TIDMWAFR
RNS Number : 8856Z
Walls & Futures REIT PLC
23 September 2020
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
23 September 2020
WALLS & FUTURES REIT PLC
("Wall & Futures" or the "Company")
Final Results for the year to 31 March 2020
Walls & Futures REIT plc ("WAFR") the Ethical Housing
Investor and Developer, is pleased to announce its final results
and the publication of its audited annual report and accounts for
the year to 31 March 2020. A copy of the annual report and accounts
has been posted on the Company's website, www.wallsandfutures.com,
and can also be viewed here:
http://www.rns-pdf.londonstockexchange.com/rns/8856Z_1-2020-9-23.pdf
Walls & Futures is an ethical housing investor and developer
on a mission to address the unfulfilled demand for specialist
social housing in the UK.
We design, fund and develop specialist social housing which is
let on Full Repairing and Insuring (FRI), inflation linked leases
to our partners and customers who include local authorities,
registered providers and charities. Their tenants are often
individuals with learning & physical disabilities, autism,
dementia, mental health and life changing injuries.
Walls & Futures REIT plc does not have any involvement with
the care delivered within the properties, this is managed by care
providers approved by local authorities.
Highlights Include:
-- Profit GBP625,835 (2018: Loss of GBP18,408)
-- Revenue up 1.5% to GBP138,036 (2019: GBP135,878)
-- Investment property value increased by 21.9%
-- Earnings per share 16.93p (2019: -0.51p)
-- Outperformed MSCI UK residential benchmark by 423% for year ending 2019
Key elements of the final results can be viewed below.
Joe McTaggart, CEO of Walls & Futures REIT plc said:
"We're delighted investments in Specialist supported housing
have created fantastic new homes for residents and much needed
high-quality and flexible capacity to the sector.
Additionally, by our strategy of deal origination and real
estate development has enabled us to create significant value
growth, increasing our property portfolio 21.9%.
We will be seeking to dispose of our remaining London
residential assets and recycle the capital to make further, more
profitable Specialist supported housing investments, translating
our benchmark beating performance into a maiden and regular
dividend."
For further information, contact:
Walls & Futures REIT PLC 0333 700 7171
Joe McTaggart, Chief Executive
Website www.wallsandfutures.com
Allenby Capital Limited (Corporate Adviser)
Nick Harriss/James Reeve 020 3328 5656
Overview
For the calendar year 2019, our portfolio delivered a total
return of 23% against the MSCI UK Residential index, which returned
4.4%. This is the third consecutive year that we have outperformed
our benchmark. We believe our ongoing success is due to our
strategy of proprietary deal origination and real estate
development which creates value growth and contributes towards
building a resilient income stream.
On 3 June 2019, we announced that we had secured a GBP600,000
Revolving Credit Facility from a private lender, Monastery Hire and
Sales Limited. Set to run for an initial 5-year term, at an
interest margin of 3.5% over LIBOR. A fee of 0.1% per annum is
payable on any undrawn balances. It will be used to provide
flexibility to finance the acquisition and refurbishment of
specialist supported housing.
On 4 June 2019, we announced the completion of the acquisition
of a freehold detached bungalow in Didcot, Oxfordshire for
GBP465,000. The property was redeveloped and adapted to provide a
high-quality home with specialist support, for four adults with
physical & learning disabilities. It was successfully handed
over in December 2020 let on a 25-year full repairing and insuring
lease linked to inflation (CPI) to one of the UK's largest and
longest-established providers currently supporting more than 2,500
adults nationwide.
The value growth created is evidenced in this year's results and
the full benefit of the income will be reflected in our 2020-21
results.
We were once again nominated for the "Impact Company" and "NEX
Exchange Company" of the year at the Small Cap 2019 awards. The
annual event shines a light on the best companies and participants
in the small and micro-cap community (sub-GBP100m market
capitalisation).
On 28 August 2019, we announced that we had received a
subscription 142,857 ordinary shares of 5 pence each at a price of
70 pence per share for a total of GBP100,000 from a new
investor.
Post balance sheet event
On 12 June 2020, we announced the disposal of our freehold
property in Wimbledon Park for GBP656,000. Despite the challenges
posed by Covid-19 and the economic backdrop the price achieved
reflected just a 2.9% discount on its valuation and highlights the
underlying strength of our London residential portfolio.
We will continue to review our assets in the Private Rental
Sector with a view of recycling the capital to make further
investments in Specialist Supported Housing.
Outlook for the future
To date our investments in Specialist Supported Housing have
created a total return that has enabled us to outperform the MSCI
UK residential index for three consecutive years.
To translate this performance into a maiden and regular dividend
we intend to dispose of our remaining London residential assets and
to recycle the capital making further and more profitable
investments in Specialist Supported Housing.
We note with disappointment that the share price has been lower
than our net asset value of 107p per share. We believe this is due
to an overhang of shares being held by the market maker. We are
working to increase awareness of Walls & Futures REIT plc and
our investment aims to a wider range of retail and institutional
investors.
We continue to develop relationships with key stakeholders and
customers and are always reviewing new investments which will be
announced as they are finalised.
The directors will continue the same investment policies which
have been successful since joining the AQUIS Stock Exchange.
Finally, we would like to thank all our shareholders for their
support.
Consolidated Income Statement for the year ended 31 March
2020
2020 2019
Notes GBP GBP
TURNOVER 4
138,036 135,878
Cost of sales 13,286 13,607
----------- ----------
GROSS PROFIT 124,750 122,271
Administrative expenses 275,725 286,093
----------
(150,975) (163,822)
Gain/loss on revaluation of tangible assets 797,686 145,000
----------
OPERATING PROFIT/(LOSS) 6 646,711 (18,822)
Interest receivable and similar income 350 522
----------
647,061 (18,300)
Interest payable and similar expenses 7 21,226 -
----------
PROFIT/(LOSS) BEFORE TAXATION 625,835 (18,300)
Tax on profit/(loss) 8 67 108
----------
PROFIT/(LOSS) FOR THE FINANCIAL YEAR 625,768 (18,408)
-----------
Profit/(loss) attributable to: Owners of
the parent 625,768 (18,408)
-----------
Earnings per share expressed
in pence per share: 10
Basic 16.93 -0.51
Diluted 16.93 -0.51
Consolidated Statement of Financial Position as at 31 March
2020
2020 2019
Notes GBP GBP GBP GBP
FIXED ASSETS
Tangible assets 11 631 1,263
Investments 12 - -
Investment property 13 4,625,000 3,170,000
---------------------------------------- -----------
4,625,631 3,171,263
CURRENT ASSETS
Debtors 14 4,489 4,363
Cash at bank 22,306 148,955
---------------------------------------- --------------------
CREDITORS 26,795 153,318
Amounts falling due within
one year 15 18,760 16,683
---------------------------------------- --------------------
NET CURRENT ASSETS 8,035 136,635
---------------------------------------- -----------
TOTAL ASSETS LESS CURRENT LIABILITIES 4,633,666 3,307,898
CREDITORS
Amounts falling due after more
than one
year 16 600,000 -
---------------------------------------- -----------
NET ASSETS 4,033,666 3,307,898
----------------------------------------
CAPITAL AND RESERVES
Called up share capital 21 187,754 180,611
Share premium 22 3,505,154 3,412,297
Fair value reserve 22 1,111,019 313,333
Retained earnings 22 (770,261) (598,343)
---------------------------------------- -----------
SHAREHOLDERS' FUNDS 25 4,033,666 3,307,898
---------------------------------------- -----------
Consolidated Statement of Cash Flows for the year ended 31 March
2020
2020 2019
Notes GBP GBP
Cash flows from operating
activities
Cash generated from operations 1 (148,459) (165,603)
Interest paid (21,226) -
Tax paid - (9)
-------------
Net cash from operating
activities (169,685) (165,612)
Cash flows from investing
activities
Purchase of tangible fixed
assets - (1,894)
Purchase of investment
property (657,314) -
Interest received 350 522
Net cash from investing
activities (656,964) (1,372)
Cash flows from financing
activities
New loans in year 600,000 -
Share issue 7,143 4,259
Share premium paid 92,857 267,494
Net cash from financing
activities 700,000 271,753
-------------
(Decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning (126,649) 104,769
of year 2 148,955 44,186
------------- ------------
Cash and cash equivalents at end of year
2 22,306 148,955
-------------
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