RNS Number:9618U
Cardiff Property PLC
30 November 2000
The Cardiff Property plc
56 Station Road, Egham, Surrey TW20 9LF
Tel: 01784 437444 Fax: 01784 439157
E-mail: webmaster@cardiff-property.com
Web: www.cardiff-property.com
FOR RELEASE 7.00 AM 30 NOVEMBER 2000
(The group, including Campmoss, specialises in property investment and
development in the Thames Valley. The portfolio, valued in excess of #30m is
primarily located to the west of London, close to Heathrow Airport and in
Surrey and Berkshire.)
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2000
HIGHLIGHTS
Group turnover #8.0m (1999: #3.4m)
Property sales #6.6m (1999: #5.6m)
Net asset value per share 575p (1999: 461p) +25%
Profit before tax #2.6m (1999: #1.7m) +52%
Earnings per share 90.7p (1999: 53.3p) +70%
Total dividend for the year 4.8p per share (1999: 4.1p) +17%
Final dividend 3.4p per share (1999: 2.85p)
Gearing nil (1999: 16%)
Richard Wollenberg, chairman commented:
"The group, including Campmoss, performed well, profits, earnings and net
assets per share have risen substantially.
The long-term economic prospects for the Thames Valley remain strong although
I am of the view that the early part of 2001 will see some easing of the
market. Our strategy is to maintain and increase our investments located to
the west of London and the western sector of the M25 motorway."
For further information
The Cardiff Property plc Richard Wollenberg 01784 437444
Old Mutual Securities Ltd Will Martin 020 7489 4653
Binns & Co Public Relations Ltd Brian Coleman-Smith 020 7786 9600
Chairman's statement
Dear shareholder
The group's policy of concentrating its property investment and development
activities in the Thames Valley, more specifically to the west of London and
western sector of the M25 motorway, has again proved successful. During the
year under review, profits, earnings and net assets per share have risen
substantially.
Pre-tax profits for the year to 30 September 2000 increased by 52% to #2.56m
(1999: #1.69m). The sale of completed developments amounting to #6.6m resulted
in profits of #2.3m. Campmoss Property Company Limited, our 47.62% owned joint
venture undertaking, contributed #0.15m (1999: #0.33m).
Turnover totalled #8.0m (1999: #3.41m) which included gross rental income of #
1.5m (1999: #1.4m) and sales of development properties of #6.6m (1999: #2.0m).
No investment properties were sold during the year (1999: #3.6m). Net profit
attributable to shareholders amounted to #2.56m (1999: #1.68m) and earnings
per share were 90.7p (1999: 53.3p).
Dividends
Your directors recommend a final dividend of 3.4p per share (1999: 2.85p)
making a total dividend for the year of 4.8p per share (1999: 4.1p), an
increase of 17%. The final dividend will be paid on 16 February 2001 to
shareholders on the register on 19 January 2001.
Financial
At the year-end, our commercial and residential investment portfolio, valued
annually by Healey & Baker and Aitchison Raffety respectively, totalled #7.03m
(1999: #6.6m). This figure excludes property in the course of development or
those completed and being offered for sale which are included in stock at
cost.
The group's net assets increased to #16.1m (1999: #13.6m) equivalent to 575p
per share (1999: 461p) an increase of 24.7%. Included in this figure is our
share of the net assets of Campmoss Property of #4.4m (1999: #4.0m).
The group's balance sheet remains strong with cash balances currently placed
on deposit. Bank borrowing facilities have been renewed and remain available
at rates linked to base rate. Long-term borrowings total #3.2m with nil
gearing at the year-end (1999: 16%).
The group's property portfolio
It is well known that the Thames Valley has the highest concentration of
telecommunications and high-tech businesses in the UK and many of the major IT
companies have a presence here. The continuing growth of such companies, as
well as businesses relocating to the Thames Valley remains a dominant factor
in determining the demand for office space.
The majority of prospective tenants continue to require new high-grade office
space, primarily with adequate parking facilities. More recently an important
requirement is the accessibility to a skilled labour force. The ability to
draw on Central London and to the north and west of the M25 motorway meets
this criterion, further establishing the Thames Valley as an ideal location.
Competition for office space has been intense over the last twelve months and
demand for new office buildings in the Thames Valley from both occupiers and
institutional investors has remained competitive. Rents have inevitably
responded to this demand, increasing by up to 15% over the year.
Commercial property located in the Thames Valley has seen above average
capital and rental growth in recent years. This trend has continued during the
last quarter of 2000 but I am of the view that the early part of 2001 may see
some easing of the market. I remain concerned that the accelerating growth
being reported by some of the major IT and telecom companies may not be
matched by future profitability.
Residential values in Surrey and Berkshire have also seen a good increase
during the year. The market needs to pause but demand for new homes and the
difficulty in obtaining planning permissions will limit any major correction
in price levels.
Commercial investments
The majority of our commercial property investment portfolio is located to the
west of Heathrow Airport at Windsor, Egham and Hatton Cross. We also retain a
property in Cardiff. These properties are primarily let on long-term
institutional leases to good covenants and produce an annual gross rental of #
570,000. A number of rent reviews are expected to take place over the next two
years.
Commercial developments
The development of a new 25,000 sq ft headquarters office building known as
The Clock Tower, Brookwood was completed during the year. The subsequent
long-term letting to a prime covenant attracted considerable institutional
interest in the freehold and, as reported at the interim stage, the building
was sold realising a substantial profit for the group. Part of the site has
been retained for either residential or office use.
The Windsor Business Centre, totalling 20,000 sq ft, comprises six individual
business units, three of which are let and two are under offer. The remaining
unit is being upgraded, increasing the amount of office space. The completed
and fully let development is expected to produce gross rents in excess of #
210,000 per annum.
Residential
At the beginning of our financial year we completed the sale of a new
executive house at Thames Ditton, Surrey.
Development work at our major project at Hambledon, Surrey, is complete and
the magnificent 7,000 sq ft country home, set in 8 acres of landscaped
grounds, is being offered for sale. A considerable amount of time and effort
has been expended in completing this exceptional property, a photograph of
which will appear on the inside front cover of the annual report. The high
standard of workmanship and enviable location has attracted a number of
interested parties.
Our property at Clarence Road, Windsor, adjacent to a previously owned site
sold last year to a national house builder, is the subject of a revised
planning application for up to 9 flats. The property continues to be let on a
short-term basis.
Campmoss Property Company Limited
The directors of Campmoss re-assess the value of the company's investment
property portfolio annually, taking into account external advice where
available and market conditions. Property in the course of development is held
at cost. The total portfolio at 30 September 2000 was valued at #20.7m (1999:
#18.5m).
Gross rental income from the commercial investment property portfolio at
Britannia Wharf, Woking, The Priory, Burnham, and Kiln Lane, Bracknell, all
developed by the company, now totals in excess of #1.4m per annum. The
buildings are primarily let to well known covenants on long-term leases.
The commercial property development portfolio includes Gowring House,
Bracknell, York Road and Pakseal House, Maidenhead, and the recently purchased
Tangley Place, Worplesdon. Individual planning applications for new high-grade
offices, totalling in excess of 100,000 sq ft, have been submitted in respect
of these properties. The buildings at Gowring House and York Road have been
let on a short-term basis in anticipation of a lengthy planning process.
Quoted investments
We continue to retain our shareholding in Grantchester Holdings PLC, HACAS
Group PLC and The Celltalk Group plc. The current market value shows a
substantial increase over cost. I remain a director of both HACAS and
Celltalk.
A small investment in an unquoted company has been written down at the
year-end.
Management and staff
The group has had another successful year and on behalf of shareholders I wish
to thank our small management team and joint venture partners for their
support and achievements during the period.
Post balance sheet events and outlook
A further letting at The Windsor Business Centre has now completed and I
remain optimistic of an early sale of our residential property at Hambledon.
As your board takes a cautious view of the market, we have been selective in
making offers for new sites. At the time of writing, offers have been
submitted for a commercial property at Woking and two residential properties
also in Surrey.
Our joint venture partner, Campmoss Property, has completed further lettings
at Kiln Lane, Bracknell, leaving one unit which is currently under offer.
Detailed discussions continue with the relevant local authorities to pursue
the determination of planning consents for the proposed office schemes.
The long-term economic prospects for the Thames Valley remain strong and,
despite the cyclical nature of the property market, our strategy is to
maintain and increase our investment in the area.
The group is well placed to benefit from its existing commercial and
residential development portfolio. I look forward to reporting at the
half-year stage with news of further progress.
J Richard Wollenberg
chairman
Consolidated profit and loss account
for the year ended 30 September 2000
2000 1999
# #
'000 '000
Turnover
Group and share of joint venture undertaking 8,012 3,413
Less: share of joint venture undertaking (785) (769)
______ ______
Group turnover 7,227 2,644
Cost of sales (4,357)(1,109)
______ ______
Gross profit 2,870 1,535
Administrative expenses (512) (507)
Other operating income 167 105
______ ______
Operating profit
Group 2,525 1,133
Share of operating profit in joint venture undertaking 570 689
______ ______
Total 3,095 1,822
Profit on sale of investment property (group) - 307
Profit on sale of other investments (group) - 112
Amounts written off investments (group) (50) -
______ ______
Profit on ordinary activities before interest 3,045 2,241
Interest receivable and similar income
Group 174 102
Share of joint venture undertaking 2 6
Interest payable
Group (242) (297)
Share of joint venture undertaking (420) (363)
______ ______
Profit on ordinary activities before taxation 2,559 1,689
Tax on profit on ordinary activities - (13)
______ ______
Profit on ordinary activities after taxation being profit for the 2,559 1,676
financial year attributable to shareholders
Dividends (134) (117)
______ ______
Retained profit for the financial year 2,425 1,559
====== ======
The above results relate entirely to continuing activities. There were no
acquisitions or disposals of businesses during the year.
Statement of total recognised gains and losses
for the year ended 30 September 2000
2000 1999
#'000 #'000
Group
Profit for the financial year 2,559 1,676
Unrealised surplus on revaluation of investment properties in the 327 185
year
Share of unrealised surplus on revaluation of investment 286 446
properties in joint venture undertaking
______ ______
Total recognised gains and losses relating to the financial year 3,172 2,307
===== =====
Consolidated balance sheet
at 30 September 2000
2000 1999
#'000 #'000 #'000 #'000
Fixed assets:
Tangible assets:
Investment properties 7,025 6,600
Other 18 31
______ ______
7,043 6,631
Investments:
Investment in joint venture undertaking
Share of gross assets 10,401 9,274
Share of gross liabilities (6,005) (5,316)
______ ______
4,396 3,958
Other investments 748 468
______ ______
5,144 4,426
______ ______
12,187 11,057
Current assets
Stock and work in progress 3,290 5,004
Debtors 1,825 389
Cash at bank and in hand 3,464 1,179
______ ______
8,579 6,572
Creditors: amounts falling due within one (1,301) (798)
year
_____ ______
Net current assets 7,278 5,774
______ ______
Total assets less current liabilities 19,465 16,831
Creditors: amounts falling due after more (3,200) (3,200)
than one year
Provisions for liabilities and charges (205) (75)
______ ______
Net assets 16,060 13,556
===== =====
Capital and reserves
Called up share capital 559 587
Share premium account 4,815 4,810
Investment property revaluation reserve 4,242 3,629
Other reserves 2,075 2,046
Profit and loss account 4,369 2,484
______ ______
Shareholders' funds - equity 16,060 13,556
===== =====
Consolidated cash flow statement
for the year ended 30 September 2000
2000 1999
#'000 #'000
Cash inflow from operating activities 3,272 1,412
Returns on investment and servicing of finance (44) (213)
Taxation (5) (17)
Capital expenditure and financial investment (428) 3,618
Equity dividends paid (123) (113)
______ ______
Cash inflow before financing 2,672 4,687
Financing (534)(2,403)
______ ______
Increase in cash in the year 2,138 2,284
===== =====
Reconciliation of net cash flow to movement in net debt
Increase in cash in the year 2,138 2,284
Cash inflow from loan finance - 1,300
______ ______
Movement in net debt in the year resulting from cash flows 2,138 3,584
Net debt at beginning of year (2,188)(5,772)
______ ______
Net debt at end of year (50)(2,188)
===== =====
Reconciliation of operating profit to net cash inflow from
operating activities
Operating profit - group 2,525 1,134
Depreciation charges 13 12
Decrease/(increase) in stock and work in progress 1,714(1,863)
(Increase)/decrease in debtors (1,425) 2,171
Increase/(decrease) in creditors and provisions 445 (42)
______ ______
Net cash inflow from operating activities 3,272 1,412
===== =====
Summary preliminary results
for the year ended 30 September 2000
2000 1999
# #
'000 '000
Turnover 8,012 3,413
Gross rental income 1,454 1,417
Profit on ordinary activities before taxation 2,559 1,689
Taxation - 13
Profit for the financial year attributable to shareholders 2,559 1,676
Dividend: Interim 1.4p (1999: 1.25p) per share 39 33
Final 3.4p (1999: 2.85p) per share 95 84
Earnings per share: Basic 90.7 53.3
Diluted 89.6 53.0
Notes
i) Basic earnings per share has been calculated using the weighted average
number of ordinary shares in issue during the year of 2,822,241 (1999:
3,143,482). Diluted earnings per share has been calculated in accordance
with FRS14.
ii) The taxation charge represents principally irrecoverable ACT.
iii) The board recommends that the final dividend be increased to 3.4p (1999:
2.85p) payable on 16 February 2001 to shareholders on the register at 19
January 2001, giving a total increase for the year of 17%.
iv) The annual general meeting will be held on 25 January 2001.
v) The financial information for the year ended 30 September 1999 has been
extracted from the audited financial statements which have been filed with
The Registrar of Companies. The auditor's report on these financial
statements was unqualified.
vi) The financial information for the year ended 30 September 2000 has been
extracted from the audited financial statements which will shortly be sent
to shareholders and filed with The Registrar of Companies. The auditor's
report on these financial statements is unqualified.
vii) The financial information contained in this preliminary announcement does
not constitute statutory accounts within the meaning of S240 of the
Companies Act 1985.
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