||||||||
Unaudited | Unaudited | Audited | |||||||||
30/9/10 | 30/9/09 | 31/3/10 | |||||||||
£000 | £000 | £000 | |||||||||
Assets | |||||||||||
Investment Properties | 1,174,467 | 1,100,804 | 1,155,384 | ||||||||
Deferred Tax Assets | 6,808 | 5,982 | 5,533 | ||||||||
Total Non-Current Assets | 1,181,275 | 1,106,786 | 1,160,917 | ||||||||
Trade and Other Receivables | 42,090 | 37,631 | 40,274 | ||||||||
Investments | 248 | 249 | 256 | ||||||||
Cash at Bank | 37,184 | 28,949 | 28,268 | ||||||||
Total Current Assets | 79,522 | 66,829 | 68,798 | ||||||||
Total Assets | 1,260,797 | 1,173,615 | 1,229,715 | ||||||||
Equity | |||||||||||
Issued Capital | 4,074 | 4,074 | 4,074 | ||||||||
Share Premium | 555 | 555 | 555 | ||||||||
Retained Earnings | 796,887 | 751,497 | 780,347 | ||||||||
Total Equity Attributable to Equity | |||||||||||
Holders of the Parent | 801,516 | 756,126 | 784,976 | ||||||||
Minority Interest | 165 | 134 | 143 | ||||||||
Total Equity | 801,681 | 756,260 | 785,119 | ||||||||
Liabilities | |||||||||||
Interest Bearing Loans & Borrowings | 178,850 | 171,371 | 185,506 | ||||||||
Deferred Tax Liabilities | 196,665 | 182,760 | 191,048 | ||||||||
Total Non-Current Liabilities | 375,515 | 354,131 | 376,554 | ||||||||
Bank Overdrafts | 224 | 500 | 210 | ||||||||
Interest Bearing Loans & Borrowings | 6,572 | 1,492 | 3,313 | ||||||||
Trade and Other Payables | 60,020 | 52,897 | 53,365 | ||||||||
Taxation | 16,785 | 8,335 | 11,154 | ||||||||
Total Current Liabilities | 83,601 | 63,224 | 68,042 | ||||||||
Total Liabilities | 459,116 | 417,355 | 444,596 | ||||||||
Total Equity & Liabilities | 1,260,797 | 1,173,615 | 1,229,715 | ||||||||
Equity Shareholders Funds Per Share | £49.19 | £46.40 | £48.17 | ||||||||
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Consolidated Statement of Cash Flows for the six months ended 30 September 2010 | ||||||||||||||||||||||
Unaudited | Unaudited | Audited | ||||||||||||||||||||
6 Months | 6 Months | Year | ||||||||||||||||||||
Ended | Ended | ended | ||||||||||||||||||||
30/9/10 | 30/9/09 | 31/3/10 | ||||||||||||||||||||
£000 | £000 | £000 | £000 | £000 | £000 | |||||||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||||
Net Cash Generated from Operations | 16,173 | 14,327 | 29,456 | |||||||||||||||||||
Interest Received | 519 | 409 | 565 | |||||||||||||||||||
Interest Paid | (5,861) | (5,295) | (11,541) | |||||||||||||||||||
Investment by/(Distributions to) Minority Interest | 22 | (14) | (4) | |||||||||||||||||||
UK Corporation Tax Refund/(Paid) | 1,482 | (3,769) | (1,249) | |||||||||||||||||||
Overseas Tax Paid | (324) | (179) | (260) | |||||||||||||||||||
Net Cash from Operating Activities | 12,011 | 5,479 | 16,967 | |||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||
Acquisitions and Additions to Investment Properties | (7,748) | (2,992) | (16,932) | |||||||||||||||||||
Proceeds from Sale of Investment Properties | 4,063 | 2,439 | 5,255 | |||||||||||||||||||
Net cash from Investing Activities | (3,685) | (553) | (11,677) | |||||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||
Repayment of Secured Loans | (687) | (687) | (11,375) | |||||||||||||||||||
Repayment of Mortgage Advances | (1,144) | (5,025) | (1,678) | |||||||||||||||||||
New Mortgage Advances | 2,795 | 4,957 | 22,549 | |||||||||||||||||||
Dividends Paid | 0 | 0 | (11,897) | |||||||||||||||||||
Net Cash from Financing Activities | 964 | (755) | (2,401) | |||||||||||||||||||
Net Increase in Cash and Cash Equivalents | 9,290 | 4,171 | 2,889 | |||||||||||||||||||
Cash and Cash Equivalents Brought Forward | 28,058 | 26,174 | 26,174 | |||||||||||||||||||
Effect of Exchange Rate Fluctuations on Cash Held | (388) | (1,896) | (1,005) | |||||||||||||||||||
Cash and Cash Equivalents | 36,960 | 28,449 | 28,058 | |||||||||||||||||||
Notes to the Consolidated Financial Statements for the six months ended 30 September 2010
Basis of preparation
This interim financial information has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 March 2010. As required by the Listing Rules of the Financial Services Authority, the directors have considered the result of the endorsement by the EU of new or changed International Financial Reporting Standards that are applicable or available for early adoption in the preparation of the Company's next consolidated financial statements for the year ending 31 March 2011 and concluded that they have no material effect on either the current or prior periods.
The interim financial information in this statement has not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on review of interim financial information and does not constitute statutory accounts, as defined in section 435 of the Companies Act 2006. The auditors' report on the statutory accounts for the year ended 31 March 2010 was unqualified and did not contain a statement under section 498 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2010 have been delivered to the Registrar of Companies. The interim financial statements were approved by the Board of Directors on 24 November 2010. The preparation of the interim financial information requires management to make assumptions and estimates about future events which are uncertain, the actual outcome of which may result in a materially different outcome from that anticipated.
Notes to the Consolidated Financial Statements for the six months ended 30 September 2010
Segmental Analysis
| UK | USA | Eliminations | Total |
For the six months ended 30 September 2010 | £000 | £000 | £000 | £000 |
Rental and Related Income | 36,911 | 14,076 | 0 | 50,987 |
Property Operating Expenses | (20,590) | (9,877) | 0 | (30,467) |
Profit on Disposal of Properties | 3,281 | 105 | 0 | 3,386 |
Net Valuation Movements on Properties | 21,535 | (1,244) | 0 | 20,291 |
Administrative Expenses | (4,736) | (163) | 0 | (4,899) |
Profit before Finance Costs | 36,401 | 2,897 | 0 | 39,298 |
Net Financing Costs | (4,801) | (5,191) | 0 | (9,992) |
Profit Before Taxation | 31,600 | (2,294) | 0 | 29,306 |
Income Tax (Charge)/Credit | (9,616) | 801 | 0 | (8,815) |
Profit/(Loss) for the Period | 21,984 | (1,493) | 0 | 20,491 |
Capital Expenditure | 1,720 | 6,028 | 0 | 7,748 |
As at 30 September 2010 |
|
|
|
|
Investment Properties | 956,592 | 217,875 | 0 | 1,174,467 |
Other Assets | 61,594 | 32,892 | (8,156) | 86,330 |
Total Segment Assets | 1,018,186 | 250,767 | (8,156) | 1,260,797 |
Total Segment Liabilities | (301,920) | (165,352) | 8,156 | (459,116) |
Capital Employed | 716,266 | 85,415 | 0 | 801,681 |
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| UK | USA | Eliminations | Total |
For the six months ended 30 September 2009 | £000 | £000 | £000 | £000 |
Rental and Related Income | 35,503 | 12,173 | 0 | 47,676 |
Property Operating Expenses | (17,719) | (8,530) | 0 | (26,249) |
Profit on Disposal of Properties | 2,435 | 0 | 0 | 2,435 |
Net Valuation Movements on Properties | (2,713) | (1,842) | 0 | (4,555) |
Administrative Expenses | (4,514) | (200) | 0 | (4,714) |
Profit before Finance Costs | 12,992 | 1,601 | 0 | 14,593 |
Net Financing Costs | (886) | 2,456 | 0 | 1,570 |
Profit Before Taxation | 12,106 | 4,057 | 0 | 16,163 |
Income Tax Charge | (3,538) | (1,112) | 0 | (4,650) |
Profit for the Period | 8,568 | 2,945 | 0 | 11,513 |
Capital Expenditure | 1,806 | 1,186 | 0 | 2,992 |
As at 30 September 2009 |
|
|
|
|
Investment Properties | 890,557 | 210,247 | 0 | 1,100,804 |
Other Assets | 42,350 | 38,498 | (8,037) | 72,811 |
Total Segment Assets | 932,907 | 248,745 | (8,037) | 1,173,615 |
Total Segment Liabilities | (268,292) | (157,100) | 8,037 | (417,355) |
Capital Employed | 664,615 | 91,645 | 0 | 756,260 |
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Notes to the Consolidated Financial Statements for the six months ended 30 September 2010
Dividends
No dividends were paid in the six months ended 30 September 2010 (six months ended 30 September 2009: £Nil).
Investment Properties
The Directors have estimated the value of the investment properties at 31 September 2010 after consultation with the Group's advisers. A full valuation of the Group's properties will be carried out by independent professional valuers at 31 March 2011.
Related Party Transactions
Day-to-day management of the Group's properties in the UK is mainly carried out by Highdorn Co. Limited and by Freshwater Property Management Limited. Mr BSE Freshwater and Mr SI Freshwater are directors of both companies and are also interested in the share capital of Highdorn Co. Limited.
Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are also directors of the parent company of Freshwater Property Management Limited but have no beneficial interest in either company.
The net amounts payable for the provision of various management services charged by the Group's managing agents, Highdorn Co. Limited and Freshwater Property Management Limited, were £1.6million (six months ended 30 September 2009: £1.5million).
At 30 September 2010, £2.0million was due from Highdorn Co. Limited and Freshwater Property Management Limited (30 September 2009: £Nil).
Statement of Director's Responsibilities
The Directors confirm that this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.
The Directors of Daejan Holdings PLC are listed in the Daejan Holdings PLC Annual Report for 31 March 2010. A list of current directors is maintained on the Daejan Holdings PLC website www.daejanholdings.com.
B S E Freshwater
Chairman
25 November 2010