REI Regulatory News (RLE)

16 Aug 2005 07:30

Real Estate Investors PLC16 August 2005 REAL ESTATE INVESTORS PLC Interim results for the six months ended 30 June 2005 Real Estate Investors PLC ("REI" or "the Company"), the commercial propertyinvestment company, today announces its interim results for the six months ended30 June 2005. Chairman's Statement As the Company made a very full statement about its progress in June, I do notpropose repeating that information in these Interim Results. However, I can report that, since our announcement on 9 June 2005, REI hasincreased its market capitalisation as a result of an institutional shareplacing by our brokers, Seymour Pierce Ellis. Six million new shares have beenissued, raising £600,000 (before expenses) and, as a result, we have furtherwidened our shareholder base. Our immediate objectives are to continue to grow the business in a securefashion and for this activity to be reflected in our share price. To this end,we will continue with our successful strategy of acquiring investments byutilising our flexible capital structure, through the issue to vendors of newordinary shares in REI. John J Jack, Chairman 16 August 2005 For further information please contact: Peter Lewin - Chief Executive 01923 776633Malcolm Lewin - Finance Director Christopher JollMJ2 ltd 020 7491 7776 INTERIM CONSOLIDATED RESULTSfor the six months ended 30 June 2005 Six months to Period to Period ended 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Turnover 537 20 214 Administrative expenses (216) (17) (218) ------- ------- -------Operating profit/(loss) 321 3 (4) Profit on sale of investment 47 - -properties (Note 4) ------- ------- -------Profit on ordinary activities 368 3 (4)before interest Interest receivable 17 3 21Interest payable (383) (11) (114) ------- ------- -------Profit/(loss) on ordinary 2 (5) (97)activities before taxation Taxation - - 30 ------- ------- -------Retained profit/(loss) for the 2 (5) (67)period ======= ======= =======Earnings/(loss) per share 0.01p (0.11p) (0.36p) ======= ======= ======= CONSOLIDATED BALANCE SHEETas at 30 June 2005 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Fixed assetsTangible assets 9,251 4,211 5,574Intangible assets - goodwill 121 153 148- negative goodwill (906) - (906) ------- ------- ------- 8,466 4,364 4,816 ------- ------- -------Current assetsStock 9,704 - 9,655Debtors 1,566 78 334Cash at bank 624 1,102 2,028 ------- ------- ------- 11,894 1,180 12,017 Creditors - amounts falling due (1,373) (413) (9,279)within one year ------- ------- -------Net current assets 10,521 767 2,738 ------- ------- -------Total assets less current 18,987 5,131 7,554liabilities Creditors - amounts falling dueafter more than one yearConvertible debt (325) (325) (325)Other (14,643) (2,386) (3,628) ------- ------- ------- (14,968) (2,711) (3,953) ------- ------- -------Net assets 4,019 2,420 3,601 ======= ======= ======= Capital and reservesCalled up share capital 414 264 320Share premium account 3,626 2,116 2,703Capital redemption reserve 45 45 45Shares to be issued - - 600Profit and loss account (66) (5) (67) ------- ------- -------Shareholders' funds 4,019 2,420 3,601 ======= ======= ======= GROUP CASH FLOW STATEMENTfor the six months ended 30 June 2005 Six months to Period to Period ended 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Net cash inflow from operating 605 54 84activities (Note 1) ------- ------- -------Returns on investment andservicing of financeInterest received 9 3 21Interest paid (216) - (95) ------- ------- -------Net cash (outflow)/inflow from (207) 3 (74)returns on investment andservicing of finance Taxation - - (20) Capital expenditure andfinancial investmentPurchase of tangible fixed (4,317) (11) (1,205)assetsSale of investment properties 1,184 - - ------- ------- -------Net cash outflow from capital (3,133) (11) (1,205)expenditure and financialinvestment Acquisitions and disposalsPurchase of subsidiary (2,253) (219) (218)undertakingsPayment of exchange deposit for - - (300)3147398 Limited acquisitionPayment of amounts owed by (67) (837) (837)subsidiaries to vendorsNet cash from purchase of - - 763subsidiaries ------- ------- -------Net cash outflow from (2,320) (1,056) (592)acquisitions and disposals FinancingNet proceeds from issue of - 2,100 2,563sharesReceipts from borrowing 11,218 - 3,000Repayments of borrowing (6,165) - (1,728)Funds deposited with lenders (1,409) - -Finance lease 7 - - ------- ------- -------Net cash inflow from 3,651 2,100 3,835financing ------- ------- -------(Decrease)/increase in cash (1,404) 1,090 2,028 ======= ======= ======= NOTES: 1. Reconciliation of operating profit/(loss) to net cash inflow from operatingactivities Six months to Period to Period ended 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Operating profit/(loss) 321 3 (4)Depreciation 12 - 10Amortisation 3 - 4(Increase) in stock (48) - -Decrease/(Increase) in 149 (74) (100)debtorsIncrease in creditors 168 125 174 ------- ------- -------Net cash inflow from 605 54 84operating activities ======= ======= ======= 2. Reconciliation of net cash flow to movement in net debt Six months to Period to Period ended 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 (Decrease)/increase in cash (1,404) 1,090 2,028in the periodNet cash inflow from (3,651) - (1,272)financing ------- ------- -------Change in net debt resulting (5,055) 1,090 756from cash flowsLoans acquired with - (2,840) (8,949)subsidiariesOther non-cash movements 4 - (4)Net debt at start of (8,197) - -period ------- ------- -------Net debt at end of period (13,248) (1,750) (8,197) ======= ======= ======= 3. Analysis of movement in net debt At 1 January Non-cash At 30 June 2005 Cash flow changes 2005 £'000 £'000 £'000 £'000 Cash at bank 2,028 (1,404) - 624Funds deposited - 1,409 - 1,409with lenders ------- ------- ------- ------- 2,028 5 - 2,033 Debt due within (6,272) 5,959 - (313)one yearDebt due after (3,953) (11,019) 4 (14,968)one year ------- ------- ------- ------- (8,197) (5,055) 4 (13,248) ======= ======= ======= ======= 4. Profit on sale of investment properties Six months to Period to Period ended 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Sale proceeds 1,190 - -Cost of sales (1,143) - - ------- ------- -------Profit on disposal 47 - -of investment ======= ======= ======= 5. Basis of preparationThe financial information for the periods ended 30 June 2004 and 30 June 2005 isunaudited and does not constitute statutory accounts within the meaning of theCompanies Act 1985. It has been prepared on the basis of the accounting policiesset out in the Group's statutory accounts for the period ended 31 December 2004.The figures for the period ended 31 December 2004 have been extracted from thestatutory accounts which have been reported on by the Group's auditors and havebeen delivered to the Registrar of Companies. The auditors' report wasunqualified and did not contain any statement under Section 237 (2), (3) or (4)of the Companies Act 1985. 6. Earnings per shareEarnings per share have been calculated on profit retained for the period of£2,000 and on 38,974,107 ordinary shares of 1p each which is the weightedaverage number of shares in issue during the period ended 30 June 2005. 7. Copies of reportCopies of this report are available from the Company's business address at REIHouse, Bury Lane, Rickmansworth, Hertfordshire WD3 1ED. This information is provided by RNS The company news service from the London Stock Exchange