TAP.L Regulatory News (TAP)

27 Apr 2005 16:58

Teesland Advantage Property Inc Tst27 April 2005 TEESLAND ADVANTAGE PROPERTY INCOME TRUST LIMITED (the "Company") PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS The Directors announce the statement of results for the period fromincorporation on 16 June 2004 to 31 December 2004 (the "Period") as follows:- INTRODUCTION Teesland Advantage Property Income Trust Limited (the "Company") is aclosed-ended, Guernsey incorporated investment company investing in commercialproperty in the United Kingdom and the Channel Islands, held through itsprincipal subsidiary TAPP Property Limited (together with the Company, the"Group"). During the Period the Group was privately owned. In February 2005, following theend of the accounting period under review, the Company raised £76m of new equitythrough a Placing and Offer for Subscription. Subsequently, the Company'sOrdinary Shares were admitted to the Official List of the UK Listing Authorityand the Channel Islands Stock Exchange and commenced trading on the London StockExchange and the Channel Islands Stock Exchange ("Admission"). Whilst the Income Statement at the Period end shows a loss for the Group of£1,803,697 this relates to a period of time during which the Group's initialproperty portfolio was being acquired; an activity financed by a high level ofdebt, which included shareholders' loans as well as bank debt. Accordingly thisloss cannot be interpreted as an indication of the Group's expected performancepost Admission. New shareholders of the Company are required to be sent these results as amatter of record although none were shareholders during the period the resultscover. INVESTMENT ACTIVITY During the Period the Group was accumulating a portfolio of properties with theexpectation that the Company would subsequently be floated on the stock marketearly in 2005. CAPITAL STRUCTURE The capital structure of the Company prior to Admission was comprisedpredominantly of debt as explained in the Company's Prospectus dated 28 January2005. Immediately following Admission on 8 February 2005, the Company's capitalstructure was re-financed by a combination of the £76 million raised from theissue of shares together with a new loan facility from The Bank of Scotlandwhich resulted in a debt to equity ratio of approximately forty per cent ofgross property assets. OUTLOOK As Admission occurred so recently it is difficult to make comment on futureprospects based on so short a track record. However, I am pleased to confirm thesuccessful fund-raising as described above and to welcome new shareholders tothe Company. The Group's Property Fund Adviser, Teesland Asset Management Limited, hasadvised the Company that the outlook for the commercial property market remainsgood, and I believe this bodes well for the performance of the Company. The first occasion to comment more fully on the performance of the Company sinceAdmission will be in the Interim Report to 30 June 2005, which is expected to bepublished in August 2005, and I look forward to writing to you then with morenews about the Group's overall performance and outlook for the future. CHRISTOPHER N FISHChairman 27 April 2005 GROUP INCOME STATEMENTFOR THE PERIOD ENDED 31 DECEMBER 2004 Period 16 June to 31 December 2004 £RevenueRental income from investment properties 3,252,857 ExpenditureProperty outgoings (103,482)Asset manager's fee (50,000)Other expenses (64,601)Set up costs (148,152) (366,235) Net operating profit for the periodbefore 2,886,622finance costs Finance income / (costs)Interest receivable 58,648Interest payable and similar charges (3,637,196)Amortised debt issue costs (569,000) (4,147,548) Net loss on ordinary activities before (1,260,926)taxation Taxation on net loss on ordinary 66,949activities Net loss on ordinary activities after (1,193,977)taxation Loss from investmentsLoss on revaluation of investment (609,720)properties Net loss for the period (1,803,697) GROUP BALANCE SHEET AS AT 31 DECEMBER 2004 As at 31 December 2004 £Non-current assetsInvestment properties 104,895,000 Current assetsCash and cash equivalents 633,727Debtors 1,745,669 2,379,396 Total assets 107,274,396 Current liabilitiesBank loans (93,665,807)Shareholder loans and related accrued interest (11,771,582)Other creditors due within one year (3,635,649)Income tax payable (5,053)Total liabilities (109,078,091) Net liabilities (1,803,695) Represented by:Share capital 2Reserves (1,803,697) Shareholders' deficit (1,803,695) GROUP STATEMENT OF CHANGES IN EQUITYFOR THE PERIOD 16 JUNE TO 31 DECEMBER 2004 Issued share Reserves Total capital £ £ £ Opening at 16 June 2004 - - - Shares issued on 2 - 2incorporation Net loss for the period - (1,803,697) (1,803,697) At 31 December 2004 2 (1,803,697) (1,803,695) GROUP CASH FLOW STATEMENTFOR THE PERIOD ENDED 31 DECEMBER 2004 Period 16 June to 31 December 2004 £ Operating activities Net operating profit for the period beforefinance costs 2,886,622Adjustment for:Increase in operating debtors (1,673,667)Increase in operating creditors 2,501,514 3,714,469Interest received 58,648Interest paid (1,701,114) Net cash inflow from operating activities 2,072,003 Investing activitiesPurchase of investment properties (105,425,585) Net cash outflow from investing activities (105,425,585) Financing activitiesProceeds from issue of ordinary share 2capitalLoans from shareholders 10,890,500Draw down of bank loans 94,014,500Debt issue costs (917,693) Net cash inflow from financing activities 103,987,309 Net increase in cash and cash equivalents 633,727Opening cash and cash equivalents - Closing cash and cash equivalents 633,727 For further information contact: John R Le Prevostfor Anson Fund Managers LimitedCompany Secretary Tel: Guernsey 01481 722260 27 April 2005 This information is provided by RNS The company news service from the London Stock Exchange