Town Centre Regulatory News (TOWN)

7 Sep 2007 07:01

Town Centre Securities PLC07 September 2007 For Immediate Release Friday, 7 September 2007 TOWN CENTRE SECURITIES PLC Preliminary results for the year ended 30 June 2007 Town Centre Securities PLC, the Leeds based property investment and developmentcompany, today announces its preliminary results, for the year ended 30 June2007 Financial highlights • Profit o Underlying profit before tax, excluding debenture exchange loss, revaluation surplus, disposal profits and exceptional costs, £8.6m (2006: £8.5m) o Statutory profit before tax £0.4m (2006: £90.9m) • Earnings o Underlying earnings per share 13.2p (2006: 14.1p) o Basic earnings per share 1.0p (2006: 124.8p) • Net assets o Net asset value per share 451p (2006: 487p) o Triple net asset value per share 495p (2006: 472p) • Dividends o Proposed final dividend of 5.4p (2006 5.2p) o Special dividend of 20.0p (2006: 2.0p) paid during the year o Total dividend per share of 27.5p (2006: 9.2p) • Long term financing secured with issue of £150m of 2031 debenture stock at 5.375%, reducing interest costs • Property portfolio valuation of £518m and 6% like for like valuation surplus Operational highlights: • Major office property sold for £64.5m • Excellent progress on development programmes at: o Eastgate Quarter, Leeds o Piccadilly Basin, Manchester o Whitehall Road, Leeds • Major refurbishment projects continue • Acquisition of 2 multi-storey carparks with 2,330 spaces Conversion to REIT status proposed in October 2007 Commenting on the results, Chairman and Chief Executive Edward Ziff, said: "I reported last year concern that the price of property was being pushed toohigh. We have therefore been careful to control the potential dilution ofearnings from property acquisitions and ensure purchases provide the opportunityfor good capital appreciation and future value. Recent interest rate increases have taken the heat out of the investment marketand there has been a marked slow down in transaction activity over the last twomonths. I do not believe that the property market has remained unscathed in theface of the global credit issues and financial uncertainties. As we move into the autumn we will see that property values have fallen. Ifthere is a more realistic attitude towards property values from the investmentmarket we will actively seek to add to our portfolio. We will continue our longterm programme of investment to upgrade and refurbish our assets in order tobuild on our strong foundations. Town Centre Securities remains in a robustfinancial position and I have great confidence for the future." For further information, please contact: Town Centre Securities PLC www.tcs-plc.com -----------------Edward Ziff, Chairman and Chief Executive 0113 222 1234Karen Prior, Finance Director Smithfield 0207 360 4900Reg Hoare / Katie Hunt Other information (a) The proposed final dividend will be paid on 2 January 2008 to ordinary shareholders on the register at the close of business on 7 December 2007. (b) The Annual Report and Accounts will be posted to all shareholders by 21 October 2007 and copies will be available to the public from that date at the Company's registered office, Town Centre House, The Merrion Centre, Leeds, LS2 8LY. (c) The accounting policies upon which the financial information has been prepared are as set out in the Group's 2007 Annual Report and Accounts. This announcement was approved by the Board of Directors on 6 September 2007. Chairman's and Chief Executive's Statement I am very pleased to be reporting an excellent, if complicated, set of results. Our headline profit for the year before tax is £0.4m compared to £90.9m in 2006.However, the meaningful comparison is our underlying pre-tax profit of £8.6mcompared to £8.5m, which excludes all one off items and property valuationsurpluses. Gross revenues have increased and in spite of a higher cost base, aswe invest for the future through the expansion of our car park business anddevelopment team, our underlying operating results remain consistently strong. We have successfully completed and sold our office development at No. 1Whitehall Riverside realising in total a net profit before tax of £26.0m ofwhich £4.9m has been recognised in the year. Long term financing has beensecured with the issue of £150.0m of 2031 debenture stock at a coupon of 5.375%. Financial Review The Board's preferred measure of profit is underlying profit before tax, andexcludes all exceptional items and property disposal profits. This measureincreased to £8.6m (2006: £8.5m). Following the introduction of the new IFRS accounting policies, statutory profitincludes realised and unrealised gains on the revaluation of investmentproperty. This has resulted in vast year on year fluctuations, which are likelyto be a feature of our results in future years when we make major disposals orwhen there are significant changes in values. In addition to the impact of theannual revaluation, in June 2006 completed development property previously heldat cost was independently valued for the first time and in the year to 2007 theloss on our debenture exchange is also included in the result. Underlyingearnings per share, excluding the debenture exchange loss, revaluation surplus,disposal profit and other exceptional costs, are 13.2p (2006: 14.1p). However,statutory profit after tax is £0.5m (2006:£69.3m) and basic earnings per shareare 1.0p (2006: 125.0p). The table below summarises the main differences which have arisen in profit andearnings compared to last year. Statutory Earnings per Profit Share £m penceYear ended 30 June 2006 69.3 125Net operating result 0.3 1Property and share dealing profits 9.4 17Property valuation surplus (57.4) (104)Debenture exchange (41.6) (75)Taxation 21.6 39Other exceptional items (1.1) (2)Year ended 30 June 2007 0.5 1 Net operating resultRental income from investment properties was marginally higher than last year.The loss of income from voids in properties in Sauchiehall Street, Glasgow andDeansgate, Manchester resulting from refurbishment projects has offset rentalgrowth across the portfolio. Expansion of our car park business has seen carpark operations income increase by 30% although there has been a similar levelof increase in property expenses as a direct result. Levels of activity have been accelerated throughout our business, not just incar parks, but within the development, asset management and finance functions,where our teams have been strengthened. This has led to an increase in full yearadministrative expenses. Property and share dealing profits£4.9m was generated by the proceeds in excess of the valuation at June 30 2006of No. 1 Whitehall Riverside, which was sold in August 2006. During the year weinvested in shares at a cost of £17.0m (2006: net investment £4.9m) and soldstock with a book value of £21.8m, realising net profits of £3.9m. At 30 June2007 the market value of our share portfolio was £8.4m including an unrealisedrevaluation movement of £0.5m. An exceptional receipt relating to a leaseassignment generated £2.0m. Property valuationFollowing an independent valuation of our investment properties by Jones LangLaSalle Limited, the revaluation surplus arising is £23.6m (2006: £80.6m) andrepresents a like for like increase in our investment portfolio of 6%. Withmodest market movement, this reflects principally the value added by our assetmanagement team. Financing and Debenture exchangeIn November 2006 we concluded a major refinancing of our long term debt whichreduces our long term interest costs. The company issued £150m of new debenturestock at a coupon of 5.375% repayable in 2031. £127m of the new stock wasexchanged for the company's £85m, 10.5% debenture, repayable in 2021 and thecompany took advantage of the significantly lower coupon to raise a further £23mof new stock. The £150m 5.375% mortgage debenture had a fair value of £144.5m at30 June 2007. This premium over the nominal value is a result of the increase inlong term interest rates since the debenture was issued. Net interest costs for the year were £9.2m (2006 £11.0m), the reduction ismainly due to the receipt of disposal proceeds for No. 1 Whitehall Riverside andalso the benefit arising from the lower debenture coupon as indicated above.Interest cover, expressed as the ratio of operating profit (excluding thevaluation movement on investment properties and disposal profit) to interest was1.92 times (2006: 1.73), reflecting the Group's continuing prudent financialposition. Interest amounting to £0.4m (2006: £1.3m) has been capitalised on thedevelopments completed during the year. Year end borrowings were 17.2% higher at £205.5m (2006: £172.3m) following thecontinuing investment in the development programme, the acquisition ofinvestment properties, car parks and listed investments. Gearing, on net assetsof £244.3m was 84% (2006: net assets £268.9m, gearing 64%). Following theincrease in debenture stock long term fixed interest debt constitutes 73% (2006:49%) of total borrowings, with the balance on floating rates. Total borrowingscompared to total property assets stood at 40% (2006: 34%). Cash FlowOperating cash flow less interest was £8.6m (2006: 8.3m), proceeds from propertysales and listed investments generated £62.3m and £18.8m respectively (2006:£17.7m and £0.5m). These inflows were offset by property acquisitions,capitalised development costs and purchases of listed investments totalling£48.8m (2006: £51.6m) and investment in joint ventures of £10.7m (2006: receiptof £1.9m). During the year, we purchased 1.18 million shares for cancellation atan average price of 541p per share resulting in a cash outflow of £6.3m.Dividends paid totalled £16.0m (2006: £4.6m) which included the special dividendof 20.0p paid in May 2007. TaxationThe company benefited from a tax credit for the year of £0.1m (2006: charge£21.5m). This arises due to the tax credit of £12.4m arising on the debentureexchange offset by £8.9m relating to deferred tax on the revaluation surplus,£2.1m relating to profit on disposal of property and shares and a tax charge onordinary activities of £1.3m. The balance sheet IFRS deferred tax liability is required to exclude indexationallowances on buildings and estimates the liability arising if all the Group'sassets were disposed of at the amounts stated in the accounts at £65.9m (2006:£64.8m). The director's assessment of the capital gains tax liability that wouldarise, if the whole portfolio were sold at the balance sheet date, is £39.5m(2006: £42.2m). Capital reorganisationFollowing approval by shareholders at an EGM on the 9 August 2006 the companyhas reorganised the share premium account, capital redemption reserve and thespecial reserve. In total £21.7m was transferred to the distributable profit andloss account reserve. Operational Review StrategyWe have a clear focused strategy to invest in property with secure and growingincome in good and improving locations. This year, as in recent years, ouractivity has focused on positioning the Company, its assets and financing toensure sustained and secure long-term shareholder returns. We continue to growour rental income and capital value by working our assets to create and addvalue through active asset management Investment PortfolioThe total value of our investment portfolio is £518m (2006: £506m). In a marketwhere pricing has been too aggressive to generate adequate returns we have onlyadded to our portfolio when we have identified interesting opportunities. BathSt, Glasgow adjoins an existing ownership; three properties have been purchasedin Kilmarnock and Cumbernauld in a joint venture and two properties on a saleand leaseback with development potential in Dewsbury and Bradford. Our main focus throughout the period has been to commence refurbishment andre-development of our existing portfolio including: The Merrion Centre, Leeds;Deansgate, Manchester; Central Retail Park, Rochdale; Hope St/Priory St,Wrexham; and West Park, Harrogate. DevelopmentsFollowing the successful completion and sale of No. 1 Whitehall Riverside wewill continue to develop further office buildings on the site. Construction of anew office building pre-let to BDP and restoration of Carvers Warehouse, alisted building, are nearing completion at Piccadilly Basin, Manchester. We areactively acquiring properties in advance of the CPO at Eastgate Quarters, Leedsin partnership with Hammerson plc and Leeds City Council. Car parkingOur return to the car parking business is gathering momentum, following theinvestment of nearly £20m during the year. We have acquired the 680 spacefreehold multi-storey car park at Sheffield railway station in a joint ventureand have taken a long leasehold interest in the 1,650 space car park at ClarenceDock in Leeds. This brings our total car park ownership to 5,000 spaces. Share buybacks and investmentsThe company continues to take advantage of opportunities to buy in its ownshares where it will enhance asset value per share. In the course of the yearthe company acquired 1.2m shares for cancellation.We have also continued to invest in UK quoted companies which we believe areundervalued by the market and where we have identified a strong underlyingproperty portfolio which is likely to out-perform the market. Directors and StaffAs announced last year we are delighted to welcome back Karen Prior, whorejoined us as Finance Director and Company Secretary on the 1 October 2006. Ourpeople are at the heart of this business and it is through their efforts that wecontinue to enjoy success. On behalf of all stakeholders I would like to expressmy sincere thanks to all my colleagues and staff for their continued commitmentand support. REITSFollowing a review of the implications of the new Real Estate Investment Trust("REIT") legislation, the Board has taken the decision to convert to REITstatus. Broadly, this will mean that the Company will be exempt from corporation taxliability on profit from property rental and property disposals and the deferredtax liability on revaluation surpluses, estimated at 30 June 2007 to be £65.9m,will be extinguished. The Company will pay a charge on conversion based on 2% of the value of its taxexempt property assets at the date of entry. We have posted a circular toshareholders to seek consent for the changes to our Articles of Associationwhich are necessary before we can enter into the new REIT regime in October2007. DividendsYour Board is recommending a final dividend of 5.4p (2006: 5.2p) per ordinaryshare, making a total ordinary dividend for the year of 7.5p (2006: 7.2p). Inaddition, in recognition of the exceptional results achieved in the year aspecial dividend has also been paid of 20.0p per ordinary share on 1 May 2007.The final dividend will be paid on 2 January 2008 to shareholders on theregister on 7 December 2007. Outlook I reported last year concern that the price of property was being pushed toohigh. We have therefore been careful to control the potential dilution ofearnings from property acquisitions and ensure purchases provide the opportunityfor good capital appreciation and future value. Recent interest rate increases have taken the heat out of the investment marketand there has been a marked slow down in transaction activity over the last twomonths. I do not believe that the property market has remained unscathed in theface of the global credit issues and financial uncertainties. As we move into the autumn we will see that property values have fallen. Ifthere is a more realistic attitude towards property values from the investmentmarket we will actively seek to add to our portfolio. We will continue our longterm programme of investment to upgrade and refurbish our assets in order tobuild on our strong foundations. Town Centre Securities remains in a robustfinancial position and I have great confidence for the future. Edward ZiffChairman and Chief Executive Consolidated Income StatementYear ended 30 June 2007 2007 2006 Notes £000 £000-------------------------------------------------------------------------------Continuing operationsGross revenue 25,525 24,807Property expenses (2,622) (1,664)-------------------------------------------------------------------------------Net revenue 22,903 23,143Administrative expenses (6,944) (4,631)-------------------------------------------------------------------------------|Analysed as: ||Administrative expenses before exceptional (5,841) (4,631)||items || Exceptional items (1,103) - |------------------------------------------------------------------------------- Other income 2,587 555-------------------------------------------------------------------------------||Analysed as: ||Other income before exceptional items 637 555||Exceptional receipt on lease assignment 1,950 -|-------------------------------------------------------------------------------Profit on disposal of investment properties 4,911 1,312Profit on disposal of listed investments 3,889 43Valuation movement on investment properties 23,586 80,637-------------------------------------------------------------------------------Operating profit 50,932 101,059Loss on debenture exchange (41,552) --------------------------------------------------------------------------------Operating profit 9,380 101,059Finance expense (9,511) (11,156)Finance income 274 150Share of post tax profits from joint ventures 268 817-------------------------------------------------------------------------------Profit before taxation 411 90,870Taxation credit/(charge) 2 134 (21,527)-------------------------------------------------------------------------------Profit for the year 545 69,343===============================================================================Earnings per ordinary share of 25p each:Basic 3 1.0p 124.8pDiluted 3 1.0p 123.9pUnderlying (non-GAAP measures) 13.2p 14.1p=============================================================================== Dividends per ordinary share:Paid during the period 5 29.3p 8.3pProposed 5 5.4p 7.2p=============================================================================== Consolidated Statement of Recognised Income and ExpenseYear ended 30 June 2007 2007 2006 £000 £000-------------------------------------------------------------------------------Profit for the financial year 545 69,343Revaluation gains on other investments 521 2,821-------------------------------------------------------------------------------Total recognised income for the year 1,066 72,164=============================================================================== All recognised income for the year is attributable to equity shareholders. Consolidated Balance SheetAs at 30 June 2007 30 June 30 June 2007 2006 Notes £000 £000-------------------------------------------------------------------------------Non-current assetsInvestment properties 6 483,239 434,361Property, plant and equipment 6 21,952 13,313Investments in joint ventures 12,801 2,239Prepaid operating lease payments 1,050 950Deferred tax assets 216 510-------------------------------------------------------------------------------Total non-current assets 519,258 451,373------------------------------------------------------------------------------- Current assetsInvestments 8,400 12,669Non-current asset held for sale 7 - 56,500Trade and other receivables 7,507 3,865-------------------------------------------------------------------------------Total current assets 15,907 73,034-------------------------------------------------------------------------------Total assets 535,165 524,407------------------------------------------------------------------------------- Current liabilitiesFinancial liabilities - borrowings (30,892) (7,169)Trade and other payables (17,532) (14,288)Current tax liabilities (1,672) (3,624)-------------------------------------------------------------------------------Total current liabilities (50,096) (25,081)-------------------------------------------------------------------------------Net current (liabilities)/assets (34,189) 47,953Non-current liabilitiesFinancial liabilities - borrowings (174,623) (165,130)Deferred tax liabilities (66,160) (65,281)-------------------------------------------------------------------------------Total non-current liabilities (240,783) (230,411)-------------------------------------------------------------------------------Total liabilities (290,879) (255,492)-------------------------------------------------------------------------------Net assets 244,286 268,915------------------------------------------------------------------------------- Shareholders' equityCalled up share capital 8 13,541 13,794Share premium account 146 1,114Other reserves 294 20,657Retained earnings 230,305 233,350-------------------------------------------------------------------------------Total equity 9 244,286 268,915=============================================================================== Net assets per share 451p 487p=============================================================================== Consolidated Cash Flow StatementYear ended 30 June 2007 Year ended Year ended 30 June 30 June 2007 2006 £000 £000 £000 £000-------------------------------------------------------------------------------Cash flows from operating activitiesCash generated from operations 18,390 21,725Interest paid (9,374) (12,315)Interest received 274 150Tax paid (645) (1,224)-------------------------------------------------------------------------------Net cash from operating activities 8,645 8,336------------------------------------------------------------------------------- Cash flows from investing activitiesPurchases of investment properties (23,343) (13,186)Purchases of property, plant and equipment (8,513) (32,925)Purchase of investments (16,925) (5,447)Purchase of joint venture investments (1,844) -Proceeds from sale of investment properties 62,283 17,659Proceeds from sale of property, plant and equipment 28 62Proceeds from sale of investments 18,837 545Dividends received from joint venture 90 75Loan from/(to) joint venture forpurchase of investment property (8,855) 1,861-------------------------------------------------------------------------------Net cash used in investing activities 21,758 (31,356)------------------------------------------------------------------------------- Cash flows from financing activitiesProceeds from issue of share capital 187 388Purchase of own shares for Share Incentive Plan (65) (1)Proceeds from other non-current borrowings - 30,000Repayment of other non-current borrowings (28,000) -Repurchase of share capital (6,229) (4,360)Proceeds from issue of new debenture stock 21,007 -Dividends paid to shareholders (16,026) (4,597)-------------------------------------------------------------------------------Net cash generated from/(used in)financing activities (29,126) 21,430------------------------------------------------------------------------------- Net increase/(decrease) in cash and cash 1,277 (1,590)equivalentsCash and cash equivalents at 1 July (7,169) (5,579)-------------------------------------------------------------------------------Cash and cash equivalents at 30 June (5,892) (7,169)------------------------------------------------------------------------------- The Cash Flow Statement should be read in conjunction with Note 10. Notes to the Preliminary StatementYear ended 30 June 2007 Basis of preparation This preliminary announcement does not constitute statutory accounts within themeaning of section 240 of the Companies Act 1985. The financial information forthe years ended 30 June 2007 and 30 June 2006 have been extracted from theconsolidated financial statements on which the auditors have given anunqualified opinion and which do not contain a statement under Sections 237(2)or 237(3) of the Companies Act 1985. The announcement has been agreed with theGroup's auditors for release. The financial information included in this preliminary announcement does notinclude all the disclosures required by IFRS and accordingly it does not itselfcomply with IFRS. 1. Segmental analysis A business segment is a group of assets and operations engaged in providingproducts or services that are subject to risks and returns that are differentfrom those of other business segments. A geographical segment is engaged in providing products or services within aparticular economic environment that are subject to risks and returns that aredifferent from those of segments operating in other economic environments. The Group's primary segment is business and the Group operates in one businesssegment; comprising property investment and development. The Group's operationsare performed wholly in the United Kingdom. 2. Taxation Taxation for the period is lower (2006: lower) than the standard rate ofcorporation tax in the United Kingdom of 30%. 2007 2006Analysis of charge in period £000 £000------------------------------------------------------------------------------Current tax- current year (8,732) 664- adjustment in respect of prior year (1,280) (1,391)- Corporation tax in respect of property disposal 8,705 2,258------------------------------------------------------------------------------ (1,307) 1,531Deferred tax- current year 812 19,874- adjustment in respect of prior year 361 122------------------------------------------------------------------------------ 1,173 19,996------------------------------------------------------------------------------Taxation (134) 21,527------------------------------------------------------------------------------ 3. Earnings per share Year ended Year ended 30 June 30 June 2007 2006 ------------------------ -------------------- Earnings Earnings Earnings per share Earnings per share £000 Pence £000 Pence----------------------------------------------------------------------------------Earnings and earnings per share 545 1.0 69,343 124.8(Profit)/loss on disposal ofinvestment properties (aftertax) (4,339) (7.9) 1,427 2.5Profit on disposal of listedinvestments (2,722) (5.0) - -Exceptional receipt on leaseassignment (1,365) (2.5) - -Costs associated with transferto REITS 153 0.3 - -Equity-based remuneration 619 1.1 - -Revaluation movement oninvestment properties (23,586) (42.8) (80,637) (145.1)Deferred tax on revaluation ofinvestment properties 8,875 16.1 18,233 32.8Revaluation movement oninvestment properties in jointventures (121) (0.2) (525) (0.9)Loss on debenture exchange 29,173 53.1 - -----------------------------------------------------------------------------------Underlying earnings andearnings per share 7,232 13.2 7,841 14.1================================================================================== The earnings per share is calculated on the weighted average of 55.0m ordinaryshares in issue (30 June 2006: 55.6m). The diluted earnings per share as at 30June 2007 is: 1.0p per share and underlying 13.1p (30 June 2006 is: 123.9p andunderlying 14.0p). 4. Underlying profit To assist shareholders in understanding the underlying results and compare tothose results in previous accounting periods, adjustments made to profit beforetaxation are: 2007 2006 £000 £000-------------------------------------------------------------------------------Profit before taxation 411 90,870Less: revaluation surplus - Group (23,586) (80,637)Less: revaluation surplus - joint venture (121) (525)Less: profits on disposal of investment properties (4,911) (1,312)Less: exceptional receipt on lease assignment (1,950) -Less: profit on disposal of listed investments (3,889) -Add: loss on debenture exchange 41,552 -Add: costs associated with potential transfer to REITSstatus 219 -Add: equity-based remuneration 885 -Add: tax on joint venture 12 123-------------------------------------------------------------------------------Underlying profit 8,622 8,519------------------------------------------------------------------------------- 5. Dividends paid 2007 2006 £000 £000-------------------------------------------------------------------------------2005 final paid: 4.3p per 25p share - 2,3802005 special paid: 2.0p per 25p share - 1,1082006 interim paid: 2.0p per 25p share - 1,1092006 final paid: 5.2p per 25p share 2,071 -2006 special paid with final: 2.0p per 25p share 797 -2007 special paid: 20.0p per 25p share 12,014 -2007 interim paid: 2.1p per 25p share 1,144 -------------------------------------------------------------------------------- 16,026 4,597------------------------------------------------------------------------------- The Directors are proposing a final dividend in respect of the financial yearending 30 June 2007 of 5.4p per share, which will absorb an estimated £2,925,000of shareholders' funds. This dividend will be paid on 2 January 2008 toshareholders who are on the register of members on 7th December 2007. 6. Tangible fixed assets Investment properties Long Freehold leasehold Total £000 £000 £000-------------------------------------------------------------------------------Valuation at 1 July 2006 409,651 24,710 434,361Additions 11,932 13,361 25,293Increase in value on revaluation 21,020 2,566 23,586Reclassification from development properties 537 (537) --------------------------------------------------------------------------------Balance at 30 June 2007 443,140 40,100 483,240=============================================================================== Property, plant and equipment Development properties £000-------------------------------------------------------------------------------Cost at 1 July 2006 12,654Additions 8,486-------------------------------------------------------------------------------Cost at 30 June 2007 21,140------------------------------------------------------------------------------- Fixtures, equipment and motor vehicles £000-------------------------------------------------------------------------------Net book value at 1 July 2006 659Additions 463Disposals (27)Depreciation (283)-------------------------------------------------------------------------------Balance at 30 June 2007 812-------------------------------------------------------------------------------Total property, plant and equipment at 30 June 2007 21,952=============================================================================== 7. Non-current assets held for sale 2007 2006 £000 £000-------------------------------------------------------------------------------Re-classification from investment properties - 56,500------------------------------------------------------------------------------- The above property, No.1 Whitehall Riverside, was disposed of during the yearended 30 June 2007 for £64.5m before disposal costs of £0.9m and two year costsrelating to the un-let space which, as a maximum, could equal £2.2m. 8. Called up equity share capital Authorised 164,879,000 (30 June 2006: 164,879,000) ordinary shares of 25p each. Issued and fully paid Number Nominal of shares Value £000 £000-------------------------------------------------------------------------------At 1 July 2006 55,180 13,794Buy back of own shares (1,178) (294)Issued on take-up of options 161 41-------------------------------------------------------------------------------At 30 June 2007 54,163 13,541=============================================================================== 9. Statement of changes in shareholders' equity 2007 2006 £000 £000-------------------------------------------------------------------------------Profit for the period 545 69,343Dividends (16,026) (4,597)------------------------------------------------------------------------------- (15,481) 64,746Other adjustments (8) -Arising on purchases and cancellation of own shares (6,400) (4,360)Deficit on revaluation of own shares held (65) -New share capital subscribed 187 388Surplus on revaluation of investments 521 2,821Revaluation of historic surplus on revaluation ofinvestments recognised in profit in period (3,318) -Consideration paid for purchase of own shares (held intrust) (65) (1)-------------------------------------------------------------------------------Net (decrease)/increase in shareholders' equity (24,629) 63,594Opening shareholders' equity 268,915 205,321-------------------------------------------------------------------------------Closing shareholders' equity 244,286 268,915------------------------------------------------------------------------------- 10. Cash flow from operating activities 2007 2006 £000 £000------------------------------------------------------------------------------Profit for the period 545 69,343Adjustments for:Tax (134) 21,527Depreciation 283 211Profit on disposal of investment properties (4,911) (1,312)Realised gains on disposal of property, plant andequipment (1) (7)Realised gains on disposal of listed investments (3,889) (43)Loss on debenture exchange 41,770 -Equity-based remuneration 885 -Finance income (274) (150)Finance expense 9,511 11,156Share of joint venture profit after tax (268) (817)Exceptional receipt on lease assignment (1,950) -Movement in revaluation of investment properties (23,586) (80,637)(Increase)/decrease in debtors (174) 235Increase in creditors 583 2,219------------------------------------------------------------------------------Cash generated from operations 18,390 21,725------------------------------------------------------------------------------ 11. "Triple" net asset value per share 2007 2006 £000 £000------------------------------------------------------------------------------Closing net assets 244,286 268,915Add: debenture issue premium (377) 2,130Add: IFRS deferred tax adjustment 60,058 57,032Less: Directors' estimated capital gains tax (39,491) (42,125)Less: debenture mark to market (after tax at 30%) 3,855 (25,291)------------------------------------------------------------------------------ 268,331 260,661------------------------------------------------------------------------------Shares in issue ('000) 54,163 55,178"Triple" net asset value per share 495p 472p This information is provided by RNS The company news service from the London Stock Exchange