Last checked at 8 Jun 2009 07:00
8 June 2009 Panther Securities PLC ("Panther" or "Group") Interim management statement for the three month period ended 31 March 2009
Panther Securities PLC, is pleased to publish its Interim Management Statement for the three month period ended 31 March 2009.
The main highlights of the period have been:
* Financial derivatives show a combined liability of £9.9 million on their valuation at 31 March 2009. This is a significant reduction compared to the combined liability of £12.0 million at 31 December 2008 (being the latest full set of accounts produced), and even lower when looking at the most resent valuation by HSBC Bank Plc on 29 May 2009 which showed a combined liability of £7.5 million. If the combined financial derivative liability remains at the level on 29 May 2009 until 31 December 2009, there will be a contribution to profits of approximately £4.5 million (ignoring any deferred tax effect). As mentioned previously by the Board, the valuations of financial derivatives are based on future estimates of interest rates, which can be very erratic (especially in the current economic climate) and have changed dramatically recently over short periods. However, the Board believes these are an effective hedge for the borrowings of the Group and that it is unlikely that the Group will pay to exit these financial instruments. * Early in the year the Group contracted to buy five vacant freehold properties, all former Woolwich branches. Of the five properties one, 19 Queen Street, Ramsgate, was purchased for £105,000 and two others were sold at an aggregate profit of £77,000. The final two properties, were purchased, let and then finally sold, for an aggregate profit of £155,000. This combined profit of £232,000, even though small, shows there is still an active market at the right levels and that profits can be created by an experienced property team. * The Group's share portfolio had a market value at 31 March 2009 of £4.9 million (£3.8 million at 31 December 2008) after purchases of £0.49 million during the period. There has been an unrealised £0.58 million increase in value on the shares held at 31 December 2008 (part of the increase relates to shares bought in this quarter). The portfolio consists mainly of a spread of shares in listed property companies and Elektron PLC, an AIM listed electronics company. * As mentioned in the accounts for the year ended 31 December 2008, the Group has been in discussions with various banks, one of which has provided terms that were accepted in principle by the Company. The Board is pleased with the progress made to date on these discussions. * Monies left on deposit with Kaupthing Singer and Friedlander, of £328,000, were frozen when the bank went into administration and the Board provided against the full balance in the consolidated accounts for the year ended 31 December 2008. Recently, the administrators have written to unsecured creditors confirming that they currently estimate that the minimum distribution should be 50p in the pound (which will be paid over two to three years), with the first distribution expected to be in June 2009, being a minimum of 10p in the pound. * On 10 June 2009 the Group is also expecting to receive cash of £325,000 relating to the redemption of an unsecured convertible loan note from Real Estate Investors PLC. * As at 31 March 2009, the Group had cash balances of £13.7 million, excluding the £0.3 million frozen deposit (£13.9 million as at 31 December 2008 (also excluding the £0.3 million frozen deposit)).
General trading update
Rental income and profits from actual trading are consistent with the same period last year. The various write-ups on the Group's financial instruments, if maintained, will assist to counterbalance any property writedowns which may appear on revaluations for the full year.
The Group is seeing potentially good value in properties being offered and is in discussion on a few smaller deals which it hopes to complete soon. As ever we remain upbeat about Panther's future prospects.
Other than as stated above, there has been no significant change in the Group's financial position since 31 December 2008.
Andrew PerloffChairman
Andrew Perloff, Chairman, further commented:
"I believe this is a period that will present great business opportunities for those who are in a position to take advantage of them. We consider Panther is in this happy position!"
For further information contact:
Panther Securities PLC 020 7278 8011Andrew Perloff - Chairman
Simon Peters - Finance Director
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