Last checked at 27 Nov 2008 09:14
CHAIRMAN'S STATEMENT
On the following pages are the unaudited Accounts for the six months ended on 30 September 2008. This statement is usually a simple case of comparing this year's figures with last year's but such momentous events have taken place in the last few weeks that it is hard to draw the line at 30 September. Nevertheless I believe that the time to reflect on these events and those which may take place in the next few weeks is in the Second Interim Management Statement which will be issued in February 2009.
Gross rental income is up by over 19% and property expenses have been sufficiently well contained for net rental income to be up by over 30%. However whilst gross sales of properties are up by over 16%, the cost of properties sold has risen so markedly that the net income from sales of properties is down by over a third.
Included in the cost of properties sold is a £3 million writedown of the value of the properties acquired most recently. This is in accordance with an International Accounting Standard which does not allow set-off against properties which have risen in value. The full effect of this will be detailed in the full year's accounts.
Administrative expenses have fallen by over 20% but net finance costs have more than doubled. This rise was predicted but the benefit of recent cuts in base rate will not be felt instantly because so many interest charges are set in relation to LIBOR.
The net effect of these various changes is that earnings per share are down by over 40%. Nevertheless the Company remains soundly based with tight control over its finances and will be well placed to take advantage of new opportunities when the recession has been weathered. Furthermore the interim dividend is maintained at 50 pence per share and will be payable on 30 March 2009 to shareholders on the register at 27 February 2009.
GROUP INCOME STATEMENT (UNAUDITED)
| Half year | Half year | Year | |
| ended | ended | ended | |
| 30.09.2008 | 30.09.2007 | 31.03.2008 | |
| £000 | £000 | £000 | |
| Revenue | 28,578 | 24,432 | 54,338 |
| Cost of Sales | (15,910) | (7,673) | (18,347) |
| Gross Profit | 12,668 | 16,759 | 35,991 |
| Administrative expenses | (1,477) | (1,874) | (4,207) |
| Operating profit before changes in | |||
| fair value of investment properties | 11,191 | 14,885 | 31,784 |
| Increase in fair value of investments | - | - | 1,784 |
| Profit from operations | 11,191 | 14,885 | 33,568 |
| Net finance costs | (3,444) | (1,458) | (4,039) |
| Profit before taxation | 7,747 | 13,427 | 29,529 |
| Taxation - current | (2,325) | (4,096) | (8,358) |
| Taxation - deferred | 79 | 13 | (503) |
| Taxation | (2,246) | (4,083) | (8,861) |
| Profit attributable to equity shareholders | 5,501 | 9,344 | 20,668 |
| Basic and diluted earnings per share (pence) | 141.1p | 239.7p | 530.1p |
All items within the consolidated income statement relate to continuing operations.
GROUP BALANCE SHEET (UNAUDITED)
| As at | As at | As at | |
| 30.09.2008 | 30.09.2007 | 31.03.2008 | |
| £000 | £000 | £000 | |
| Assets | |||
| Non-current assets | |||
| Property plant and equipment | 2,652 | 2,701 | 2,719 |
| Investment properties | 36,386 | 34,092 | 36,203 |
| 39,038 | 36,793 | 38,922 | |
| Current assets | |||
| Inventories of trading properties | 275,752 | 210,081 | 271,361 |
| Trade and other receivables | 1,412 | 1,196 | 1,118 |
| Cash and cash equivalents | 269 | 772 | 802 |
| 277,433 | 212,049 | 273,281 | |
| Total assets | 316,471 | 248,842 | 312,203 |
| Equity and liabilities | |||
| Capital and reserves attributable | |||
| to equity holders of the company | |||
| Share capital | 195 | 195 | 195 |
| Capital redemption reserve | 55 | 55 | 55 |
| Capital reserve | 25 | 25 | 25 |
| Other reserve | 56 | 56 | 56 |
| Retained earnings | 188,834 | 178,051 | 187,426 |
| 189,165 | 178,382 | 187,757 | |
| Non-current liabilities | |||
| Long-term borrowings | 95,000 | 45,828 | 95,000 |
| Deferred tax | 9,618 | 9,181 | 9,697 |
| 104,618 | 55,009 | 104,697 | |
| Current liabilities | |||
| Trade and other payables | 1,075 | 1,202 | 3,081 |
| Bank overdrafts and loans | 19,288 | 10,157 | 12,685 |
| Current tax payable | 2,325 | 4,092 | 3,983 |
| 22,688 | 15,451 | 19,749 | |
| Total liabilities | 127,306 | 70,460 | 124,446 |
| Total equity and liabilities | 316,471 | 248,842 | 312,203 |
GROUP CASHFLOW STATEMENT (UNAUDITED)
| Half year | Half year | Year | |
| ended | ended | ended | |
| 30.09.2008 | 30.09.2007 | 31.03.2008 | |
| £000 | £000 | £000 | |
| Cash flows from operating activities | |||
| Profit from operations | 11,191 | 14,885 | 33,568 |
| Adjustment for: | |||
| Depreciation | 100 | 81 | 190 |
| Loss on disposal of property, plant and equipment | 2 | 11 | 21 |
| (Increase) in fair value of investment properties | - | - | (1,784) |
| Cash flow from operations before movement | |||
| in working capital | 11,293 | 14,977 | 31,995 |
| (Increase) in inventories | (4,391) | (26,192) | (87,472) |
| (Increase) in receivables | (294) | (134) | (57) |
| (Decrease)/Increase in payables | (2,005) | (1,749) | 128 |
| Cash generated from operations | 4,603 | (13,098) | (55,406) |
| Interest paid | (3,446) | (1,461) | (4,043) |
| Income taxes paid | (3,985) | (6,530) | (10,901) |
| Net cash (outflow) from operating activities | (2,828) | (21,089) | (70,350) |
| Investing activities | |||
| Interest received | 2 | 3 | 4 |
| Proceeds from disposal of investment properties | - | - | - |
| Proceeds from disposal of property, plant and equipment | 15 | 34 | 60 |
| Purchase of property, plant and equipment | (48) | (220) | (382) |
| Capital expenditure on investment properties | (183) | (12) | (339) |
| Net cash (outflow) from investing activities | (214) | (195) | (657) |
| Cash flows from financing activities | |||
| Increase in borrowings | 390 | 16,928 | 67,411 |
| Repayment of borrowings | - | - | - |
| Equity dividend paid | (4,093) | (3,899) | (5,848) |
| Net cash (outflow)/inflow from financing activities | (3,703) | 13,029 | 61,563 |
| Net (decrease) in cash and cash equivalents | (6,745) | (8,255) | (9,444) |
| Opening cash and cash equivalents | (8,798) | 646 | 646 |
| Closing cash and cash equivalents | (15,543) | (7,609) | (8,798) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Half year | Half year | Year | |
| ended | ended | ended | |
| 30.09.2008 | 30.09.2007 | 31.03.2008 | |
| £000 | £000 | £000 | |
| Shareholders' funds as at 1 April | 187,757 | 172,937 | 172,937 |
| Profit for the period | 5,501 | 9,344 | 20,668 |
| Dividends | (4,093) | (3,899) | (5,848) |
| Shareholders' funds at the end of the period | 189,165 | 178,382 | 187,757 |