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Last checked at 
30 Nov 2011 10:24
Chairman's Statement
On the following pages are the unaudited Accounts for the six months ended 30 September 2011. Revenue is down by 12.5% but earnings per share are down by less than 10%. This is attributable largely to the reduction in corporation tax from 28% to 26%.
Economic conditions remain difficult and there is the possibility that they may get worse. Against this background I consider the company's performance to be robust. The company has made significant purchases during these six months and in so doing has broadened the geographical base of its portfolio whilst not missing the opportunity to buy properties in prime London locations.
By making these purchases at this time the company has used its resources wisely when the market was at a low point. Although the economy may yet worsen these properties will show good appreciation and good profits when the market improves. As a result of these asset purchases, borrowings increased by approximately £30 million during the period. Nonetheless, the company continues to be very sound financially and is very well placed to make further good purchases when the opportunities can be found.
I believe that with the right purchases and the right staff recruitment the company can contemplate the future with equanimity although with the current economic situation the next few years may prove challenging. Nevertheless I am confident that the company can weather any economic storms and come through them even more strongly placed.
The interim dividend is maintained at 50 pence per share and will be payable on 26 March 2012 to shareholders on the register at 24 February 2012.
GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
Half year ended 30.09.2011 £000 | Half year ended 30.09.2010 £000 | Year ended 31.03.2011 £000 | |
Revenue | 21,249 | 24,265 | 47,655 |
Cost of Sales | (8,239) | (9,091) | (18,548) |
Gross Profit | 13,010 | 15,174 | 29,107 |
Administrative expenses Gain on disposal of investment properties | (1,588) 211 | (1,832) 50 | (4,454) 149 |
Operating profit before changes in | |||
fair value of investment properties | 11,633 | 13,392 | 24,802 |
Increase in fair value of investments | - | - | 2,454
|
| |||
Profit from operations | 11,633 | 13,392 | 27,256
|
Change in fair value of derivatives | - | - | (292) |
Net finance costs | (1,885) | (1,751) | (3,404) |
Profit before taxation | 9,748 | 11,641 | 23,560 |
| |||
Taxation - current | (3,332) | (3,604) | (7,425) |
Taxation - deferred | 1,239 | 443 | 836 |
| |||
Taxation | (2,093) | (3,161) | (6,589) |
| |||
Profit attributable to equity shareholders | 7,655 | 8,480 | 16,971 |
| |||
Basic and diluted earnings per share (pence) | 196.3 | 217.5p | 435.3 |
|
All items within the consolidated income statement relate to continuing operations.
GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)
As at | As at | As at | |
30.09.2011 | 30.09.2010 | 31.03.2011 | |
£000 | £000 | £000 | |
Assets | |||
Non-current assets | |||
Property plant and equipment | 2,388 | 2,453 | 2,461 |
Investment properties | 27,196 | 32,348 | 30,314 |
29,584 | 34,801 | 32,775 | |
Current assets | |||
Inventories of trading properties | 295,976 | 252,966 | 259,462 |
Trade and other receivables | 1,368 | 1,738 | 1,192 |
Cash and cash equivalents | 175 | 115 | 116 |
297,519 | 254,819 | 260,770 | |
| |||
Total assets | 327,103 | 289,620 | 293,545 |
| |||
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 |
Cash flow hedge reserve | (2,340) | (3,640) | (2,340) |
Retained earnings | 220,077 | 210,363 | 216,905 |
| |||
| 218,068 | 207,054 | 214,896 |
Non-current liabilities | |||
Long-term borrowings | 80,000 | 55,000 | 50,000 |
Deferred tax | 6,082 | 7,713 | 7,321 |
86,082 | 62,713 | 57,321 | |
Current liabilities | |||
Bank overdrafts and loans | 16,233 | 11,768 | 13,940 |
Trade and other payables | 743 | 920 | 1,485 |
Current tax payable | 3,345 | 3,525 | 3,271 |
Derivative financial instruments | 2,632 | 3,640 | 2,632 |
| 22,953 | 19,853 | 21,328 |
| |||
Total liabilities | 109,035 | 82,566 | 78,649 |
| |||
Total equity and liabilities | 327,103 | 289,620 | 293,545 |
GROUP CASHFLOW STATEMENT (UNAUDITED)
Half year | Half year | Year | |
ended | ended | ended | |
30.09.2011 | 30.09.2010 | 31.03.2011 | |
£000 | £000 | £000 | |
Cash flows from operating activities | |||
Profit from operations | 11,633 | 13,392 | 27,256 |
Adjustment for: | |||
Depreciation | 70 | 75 | 174 |
Loss/(Gain) on disposal of property, plant and equipment | 3 | (17) | 11 |
Gain on disposal of investment properties | (211) | - | - |
(Increase) in fair value of investment properties | - | - | (2,454) |
Cash flow from operations before movement | |||
in working capital | 11,495 | 13,450 | 24,987 |
(Increase)/Decrease in inventories | (36,514) | 3,999 | (2,498) |
(Increase)/Decrease in receivables | (176) | (541) | 5 |
(Decrease)/Increase in payables | (740) | (488) | 125 |
Cash generated from operations | (25,935) | 16,420 | 22,619 |
| |||
Interest paid | (1,885) | (1,751) | (3,404) |
Income taxes paid | (3,261) | (3,891) | (8,027) |
Net cash (outflow)/ inflow from operating activities |
(31,081) |
10,778 |
11,188 |
| |||
Investing activities | |||
Proceeds from disposal of investment properties | 4,029 | 1,100 | 6,600 |
Proceeds from disposal of property, plant and equipment Purchase of property, plant and equipment | 4 (3) | 39 (129) | - (309) |
Capital expenditure on investment properties | (700) | (525) | (1,438) |
Net cash inflow from investing activities | 3,330 | 485 | 4,853 |
| |||
Cash flows from financing activities | |||
| |||
Increase in borrowings | 29,800 | - | - |
Repayment of borrowings | - | (9,800) | (14,700) |
Equity dividend paid | (4,483) | (4,483) | (6,432) |
Net cash inflow/(outflow) from financing activities | 25,317 | (14,283) | (21,132) |
| |||
Net (decrease) in cash and cash equivalents | (2,434) | (3,020) | (5,091) |
| |||
Opening cash and cash equivalents | (13,349) | (8,258) | (8,258) |
Closing cash and cash equivalents | (15,783) | (11,278) | (13,349) |
GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Half year | Half year | Year | |
ended | ended | ended | |
30.09.2011 | 30.09.2010 | 31.03.2011 | |
£000 | £000 | £000 | |
Shareholders' funds as at the beginning of the period |
214,896 |
203,057 |
203,057 |
Reduction in reserve | - | - | 1,300
|
Profit for the period | 7,655 | 8,480 | 16,971 |
Dividends | (4,483) | (4,483) | (6,432) |
Shareholders' funds at the end of the period | 218,068 | 207,054 | 214,896 |
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