Wynnstay Props. Regulatory News (WSP)

22 Nov 2005 10:32

Wynnstay Properties PLC22 November 2005 WYNNSTAY PROPERTIES PLC22 NOVEMBER 2005 Wynnstay Properties PLC Interim Results for the six months ended 29th September 2005 Chairman's Statement The results for the half-year show reduced levels of profit and earnings pershare compared with last year relating to non-recurring costs to which I referbelow. Net assets per share reflect the property valuation conducted in March2005 and are thus substantially above the figure I reported to you a year ago. The results may be summarised as follows:- 2005 2004 - Profit on Ordinary Activities before - 18.2% £260,000 £318,000taxation:- Earnings per share: - 18.3% 5.8p 7.1p- Interim dividend per share: - 2.3p 2.3p- Net asset value per share: + 11.5% 377p 338p (restated) As anticipated, rental income declined marginally in the first half, reflectingthe profitable sale of the Bognor Regis properties in February 2005. Thisdecline was largely offset by the income received from the Basingstoke propertywhich we acquired last Autumn, together with increases from rent reviews andlease renewals. The largest of our industrial units at St. Neots, Cambridgeshire, remainedvacant throughout the period, but I am pleased to report that we have recentlymade significant progress as regards its re-letting. Despite this, propertyoutgoings were less than half of those last year, when significant repair costswere incurred. As referred to in my statement to Shareholders in June, our office property inEpsom, which hitherto produced an annual rental of £148,500, became vacant onexpiry of the lease on 29th September. Whilst this will inevitably impact onour income, a property of this nature presents an opportunity for the Company toconsider alternative strategies and these are being actively pursued. I willreport to you further in this connection when announcing our results for thefull year. The increase recorded under "administration and other costs" resultedprincipally from the Board's decision to make an additional single netcontribution of £56,750 in order to improve the pension provisions of ourManaging Director, Michael Cheesmer, who has decided to retire next year, justprior to reaching his 65th birthday. Michael's enormous contribution to theCompany's progress over a period of almost 20 years cannot be overestimated andI will be recording a full tribute to his achievements in my annual statement.Meanwhile, I am sure Shareholders will wish to join the Directors in wishingMichael and his wife, Hazel, a long and happy retirement. We expect to be in aposition to announce his successor shortly, which will be a key appointment intaking the Company forward. The Board is of the view that there is no purpose in making investmentacquisitions unless these will enhance Shareholder value in the medium to longerterm and whilst we continue to evaluate numerous opportunities, no propertyacquisitions took place during the period. Competition in the market remainsfierce, driving prices up and yields down and this situation appears likely tocontinue for some time, especially if interest rates remain at their currentlevels. There can be no doubt that the value of your Company's properties isbeing strongly sustained by these conditions. It is, perhaps, worth noting thata number of other quoted property companies have opted to remain out of themarket and indeed some have made sizeable disposals. Our existing £8 million term loan facility is due to expire in June 2006 and Iam pleased to report that we are at an advanced stage in agreeing improved termswith our bankers for a renewal of this facility. Whilst this year's results are unlikely to be exciting in terms of headlineprofit, our finances remain sound, with net gearing currently below 50%, coupledwith the fact that we have established a much improved portfolio over recentyears. We are well positioned to take advantage of any opportunities that mayoccur. In the light of these results, the Directors have decided to declare anunchanged interim dividend of 2.3p per share. This will be paid on 15thDecember 2005 to those Shareholders on the register on 2nd December 2005. Wewill, of course, decide on the appropriate amount to recommend as a finaldividend having regard to the results for the full year. The financial statements included in this report have been prepared inaccordance with accounting standard FRS 21 which requires that dividendsdeclared after the balance sheet date are not recognised as a liability.Accordingly, it has been necessary to restate last year's corresponding interimresults as well as those for the year ended 25th March 2005. The impact is setout in note 2 on the final page of this report. Philip G.H. CollinsChairman22nd November 2005 Unaudited Consolidated Profit & Loss AccountSix Months ended 29 September 2005 Six Months ended Year ended 29 September 25 March 2005 2004 2005 Restated Restated (Unaudited) (Audited) £'000 £'000 £'000 TurnoverGross Rental Income 812 828 1,676Fees and Commissions 8 9 17 ------------- ------------- ------------- 820 837 1,693 Property Outgoings (24) (51) (88) ------------- ------------- ------------- 796 786 1,605 Administration and Other Costs (341) (261) (523) ------------- ------------- ------------- Operating Profit 455 525 1,082 Profit on Disposal of Investment Properties - - 443 ------------- ------------- ------------- 455 525 1,525 Finance Costs (Net) (195) (207) (432) ------------- ------------- ------------- Profit on Ordinary Activitiesbefore Taxation 260 318 1,093 Taxation (78) (95) (243) ------------- ------------- ------------- Profit on Ordinary Activitiesafter Taxation 182 223 850 Dividends Declared (see note 3) (180) (171) (243) ------------- ------------- ------------- Profit Retained 2 52 607 ------------- ------------- ------------- Basic Earnings per share (see note 1) 5.8p 7.1p 26.9p Unaudited Consolidated Balance Sheetat 29 September 2005 29 September 2005 29 September 2004 25 March Restated 2005 (Unaudited) (Unaudited) Restated (Audited) £'000 £'000 £'000 Fixed AssetsTangible Assets 18,750 19,037 18,751Investments 1 1 1 ----------------- ----------------- ----------------- 18,751 19,038 18,752Current AssetsDebtors 85 81 84Cash at Bank and in Hand 369 217 272 ----------------- ----------------- ----------------- 454 298 356 Creditors: Amounts falling due Within one year (799) (713) (704) ----------------- ----------------- -----------------Net Current Liabilities (345) (415) (348) ----------------- ----------------- -----------------Total Assets Less Current Liabilities 18,406 18,623 18,404 Creditors: Amounts falling due after more thanone year (see note 2) (6,200) (7,792) (6,200) ----------------- ----------------- ----------------- 12,206 10,831 12,204Provision for Liabilities and Charges (304) (160) (304) ----------------- ----------------- -----------------Net Assets 11,902 10,671 11,900 ----------------- ----------------- ----------------- Capital and ReservesShare Capital 789 789 789Capital Redemption Reserve 205 205 205Share Premium Account 1,135 1,135 1,135Capital Reserve 151 151 151Revaluation Reserve 4,672 4,505 4,672Distributable Reserves 4,950 3,886 4,948 ----------------- ----------------- -----------------Equity Shareholders' Funds 11,902 10,671 11,900 ----------------- ----------------- ----------------- Unaudited Consolidated Cash Flow StatementSix Months ended 29 September 2005 Year ended Six Months ended 25 March 29 September 2005 2004 2005 (Unaudited) (Audited) £'000 £'000 £'000 Cash Flow from Operating Activities (Note A) 521 507 1,163 ------------- ------------- -------------Returns on Investment and Servicing of FinanceInterest Received 6 6 10Interest Paid (195) (209) (506) ------------- ------------- -------------Net Cash (Outflow) from Returns onInvestment and Servicing of Finance (189) (203) (496) ------------- ------------- ------------- Taxation Paid (55) (54) (164) ------------- ------------- ------------- Capital Expenditure and Financial InvestmentPurchase of Tangible Fixed Assets (1) (1,570) (1,571)Disposal of Tangible Fixed Assets 1 - 1,468 ------------- ------------- ------------- Net Cash (Outflow) from Investing Activities - (1,570) (103) ------------- ------------- ------------- Equity Dividends Paid (180) (170) (243) ------------- ------------- ------------- Net Cash Inflow/(Outflow) before Financing 97 (1,490) 157 FinancingDrawdown of Bank Loan - 1,192 1,342Repayment of Bank Loan - - (1,742) ------------- ------------- -------------Increase/(Decrease) in Cash in the Period 97 (298) (243) ------------- ------------- -------------Reconciliation of Net Cash Flow to Movement in Net DebtIncrease/(Decrease) in Cash in the Period 97 (298) (243)Cash Inflow/(Outflow) from Debt Financing - (1,192) 400 ------------- ------------- -------------Movement in Net Debt in the Period 97 (1,490) 157 Net Debt at 25 March 2005 (5,928) (6,085) (6,085) ------------- ------------- ------------- Net Debt at 29 September 2005 (Note B) (5,831) (7,575) (5,928) ------------- ------------- ------------- Notes to Cash Flow Statement A. Reconciliation of Operating Profit to Net Cash Inflow from OperatingActivities Six Months ended Year ended 25 March 29 September 2005 2004 2005 £'000 £'000 £'000 Operating Profit 455 525 1,082Depreciation and Amortisation 1 3 4(Increase)/Decrease in Debtors (1) (22) (24)Increase/(Decrease) in Creditors 66 1 101 ------------- ------------- -------------Net Cash Inflow from Operating Activities 521 507 1,163 ------------- ------------- ------------- B. Analysis of Net Debt 29 September Cash Movement 25 March 2005 2005 £'000 £'000 £'000 Cash at Bank and in Hand 369 97 272Debt due after more than one year (6,200) - (6,200) ------------- ------------- -------------Net Debt (5,831) 97 (5,928) ------------- ------------- ------------- Notes 1. Basic earnings per share have been calculated on profits after taxationattributable to ordinary shareholders of £182,000 (2004: £223,000) and on3,155,267 ordinary shares, being the weighted average number in issue duringboth periods. 2. Shown as a creditor falling due after more than one year in the unauditedconsolidated balance sheet at 29 September 2005 is an amount of £6,200,000,representing a bank loan repayable on 5 June 2006. Having resolved that thefacility concerned be renewed for a further term, the Directors consider thatany re-classification of this item at the balance sheet date would beinappropriate. 3. Prior year adjustment In accordance with accounting standard FRS 21, "Events after the BalanceSheet Date", dividends which have been declared after the balance sheet date arenot recognised as a liability. Accordingly, adjustments have been made for thefollowing dividends: Unaudited Six Months Audited Ended Year ended 29 September 2004 25 March 2005 £'000 £'000 Dividend previously provided 73 180 ------------------ ------------------ The prior year adjustment arising as a result is analysed as follows: £'000 Shareholders' Funds at 25 March 2005 as previously stated 11,720Liability for 2005 final dividend not declared at 25 March 2005 180 ------------------Shareholders' Funds at 25 March 2005 as restated 11,900 ------------------ Shareholders' Funds at 26 March 2004 as previously stated 10,449Liability for 2004 final dividend not declared at 25 March 2004 171 ------------------Shareholders' Funds at 25 March 2005 as restated 10,620 ------------------ 4. The figures in these statements do not constitute statutory accounts;those for the year ended 25 March 2005 are extracted from the Group Accountswhich have been filed with the Registrar of Companies and which received anunqualified report from the Auditors and did not contain a statement underSection 237(2) or (3) of the Companies Act 1985 as amended. 5. The interim dividend of 2.3p per share will be paid on 15 December 2005to those shareholders on the register at 2 December 2005. 6. This interim report is being posted to all shareholders and will beavailable on application to the Company's registered office at Cleary Court, 21St. Swithin's Lane, London EC4N 8AD. This information is provided by RNS The company news service from the London Stock Exchange