H.k.land Regulatory News (HKLD)

29 Apr 2008 10:40

Hongkong Land Hldgs Ld29 April 2008 To: Business Editor 29th April 2008 For immediate release MCL Land LimitedFirst Quarter 2008 Financial Statements and Dividend Announcement The following announcement was issued today by the Company's 77%-owned subsidiary, MCL Land Limited. For further information, please contact: Hongkong Land LimitedY K Pang (852) 2842 8428G M Brown (852) 2842 8138 (852) 9612 3496Matheson & Co., Limited Philip Hawkins (020) 7816 8136 GolinHarris Sue So (852) 2501 7984 Weber Shandwick FinancialRichard Hews/ Hannah Marwood (020) 7067 0700 MCL LAND LIMITEDFIRST QUARTER 2008 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights • Profit recognised on completion of The Grange• Development site acquired at Yishun Avenue 1 "Uncertainties in financial markets and the slowdown in the global economy couldaffect the residential property sector in Singapore in the short term; however,favourable economic fundamentals should mean that longer-term prospects remainpositive. The expected completion of Mera Springs and The Esta in Singaporeshould benefit MCL Land's overall performance in 2008." Y K Pang, Chairman29 April 2008 Group Results ------------------------------------------------------------------------------------------------------------ Three months ended 31 March------------------------------------------------------------------------------------------------------------ 2008 2007 Change 2008 Change US$m US$m % S$m %------------------------------------------------------------------------------------------------------------Revenue 0.4 0.4 - 0.5 - 17Profit before tax 5.1 0.7 n/m 7.1 n/mUnderlying profit attributable to shareholders * 5.0 0.2 n/m 6.9 n/mProfit attributable to shareholders 5.0 1.0 409 6.9 360------------------------------------------------------------------------------------------------------------ USc USc Sc------------------------------------------------------------------------------------------------------------Underlying earnings per share * 1.36 0.05 n/m 1.87 n/mEarnings per share 1.36 0.27 404 1.87 368------------------------------------------------------------------------------------------------------------ At At At 31.3.2008 31.12.2007 Change 31.3.2008 Change US$m US$m % S$m %------------------------------------------------------------------------------------------------------------ Shareholders'funds 553.3 524.2 6 763.5 10------------------------------------------------------------------------------------------------------------ US$ US$ S$------------------------------------------------------------------------------------------------------------ Net asset value per share 1.50 1.42 6 2.06 10------------------------------------------------------------------------------------------------------------ The exchange rate of US$1=S$1.38 (31.12.2007: US$1=S$1.44) was used fortranslating assets and liabilities at the balance sheet date and average monthlytransaction rates of US$1=S$1.40 (2007: US$1=S$1.53) was used for translatingthe results for the financial period. The financial results for the three months ended 31 March 2008 and 31 March 2007have been prepared based on the International Financial Reporting Standards("IFRS"). These financial results have not been audited or reviewed by theAuditors. * The basis for calculating underlying profit and earnings is set out in Note 4of this report. CHAIRMAN'S STATEMENT Overview Sentiment in the residential property market in Singapore was mixed during thequarter. While price levels remained firm, activity levels were lower. 762 newresidential homes were sold in first quarter of 2008, against 4,783 units in thecorresponding period in 2007 and 1,449 units sold in fourth quarter of 2007. Group Performance MCL Land recorded revenue of US$0.4 million for the quarter ended 31 March 2008,unchanged from the corresponding period in 2007, primarily arising from rentalincome from the Group's investment properties. The underlying profit for theperiod was US$5.0 million, compared with US$0.2 million in the first threemonths of 2007. This improvement was due mainly to the completion in March ofThe Grange, the Group's joint venture project in Singapore, and the sales of theremaining twelve shops at the Kuala Lumpur Suburban Centre in Malaysia. Shareholders' funds were US$553 million at the end of March 2008, up from US$524million at 31 December 2007. Progress billings of US$26 million from developmentprojects collected during the quarter reduced the Group's net debt from US$244million to US$211 million, bringing net gearing down to 38% at the end of March2008, from 47% at the end of 2007. Dividend The Board is not recommending the payment of an interim dividend for the firstquarter of 2008 (2007: nil). Properties No new development projects were launched in Singapore during the period under review, and all projects launched previously had been fully sold by the end of2007 other than two units at Hillcrest Villa. Construction work on the Group's development projects is progressing well. TheGrange obtained its Temporary Occupation Permit in March 2008, and The Esta andMera Springs are expected to complete in the second half of the year. There was a good performance from the Group's joint venture developments inMalaysia. The 300 shop units at Kuala Lumpur Suburban Centre are now fully sold.The 391-unit condominium development, Riana Green Phase 1, in which our jointventure company, MSL Properties Sdn Bhd, has a 50% interest, received a goodresponse with over 68% of the units sold. Progress was also made in the sales ofthe joint venture development in Seremban with 97 of the 260 terrace houses,bungalows and bungalow lots sold by the end of March 2008. Acquisitions The Group's tender for a 99-year leasehold land parcel in Yishun Avenue 1 wasawarded by the Housing Development Board in March 2008. The Group's offer topurchase Casa Nassau at Upper East Coast Road was approved by the Strata TitlesBoard in April 2008 and completion of the purchase is expected in July 2008. Prospects Uncertainties in financial markets and the slowdown in the global economy couldaffect the residential property sector in Singapore in the short term; however,favourable economic fundamentals should mean that the longer-term prospectsremain positive. The expected completion of Mera Springs and The Esta inSingapore should benefit MCL Land's overall performance in 2008. Y K PangChairman29 April 2008 Statement pursuant to Rule 705(4) of the Listing Manual The directors confirm that, to the best of their knowledge, nothing has come tothe attention of the Board of Directors which may render the accompanyingunaudited financial results for the three months ended 31 March 2008 to be falseor misleading in any material respect. On behalf of the Directors Y K PangChairman Hassan AbasDirector 29 April 2008 -------------------------------------------------------------------------------------------MCL Land LimitedConsolidated Profit and Loss Account for the three months ended 31 March------------------------------------------------------------------------------------------- 2008 2007 Change Note US$'000 US$'000 % Revenue 2 365 393 - 7Cost of sales - - - ---------- ----------Gross profit 365 393 - 7 Other operating income 510 2,305 - 78Property related expenses (177) (1,244) - 86Administrative expenses (515) (420) 23Financing charges - - -Share of joint ventures' results 4,941 (355) n/m ---------- ----------Profit before tax 2 5,124 679 n/m Tax 3 (110) 307 n/m ---------- ----------Profit after tax attributable to shareholders 5,014 986 409 ---------- ---------- ------------------------------------------------------------------------------------------- USc USc %------------------------------------------------------------------------------------------- Earnings per share ("EPS") attributable to shareholders - basic and diluted* 4 1.36 0.27 404 ------------------------------------------------------------------------------------------- n/m = not meaningful * Diluted EPS is the same as basic EPS, as there were no outstanding share options. --------------------------------------------------------------------------------MCL Land LimitedConsolidated Balance Sheet-------------------------------------------------------------------------------- At At 31.3.2008 31.12.2007 Note US$'000 US$'000Non-current assets ----------- -----------Plant and equipment 336 354Investment properties 18,371 17,675Investments in joint ventures 37,109 30,743Deferred tax assets 354 319 ----------- ----------- 56,170 49,091 Current assets ----------- -----------Development properties for sale 886,840 761,363Amounts owing by joint ventures 105,077 100,763Debtors and prepayments 62,012 169,953Bank balances 91,280 78,419 ----------- ----------- 1,145,209 1,110,498 ----------- -----------Total assets 1,201,379 1,159,589 ----------- ----------- Non-current liabilities ----------- -----------Borrowings 5 273,127 227,863Deferred tax liabilities 995 958Retention money payable 7,483 6,337 ----------- ----------- 281,605 235,158 Current liabilities ----------- -----------Borrowings 5 29,135 94,760Amounts owing to joint ventures 145 139Creditors 321,418 290,385Current tax liabilities 15,753 14,974 ----------- ----------- 366,451 400,258 ----------- -----------Total liabilities 648,056 635,416 ----------- ----------- Net assets 553,323 524,173 =========== =========== Equity:Share capital and reservesShare capital 276,657 276,657Translation reserve 129,364 105,228Retained earnings 147,302 142,288 ----------- -----------Shareholders' funds 553,323 524,173 =========== =========== Net asset value per share US$1.50 US$1.42 -------------------------------------------------------------------------------------------MCL Land LimitedConsolidated Statement of Changes in Equity for the three months ended 31 March ------------------------------------------------------------------------------------------- Attributable to shareholders --------------------------------------------- Share Translation Retained Total capital reserve earnings equity US$'000 US$'000 US$'000 US$'0002008Balance at 1 January 276,657 105,228 142,288 524,173 ---------------------------------------------Net gain recognised directly in equity - translation difference - 24,136 - 24,136 Profit for the financial period - - 5,014 5,014 ---------------------------------------------Total recognised gain for the financial period - 24,136 5,014 29,150 ---------------------------------------------Balance at 31 March 276,657 129,364 147,302 553,323 ============================================= 2007Balance at 1 January 276,657 77,370 95,154 449,181 ---------------------------------------------Net gain recognised directly in equity - translation difference - 5,724 - 5,724 Profit for the financial period - - 986 986 ---------------------------------------------Total recognised gain for the financial period - 5,724 986 6,710 ---------------------------------------------Balance at 31 March 276,657 83,094 96,140 455,891 ============================================= --------------------------------------------------------------------------------MCL Land LimitedCompany Balance Sheet-------------------------------------------------------------------------------- At At 31.3.2008 31.12.2007 US$'000 US$'000Non-current assets ----------- -----------Plant and equipment 289 304Interests in subsidiaries 108,447 103,650Investments in joint ventures 28,965 27,684 ----------- ----------- 137,701 131,638 Current assets ----------- -----------Amounts owing by subsidiaries 430,330 460,975Amounts owing by joint ventures 103,816 99,558Debtors and prepayments 172 201Bank balances 257 3,029 ----------- ----------- 534,575 563,763 ----------- -----------Total assets 672,276 695,401 ----------- ----------- Non-current liabilityBorrowings 47,108 45,025 Current liabilities ----------- -----------Borrowings 29,135 94,760Amounts owing to subsidiaries 114,091 93,128Amounts owing to joint ventures 145 139Creditors 3,746 5,101Current tax liabilities 2,382 2,276 ----------- ----------- 149,499 195,404 ----------- ----------- Total liabilities 196,607 240,429 ----------- ----------- Net assets 475,669 454,972 =========== =========== Equity:Share capital and reservesShare capital 276,657 276,657Translation reserve 114,402 93,361Retained earnings 84,610 84,954 ----------- -----------Shareholders' funds 475,669 454,972 =========== ===========Net asset value per share US$1.29 US$1.23 ------------------------------------------------------------------------------------------MCL Land LimitedCompany Statement of Changes in Equity for the three months ended 31 March------------------------------------------------------------------------------------------ Share Translation Retained Total capital reserve earnings equity US$'000 US$'000 US$'000 US$'0002008Balance at 1 January 276,657 93,361 84,954 454,972 --------------------------------------------Net gain recognised directly in equity - translation difference - 21,041 - 21,041 Loss for the financial period - - (344) (344) --------------------------------------------Total recognised gain/(loss) for the financial period - 21,041 (344) 20,697 --------------------------------------------Balance at 31 March 276,657 114,402 84,610 475,669 ============================================ 2007Balance at 1 January 276,657 67,077 84,744 428,478 --------------------------------------------Net gain recognised directly in equity - translation difference - 5,156 - 5,156 Profit for the financial period - - 943 943 --------------------------------------------Total recognised gain for the financial period - 5,156 943 6,099 --------------------------------------------Balance at 31 March 276,657 72,233 85,687 434,577 ============================================ -------------------------------------------------------------------------------MCL Land LimitedConsolidated Statement of Cash Flows for the three months ended 31 March------------------------------------------------------------------------------- 2008 2007 US$'000 US$'000 Profit before tax 5,124 679Non-cash items ---------- ---------- Interest income (423) (362) Share of joint ventures' results (4,941) 355 Depreciation 43 77 Fair value gain for investment properties - (1,100) Unrealised translation losses 1 1 Profit on disposal of plant and equipment - (2) ---------- ---------- (5,320) (1,031) ---------- ----------Operating loss before working capital changes (196) (352) Changes in working capital ---------- ---------- Development properties for sale (85,964) (56,534) Amount owing by joint ventures 332 (114) Debtors and prepayments 113,960 (11,152) Creditors 18,148 58,188 ---------- ---------- 46,476 (9,612) ---------- ----------Cash flows generated from/(used in) operations 46,280 (9,964) ---------- ---------- Interest paid (2,106) (3,735) Interest received 472 269 Income tax paid (40) (757) ---------- ---------- (1,674) (4,223) ---------- ---------- Net cash flows generated from/(used in) operating activities 44,606 (14,187) Cash flows from investing activities ---------- ---------- Purchase of plant and equipment (10) (24) Net proceeds from sale of plant and equipment - 2 ---------- ---------- Net cash flows used in investing activities (10) (22) Cash flows from financing activities ---------- ---------- Drawdown of loans 58,263 33,125 Repayment of loans (94,343) (12,187) ---------- ---------- Net cash flows (used in)/provided by financing activities (36,080) 20,938 ---------- ----------Net change in cash and cash equivalents 8,516 6,729Cash and cash equivalents at the beginning of the financial period 78,419 48,801Effect of exchange rate changes 4,345 575 ---------- ----------Cash and cash equivalents at the end of the financial period 91,280 56,105 ========== ========== --------------------------------------------------------------------------------MCL Land LimitedNotes-------------------------------------------------------------------------------- 1 Accounting policies and basis of preparation The financial statements contained in this announcement are consistent withthose set out in the 2007 audited accounts which have been prepared inconformity with International Financial Reporting Standards ("IFRS"), includingInternational Accounting Standards ("IAS") and interpretations adopted by theInternational Accounting Standards Board. There have been no changes to the accounting policies set out in the 2007audited accounts except for the adoption of the following new standards,amendments and interpretations: IFRIC 11 Group Treasury Share TransactionsIFRIC 12 Service Concession ArrangementsIFRIC 13 Customer Loyalty ProgrammesIFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction The adoption of the new interpretations did not have a material impact on theresults of the Group. 2 Revenue and Profit GroupFor the three months ended 31 December 2008 2007 Change US$'000 US$'000 % Profit before tax is determined after including:Fair value gains for investment properties - 1,100 -100Net exchange gain 14 1 n/mRental income 365 371 - 2Interest income 423 362 17Depreciation on plant and equipment (43) (77) - 44Profit on disposal of plant andequipment - 2 -100 ========== ========== n/m = not meaningful 3 Tax The provision for income tax is based on the statutory tax rates prevailing inthe respective countries in which Group companies operate after taking intoaccount expenses which are not tax deductible, income not subject to tax andGroup tax relief. 4 Earnings per share * Group For the three months ended 31 March 2008 2007 Basic earnings per share* Profit attributable to shareholders (US$'000) 5,014 986 Weighted average number of ordinary shares in issue ('000) 369,986 369,986 Basic earnings per share (USc) 1.36 0.27 ========== ========== Underlying earnings per share Underlying profit attributable to shareholders (US$'000) 5,014 194 Basic underlying earnings per share (USc) 1.36 0.05 ========== ========== A reconciliation of the underlying profit and profit attributable to shareholders is as follows: Group For the three months ended 31 March 2008 2007 US$'000 US$'000 Profit attributable to shareholders 5,014 986 Fair value gains of investment properties (net of tax) - (792) ---------- ---------- Underlying profit attributable to shareholders 5,014 194 ========== ========== * Diluted EPS is the same as basic EPS, as there were no outstanding shareoptions. 5 Group borrowings Group At At 31.3.2008 31.12.2007 US$'000 US$'000 Borrowings due within one year - unsecured 29,135 94,760 Borrowings due after one year ---------- ---------- - unsecured 47,108 45,025 - secured 226,019 182,838 ---------- ---------- 273,127 227,863 ---------- ---------- 302,262 322,623 ========== ========== Certain subsidiaries of the Company have mortgaged their development properties as security for bank loans. The net book value of properties mortgaged as at 31 March 2008 was US$401.0 million (31 December 2007:US$325.8 million). 6 Interested person transactions Aggregate value of interested Aggregate value of all interested person transactions person transactions (excluding conducted under transactions less than S$100,000 shareholders' mandate and transactions conducted under pursuant to Rule 920 the shareholders' mandate (excluding transactions pursuant to Rule 920) less than S$100,000) Name of interested person ------------------------------------- ------------------------------------- US$'000 US$'000Three months ended 31 March 2008Hongkong Land Limited - Management consultancy fee 31 - ===================================== ===================================== 7 Issue of shares There were no rights, bonus or equity issues during the period 1 January 2008 to31 March 2008. 8 Others The results do not include any pre-acquisition profits and have not beenaffected by any item, transaction or event of a material and unusual nature. Nosignificant transaction or event has occurred between 31 March 2008 and the dateof this report. - end - For further information, please contact:MCL Land LimitedSteve Chu Full text of the Financial Statements and Dividend Announcement for the threemonths ended 31 March 2008 can be accessed through the internet at www.mclland.com.sg. This information is provided by RNS The company news service from the London Stock Exchange