Barrasford Holdings - Interim Results
December 22 1997 - 6:18AM
UK Regulatory
RNS No 9704c
BARRASFORD HOLDINGS PLC
22nd December 1997
BARRASFORD HOLDINGS PLC
Chairman s Statement
I am pleased to present my first Chairman's Statement since the group was
floated on AIM on 15 November 1996. This interim statement is for the six
months ended 30 September 1997. Our first audited accounts will be for the
period from incorporation on 17 September 1996 to 31 December 1997.
Since its formation Barrasford has, as indicated in its AIM admission
document, continued its acquisition policy, purchasing properties with a
combined purchase price of over #23 million. These purchases have been funded
from a mixture of equity and bank finance.
Barrasfords growth has taken place as follows:
1. In October 1996 the Company purchased, through the acquisition of
Barrasford Limited, a terrace of three Victorian houses on the corner of Earls
Court Road and Lexham Gardens in Kensington, London, W8. These properties have
been extensively refurbished, are fully let and currently produce a gross
rental income of #317,000 per annum, against a total cost including
refurbishment costs, of #2.87 million;
2. In November 1996 Barrasford was floated on AIM and simultaneously raised
#4.02 million through a placing and offer at 6p per share;
3. In December 1996 Barrasford purchased Nevem Mansions, a substantial mansion
block in London SW5, for #3.75 million. This produces a rental income of
#352,000 per annum which we anticipate will be improved significantly
following refurbishment in approximately three years time;
4. On 31 December 1996 a property in Philbeach Gardens, London SW5 was
purchased for a total cost of #2.07 million. This property produces a rental
income of approximately #173,000 per annum;
5. In February 1997 Holland Place Chambers, London W8 was purchased for #1.94
million. Refurbishment is progressing well and is expected to lead to a
healthy yield on completion.
6. In April 1997 contracts were exchanged to acquire Furse House, comprising a
parade of eight freehold buildings and a large mews house in Queen s Gate
Terrace, London SW7, for a price of #13.5 million. This purchase was completed
on 30 September, following a placing and offer which raised #12 million at 12p
per share in June 1997.
Profit before taxation for the six months to 30 September1997 was #10,000.
This was achieved in spite of the write off to administrative expenses of an
interest hedging premium of #74,750. Our current borrowings are now protected
for periods from 3 to 5 years, with interest rates capped at 8 per cent. and 9
per cent.
All interest paid is written off to the profit and loss account. As a result
of this accounting policy, which is unusual amongst property companies, we
expect our first audited accounts and those for 1998 to show a loss before
taxation.
We believe our cash balances and agreed loan facilities will be more than
sufficient to cover our planned development programme, the largest part of
which will be at Furse House, which is expected to be completed in 1999.
As and when suitable opportunities arise to purchase properties with the
potential for added value they will be considered, although we will not relax
our criteria for acceptable returns.
My next Chairman s Statement will be in our first Annual Report, which we
anticipate will be released in March 1998.
T F Vaughan
Chairman
Consolidated Profit and Loss Account (unaudited)
Six months to Period from 17
30 September 1997 September 1996
to 31 March 1997
#000 #000
Net rental income 197 143
Deduct:
Administrative expenses (131) (42)
Operating profit 66 101
Interest (net) (56) (102)
Profit/(loss) before taxation 10 (1)
Taxation - -
Retained profit/(loss) for the period 10 (1)
Basic earnings per ordinary share - -
Consolidated Balance Sheet (unaudited)
30 September 1997 31 March 1997
#000 #000
Fixed assets
Investment properties 24,854 10,534
Other tangible assets 472 326
25,326 10,860
Current assets
Debtors 146 35
Bank balances and cash 2,381 2,096
2,527 2,131
Creditors due within one year (34) (112)
Net current assets 2,493 2,019
Total assets less current liabilities 27,819 12,879
Creditors due after more than one year (9,410) (6,110)
Net assets 18,409 6,769
Capital and reserves
Called up share capital 2,689 1,678
Share premium account 15,622 4,998
Merger reserve 89 94
Profit and loss account 9 (1)
Shareholders equity funds 18,409 6,769
Consolidated Cash Flow Statement (Unaudited)
Six months to Period from 17
30 September 1997 September 1996
to 31 March 1997
#000 #000
Net cash (outflow)/inflow from
operating activities (5) 27
Returns on investment and servicing
of finance
Interest received 214 37
Interest paid (272) (131)
Net cash outflow from returns on
investments and servicing of finance (58) (94)
Capital expenditure and financial investment
Additions to investment properties (14,398) (5,956)
Purchase of other tangible fixed
assets - net (184) (269)
(14,582) (6,225)
Acquisition and disposals
Purchase of subsidiary(net of cash acquired) (5) 91
Cash outflow before management of liquid
resources and financing (14,650) (6,201)
Financing
Issues of ordinary share capital 12,012 4,020
New secured loans 3,300 4,450
Expenses paid in connection with share
issues (377) (173)
Net cash inflow from management of
liquid resources and financing 14,935 8,297
Increase in cash in the period 285 2,096
Notes to the Accounts
1. Basis of preparation
The unaudited financial statements for the six months ended 30 September 1997
do not constitute statutory accounts.
2. Taxation
There is no tax charge for the current period
3. Earnings per share
The earnings per share has been calculated on the profit on ordinary
activities after tax and on the weighted average number of shares in issue to
30 September 1997 of 222,966,935 (31 March 1997 - 147,714,095).
4. Reconciliation of movements in shareholders funds
Six months to Period from 17
30 September 1997 September 1996
to 31 March 1997
#000 #000
Profit/(loss) for the period after
taxation 10 (1)
Issues of ordinary share capital 12,012 4,020
Shares issued for non-cash consideration - 2,829
Share issue expenses (377) (173)
Merger reserve created on acquisition (5) 94
Movements in shareholders funds 11,640 6,769
Opening shareholders funds 6,769 -
Closing shareholders funds 18,409 6,769
5. Investment properties
Investment properties at 30 September 1997 comprise:
# 000
Completed investment properties to be revalued at period end 5,077
Investment properties in the course of construction 19,777
24,854
All investment properties are included at cost. No valuations have been
carried out at the interim stage, but a full professional valuation of the
completed properties will be carried out at the period end.
6. Dividends
The directors do not recommend the payment of an interim dividend.
7. Other information
The interim statement was approved by the Directors on 17 December 1997.
A copy of the interim statement will be posted to shareholders and made
available to the public at the Companys Registered Office, 223a Kensington
High Street, London W8 6SG.
END
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