Wt Wner Usd Regulatory News (WNER)

14 Aug 2009 13:27



Warner Estate Holdings PLC ("Warner Estate" or "Group")

Interim Management Statement

14th August 2009

Business Review:

The Group continues to focus on those actions that generate recurring profitability and cash. 

Recurring profit for the three months to 30 June 2009 is in line with the quarter to 31 March 2009. The key drivers to recurring profitability have been maintaining like for like net rental income coupled with cost savings, of over £3million on an annual basis. Challenging these drivers are the reductions in core asset management fees arising from the Ashtenne Industrial Fund and the Apia Regional Office Fund and reduced distributions from the Group's investment in the Apia Regional Office Fund.

Property:

Cash collection remains strong with over 97.3% of rents collected within 28 days of the June 2009 quarter day across both the wholly owned and the managed portfolios. As referred to in the audited results for the year ended 31 March 2009, made on 31 July 2009 (the "Results Announcement"), the Group's net debt has reduced to £238million, as at 30 July, from £285million, as at 31 March 2009, primarily due to property disposals but also due to positive operational cash flows.

Finance:

As a consequence of the fall in value of the units held by the Group in the Ashtenne Industrial Fund and the Apia Regional Office Fund, Warner Estate's net asset value has fallen below half of its called up share capital. In accordance with S142 Companies Act 1985 Warner Estate will convene an extraordinary general meeting to follow the annual general meeting on 18 September 2009 to consider whether any further steps need to be taken in addition to the current strategy for the Group's recovery.

Discussions with each of the Group's lenders continue as detailed in the Results Announcement. There have been no material developments since that announcement. The Directors will provide updates regarding these discussions as and when appropriate.

-ends-

Enquiries: